Sales and operations planning

(S&OP) is an integrated business management process through which the executive/leadership

team continually achieves focus, alignment and synchronization among all functions of the
organization. The S&OP plan includes an updated sales plan, production plan, inventory plan,
customer lead time (backlog) plan, new product development plan, strategic initiative plan and
resulting financial plan. Plan frequency and planning horizon depend on the specifics of the
industry. Short product life cycles and high demand volatility require a tighter S&OP planning as
steadily consumed products. Done well, the S&OP process also enables effective supply chain
management.

A properly implemented S&OP process routinely reviews customer demand and supply
resources and “re-plans” quantitatively across an agreed rolling horizon. The re-planning process
focuses on changes from the previously agreed sales and operations plan. While it helps the
management team to understand how the company achieved its current level of performance, its
primary focus is on future actions and anticipated results. Companies that have an integrated
business management process use the S&OP process to monitor the execution of the company’s
strategies.[

Definitions

APICS defines S&OP as the "function of setting the overall level of manufacturing output
(production plan) and other activities to best satisfy the current planned levels of sales (sales plan
and/or forecasts), while meeting general business objectives of profitability, productivity,
competitive customer lead times, etc., as expressed in the overall business plan. One of its
primary purposes is to establish production rates that will achieve management’s objective of
maintaining, raising, or lowering inventories or backlogs, while usually attempting to keep the
workforce relatively stable. It must extend through a planning horizon sufficient to plan the
labor, equipment, facilities, material, and finances required to accomplish the production plan.
As this plan affects many company functions, it is normally prepared with information from
marketing, manufacturing, engineering, finance, materials, etc."[2]

Sales and operations planning has also been described as "a set of decision-making processes to
balance demand and supply, to integrate financial planning and operational planning, and to link
high level strategic plans with day-to-day operations

The planning process

S&OP is the result of monthly planning activities. It is usually based on an Annual Operations
Plan (AOP) that acts as the company's annual target in terms of sales and supply. Therefore, the
sales and operations plans are a means to gradually accomplish the AOP targets - by linking
monthly sales and marketing planning directly to the operations side of a business[4]. The process
for deciding upon the monthly S&OP is illustrated in the figure below.
S&OP best practices

S&OP best practices share a common set of approaches, namely: (1) reliance on a phased
approach; (2) development of an “outside-in” sequence of S&OP initiatives; and (3) a focus on
critical information, not just more data.

Rely on a Phased Approach

S&OP is much more an integrated set of business processes and technologies than a single, all-
encompassing process or technology. If you just focus on the implementation of a new
technology and think that S&OP will miraculously take shape, you’re wrong.

Develop an “Outside-In” Sequence of S&OP Initiatives

Typically, the events that will have the most profound and negative impact on your sales and
operations planning are those outside of your control. For the most part, these are due to the
decisions and actions of your customers, partners, and competitors, which have a direct impact
on your revenue and your competitor’s strategy.

Focus on More Information, Less Data

Another key to successful S&OP is clean, current, and accurate data. Plans are often slowed
down by the effort of gathering data that has minimal importance to the overall project. It is
important to ensure that you know exactly what business problem you are trying to resolve and
understand the minimum data necessary for the project.

supply chain management

Supply chain management (SCM) is the oversight of materials, information, and finances as they
move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply
chain management involves coordinating and integrating these flows both within and among
companies. It is said that the ultimate goal of any effective supply chain management system is
to reduce inventory (with the assumption that products are available when needed). As a solution
for successful supply chain management, sophisticated software systems with Web interfaces are
competing with Web-based application service providers (ASP) who promise to provide part or
all of the SCM service for companies who rent their service.

Supply chain management flows can be divided into three main flows:

 The product flow

 Supply chain management software selection for manufacturers

 Supply chain planning and execution

 The information flow

 The finances flow

The product flow includes the movement of goods from a supplier to a customer, as well as any
customer returns or service needs. The information flow involves transmitting orders and
updating the status of delivery. The financial flow consists of credit terms, payment schedules,
and consignment and title ownership arrangements.

There are two main types of SCM software: planning applications and execution applications.
Planning applications use advanced algorithms to determine the best way to fill an order.
Execution applications track the physical status of goods, the management of materials, and
financial information involving all parties.

Some SCM applications are based on open data models that support the sharing of data both
inside and outside the enterprise (this is called the extended enterprise, and includes key
suppliers, manufacturers, and end customers of a specific company). This shared data may reside
in diverse database systems, or data warehouses, at several different sites and companies.

By sharing this data "upstream" (with a company's suppliers) and "downstream" (with a
company's clients), SCM applications have the potential to improve the time-to-market of
products, reduce costs, and allow all parties in the supply chain to better manage current
resources and plan for future needs.

Increasing numbers of companies are turning to Web sites and Web-based applications as part of
the SCM solution. A number of major Web sites offer e-procurement marketplaces where
manufacturers can trade and even make auction bids with suppliers.

Difference between marketing and selling

"Marketing" is not "Sales". It's critical to know the difference.

Broadly, Marketing creates the atmosphere to make it easy for sales to happen. Marketing consists things
like:

 Marketing Strategy: your product must be aimed at consumers in one only of the Mass Market,
Mid-Market or High End (only one product in the entire history of marketing has ever succeeded
in all three of those consumer areas). Aiming your product at all three in a shotgun approach
confuses consumers resulting in your business going broke.
 Target Market: strategy includes identifying a specific group of consumers (age bracket, etc)
within your one Mass, Mid or High End market area. The better we identify our target group, the
easier it is to make sales.
 Research your competitors - "know your enemy".
 Point of Difference or Unique Selling Proposition (USP) as it is sometimes called. Why should a
customer walk past my competitors to come to me?
 Writing our marketing material: brochures, adverts, websites, etc, all precisely pitched to our
Target Market.
 Developing our brand names and good reputation ('Image'). Chasing free editorial.
 Devising tactics to turn first time buyers into repeat customers.
 And, the list goes on and on ... marketing is anything that creates atmosphere to make it easier
for sales to happen.

In my book, the most critical of all above is your Point of Difference or USP.
"Sales" obviously is getting out and writing the orders ... tough disciplined work. This involves skills like
"closing" the sale - very different skills to Marketing.
A marketer is a creative person, a law unto himself, a person with few boundaries, a person who lives
inside the head of your customer, a person who dreams and creates at any/all hours of day and night, a
person who can send normal disciplined people crazy. For a marketer, the thrill of the chase is creating
original thinking / products - original ideas that work, ideas that nobody else thought about. Top marketers
are some of the world's highest paid professional people.
A salesperson, unlike a marketer, is a well disciplined person who works within a tight set of conventional
rules to get the sales orders. A salesperson is motivated by the thrill of closing a deal and the attendant
cash bonus. You drive a good sales person crazy when you don't give him/her sound marketing back up.
Good sales people do not make good marketers and vice versa ... Selling and Marketing are very
separate disciplines involving very different ways of thinking.

Marketing executive
Job Description

Job description

Marketing executives are involved in developing marketing campaigns that promote a product,
service or idea. The role includes planning, advertising, public relations, organising events,
product development, distribution, sponsorship and research. The work is often challenging,
varied and exciting.

The responsibilities of a marketing executive will vary, depending on the size of the organisation
and sector, and whether the focus is on selling a product or service or raising awareness of an
issue that affects the public.

As many organisations have marketing departments, marketing executives can be found in both
the private and public sectors, from the financial, retailing and media industries to voluntary and
public sector organisations.

Marketing executives may also be known as marketing officers or coordinators.

Typical work activities

Marketing executives contribute to and develop integrated marketing campaigns. Tasks typically
involve:
  liaising and networking with a range of stakeholders, e.g. customers, colleagues, suppliers and
partner organisations;
 communicating with target audiences and managing customer relationships;
 sourcing advertising opportunities and placing adverts in the press (local, regional, national and
specialist publications) or on the radio (depending on the organisation and the campaign);
 managing the production of marketing materials, including leaflets, posters, flyers, newsletters
and e-newsletters and DVDs;
 writing and proofreading copy;
 liaising with designers and printers;
 organising photo shoots;
 arranging for the effective distribution of marketing materials;
 maintaining and updating customer databases;
 organising and attending events such as conferences, seminars, receptions and exhibitions;
 sourcing and securing sponsorship;
 conducting market research such as customer questionnaires and focus groups;
 contributing to and developing marketing plans and strategies;
 managing budgets;
 evaluating marketing campaigns;
 monitoring competitor activity;
 supporting the marketing manager and other colleagues.

Sales executive: Job description and activities

job description

Sales executives sell their company’s goods and services to new and existing customers. Their
customers may be retails outlets, businesses, individuals, wholesalers or manufacturers.

They are also involved with identifying new markets and business opportunities.

Their role helps to ensure the commercial success of a diverse range of companies in UK and
overseas markets and may involve working with high-profile brands and products in areas
including:
  fast moving consumer goods (FMCG), such as food, drink and stationery;
 consumer durables, such as clothes, domestic equipment and toys;
 industrial supplies;
 IT, software and media supplies;
 services, such as print and financial services.

Within the sales environment, a number of other job titles are also used to refer to a similar job
role, including: territory manager; territory development manager; sales representative; sales
development representative.

Typical work activities

Typical work activities depend on the market and the setting. A basic distinction can be made
between two types of sales: Business to Business (B2B) and Business to Customer or Consumer
(B2C).

B2B sales involve selling products or services from one business to another. This is a typical
avenue for graduates. For example, a sales executive in a company that manufactures fast
moving consumer goods (FMCG), e.g., soft drinks, will sell to the retailer and may be involved
in making a strong argument so the products gain a listing. Activities important for success
include:

 relationship building;
 researching the market and related products;
 presenting the product or service in a structured professional way face to face. 

B2C sales involve direct selling to the consumer or end user. Examples include selling credit
cards via the telephone or selling new cars in a showroom.

Typical activities for sales executives generally include:

 listening to customer requirements and presenting appropriately to make a sale;

 maintaining and developing relationships with existing customers in person, and via telephone
calls and emails;
 arranging meetings with potential customers to prospect for new business;
 acting as a contact between a company and its existing and potential markets;
 negotiating the terms of an agreement and closing sales;
 gathering market and customer information;
 representing the organisation at trade exhibitions, events and demonstrations;
 negotiating on price and costs, delivery and specifications with buyers and managers;
 challenging any objections with a view to getting the customer to buy;
 advising on forthcoming product developments and discussing special promotions;
 liaising with suppliers to check the progress of existing orders;
 checking quantities of goods on display and in stock;
 recording sales and order information and sending copies to the sales office;
 reviewing your own sales performance, aiming to meet or exceed targets;
 gaining a clear understanding of customers' businesses and requirements;
 making accurate, rapid cost calculations, and providing customers with quotations;
 feeding future buying trends back to employers;
 attending team meeting and sharing best practice with colleagues.