Your book describes three phases in the implementation of sales and operations planning in an organization. What are the three phases and what takes place in each?

What will be an ideal response?

Answer: The three phases are 1) developing the foundation; 2) integrating and streamlining the process; and 3) gaining competitive advantage. Within each phase the following actions take place:
Developing the Foundation: In the first phase of implementing S&OP, companies build the managerial support and infrastructure needed to make S&OP a success. Key steps include educating all participants about the benefits of S&OP, identifying the appropriate product or service families to plan around, and establishing the information systems needed to provide accurate planning values.
Integrating and Streamlining the Process: In the second phase of implementation, S&OP becomes part of the organization's normal planning activities. Managers become accustomed to updating the plan on a regular basis, and more importantly, they use the planning results to guide key demand and resource decisions. The sales and operations plan becomes a focal point for cross-functional coordination. Managers also look for ways to improve the S&OP process further.
Gaining a Competitive Advantage: In the final phase of implementing S&OP, a few companies reach the point where their S&OP process actually becomes a source of competitive advantage — a core competency, if you will. Companies know they have reached this last phase when there is a well-integrated demand planning process, including the use of forecasting models; continuous improvement is planned and monitored as an integral part of the S&OP process; capital equipment planning can be triggered at any time; what-if analyses are a way of life; and the S&OP database is networked to provide ready access to S&OP data.