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The benefits of effective S&OP are compelling - lower operating costs, reduced inventory requirements, and top-line growth, and top-performing S&OP companies are realizing these benefits and in the process gaining competitive advantage.
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Long advocated by expert observers of the supply chain scene, the Sales and Operations Planning process (S&OP) has reached a point of broad adoption. This article outlines study findings, provides key insights on challenges and opportunities, and offers a path forward for those seeking to join the ranks of S&OP top performers. First emerging well over 30 years ago, S&OP has moved from business buzzword status to mainstream adoption among the world’s large supply chain-focused organizations.
The appeal of S&OP lies in its ability to drive dramatic improvements in key business performance metrics. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The project yielded exceptional results, providing senior leadership with the tools to better manage the business and driving substantial operational and economic improvements.
Customer service fill rates rose from 4th quartile to 1st quartile in four months, consistently achieving targeted 98.5 percent fill rates. Finally, the improved stability of the supply chain enabled management to redesign and rationalize the manufacturing network, reducing overhead costs by 10 percent. Achieving S&OP top performer capabilities and performance requires a focused effort, dedicated, knowledgeable resources, and at least six months.
Once the current S&OP environment has been stabilized, the typical next step is to develop the future state design.


Once the pilot cycles are completed, organizations typically transition to a mode of continuous improvement that focuses on measuring performance, addressing issues and gaps, and executing further improvements in S&OP capabilities on an ongoing basis.
As top performers have experienced, a mature, best-practice-based S&OP process is a very powerful mechanism for managing the business and maximizing performance. Len Prokopets is a Principal in the Strategy and Operations practice of Archstone Consulting, a division of The Hackett Group.
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Improvement in sales is very essential with the fact that businesses are established with a view to sell products and if products are not getting sold, it means that there is a slow progress in business. First of all, it is important to understand the needs of customers, that is, doing your market analysis right ! Free gifts of cosmetics, perfumes, clothes, snacks are some of the best ideas to improve sales. For ecommerce website, it is a growing trend to implement feedback form on site to let customers have an option to provide feedback.


As a result, top performing organizations find that S&OP is 68 percent more effective at driving benefits than it is for other organizations. We define Sales & Operations Planning as a collaborative decision-making process used to develop and align time-phased demand, supply, and financial plans in support of the overall business plan. A current Google search turns up over 860,000 entries and a search on professional networking site, LinkedIn, finds more than 16,000 individuals who list the term “S&OP” in their profiles.
Our experience indicates that effective use of S&OP can help grow the top line of the business while reducing operating costs and reducing inventory required (see Exhibit 2). It should be simple – and in theory it is – but experience shows that implementing S&OP is difficult. Expediting was substantially reduced enabling reduction in raw material and packaging costs. In these organizations, an additional triage and stabilization step may be necessary to address gaps and disconnects and establish a starting point for developing an Integrated Business Planning process. Through a strong governance process and continuous progress, these improvements can be sustained over time, leading to a significant competitive advantage for the organization.
Few business improvement initiatives match the economic return that implementing an effective S&OP process can generate.
They also help build the organization’s comfort level and “muscle memory” to enable sustained execution of the process. He is the president of Fanjul Corp and is also the Chief operating officer as well as Vice chairman of the same. In the following chapters, we will present a set of viewpoints which describe our stand on the topic with the purpose of providing an outline of our approach and sharing some of our knowledge and experience from past and ongoing S&OP projects. All these factors have to be satisfied, only then T-shirt is purchased.Some of the common sales strategies being widely implemented, buy-one-get-one-free, discount offer, free gift hamper clearance sale, bulk-purchase-offer, and of course, there are many more other successful methods.




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