Sales and operations planning (S&OP) is an important process that aims to ensure that customer demand can be met by the production, distribution and purchasing.
The primary target of the Sales and Operations Planning (S&OP) process is to determine what and how much your customers are going to buy, and your capability to meet this demand. A second target of the S&OP process is to align plans with financial goals. At a minimum, this implies that financial goals may need to be revised, but there are also a number of strategic alternatives available for the organization to increase sales or decrease costs.
At Optilon, we believe that the right prioritization needs to be in place for the S&OP process to provide true value: a proactive process is key to achieving true benefits. Traditionally, the S&OP process is conducted on a monthly basis, with aggregation of volumes to product family level. While this might be sufficient in some cases, a key concept in Optilon’s “one plan” approach is to enable a process that is proactive, while presenting plans on any level, from product mix to product family, with flexible time buckets. The benefits with this is two-fold: there is no misalignment with operational plans in production, and you will be able to act on market changes when they occur, rather than according to a pre-defined schedule. Optilon’s modular supply chain architecture enables this through a focus on integrating our independently selected technologies to form holistic S&OP solutions. With this foundation, demand and supply balancing, as well as operations and executive review can be conducted with speed and efficiency.
Learn more about our offerings in Supply Chain Planning.