Sales & Operations Planning (S & OP)
The process of sales & operations planning (S & OP) has always played a key role in firms' ability to synchronize the application with the constraints of the production system.
The S & OP was traditionally regarded as a process reserved for top management decision making sure that the tactical plans of all business functions - sales, marketing, operations - were aligned and global support business strategies.
This concept has evolved towards a model of integrated planning in which the various functions meet regularly and continuously re-align their decisions. The result is a shared operational plan, capable of balancing supply and demand, and consistently in line with strategic plans and financial objectives of the company.
- An S & OP is effective when it outputs a feasible plan, based on consensus between different functions, allowing answering the question in the most profitable for the company. The process is divided into several phases:
- Collect data from different functions on demand, supply capacity and financial situation, harmonize in terms of levels of aggregation, measurement units, time horizons, functional areas
- Define the level of demand and evaluated against the constraints of the production system and the financial goals of the company
- Prepare a shared operational plan that allows you to balance supply and demand in the most profitable
- To operationalize the plan and share it with all the functions\
- Periodically measure the effectiveness of the plan, review and correct exceptions against objectives
Sales & Operations Planning Software
Sales & Operations Planning (S & OP) software solution help to ensure full alignment of the operational demand and business objectives of the company. The solution allows you to review the plans from the perspective more useful to every function, from financial, marketing and sales, providing a high level of visibility. The scheduling functionality of this kind of software included with the system of performance indicators of the solution, who can constantly updated plan. Planners can focus on critical issues and resolve them quickly while maintaining a constant focus on margins and profitability of the company. |