If you are head of sales for a company that has developed an exciting new product or a new type of service that has enormous potential, you have to be tasked with preparing the sales channel, distribution channels, sales staff expenses, and revenue projections and introduce a sound Sales and Operations Planning (S&OP) Process into your organization. To summarize, sales and Operations Planning applications allow for organization-wide order processing, transportation and warehouse management along with planning and forecasting tools.
Stated in terms of units, dollars, or both, the aggregate forecast is used for sales and production planning (or for sales and operations planning) purposes, without a defined purpose and mission, your sales operations team is destined for failure, also, at the tactical level for the intermediate term.
Sales and operations planning (S&OP) is an integrated business management process through which the executive, leadership team continually achieves focus, alignment and synchronization among all functions of the organization, enterprise resource planning systems are software systems that prove to be of great help in operations planning, administration and to optimize internal business processes, comprising of manufacturing, supply chain, financials, customer relationship management, human resources as well as warehouse management, especially, by taking an integrated sales and operations planning approach, organizations can improve financials, optimize the total product cost and minimize supply risks.
Digitize your operations and connect products, assets, people, processes, and supply chain partners in order to achieve breakthrough efficiency, flexibility, and growth and distinguish the difference between Sales and Operations Planning and Integrated Business Planning.
Your planning organization gains visibility to multi-channel demand and, with the right tools in place, begins using unfiltered customer data without the need to manipulate it, actually using demand variability to overcome the limitations of deterministic optimization techniques, very few accurate, and several outdated as well as unstable forecasts and plans are the main reasons for numerous downstream problems in the supply chain, equally, once implemented it links the strategies of your organization to plans and execution, therefore helping your organization succeed.
With S&OP, your organization will review demand forecasts monthly and calibrate a supply response.
In day to day Operations, most of the planning resources and energies are deployed on products in various stages of volume production, a modular approach gives you the ability to add more sophistication and capability as your organization evolves, esuring that when one item falls behind the scheduled plan, there is an easy way to re-plan all other items of the affected product, thus decreasing work-in-process and jeopardizing delivery dates.
Want to check how your Sales and Operations Planning Processes are performing? You don’t know what you don’t know. Find out with our Sales and Operations Planning Self Assessment Toolkit: