Practical Sales and Operations Planning

By John Chase

Every manufacturing business operates a Sales and Operations Planning process of some sort. Somehow we decide which customers to pursue, what promises we should make to those customers, how much product to produce, what people and other resources we need, how much inventory to hold and how we will operate our factories. Most businesses agree that they could do this much better.

Many companies have made at least one unsuccessful attempt to formalize and improve their Sales and Operations Planning process (S&OP). Often these failures center around getting accurate sales forecasts produced each month, setting inventory levels and production plans and managing the monthly S&OP process.

Some of the challenges faced include:

1. High inventories of some products and raw materials, often accompanied by stock-outs in others;
2. Failing to provide products or services to the customer when they are needed;
3. Production plans that change frequently;
4. High costs;
5. Unhealthy levels of friction between the Marketing, Sales, Production, Purchasing and Finance departments, and
6.Frequent surprises, mostly unpleasant ones.

This book focuses on these solutions to these practical challenges:

1. Better sales forecasts with less effort
2. The right inventory levels
3. Stable production plans
4. S&OP that really works

• Language: English
• Publisher: John Chase
• Release date: Jun 24, 2012
• ISBN: 9781476227368

John Chase

John Chase has been involved in Sales and Operations Planning since the mid-1980s, even before the name moved into common usage. His early involvement included forecasting sales, planning production, planning inventories and improving manufacturing processes for a fruit cannery, an apparel manufacturer and metal packaging company. Since that time, John has continued his hands-on work in the field as a consultant to companies in the food and dairy, agricultural produce, automotive, steelmaking, petrochemical, mining, consumer goods and telecommunications industries. He has worked with companies in 10 countries around the globe. John has also led Supply Chain Management teams for two major consulting firms: Ernst & Young and KPMG Consulting (BearingPoint). John's experience is rounded-out by extensive practical involvement in Lean management and in selecting and managing the implementation of Enterprise Resource Planning (ERP) systems for manufacturing businesses.

Book preview

Practical Sales And Operations

Planning

Copyright John Chase 2012

John Chase has asserted his right to be identified as the author of this book.

ISBN 978-0-473-21770-9

Published by John Chase

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Limit of Liability and Disclaimer of Warranty: The author has used his best efforts in preparing this book, and the information provided herein is provided as is. The author makes no representation or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaims any implied warranties of merchantability or fitness for any particular purpose and shall in no event be liable for any loss of profit or any other commercial damage, including but not limited to special, incidental, consequential, or other damages.

Table Of Contents

Chapter 1: Practical Sales and Operations Planning

Chapter 2: Better sales forecasts with less effort

Chapter 3: The right inventory

Chapter 4 Stable Productions Plans

Chapter 5: Sales and Operations Planning that really works

About the author

SOPPLAN.com

Chapter 1: Practical Sales and Operations Planning

Every manufacturing business operates a Sales and Operations Planning process of some sort. Somehow we decide which customers to pursue, what promises we should make to