What is the Sales & Marketing’s Role S&OP? First of all, the Sales & Marketing Leader is part of the Roles and Responsibilities of S&OP.
Successful implementation of the S&OP process requires cross-functional participation from all relevant departments. One critical functional area, Sales & Marketing, is in charge of creating, identifying, and capturing growth opportunities for the corporation. In some industries, such as CPG, Marketing may take the front seat, in others, Sales. However, at a high level it is common for them to converge in the reporting structure. The Sales and Marketing Leader provides critical, up-to-date sales intelligence that will improve forecast accuracy. Sales and Marketing Leader can also help drive an efficient production schedule.
Performance Criteria of the Sales and Marketing Leader
The performance of the Sales and Marketing Leader is based upon the level of sales and profit they generate. Obtaining “organizational buy in” from the SM Leader requires to gain appreciations regarding how S&OP can help reach their goals.
Product Portfolio Management
The company can use the S&OP to proactively inform Operations Leaders of changes to the product portfolio. For instance, new product introductions and the phasing out of poorly performing products. With this knowledge, the Operations Leader can make sure to balance raw material supply relative to these changes in product specific demand.
How S&OP Can Benefit the Sales & Marketing Leader
Although, past historical demand can provide a baseline to begin the forecasting process. It captures all sources of anticipated demand includes not just routine orders but new sources of demand as well. The Sales and Marketing Leader’s role in the S&OP process includes anticipating demand stemming from new product introductions. But also new customers or targeted promotional efforts. Accurately conveying these forecasts to the Operational Team enables the team to manufacture sufficient inventory to meet all customer orders.
High Quality Inventory and On Time Customer Service Benefits Sales and Marketing
Maintaining a planned manufacturing schedule, that has carefully balanced out raw material needs with production capacity, helps ensure product quality remains consistent. Quality deviations that could occur from a quick substitution of an alternative raw material, that may not have been thoroughly pre-qualified, can be avoided. The steady supply of high quality inventory reflects well on the Sales and Marketing Leader. Likewise, customer satisfaction is enhanced when orders are filled with on time delivery.
Reliable Product Quality and On Time Delivery Increases Customer Satisfaction
Over time, excellent customer service and high product performance generate a good reputation for the company as a reliable supplier. Customers will gladly return, time after time, to the company for additional orders. Company can also sells peace of mind. Indeed, they can do so by providing reliable product quality and on time delivery. This makes it easier for the Sales and Marketing Leader to protect the current client base. It also enables the Sales and Marketing Leader to leverage the company’s solid reputation within the industry to acquire new business.
How Corporate Management Can Ensure Cooperation Between Sales & Marketing and Operations
Finally, effective Executive Management requires developing reporting structures that help meet strategic corporate goals. A reporting structure that places the Sales and Marketing Leader and the Operations Leader under the same manager helps ensure cross-functional collaboration and secure the Sales and Marketing Leader’s role in the S&OP process.
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