How S&OP Drives Supply Chain Optimization

Take 60 seconds, okay, maybe 90, and get a better understanding of how sales and operations planning (S&OP) can take your business to the next level.

In this short video, learn why S&OP is critical for supply chain optimization, including balancing resources and information with business goals to boost revenue, lower costs and increase profitability.

With global business complexities growing each day, companies must have business processes in place to help manage the trade-offs between the supply and demand sides of their supply chain.  The ideal goal is to have a process – and a supply chain planning platform to support it – that brings the right people to the table consistently to create one plan for the business. This means routinely pulling together the C-suite, finance, supply chain, manufacturing production, sales and marketing teams so everyone is seeing, working from and agreeing to a single plan to achieve supply chain optimization.

Logility provides that flexible single platform for digital and operational supply chain success, especially when it comes supporting a sales and operations planning process.

Here are some terms that can help:

ASCM defines S&OP as the "function of setting the overall level of manufacturing output (production plan) and other activities to best satisfy the current planned levels of sales (sales plan and/or forecasts), while meeting general business objectives of profitability, productivity, competitive customer lead times, etc., as expressed in the overall business plan.

A production plan involves the planning of production and manufacturing modules in a company or industry, using resource allocation of activities of employees, materials and production capacity in order to serve different customers.

A forecast involves making predictions of the future based on past and present data and most commonly by analysis of trends.