Sales and Operations Planning: Know Where You’re Going
The first question we need to answer is, what exactly is sales and operations planning? Sales and operations planning is a well-defined, ongoing planning process that ties together the sales planning and operations planning processes, to better satisfy customers and meet the goals of the company. Sales and operations planning helps you balance the demands from your customers (sales planning) with the resources at your disposal (operations planning). Financial planning is also integrated into the process, because this is an important resource component. The subtitle for this chapter is, “Know Where You’re Going,” because sales and operations planning sets the direction for the entire company. If you are not performing sales and operations planning, your company is probably trying to head in several different directions at the same time. Sales and operations planning develops one plan, one set of numbers that everyone will use. This sets everyone on the same path, for better results. You are doing sales and operations planning, aren’t you?