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Summary
October 17, 2005 - In many manufacturing organizations, a lack of nimbleness
and automation in existing sales and operations planning (S&OP) processes has
stunted management’s ability to drive change. Companies looking to maximize
the value of their supply chain and operational investments must automate cross-organizational
performance planning processes to enable operational performance management.
It has been nearly 20 years since Dick Ling and Walter Goddard first wrote about sales and operations planning in their book Orchestrating Success. Drawing on years of consulting engagements, the authors described how successful companies link their sales and marketing planning directly to the operations side of the business. They noted how the process of S&OP created an important link between the business plan – that is, the organization’s annual operating plan – and each department’s operations. They showed how S&OP can help businesses develop a realistic plan for achieving corporate objectives and make business decisions with a deliberate view of their impacts on the entire operation.
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