Are you a manufacturing or operations focused business? Sales and Operations Planning can help you consistently achieve your optimum level of output.
To The Point Sales and Operations Planning provides a monthly business management process around a single, integrated business plan. Instead of fragmented, individual plans for the different functions of your business, your leadership team will be able to plan and overview the entire business, and make sure it functions well as a cohesive unit.
What is Sales and Operations Planning?
S&OP is an iterative business management process that brings key-stakeholders together around a single focus and goal.
Without properly managing your supply and demand, you will not be able to plan for, or manage, your ideal output. S&OP helps leadership reach a consensus on how to best manage resources monthly, which ensures that changes in the market or your business are taken into account and planned for.
Properly implemented, a S&OP process will continually review customer demand and supply resources, and "re-plan" (for future actions and anticipated results) according to an agreed moving timeline.
By understanding changes from the previously agreed sales and operations plan, management will understand how the company achieved its current level of performance. This is crucial in keeping an aligned primary focus.
What are the benefits of To The Point Sales and Operations Planning?
- Generate a single, agreed view across all departments.
- Provide a monthly update to the financial forecast for the business.
- Allow the relevant departments to generate action plans to address any issues identified: ie. resource increases or decreases, and any investment needs.
- Have a clear understanding of the causes of any shortcomings, and stimulate intelligent debate.
- The process allows for early ‘gap identification’, and for action planning, discussion and review.
- Grow the top line of the business while reducing operating costs and inventory required.
- Planning assumptions that are aligned across the organisation.
The effective use of Sales and Operations Planning, or S&OP, can have a significant positive impact on a business. Sometimes the biggest benefits aren't obvious at first, but in the long-term add the most value.
Any manufacturing or operations organisation should consider the approach, and “To The Point” can help you to understand the potential hidden benefits. We will ensure the process is designed to optimise these benefits for your organisation.
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