What is Sales and Operations Planning?
Sales and Operations Planning (S&OP) is the ability of business functions from across the organization to come together and align on a single production plan. S&OP ensures streamlined, transparent processes across business units, informed decision-making about a product’s demand and supply, and inventory optimization.
S&OP solutions enable organizations to continually achieve synchronization and alignment among different functions of the organization and make better demand and supply decisions. They also pre-empt any bottlenecks our clients may face during the implementation of the S&OP solution and take them into account while planning.
With an eye on financial and business impact, we, at Quantzig, focus on helping your organization make better decisions with the help of data-driven, intelligent insights. Request a free proposal to know more about our supply chain solutions.
Benefits of S&OP
Businesses that leverage sales and operations planning gain various advantages such as better visibility of production process, demand-supply synchronization, optimized inventory, decreased obsolescence cost, promotional planning, budget forecasting, and improved product lifecycle management process. The significant benefits of sales and operations planning are-
- Transparency between departments
- Precise and informed decision making about demand, supply, and production planning
- Improved inventory management
- Accurate budget forecasting
- A better understanding of a product’s lifecycle
- Streamlined business processes that positively impact the customer experience
- Increase in revenue and market share
Quantzig’s expertise empowers you with a connected approach to world class sales and operations planning. Request more information about our S&OP solution portfolio.
Steps of Sales and Operations Planning
- Product Review: Product review is the foremost step of S&OP. It includes research and development, product development, analyzing the health of products, analyzing product pipelines, and demand planning. These aspects help in determining a resource allocation plan.
- Demand Review: Demand review focuses on the unconstrained forecast, incorporating a 360-degree view of independent and dependent demand. Demand review is influenced by product introduction, marketing efforts, and consumer behavior.
- Supply Review: Supply review focuses on finding a synchronization between supply planning and demand planning. A supply plan balances customer service and minimizes inventory operation cost.
Speak to our experts to know about the building blocks of next generation S&OP.
Common Myths about S&OP
- Fast-moving businesses do not need a planning solution to drive an effective S&OP process. In contrast, it’s actually about finding the right solution to improve the effectiveness of a business’s existing sales and operations planning process.
- S&OP can be effectively modeled using a spreadsheet. Sales and operations planning indeed requires spreadsheets provided market conditions are static. Market sentiments are fluid; hence spreadsheet-based S&OP might result in compromising an organization’s ability to respond to supply chain disruptions.
- Supply chains are moving so fast that companies do not have time to plan. Supply chains are scurrying. Thus, companies without the proper planning platform might miss opportunities.
It’s time to look beyond conventional S&OP with Quantzig. Run “what-if” scenarios, recalibrate planning models as per your business needs, and optimize logistics and warehouse management. Request a free pilot to know more about our S&OP solutions.
How can Quantzig help you with S&OP?
Quantzig is the world’s foremost full-service advanced analytics and business intelligence solution provider, turning clients’ complex, unstructured data into intelligent, actionable insights that enable them to solve complex business problems and inspire innovation, change, and growth. Over the past 16 years, our insights have helped over 120 clients spanning across industries and sectors like Pharmaceutical and Life Sciences, Retail and CPG, Food and Beverage, and more.
On collaborating with Quantzig, your organization will gain essential tips and support to keep up with the next generation S&OP. At Quantzig, we focus on ‘what-if’ scenarios with real-time financial data insights to make value-based decisions that will improve profit margins and the organization’s efficiency. Our industry experts add their ownership and knowledge to S&OP, which elevates the efficiency of the supply chain. With Quantzig, unify your sales and operations planning and make it available across all relevant business units for fast decision making and better profitability.