Sales and operations planning

Updated: June 26, 2024
Published: February 4, 2021

What is the Sales & Marketing Leader’s Role in S&OP?

The Sales & Marketing leader is a key part of the Roles and Responsibilities of Sales and Operations (S&OP).

Successful implementation of the S&OP process requires cross-functional participation from all departments of the organization. A major participant is Sales & Marketing, who is in charge of creating, identifying, and capturing growth opportunities for the corporation. 

In some industries, such as Consumer Packaged Goods (CPG), Marketing may take the front seat; in others, it is Sales. In either case, both groups need to work together and be aligned.

What is important to highlight is that only some companies have one leader for Sales and Marketing. Some have these separated with a Chief Revenue Officer (CRO) leading the Sales team, and a Chief Marketing Officer (CMO) leading the Marketing one. 

Sales and Marketing provide critical, up-to-date sales intelligence. This will not only improve forecast accuracy but will also ensure a production plan to meet customers needs. They also provide market intelligence of the competitive landscape which helps with decision-making.

Performance Criteria of the Sales and Marketing Leader and Team

The performance of the Sales and Marketing leader is based upon the level of sales and profit they generate. Obtaining organizational buy-in requires understanding how S&OP can help reach Sales and Marketing goals and, ultimately, the company’s overall objectives.

Responsibilities of Sales and Marketing

The Marketing team is responsible for the communication and promotion of the brand and products. Their role is to fill the pipeline of potential customers.

The Sales team is responsible for the sales process, final sales, nurturing customer relationships, and gathering critical market data. In other words, they can greatly enhance the accuracy of a detailed forecast thanks to the sales forecast reflected in the sales plan.

Competing Key Performance Indicators (KPIs)

Companies evaluate sales personnel based on sales volume, customer service levels, and profit margins. Sales usually focus their energy on activities that will increase the sales pipeline. They need to be regular contributors to the S&OP process to pass on up to the minute sales information.

Marketing personnel are evaluated based on lead generation and pipeline contribution. As a result, they focus their efforts on increasing prospective customers’ pipeline, brand awareness and reputation. 

The Sales and Marketing leader needs to wisely manage these competing KPI. Sales and Marketing both need to realize the value of S&OP for their individual objectives.

How Sales & Marketing Enhance the S&OP Process

Current forecasting practices typically begin with historical demand. However, S&OP combines historical forecasting with new sources of demand making it possible to create a more accurate forecast.

Essential functions of Sales and Marketing role in the S&OP process include:

  • Anticipating demand stemming from new product introductions, as well as new customers or targeted promotional efforts.
  • Accurately conveying these forecasts to the operational team to enable production to manufacture sufficient inventory to meet all customer orders.

Managing the Company’s Product Portfolio Together

The company can use the S&OP process to proactively inform the operations leader of changes to the product portfolio. For instance, new product introductions and the phasing out of underperforming products. With this knowledge, the operations leader can make sure to balance raw material supply relative to these changes in product-specific demand.

Sales and Marketing also need to be informed of any product portfolio changes. Such changes have a direct impact on their work.

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 as customer satisfaction is enhanced when orders are filled with high-quality products and on-time delivery.

Over time, excellent customer experience and high product performance generate a good reputation for the company as a reliable supplier, thus increasing loyalty. Customers will gladly return to the company for additional orders.

By providing reliable product quality and on-time delivery, companies can also sell peace of mind. This makes it easier for the Sales and Marketing leader to protect the current client base and to leverage the company’s solid reputation within the industry to acquire new business and keep growing.

Fostering Cross-Functional Collaboration

For Sales and Marketing, fostering a strong collaborative relationship with the Operations team is essential for the success of the S&OP process and the overall success of the company. 

Let’s recap some of the key strategies to needed for efficient collaboration:

  • Establishing clear communication channels: Regular meetings and collaborative tools ensure alignment on demand forecasts and production plans, preventing miscommunication.
  • Sharing up-to-date market intelligence: Sales and Marketing provide Operations with competitive insights and customer feedback that helps them anticipate changes in demand and adjust production schedules accordingly. Operations share production capacities, which helps Sales and Marketing set realistic customer expectations.
  • Developing metrics jointly: Collaborate to develop and review metrics like on-time delivery, product quality, and customer satisfaction, highlighting S&OP effectiveness and areas for improvement.
  • Highlighting collaborative successes: Share examples of successful collaborations to demonstrate the value of cross-functional teamwork, using internal newsletters or meetings.
  • Aligning goals and incentives: Ensure goals and incentives across Sales, Marketing, and Operations are aligned, with shared KPIs reflecting each team’s contributions to the S&OP process.

By prioritizing cross-functional collaboration, Sales and Marketing leaders can ensure that their teams work seamlessly with Operations to meet customer demands efficiently and effectively. This collaboration improves performance but solidly strengthens the company’s reputation as a reliable supplier, driving long-term growth and success.

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