Appendix 4: Sales & Operations Planning
(From the web-site of T.F. Wallace, author of various textbooks on S&OP, www.tfwallace.com).
What is S&OP
Sales & Operations Planning (S&OP) is a set of decision-making processes to balance demand and supply, to integrate financial planning and operational planning, and to link high level strategic plans with day-to-day operations.
Why Do Companies Use S&OP?
Many companies have difficulty in establishing valid game plans for sales, production, procurement, and inventory levels -- and then tying them to day-to-day scheduling and execution. As a result, performance suffers: customer service is poor, production and procurement are inefficient, inventories are too high or too low, or all of the above. Sales ...