Understanding the Sales and Operations Planning (S&OP) process is central to building a company and running it successfully. Allowing to represent the crucial parts of company performance as elements of a single mechanism, S&OP provides a chance to plan the course of a company’s development effectively based on the information about the primary factors influencing the performance of a supply chain, namely, sales and marketing, inventory management, product diversification, demand management and manufacturing, to name a few (). Therefore, it is vital for an organization to invest in the focus on S&OP as a vital part of its success in the target market, as well as the essential element of its functioning.
In order to launch the S&OP process within an organization, several major steps had to be made. In the case at hand, communication represents the key to success since it is indispensable to ensure that every participant is aware of the main goal and the objectives that must be attained on the path to achieving it.
For this reason, several meetings have been held. During the first meeting, the target market was assessed, with key obstacles and opportunities, as well as major competitors, having been identified. During the second meeting, the strategies for achieving the set goals were discussed, and the most favorable approach was crystallized. Specifically, the business strategy in regard to the risk management issue and the introduction of the competitive advantage was explored. Finally, the issue of the infrastructure was considered as a vital part of the supply chain.
The S&OP process offers a broad number of benefits to enjoy, particularly, in the context of the global market. Namely, S&OP helps to establish an impeccable supply chain by managing every aspect of communication, transportation, and delivery (Azmi et al., 2017).
References:
Azmi, I., Abdul Hamid, N., Md Hussin, M. N., & Ibtishamiah, N. (2017). Logistics and supply chain management: the importance of integration for business processes. Journal of Emerging Economies & Islamic Research, 5(4), 1-8. Web.