What is Sales Planning?
Sales planning marks the beginning of operational planning in a company. It defines the quantities of products that can be expected to be sold within a certain period. Sales planning is therefore the basis for all subsequent measures, such as procuring raw materials for production. For a planning period of 5 to 30 years, it is referred to as strategic sales planning. If sales planning only covers the next fiscal year, it is considered operational sales planning.
Accurate Sales Planning – Key to Business Success
The more accurate the sales planning, the better for the company’s success. Sales figures planned too low lead to delivery bottlenecks, while overly generous sales estimates can result in overcapacities, expensive inventories, and a price drop. An exact estimate of sales quantities, on the other hand, ensures optimal utilization of raw materials and other resources, maximizing production capacity.
In smaller companies with a manageable product range, sales planning can be handled using Excel. For large companies, however, special programs are used for sales planning.
Goals of Sales Planning
- Plan future expenses and production costs
- Maximize contribution margin
- Utilize available resources as efficiently as possible
- Ensure maximum product availability
- Optimize inventory levels
- Simplify purchasing processes
- Optimize personnel deployment
