For seamless operations, businesses must have the ability to make cross-functional decisions. If the gaps between these groups were minimized, businesses could determine the impact of supply chain decisions early in the planning process and at all levels of planning: from strategic to tactical through execution. In most cases, this model excludes any input from the finance team beyond the annual static budget recommendation. Many manufacturers today still use past decision-making methods, which is a disconnected model that leads to critical departments, like finance and operations, being isolated from one another. However, companies today are now beginning to realize that the collaboration must include the complete ecosystem of an organization, including key trade partners, throughout the whole process. Many companies believed collaboration should occur amongst sales forecasting, operations planning and procurement planning teams. The problem is that what exactly collaboration should entail is sometimes unclear. In essence S&OP is all about collaboration. However, considering today’s volatile global supply chain, financial planning must be integrated with sales and operations during the planning process to align both department’s goals. This is especially true for sales and operations planning (S&OP) and financial planning. Many businesses today still allow internal departments to work independently of each other, causing daily functions to shift into silos and creating disconnects in processes and, inevitably, the supply chain.
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