Achieve an effective balance between demand and supply to maximize profit
Sales and Operations Planning (S&OP) is an integrated business management process that facilitates organizational consensus for balancing demand, capabilities, and supply. The S&OP process typically occurs monthly, balancing operational areas such as sales, production, procurement, and finance, ensuring they work in harmony to achieve financial and organizational goals.
The Sales and Operations Planning process provides an updated rolling operational plan and demand plan, usually calculated for a period ranging from 12 to 36 months into the future. By optimizing the use of resources, taking into account their availability to best meet demand while simultaneously maximizing revenue and profit, S&OP ensures more efficient and resilient supply chain management. This is crucial at all times but particularly during periods of disruption.
Based on the demand forecast, accepted orders, safety stock levels, and information about current inventory, Pulse Digital calculates a balanced production plan and strives to satisfied the demand in full. When performing such calculations, constraints such as capacity limitations, raw material availability, and other constraints are taken into account, resulting in a realistic plan and an assessment of the satisfaction of the generated demand. In case of insufficient resources at the required time, Pulse Digital seeks to optimize resource utilization within the specified constraints for better outcomes.
Prepare for supply chain disruptions by using Pulse Digital S&OP to rapidly run simulations of demand, supply, and other changes.
You can use simulations to support what-if analysis and compare different planning scenarios. With these features you can cpmpare KPIs for each version of simulation.
With these insights, you can manage overtime and capacity, compare plan, performance data, supplty, demand satisfaction level and other changes .
The end-to-end SOP business process enables the creation of a balanced and coordinated plan across departments, aimed at maximizing profit and establishing unified rules for all.