skip to Main Content

Collaboration Between Sales and Demand Planning

S&OP  

Creating channels for efficient communication and collaboration between your sales department and demand planning can have great results. The Institute of Business Forecasting & Planning said, “This allows the organization to capture what we know in current sales levels and trend and seasonality, whilst adjusting it for what we need to know about and anticipated variables as perceived by Sales.” This transparency between departments allows for realistic goals and expectations to be set across the board. Demand planning is instrumental in growing your company and becoming more profitable, and your sales team can contribute significantly with their “boots on the ground” insights.

Why Sales Must Work Together with Demand Planning: A Tale of Missed Opportunities and Unrealistic Expectations

This requires a few things: a robust forecasting process and demand planning function; regularly updated forecasts; a culture whereby Sales contributes with insights on changed assumptions based on the latest information; and for Sales operations to be closely connected with Operations so that potential gaps can be identified and closed.From the Sales department’s point of view, they may not generate the forecast but they should own the assumptions and need to be involved in the process to make a decision as to whether, and how, they can close the gap between forecast and target based on previous performance, production capacity, and available resources like marketing initiatives.

Read the article
Related Articles

MRP – A Key Enabler of Agile Manufacturing

Over its roughly fifty-year lifespan, Material Requirements Planning (MRP) has been established as one of the most powerful and influential innovations in manufacturing technology. Introduced and popularized by Joseph Orlicky through his book Material Requirements Planning (MRP): The New Way [...]

46% of Companies are Making this Mistake When it Comes to S&OP

Consumers are fickle. It’s a fact. According to a recent research by Accenture, people report switching brands more than they did a few years ago, despite the fact that brands are investing $90+ billion in loyalty programs. As channels expand, [...]

The Forecast and the Plan: What’s the Difference?

Imagine a new professional, walking into her first Sales and Operations Planning Meeting at the multinational corporation who hired her only a few weeks earlier. This is a big moment for the new employee. The meeting might be awash with [...]

Sales & Operations Planning: The Key to Managing Change

A bedrock principle of Supply Chain Management is its recognition that all value-adding functional activities within an enterprise are interconnected. Once a company realizes this interdependence, the challenge becomes one of operationalization: how does the organization work this insight into [...]

The Benefits of an Effective S&OP Process

The Institute of Business Forecasting & Planning said, "Sales and Operation Planning (S&OP) is probably the least understood aspect in Supply Chain Management. It provides the key communication links for top management to coordinate the various planning activities in a [...]

Dangers of the Executive S&OP Review

It can seem like you're walking into a lion's den. All eyes are on you. They're hungry and ready to pounce. But you're not facing lions, you're facing the members of the executive S&OP review committee. From the moment you [...]

Roles & Responsibilities Matrix for Teams & Individuals in S&OP

Anyone implementing an S&OP should check out this matrix to help understand the S&OP structure, hierarchy, and roles and responsibilities of both individuals and teams across the sales and operations process. Known as the RACI Matrix, which stands for Responsibility, [...]

Understanding the Goal of S&OP

Sales and Operations Planning (S&OP) has several moving parts, including data collection, demand planning, production (supply) planning, reconciliation, and executive meeting. Understanding the benefits of S&OP, and the software used to facilitate all those moving parts, will help companies understand [...]

Is Your Sales Department MIA?

After decades of S&OP, sales people still aren't involved in the S&OP process in most companies. They don't seem to show up to S&OP seminars or conferences, and you rarely see their names on the bi-lines of blogs or social [...]

The Difference Between S&OP and Budgeting & Why It Matters

The easiest analogy to understand the difference between sales and operations planning and budgeting is to think of your business as a football game. Before the start of a game, the coaches will devise a plan, comprised of various plays, [...]
Subscribe to our Blog
Back To Top