APICS. Sales and Operations Planning: Why every organization, big or small needs to make it an integral part of their management strategy? How do YOU do it?

The approach to sales and operation planning differs from company to company, even within similar industries. In this article, I would like to discuss basic, high level principles of S&OP and why every organization, big or small needs to make it an integral part of their management strategy
The approach to sales and operation planning differs from company to company, even within similar industries. In this article, I would like to discuss basic, high level principles of S&OP and why every organization, big or small needs to make it an integral part of their management strategy.

APICS defines S&OP as a process that provides management the ability to strategically direct its business to achieve competitive advantage on a continuous basis. It is the executive decision making process that enables an organization to respond to demand and supply variation and risks with timely and data driven decisions (of course, this is assuming that the data in your ERP/planning systems are accurate and you have capable reporting tools).Basically, it is a platform that enables companies to establish a game plan for the allocation of resources within an intermediate time horizon (usually 18 – 24 months) to meet demand for product families.
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