Why is S&OP Important?

Being a monthly integrated business management process, sales and operations planning helps to empower leaders to focus on key supply chain drivers, which includes sales, marketing, demand management, production, inventory management, and new product introduction. It is considered an important aspect of supply chain planning that aims at creating a unified and efficient business plan. The inputs are gain from an organization’s key functional areas, including sales, distribution, marketing, manufacturing, and finance.

Bigger Perspective:

S&OP is typically a more advanced discipline in the supply chain planning process. Many smaller organizations or startups may not require S&OP at the start but will need it as and when they grow. Once the organizations begin to sell larger numbers of differentiated products they seek out to S&OP. It aims at gaining a larger view of planning by considering sales, marketing, finance and operation in the forecasting process for their collective input and adjustments.

Market Study:

Advanced practices of S&OP also contain the point of sale and other market-related information. Organizations seeking to acquire S&OP software can find them in leading supply chain planning software solutions companies. There are many reasons why S&OP is considered important for a business. Organizations can anticipate change and can be ready to react to the situation accordingly, well in advance through S&OP. It will enable you to fulfill the demands of the market. Organizations should use S&OP to leverage purchase orders, for integrating total value optimization, and to support your business overall.

Benefits of S&OP:

• Improved profits
• Increment in product revenues
• A higher level of customer service
• Decrease in inventory
• Reduction in lead time
• Quick market response
• Management controls at all level

S&OP is essential to make your business grow efficiently and manage your demand as well as supply. It is a big picture view of what should be done to grow and plan to reach there. If you incorporate S&OP wisely in your system it will help you succeed. By connecting to a professional S&OP provider you can get more clarity on the same.