Next-Generation Sales and Operations Planning: Tracking the Evolution from Tactical to Strategic Operational Excellence
A look at how progressive companies are taking a strategic, best practices-based approach to S&OP to enhance operations with increased visibility, reduction of costs andNext-Generation Sales and Operations Planning: Tracking the Evolution from Tactical to Strategic Operational Excellence improved business performance.
By Fred Baumann
The concept of sales and operations planning (S&OP) has been around for decades, primarily as a collaborative supply chain planning process designed to drive more accurate demand forecasts and align that demand with production capabilities to ensure timely fulfillment of customer orders. Many manufacturers still adhere to that view. Today, however, as companies face increased global competition and supply chain challenges, along with rising transportation costs and volatile economic and market conditions, a transformation of S&OP is occurring. Many industry-leading manufacturers — as well as consumer goods distributors and their retail partners — have been working towards elevating their S&OP processes to an enterprise-wide global scale in order to enhance supply chain visibility, reduce costs and achieve more integrated business planning and management. As a result, businesses of all types and sizes are now discovering how this next generation of S&OP can actually become a mission-critical element of an integrated business management strategy.
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