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.
what is production planning
as supply, differentiates between what is viable and what is not, fosters real communication between all parts of the value chain, and as a result, anticipates and avoids unwelcome surprises. SAP research has found that the best S&OP process creates an unrestrained demand forecast by accomplishing the following: Accounting for internal factors The process should consider elements such as price changes, lead times, sales plans, product promotions, and new product launches Accounting for external factors