and Operations Planning
Sales and operations planning (S&OP) is a critical business process for manufacturing companies. The objective of S&OP is to effectively match supply and demand, responding to continual change. S&OP can be difficult to execute well, because it crosses
Forecasts realistic demand for multiple products from multiple customers.
Typical problems attributed to ineffective S&OP include unhappy customers, lost sales, stock-outs, excess and obsolete inventory, material shortages, expediting, overtime, low productivity, premiums, late shipments, long lead times, late supplier deliveries, quality defects,
and late new product launches.
S&OP should be a disciplined senior management process, which:
Synchronizes supply from internal resources and multiple suppliers.
Assures the company is focused, aligned and engaged to address its priorities.
Provides senior management with control of the business.
We can help your company establish an effective S&OP process, based on industry best practices. We can help your company learn and apply effective demand forecasting simulation tools. We can also help you to implement collaborative forecasting with your customers.
For additional information see the white paper “Sales and Operations Planning Disciplines of Market Leaders”.