Definition of S&OP: “The long-term planning of production levels relative to sales within the framework of a manufacturing planning and control system” – Olhager, Rudberg and Wikner (2001)
Planning your enterprise’s resources to have an effective, efficient and accurate supply chain process at every level of the business calls for the overall sales and operations planning cycle to be performed from start to finish. The Outperform Planning application has been built around this process.
Although the S&OP process is a cycle, the sales plan is where it starts; Outperform Planning begins by determining how much of what an organization estimates to sell. This is followed by supply planning and establishing how demand is met as well as maintaining an optimal level of inventory. Lastly the scheduling processes details the plans for execution.
As a supply chain planning application for different users within the organization, the various roles are arranged in a manner that ensures no overlaps and thus errors by ensuring real time user ownership. Since different users are each planning their area of responsibility there are certain “hand overs” built into the application to ensure some stability for the subsequent planning steps. The sales planner can manipulate the sales plan to a desired effect, upon completion, the plans are published and visible to the different function areas of the organization, these in turn subsequently plan the supply to meet the sales plan giving sales planner the freedom to do his/her planning without causing any undesired fluctuations in supply planning. How often the sales plans get published depends on internal company operations.
There is no doubt of the quantitative evidence that support the radical impact sales and operations planning has on the performance of organizations. The Outperform Planning application streamlines the S&OP process, giving your organization effective and efficient operations that in turn strengthen the supply chain and the competitive nature in the market place.
To learn more about how Outperform Planning can help manage your S&OP process, please contact us via this link.
Olhager, J., Rudberg, M. and Wikner, J., 2001. Long-term capacity management: Linking the perspectives from manufacturing strategy and sales and operations planning. International journal of production economics, 69(2), pp.215-225.