S&OP - Sales & Operational Planning
The objective of Sales & Operations Planning (S&OP) is to arrive at a business “Game Plan” to help manage and allocate critical resources to meet the needs of the customer at the least cost.
S&OP is a set of decision making processes to balance demand and supply, to integrate financial and operational planning, to link high level strategic plans with day-to-day operations and to review performance measures for continuous improvement.
This process brings together all the plans for the business (sales, marketing, development, manufacturing, sourcing, and financing) into one (1) set of integrated plans.
The process is used to update and synchronise changes in the market and/or business strategy.
Most corporate organisational structures are vertical in nature. A well functioning S&OP process horizontally aligns customer demand through to the supply chain planning, minimises working capital and optimises the profit generating ability of the company.
It creates a company wide game plan to execute the company's strategy.
A functioning S&OP Process enables companies to react immediately to demanding fluctuations in insecure and unstable economical times.
Although S&OP is a well-established, proven tool in the industry, nearly a quarter of companies still do not use it, and many others could be realising greater benefits than they do today from their S&OP efforts. The reason behind this, is in many cases the difficulties in implementing the S&OP process. Different divisions in an organisation have different goals and targets, trying to aligning them can cause resistance to implement the S&OP process. Without external help it is almost impossible to overcome this resistance and to successfully implement an S&OP process.
VTC GROUP along with it’s very experienced consultants has a great track record of successfully implementing S&OP process in organisations with lasting sustainability.
Please reach out to us to learn more about how we help our clients gain substantial benefits from implementing an S&OP process. Please contact us at www.vtc-group.com
