15 Dec 2022

118

Sales and Operations Planning (S&OP) Process

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Academic level: College

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Sales and operations organizing procedure is a two-way process centered on developing business performance and linking demand levels with supply levels. The following are possible ways in which sales and also operations planning can be integrated. 

Sales and operations planning ensures that both the operations and sales teams work for a common planned objective. Sales and operations planning also ensures the flow of information is concentrated on the company’s common goal (Moon, 2018). Arranging regular meetings with operational and sales personnel further ensures that the sales team offers client preference and demand related information. Also, it prompts operations personnel to perform the processes of production accordingly. 

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Additionally, the firm must also match its supply ability and economic objectives with its demand plan. Linking these ensures that conscious decisions are correctly done thus achieving the firm’s long-term goals (Sadler, 2007). Also, integrating demand planning to prepare for production so at to ensure the output is equal to the demand is vital. This will make sure excess products stocks outs and inventory are avoided. 

Other methods which may be integrated are; linking economic planning with production, supply planning and procurement with production planning, as well as connecting various business functions with Information Technology. This is to confirm the presence of an adequate flow of facts, and a well-versed decision-making process since the operations aligned to supply chain like production and procurement are integrated into downstream and upstream operations (Sadler, 2007). Also, every process needs the aid of Information Technology to function competently thus making IT a support procedure. 

References 

Ian Sadler. (12 June 2007). Logistics and Supply Chain Integration. SAGE Publication, London. 

Mark A. Moon. (9, April 2018). Demand and Supply Integration: The Key to World-Class Demand Forecasting : Second Edition. Walter de Gruyter GmbH & Co KG, Boston. 

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StudyBounty. (2023, September 14). Sales and Operations Planning (S&OP) Process .
https://studybounty.com/sales-and-operations-planning-sandop-process-essay

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