Supply and demand chain planning and execution have grown in importance over the past decade as companies have recognized that software can meaningfully enhance their competitiveness and improve their financial performance. Sales and operations planning (S&OP) is an integrated business management process first developed in the 1980s aimed at achieving better alignment and synchronization between the supply chain, production and sales functions. A properly implemented S&OP process routinely reviews customer demand and supply resources and “replans” quantitatively across an agreed rolling horizon. The replanning process focuses on changes from the previously agreed sales and operations plan; while it helps the management team understand how the company achieved its current level of performance, its primary focus is on future actions and anticipated results. Adoption of S&OP has increased as software to support the process has become more powerful and affordable and as a growing list of companies demonstrated its value in producing meaningfully improved business results. Even without adopting a full-scale S&OP management approach, companies can benefit from better coordination and collaboration between their supply and demand functions. Software plays an important role here, too, in facilitating this coordination and collaboration.
Topics: Analytics, Business Analytics, Business Collaboration, Business Performance Management (BPM), Cloud Computing, Demand Chain, Financial Performance Management (FPM), Forecast, Human Capital, Integrated Business Planning, Mobile Technology, Operational Performance Management (OPM), Planning, SaaS, Sales, Sales Performance Management (SPM), Sales Planning, SCM Demand Planning, S&OP, Supply Chain, Supply Chain Performance Management (SCPM), Supply Chain Planning