SALES & OPERATIONS PLANNING
Sales & Operations Planning (S&OP) is an integrated business management process through which the executive leadership team continually achieves focus, alignment and synchronization amongst all the functions of the organization. The S&OP plan includes a common operational plan which guides all aspects of an organization to aim towards the achievement of the organization’s goals.
Included within the S&OP plan is an updated sales plan, demand plan, production plan, inventory plan, customer lead time/backlog plan, cost plan, new product development plan, strategic initiative plan and the resulting financial plan. When accomplished properly, the S&OP process enables a superior and effective supply chain management process.
- Reduction in finished goods inventory
- Improved forecast accuracy
- Visibility of metrics across the organization
- Improved customer service
- Stable production rates
- Faster and controlled new product introductions
- Reduction in over-stock and obsolescence
- Improved order fill ratio
- Shorter customer lead times for make to order parts
- Enhanced visibility into demand & supply across the company
- Better promotional planning capabilities
- Increased accuracy of budgeting & revenue forecasting