All companies use some form of sales and operations planning (S&OP) to synchronize market data with production output. But most practice a planning process based on logistics rather than strategy. Taking a more strategic approach, however, the S&OP process can be designed to bring together a company’s marketing, finance, sales, and operations departments to continuously monitor—and meet—customer demand.
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collaboration and information sharing. It starts at the highest practical level of management business review, which is then reconciled with the lower-level product management, supply, and demand reviews. Brown-Forman, for example, implements both strategic and tactical supply chain planning processes because of the long time frames associated with wine and spirit production. The company's S&OP process creates an 18-month consensus forecast (most companies now create a 24-month plan) for demand planning,