What is an S&OP process?

What is an S&OP process?

Sales and operations planning (S&OP) is an integrated planning process that aligns demand, supply, and financial planning and is managed as part of a company’s master planning. S&OP is designed and executed to support executive decision-making related to approving a feasible and profitable material and financial plan.

What is S&OP and what are its goals?

Sales and operations planning (S&OP) is a process for better matching a manufacturer’s supply with demand by having the sales department collaborate with operations to create a single production plan. The broader goal is to align daily operations with corporate strategy.

Why is the S&OP important?

S&OP is a process to help you deliver better customer service, lower inventory, shorter lead times, more stable production rates, and better management of an overall business. Lastly, it gives an awesome team building and communication mechanism.

What is an S&OP analyst?

The S&OP Analyst keeps all participants in the process on track and moving toward resolution of the demand and supply plans. The Sales and Operations Analyst will also lead results and reporting tracking that will be utilized and presented across the business including to the Executive level through the S&OP process.

Is demand planning part of S&OP?

Demand Planning is just one of five steps of the whole S&OP process. The Demand Planning step uses the statistic sales forecast and the experience of other areas in order to estimate future demand. S&OP is a communication and decision making process whose main goal is to balance offer, demand, mix and volume.

Who is responsible S&OP?

The S&OP leader will oversee this meeting/step in the process, but the Executive Sponsor is a required participant and will be needed to finalize all decisions/outcomes of the meeting. Review 12-month rolling demand and supply plan by category including; Short-term concerns.

What is the value of S&OP?

With the S&OP cadence, this changed to reviews, discussions, and actions taken throughout the month, not after monthly finances are completed. The strategic value of S&OP is cohesiveness across all functions of a business. This creates visibility, and visibility allows the organization to see (sales) opportunities.