Unveiling the Key Role of Sales Analysis in Business Success

In the dynamic and competitive landscape of modern business, companies strive to maximize their growth and profitability. Among the various aspects that contribute to business success, sales analysis stands out as a crucial factor. By examining and understanding sales data, companies gain valuable insights into their performance, market trends, and customer behavior. In this article, we explore why sales analysis is an indispensable tool for any company and how it can drive informed decision-making and growth.

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Another one success story of S&OP implementation

The graphic show sales and earnings development 2013-2022. In 2019, S&OP became operational. As of 2020, sales and profits began to rise substantially. And all this happened while COVID-19 delivery restrictions started in 2020 and the next supply chain challenges began due to the war between Russia and Ukraine. The company has an excellent system for scheduling the delivery of inventory and goods, but not the competitors. Due to specific products, lead-time may take up 5-6 months. For this reason, the company has achieved almost a monopoly on the market with an ability to manipulate the margin level.

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Example of optimal usage of resources because of S&OP

On the graph you may see results of S&OP implementation, then all departments know what will happen. All the old supply chains have been broken because of the geopolitical challenges of the last three years and, in Europe, many producers are suffering from a shortage of production material. As part of the implementation of the S&OP process, Sales reviewed the profit calculation and client engagement strategy. In total, sales volume decreased by 30-40%, but total profit left over the historical volume.

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Forecast vs Prediction

Forecast and prediction are two terms often used interchangeably, but they are not exactly the same thing. Both of them involve making an educated guess about the future, but they differ in their level of precision and accuracy.

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