Sales
and operations planning is critical to supply chain management
success. Not only does it promote planning across departments in your
company, it can contribute to your company’s success. Here’s why S&OP
is important.
Your company can optimize the cost of
production.
When it comes to managing a company’s spending and
revenue, precision is key. If your company orders too many or not
enough parts, it can affect your company’s bottom line. This type of
planning improves financial efficiency and keeps you within your
budget.
Planning allows your company to forecast profits and
losses.
It’s not feasible for companies to be short-sighted when
it comes to finances. Long-term planning offers the best way for
companies to get a glimpse of what their financial futures hold. It
can help your company’s executives and managers make decisions that
move the company in the right direction. In fact, some companies have
improved their forecasts by as much as 25 percent.
Sales and
operations planning improves shipment and delivery rates.
Late and
missed shipments can adversely affect your customers’ profit margins.
If it happens too many times, some customers will find another
supplier. With S&OP, you can improve your delivery processes from
10 to 50 percent.
Planning can provide solutions to many of
your company’s challenges.
Improving your business processes with
S&OP can have positive effects on your company. If your employees
are having problems managing your company’s supply chain, S&OP
can help. Having a written plan can hold your employees accountable
for their roles in supply chain management. With effective S&OP,
your company can realize quantifiable results.
Interested in
learning about how sales and operations planning can impact your
business? Contact River Logic to speak with a representative about
your goals. Our solutions include capacity planning, trade promotion
optimization, scheduling/production planning and
sourcing/procurement.
Click here to know more about Sales and Operations Planning
