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Purpose of Sales and Operations Planning

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1. What is the purpose of sales and operations planning? How does the S&OP process enter into the planning process? What value is it to the organization?

2. What are the strategic goals of supply chain management and how does procurement, transportation, and distribution affect these goals?

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The purpose of sales and operations planning are discussed.

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Purpose and Process of Operations Planning
Sales and Operations Planning
Sales and operational planning (S&OP) refers to the integrated management process that is followed by firms to align and synchronize all functions of the business to achieve organizational goals and objectives. Main purpose of this management planning is related with setting the target on the basis of historical, existing and estimated future data, so that, firm can increase its productivity and performance (Cohen & Roussel, 2004). Additionally, to determine the capacity of the organization and resources to run operations of the firm, sales and operational planning is used as an important tool. Another purpose to use this tool is related with attaining long-term and short-term goals of the firm through integrating different functions effectively (Wallace, 2004).

S&OP process enter into the planning process through engaging people in the business activities such as in sales, marketing, product designing, manufacturing, etc. It is because it ensures to the optimum utilization of the resources through involving them into integrated process. Additionally, to make balance between demand and supply, S&OP process enter into the ...

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  • M.Com, University of Ajmer
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