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Sales & Operation Planning

Sales and Operations Planning is an integrated business management process through which the leadership team continually achieves focus, alignment, and synchronization among all the functions of the organization. (Wikipedia) Sales and Operations Planning is relevant to the supply chain as the demand management function is usually driven off of the sales and operations plan, which is usually re-calculated on monthly or weekly basis across an agreed upon rolling horizon.

The calculation of the sales and operations plan should be done by a cross-functional team that includes marketing, sales, production, procurement, and any other affected business unit so that every unit of of the business works off of the same numbers towards the same goals. It should also follow best practices that focus on critical information and a structured approach.

For more information on the intersection of sales and operation planning and the supply chain, please see:


 


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