All new and existing business will come up against many planning conundrums throughout its business life. From increasing sales to decreasing over heads, whether that being unnecessary staffing cost, excess supplies or production costs; effective planning can improve the business and, inevitably, save you money or even increase you profit margins. An effective method that business should use is S & OP – sales and operation planning – which can be used as a detailed tool to identify areas of weakness and so possible improvement opportunities and areas of operational planning which are well designed and effective. For those with little experience in S & OP, many business logistic companies can offer help in understanding and implementing this essential tool.
S & OP can create an effective business plan across all areas of business from supply chain management and procurement to sales management. The sales and operations planning goal is to integrate all areas of business into one solidary plan thus creating a smooth running and functional business which has optimum sales and only necessary outgoing costs. In order for the tool to work effectively, relevant forecasting of the business over an extended period is necessary. Only then can the likes of supplies and staffing be planned in line with expected business and potential growth. Without accurate forecasting, planning may be skewed leading to unreachable targets and, potentially, unrealised additional costs.
Without an accurate and secure business plan, companies cannot expect to remain competitive within a given industry. Not understanding your business or being able to manage business processes could lead to escalating costs, rolling shortfalls and loss of customers. If you cannot effectively manage supplies, customers may be left waiting for a product – not a great service to ensure repeat business.
If you are unsure of how to use a S & OP tool, seeking knowledgeable help from dedicated business management companies, such as Total Logistics, could offer the ideal aid to give your business the best possible chance of success.
To find out more about S & OP management and how it could benefit your business, please visit the website of Total Logistics or contact a member of the Total Logistics team directly on (0)118 977 3027.