CHAPTER 8

The Sales and Operations Planning Process

The definition of sales and operations planning

Every company needs a form of integrated (cross-functional) dynamic performance management in the same way that it needs an integrated business planning framework. The solution is provided by a process called sales and operations planning (S&OP), which many good companies have in place, sometimes not knowingly or with a different name. I venture to say that if a business is doing well it must have some form of S&OP in place (a basis from which it can also improve its performance), and that on the contrary, if it is doing badly, one of the reasons must be the lack of an effective S&OP kind of approach1.

Once we have prepared our customer business ...

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