Aligning Supply and Demand: S&OP Levels Explained PPT

This PPT slide, part of the 27-slide Supply Chain Management - Sales and Operations Planning (S&OP) Improvement PowerPoint presentation, outlines the Sales and Operations Planning (S&OP) process across 3 distinct organizational levels: Strategic, Operational, and Transactional. Each level serves a unique purpose in aligning supply and demand, which is crucial for effective management.

At the Strategic Level, the focus is on high-level activities that shape the overall production network. This includes selecting suppliers and planning capacity. Demand-side activities at this level encompass product life-cycle management, pricing strategies, sales initiatives, and marketing efforts. The strategic nature of these activities emphasizes the importance of long-term decision-making.

The Operational Level deals with the practical aspects of production. Here, activities include production planning and scheduling, materials planning, and supplier management. On the demand side, this level focuses on sales planning, demand forecasting, and inventory management. It bridges the gap between strategic intentions and day-to-day operations.

The Transactional Level is the most immediate, involving the execution of purchases and payments. This level also covers the management of orders and deliveries, ensuring that demand is met effectively.

The slide highlights that while S&OP planning is fundamentally strategic, many organizations tend to concentrate their efforts on the transactional and operational levels. This suggests a potential oversight in leveraging the full scope of S&OP capabilities. Recognizing the importance of all 3 levels can provide organizations with a more comprehensive approach to managing their supply chain and operations.

This slide is part of the Supply Chain Management - Sales and Operations Planning (S&OP) Improvement PowerPoint presentation.

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Supply Chain Analysis Sales & Operations Planning Supply Chain Management Inventory Management Supply Chain Supplier Management Production Planning Sales Purpose S&OP Production

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