What is Sales and Operations Planning?
03/10/2012
Sales and operations planning is a structured process covering the decision making and communications related to supply and demand.
The main goal is for the decision making group is to optimise and continually improve the operational functions of their organisation, which can include:
- Product development and marketing
- Finance
- Customer development and sales
- Product supply
In addition the Sales and operations planning process includes the following:
- Sales plan
- Production plan
- Customer lead-time (backlog) plan
- Inventory plan
- Strategic initiative plan
- Product development plan
- Resulting financial plan
Benefits of a Solid Optimised S & OP Process
Ultimately successful S & OP implementation reduces costs and improves operations and sales making organisations more effective in what are still very hard economic conditions.
However, getting this process right requires expert support plus access to more detailed modelling tools especially for the more difficult strategic planning stage. Total Logistics are expert independent S & OP consultants and can help you create a fully integrated Sales and operations process that will give you greater business agility, enabling you to reconcile supply and demand plans and determine your requirements over the short, medium and long term.
In a recent example, Total Logistics delivered successful S & OP process planning to a global manufacturer. As a result of this, finished goods inventory holding was reduced by more than 50% and operational costs were reduced by nearly 10%.
For more information call Total Logistics on 0118 977 3027 or visit http://www.total-logistics.eu.com
