5 Sales & Operations Planning Practices You Need To Consider For 20222 min read
Sales and operations planning (S&OP) is vital for any company’s future. As we slowly recover from the pandemic and changes in the economy, it’s time to switch our focus on what is to come — in business and in life. Here is a quick look into some of the most effective S&OP practices to consider employing in 2022 and onward.
Analyze & Resolve
Analyzing past obstacles and concerns is imperative when businesses start the critical management process of S&OP. From implementing flexible work-from-home hours and new office policies to placing health as a priority in operations planning, these newfound dynamics add to the projection demands. Create a comprehensive plan with these issues in mind and communicate it with your team.
Keeping Up With Tech
However, health is not the only factor to consider nowadays. Technology has made remarkable advances in terms of data collection and analysis. These automation and AI (artificial intelligence)developments are already affecting— and improving —many S&OP strategies. Several companies are now investing in developing software and platforms and have found it to be a vital part of S&OP. Not only does it better cross-organizational management but aids in profitability and staying ahead of your competitors.
Assessing The Future
By investing in innovative software, your company also betters its forecasting capabilities. A vital part of S&OP is to predict demand and ready supply. Therefore, it is essential to gauge any financial impacts and understand possible changes in consumption patterns. The ability to predict market conditions is yours to use thanks to advancements in machine learning and AI systems. Preparing for the future will help minimize costs but maximize profits.
With all these improvements in technology, failure may seem impossible. However, possessing the most advanced tech can go to waste without appropriate communication practices. S&OP is at its best when executives and managers work together and align their goals. This type of cross-functionality cohesion needs a foundation of balance, transparency, and data-driven leadership.
Elect A Leader
Select someone who can carry out your S&OP practices and further your goals. Create an effective feedback loop where you can voice concerns, new objectives, newfound information, and course corrections. Foster an environment where engagement on all levels is encouraged to move the company progressively further.
The vital nature of S&OP cannot be understated. Even if your business holds S&OP sessions bi-weekly, quarterly, or yearly, analyzing your past obstacles and preparing for the future with S&OP can make or break a company. To learn about the five best S&OP practices, check out the accompanying resource created by the team at ifm.