The Sales and Operations Planning (S&OP) process typically operates on a monthly cycle to maintain a balance between strategic oversight and tactical execution. The monthly frequency allows:
Regular Updates: Market conditions, customer demand, and supply chain dynamics can change frequently. A monthly review ensures that plans are updated regularly to reflect the latest information.
Alignment of Functions: It provides a structured timeframe for different functions such as sales, marketing, finance, and operations to come together, review past performance, and plan for the future.
Decision Making: Monthly meetings help in making timely decisions that can affect inventory levels, production schedules, and resource allocations, keeping the organization agile and responsive.
References
"Sales & Operations Planning - Best Practices" by John Dougherty and Christopher Gray
APICS, "The Essentials of Sales and Operations Planning"
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