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Why Implement
Sales & Operations Planning?
Start-up manufacturing companies have Commercial and Operational Teams that are lean and streamlined. Visibility to demand and supply requirements are easily synchronized. When those small companies experience strong growth, business complexities create three significant challenges that hinder their ability to effectively forecast and supply their customer base.
CHALLENGE #1
The company’s current business operations can no longer support their overwhelming growth.
CHALLENGE #2
Leadership knows they need to do more planning and less reacting, but do not have the right resources in place.
CHALLENGE #3
Available software providers only offer “end-all-be-all” technology planning solutions without consideration for the company’s specific infrastructure requirements.
Sales & Operations Planning (S&OP)
Sales & Operations Planning (S&OP) drives proven, significant improvements across business performance metrics.
Sales Growth
+ 2-4% Increase
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Improved Service
-
Improved Promotional Effectiveness
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Improved New Item Launches
Supply Chain Costs
5-10% Reduction
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Reduced Material Costs
-
Freight Cost Reduction
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Labor Cost Reduction
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Fixed Cost Optimization
Improved Working Capital
+20-30% Increase
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Reduced Finished Goods Inventory
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Reduced Raw Material Inventory
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Reduced WIP
*Source: "Top Performer Benefits of Effective Sales & Operations Planning", Supply Chain News, July 2013.
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