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Handbook Of Demand Planning Jay Sharma Pdf
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Described as a 'horizontal planning tool' by organizational consultants, the implementation of S&OP processes begins with a clear definition of the processes. The processes should revolve around sales, distribution, marketing, manufacturing, supply chain and facilities management. They should aim to create an administrative platform that handles the day-to-day operations and lifecycle planning of products from beginning to end, rather than the traditional'siloed' planning methods. S&OP is responsible for the integrated planning efforts of both sales and all operations processes.[5]
Sales and Operations Planning (S&OP) is a component of the integrated business planning process used by many companies to develop detailed plans of manufacturing, distribution, promotional, and geographic activities for the coming period. S&OP is used to plot sales, marketing, pricing, manufacturing, and distribution goals for the coming year on a graph called a S-curve, which illustrates the changes in demand as a function of the number of units sold. This S-curve is a graphical representation of Profitability Imperative 3: As-needed Inventory.
This strategic roadmap is a snapshot of the company's future sales and operations, with the aim of hitting the strategic targets and the sales and operations plan. The company will use it for setting key targets for the coming year. Corporate strategy, the short-, medium-, and long-term strategies, and the S-curve, are closely aligned. This roadmap is the cornerstone to all strategic business planning activities. It has a current year serving as a 'road map' of what the current year will look like and how various operational plans will be executed at the companies with regards to the strategic plan.
S&OP is a process that features several planning steps and can be described as a set of interrelated planning activities that spans the complete product life cycle and often the full company's operations. Each planning step may include multiple components. For example, strategic review may include the review of a company's strategy, its targets, and its product portfolio. d2c66b5586
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