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Improving business and operations planning - What’s happening with traditional sales and operations planning? - Ernst & Young - Global

Improving business and operations planning

What’s happening with traditional sales and operations planning?

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S&OP is a collaborative, cross-functional process.

Traditional S&OP is intended to be a collaborative, cross-functional process to drive alignment in operational and long-term planning.

However, its focus on demand and supply often results in the exclusion of other integral teams and organizations as well as a myopic focus on current-year activities that can include:

  • ERP tools not being utilized
  • Conflicting incentives between manufacturing and planning
  • Lack of clarity on “real” capacity
  • Lack of trust in the overall system

What’s happening with traditional sales and operations planning?

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