Sales and operations planning is essential for any company to conduct monthly. This process is a projectional review of a company’s supply and demand. To cap it off, it also reviews companies resulting financial impact. This process also aims to access new risks and opportunities and plan new initiatives, and how to manage them.
The main goal of S&OP is to allocate a company’s resources appropriately. So what are the best practices for S&OP? We’re going to find out!
The 5 Best Practices of S&OP
Here are 5 of the best practices of Sales and operations planning:
Best Practice #1: Giving Ownership of S&OP To a Sole Person Over a Committee
What we mean when we say this is to put a person in charge to ensure the process is being done effectively and efficiently. You’re facilitating speedy progress when you hand over ownership of S&OP to a single executive or a high-level manager. Ensure the person you choose excels in two-way communication, professional presentation, effective negotiation, and analytical decision-making.
Best Practice #2: Getting Everyone Involved
Every company stakeholder needs the main objectives, goals, strategies, tactics, investment costs, operational issues, and course corrections. By communicating all the relevant information, you’re allowing stakeholders to contribute to the S&OP, review its progress and findings, and request things they deem vital to the company’s overall health.
Best Practice #3: Maintaining Awareness of External Influences Beyond Your Control
Sometimes things happen that are far beyond our control. For example, shipping backlogs, inflation, economic downturns, recessions, etc. However, we need to always remain aware of what is happening around us and course-correct. Two things we can do to try to get everything back on track is by implementing plans as quickly as possible and making minor changes easier by using flexible technology.
Best Practice #4: Avoiding Gathering Data For The Sake Of Having It
Collecting and deciphering data takes time. So when we gather data that are unnecessary, we’re wasting time, resources, and human resources. Data is only a part of what S&OP is. It’s what you do with the data that makes the difference, and wasting your time with useless data isn’t going to help you in the long run.
Best Practice #5: Use Software To Streamline The Process & Monitor Your Supply Chains
The best ‘best practice’ when it comes to S&OP is using software to streamline the process. The world is complex, and data is available in abundance. Ultimately this means there’s a large among of inputs and potential threats that can seem never-ending and waterfalls of potential outcomes. With intuitive software, you can manage S&OP details more effectively and in a more simplified way.
S&OP is better when you have the right tools to get you to the finish line! Atlas Planning Platform is exactly what you need to conduct the S&OP best practices effectively. With the right tools, you can plan better and more efficiently to reach your goals and objectives.