Report Example - Integration of Sales and Operations Planning

Sale and operations planning (SOP) is a crucial procedure that ensures that consumer demand is achieved by procurement, production, and distribution. The sales and operations planning processes assist entrepreneurs in accomplishing targets as they will be in line with financial goals. Crane (2016) explained that sales and operations planning is an integrated business management process whereby an organization's leadership group continuously orients, synchronizes, and runs the supply chain to realize its strategic business goals. This essay sets to explain how sales and operations planning integrates specific supply management processes.

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There are several ways sales and operations planning can be integrated. An organization's most excellent integration of its SOP requires having a proper Enterprise Resources Planning system, good communication and collaboration between all sectors in the business, and a better-estimating system all in check. A robust estimation system will significantly help predict and prepare for future customer demand, thus giving them an edge over other competitors. The ability and ease of interdepartmental information transfer create teamwork among employees enabling company operation towards a similar goal. With the right Enterprise Resources Planning elements, a company will accurately control customer demand and inventory records.

Integrating a supply chain is a progressive process that has the precedence of bringing high-expectation revenue on investments. Suppliers and customers work together to improve mutual performance in the production, distribution, and promotion of an end product. Demand planning and procurement are some supply management processes that can be integrated. Integrating demand planning is done by improving the forecasting system, which grows the product life cycle and promotion. The procurement process is integrated by enhancing vital communication media between departments, thereby enabling an accurate and safe purchasing order system, receipt verification, and correct records on the invoice.

Conclusion

In conclusion, organizations that execute the sales and operations planning scheme effectively create immense opportunities and achieve the company's objectives. Consumer satisfaction is guaranteed, creating long-term profit-making finance flow to an organization.

Reference

Crane, W. (2016, April 11). Successfully Integrating S&OP in Your Organization. Industry star.