Focus on sales forecasts.
Now think about the definition of sales and operations planning (S&OP): “A process to develop tactical plans that provide management the ability to strategically direct its businesses to achieve competitive advantage on a continuous basis by integrating customer-focused marketing plans for new and existing products with the management of the supply chain. The process brings together all the plans for the business (sales, marketing, development, manufacturing, sourcing, and financial) into one integrated set of plans.” – Collaboration
Bearing in mind as businesses grow, the ability to meet demand is a critical component of success. Consider the first definition of scalability from the APICS Dictionary, 15th Edition: “How effectively a company can grow its business in order to meet demand.” A key component of scalability is lean production practices, which help ensure that a company manages its resources and reduces waste in terms of material, time and overall costs. Lean practices boost efficiency and enable growing companies to accommodate growing production needs.
Small or large, companies must be scalable and able to forecast demand in a strategic and holistic manner in order to prepare themselves for future success.
Taking, for example, the 16-week rule one very important planning mantras I carry with me. Planning ahead is essential for success and to maximize those sales opportunities (yes we’re talking about that AGAIN), So it’s time to think summer in retail.