Elaborate a plan in line with your business rules, current regulations and your performance goals.
Sales & Operations Planning or S&OP is the keystone of a production planning system. It should reflect a coherence between the company’s industrial activity, marketing plan and financial strategy. S&OP brings together volume, product families and budget. It operates on the tactical plane: according to the nature of the business, it takes into account seasonality and is developed using months as the unit of time.
Sales & Operations Planning helps you to balance supplies according to trends in demand. The search for this balance depends notably on the integration of incoming data such as:
- Sales forecasts,
- Firm orders confirmed by the customer,
- A marketing plan with a provisional schedule for new products
The S&OP helps in defining a long-term strategy by determining on a month-to-month basis across the entire planning time frame:
- Volumes to be manufactured by product family
- Workforce and estimated hours
- Subcontracting requirements
- Necessary investments or their removal
- Supplies of raw materials and components
All of these forecasts will be transformed into a Master Production Schedule or MPS, which will break down the data article by article on the operational plane.
Master Production Schedule | MPS