{"id":249474,"date":"2023-02-23T04:23:44","date_gmt":"2023-02-23T04:23:44","guid":{"rendered":"https:\/\/imarticus.org\/?p=249474"},"modified":"2023-11-29T11:57:39","modified_gmt":"2023-11-29T11:57:39","slug":"how-does-sales-and-operations-planning-work-in-a-supply-chain","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/how-does-sales-and-operations-planning-work-in-a-supply-chain\/","title":{"rendered":"How does sales and operations planning work in a Supply Chain"},"content":{"rendered":"<h2><strong>How Does Sales and Operations Planning Work in A Supply Chain<\/strong><\/h2>\n<p>Meta Description: Benefits of sales and Operations planning in the supply chain. Know more about a <strong><a href=\"https:\/\/imarticus.org\/executive-certificate-programme-for-chief-supply-chain-and-operations-officers-by-iim-raipur\/\">career in supply chain and operations<\/a><\/strong><\/p>\n<h2><strong>What is sales and operations planning?<\/strong><\/h2>\n<p>One of the most challenging aspects of a supply chain is <strong><a href=\"https:\/\/imarticus.org\/blog\/a-guide-to-sales-and-operations-planning\/\">sales and operations planning<\/a><\/strong>. However, it is also a crucial variable on which the success of a business depends. The main goal of the planning is to create a unified business plan. Those planning to have a career In Supply Chain and Operations need to learn it works.<\/p>\n<p>The sales and operations planning gets inputs from teams like:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Manufacturing<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Distribution<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Marketing and<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Finance<\/p>\n<p>Businesses combine these inputs to simplify the process for stakeholders. It also helps them to create a support system for the same.<\/p>\n<h2><strong>Need for sales and operations planning<\/strong><\/h2>\n<p>The goal of sales and operations planning is to mix the components and activities of demand and supply. It should revolve around a consensus-based plan. Building consensus is easier with planning in place. If we don\u2019t bring the team together under planning, it is impossible to make a successful design.<\/p>\n<p>Thus, sales and operations planning provides a holistic view of every component. Then collective adjustments and inputs are made. This collaboration creates a resilient and shock-proof supply chain. Which, in turn, results in the success of a business.<\/p>\n<h2><strong>Steps to create sales and operations planning<\/strong><\/h2>\n<p>Generally, senior management works on sales and operations planning. Following are the steps in the process:<\/p>\n<h3><strong>1. Forecasting<\/strong><\/h3>\n<p>Data and trends are the major components of sales and operations planning. At first, data on the sales history is collected. During this stage, it is important to consider internal and external variables. These components affect sales like customers, competition and industry demands.<\/p>\n<p>Then the data aids to forecast future sales. It helps to analyse and identify trends. It then builds the process in a supply chain based on the forecast.<\/p>\n<h3><strong>2. Demand planning<\/strong><\/h3>\n<p>Demand is a major factor that runs sales and operations planning in a supply chain. In this process, cross-collaboration is important. After the forecasting analysis, businesses adjust the inventory and customer service policy. The adjustments depend upon factors like demand and the source of the product.<\/p>\n<p>According to the analysis of revenue and units, the businesses measure demands.<\/p>\n<h3><strong>3. Supply planning<\/strong><\/h3>\n<p>Another major aspect of sales and operations planning is sales planning. During this process, teams assess the capacity of the supply chain and products. The finance, operations and materials teams meet for the assessment. They determine the issues related to<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Manpower<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Machinery<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Suppliers and<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Distributors<\/p>\n<p>During this process, the teams create a supply chain plan to check the limitations of capacity. They also work to come up with ways how to deal with the problems.<\/p>\n<h3><strong>4. Pre-sales and operations planning<\/strong><\/h3>\n<p>The first meeting of planning in the supply chain is crucial. Various teams take part in this process namely:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sales<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Finance<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Marketing<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Materials<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Operations<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Product management<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Human resources<\/p>\n<p>The teams cooperate and compare the forecasting analysis of the demand and supply components. They also discuss the financial impact of both plans.<\/p>\n<h3><strong>5. Executive sales and operations planning<\/strong><\/h3>\n<p>The executives of teams meet to analyse the demand and supply plans. They also go through forecasts and recommendations. In the meeting, the executives approve the final sales and operations plan.<\/p>\n<h3><strong>6. Finalization and implementation<\/strong><\/h3>\n<p>After approval of the plan, the teams work on implementing it. Then, they assess the factors for implementation. It is important to assess the sales and operations planning regularly. It helps to find faults within the processes.<\/p>\n<h2><strong>Benefits of sales and operations planning in supply chain<\/strong><\/h2>\n<p>An integrated and collaborative sales and operations planning ensure:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Increase in responsiveness<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Reduction in operating cost<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Increase in productivity<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Increase in revenue<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Increased transparency between departments<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Improvement in inventory management<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Creation of a resilient supply chain<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Demands of customers are met on time<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Improvement in budget and sales forecasting<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Improvement in decision-making about demand and supply<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Comprehensible understanding and management of a product at every stage<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Improvement in sales and customer experience<\/p>\n<h2><strong>Challenges of sales and operations planning<\/strong><\/h2>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Understanding the complexity of the processes<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Choosing right sources<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Maintain transparency between departments<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Coordination between all stakeholders<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Scaling progress of a current process<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Lack of coordination while taking important decisions<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Usage of all data and analytics<\/p>\n<h2><strong>Career In Supply Chain and Operations<\/strong><\/h2>\n<p>For a career in supply chain and operations, you will need the <strong><a href=\"https:\/\/imarticus.org\/executive-certificate-programme-for-chief-supply-chain-and-operations-officers-by-iim-raipur\/\">best leadership program for supply chain professionals<\/a><\/strong>. Learners can choose from a wide variety of jobs like<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Client Management<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Consultative sales<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Program Management<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Consulting<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Supply chain operations<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Manager Technology<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Executive<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Manager Program Management<\/p>\n<h2><strong>Why choose Imarticus Learning?<\/strong><\/h2>\n<p>Imarticus Learning offers a <strong><a href=\"https:\/\/imarticus.org\/executive-certificate-programme-for-chief-supply-chain-and-operations-officers-by-iim-raipur\/\">certification program for Chief supply chain and operations officers<\/a><\/strong>. The program is offered in collaboration with IIM Raipur.<\/p>\n<p>The 10-month-long program is offered in online mode. The 6-module program has benefits for the learners such as:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 C-suite training<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 SCM Globe simulations<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Masterclasses by industry experts<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Campus immersion<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 IIM Raipur alumni status<\/p>\n<p>To know more about how you can have a Career in Supply Chain And Operations, click here.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How Does Sales and Operations Planning Work in A Supply Chain Meta Description: Benefits of sales and Operations planning in the supply chain. Know more about a career in supply chain and operations What is sales and operations planning? One of the most challenging aspects of a supply chain is sales and operations planning. However, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":245305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_mo_disable_npp":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[23],"tags":[3969],"pages":[],"coe":[],"class_list":["post-249474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analytics","tag-sales-and-operations-in-supply-chain"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How does sales and operations planning work in a Supply Chain<\/title>\n<meta name=\"description\" content=\"Meta Description: Benefits of sales and Operations planning in the supply chain. Know more about a career in supply chain and operations\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/imarticus.org\/blog\/how-does-sales-and-operations-planning-work-in-a-supply-chain\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How does sales and operations planning work in a Supply Chain\" \/>\n<meta property=\"og:description\" content=\"Meta Description: Benefits of sales and Operations planning in the supply chain. 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Know more about a career in supply chain and operations What is sales and operations planning? One of the most challenging aspects of a supply chain is sales and operations planning. 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