What is S&OP (Sales and Operations Planning)?

S&OP, or sales & operations planning, is a monthly integrated business management process that empowers leadership to focus on key supply chain drivers, including sales, marketing, demand management, production, inventory management, and new product introduction.

With an eye on financial and business impact, the goal of S&OP software is to enable executives to make better-informed decisions through a dynamic connection of plans and strategies across the business. Often repeated on a monthly basis, S&OP enables effective

supply chain management and focuses the resources of an organization on delivering what their customers need while staying profitable.

6 Steps of the S&OP Processes

Product Review

product development and new product introduction analyze the health of products in the market, examine product pipelines, and arrive at decisions about product planning.

Demand Review:The goal of this phase is an unconstrained forecast or consensus demand planning, incorporating a holistic picture of independent and dependent demand.

Supply Review: The goal of this phase is a supply plan that syncs with the consensus demand plan. Ideally, these two plans work in unison.

Finance Review: matter where this step in the process falls, financial analysis plays a key role in producing inputs into pre-S&OP and executive S&OP.

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