Managing Sell-In and Sell-Out for Effective S&OP

The relationship between sell-in and sell-out in the pharmaceutical industry is a critical one. Sell-in represents the volume of product sold to manufacturers, retailers or distributors while sell-out represents the actual volume sold to the end consumer. Minimizing the delta between the two is key to avoiding burdening different channels with excess stock and maximizing profitability. This article reveals how S&OP and planning tools can be used to minimize the difference. By collaborating with marketing and conducting an effective demand review, the impact of marketing promotions and other demand factors can be identified, allowing for better and more agile inventory decision ...