Sales & Operations Planning


Sales & Operations Planning

The objectives of Sales & Operations planning is to monitor sales, inventory investment and plan customer service levels to meet the market expectations.

Inside your business S&OP is used to agree a single forecast to meet the business requirements of Sales, Marketing and Finance.

The numbers are used to develop a procurement plan to meet demand forecasts in line with the businesses plans and to set an agreed inventory investment level to better manage inventory and projected out of stocks.

Do you examine?

  • Back orders and what caused them
  • What corrective action should be taken to avoid back orders
  • What projected back orders can you see
  • Are there competitor supply problems to exploit
  • Are some products over selling forecast
  • Are some products under selling forecast

What numbers should be reviewed?

  • Sales
  • Returns
  • Out of stocks
  • Inventory Holding
  • Service Levels
  • Promotions

Our Sales & Operations Planning Services

In our sales and operations planning service, we will assist you identify:

  • factors that influence forecast accuracy (including availability of product, demand history, capability of computer system, other available history (i.e., new products, design changes, changes in customer base, promotional actions, economic indicators))
  • determine the items to be forecast and how far in the future it should extend
  • determine how frequently the forecast be made, reviewed and revised
  • determine an acceptable tolerance of forecast error
  • condition data by removing the effects of unusual events (outliers) that are not likely to happen again
  • consider problems that may require data adjustments, such as unusual weather, addition or loss of major customers, special promotions, and changes in price or package size.
  • determine the most accurate forecasting method
  • devise an ABC-analysis of the items to forecast: A-items are reviewed each month by management, whereas only those B- and C-items with a significant deviation between forecast and actual demand need to be reviewed by management
  • have marketing, sales and logistics talk to each other using a common language and set of guidelines

Do you have a sales & operations planning process?

Do you want to exploit opportunities to improve sales?

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