Sales and Operations Planning
 

Sales and Operations Planning

Traditionally, the disciplines in a business operated in silos. Each attended to its own silo with little or no consideration given to the effect on the organization as a whole or its customers. It is easy to understand this as the goals of the different disciplines often conflicted.
Sales' goal was to sell-sell-sell. If it had no inventory to sell, it was manufacturing or purchasing, or shipping or somebody else's fault.
Purchasing's goal was to supply manufacturing materials and services that it says it needs when it needs it. If a company's cash flow is below target because it was tied up in surplus inventory, it was manufacturing's fault for ordering it.
Manufacturing's goal was to meet sales' demand while balancing overtime, raw material allocations, available resources, controlling costs, etc. If manufacturing failed to meet the demand, it was unrealistic Sales' goals.
If Distribution didn't get the order out in time, it was manufacturing's fault.
And the blame game goes on and on. The business fails to delight the customer and may have lost the sale. More importantly, it may have lost a customer(s). Amazingly, this situation is still prevalent.

Maximize Management will lead the implementation of an effective Sales and Operations Planning process. Using this valuable tool at regular intervals and with the participation of middle and senior management, the business disciplines will work together to develop short and long term plans. We will establish easily measurable goals in units and in dollars for each of the business' processes.

 

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