Successfully Translating the S&OP Output into a Meaningful Operations Plan
A common disconnect in a supply chain organization can be the translation of the S&OP output into a production plan that accurately reflects the direction of the business. In a CPG business, changes in the sales forecast will occur frequently and any lag in changing the production schedule can have substantial consequences. These consequences are usually associated with low inventory and customer service problems, or on the other hand, excess inventory and and/or shelf-life issues. Having a comprehensive system for communicating the changes in the operating plan is essential.