Sales and Operational Planning (S&OP): Process, Benefits, and Best Practices

I agree with this post. This is because it expounds on the importance of sales and operations planning as a tactical planning tool for an organization. Sales and operations planning involve the top team in an organization who meet up regularly to review their demand and supply projections. They also review their financial projections in the process. The meetings allow collaboration and information exchange. In so doing, the various stakeholders are able to align every aspect of the supply chain to the overall business plan. As illustrated in the post, sales and operations planning also helps the management in ensuring that there is prudent allocation of resources. The resources include time, money and staff. In so doing, there is a reduction in wastage and thus ensuring optimal returns. In addition, it also allows for proper management of the inventory. As clearly noted, the healthcare industry is unique from other industries. As such, there is the need for efficiency in the supply chain management process. This is only possible with collaboration and information exchange. 

Sales and operational planning ensures that a company has the resources and abilities to strategically position itself in an industry. According to Grimson and Pyke (2007), an organization benefits from sales and operational planning through strategic planning – since a company can utilize the available resource to plan for the future. Through operational planning, a company can implement tactical plans and align them with its business’ objectives. 

Overall it is important for an organization to have effective sales and operations plan since they allow them to streamline its business processes and gain competitive adavantgae within an industry. If a company has established an effective sales and operational planning process, it is likely to improve its performance and productivity – through product management, promotional planning and reduce inventory build-up. 

Reference  

Grimson, A. J. & Pyke, D. (2007). Sales and operations planning: An exploratory study and framework. The International Journal of Logistics Management. 18. 322-346. 10.1108/09574090710835093.