What Is Sales and Operations Planning?
Many manufacturers have attempted to manage their supply chain more effectively through Sales and Operations Planning (S&OP). Sales and Operations Planning is a process, not an event. This process is meant to develop and evaluate the numerous tactical strategies available to the business, choose the one that contributes the most toward realization of the firm’s long-term objectives, and measure the actual performance versus the plan. Limitations of Supply Chain Planning Processes While S&OP and PSI Planning are helpful processes companies can follow to manage their supply chains, they are not perfect. Both require tremendous levels of cooperation and coordination between departments to formulate supply chain plans. These departments must also provide copious amounts of data to support their assumptions and recommendations. This dependence on departmental data highlights a critical weakness in the supply chain planning process. Many manufacturers lack an integrated IT infrastructure to
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