Successful Sales and Operations Planning in 5 Steps
A robust and successful SCM system that supports sales and operations planning ( S&OP ) is vital for bringing together executives from major operational departments like sales, materials/procurement, manufacturing, transportation, marketing, and finance. Every successful S&OP process requires a strong SCM system with reliable, accurate information. Multiple tasks and analyses must be completed prior to the executive S&OP meeting to make best use of the monthly planning session to speed up the decision-making process. That process includes:
- Demand Review of base-line demand as well as demand sensing and demand shaping activities
- Supply Review of inventory levels and production capabilities Innovation and Strategy Review of the impact of new product introductions (NPIs)
- Financial & Executive Business Review of company financial objectives and ability to stay within working capital constraints and impacts of decisions regarding all major departments.
This white paper provides tips to establish a successful S&OP process that allows teams to confidently make tough decisions like various trade-offs between customer service, inventory investments, production capabilities, supply availability and distribution concerns.



