S&OP: Sales & Operations Planning
S&OP – Throw a double six to start?
Sales and Operations Planning (s&op) focuses a business on one integrated business plan with a single set of metrics. It resides at the heart of the planning function, and delivers benefits to all of the main activities –
- supply chain
Benefits of S&OP
- Forces alignment at multiple levels of the company
- Brings people together to make decisions
- Finance Integration
- Helps you be more responsive
- Identify and resolve poor performance
- Keep on top of risk management
- Improves accountability and team working
Total Logistics are experts in S&OP and can help you create an integrated sales and operations plan that will give you:
- greater business agility
- enable you to reconcile supply and demand plans
- help you determine your supply chain requirements over short, medium and long-term horizons.
In a recent example, Total Logistics delivered successful S&OP solutions to a global manufacturer. As a result of this:
- finished goods inventory holding was reduced by more than 50%
- operational costs were reduced by nearly 10%.
Sales and Operations Process Improvement
“I’m doing it already”
This is one of the most common comments businesses make. However, in reality, this is usually only partially true.
The majority of companies do perform some elements of the sales and operations process, but not all of them. This means that the main issue resides in the misunderstanding of the complete process, rather than the company’s ability to execute it.
So the starting point is to address the misunderstanding of what true S&OP is. One of the best ways of demonstrating the holistic process is to visualise it in a more familiar way.
- Read our Sales and Operations Planning case study for a Japanese HQ manufacturer
- Download our PDF on how to play the sales and operations planning game and win!
- Watch our video on the benefits of sales and operations planning