S&OP is an executive level decision-making process to create a single integrated plan that focuses and aligns all departments of the business on corporate goals.
As a recognized best practice for executive management, Sales and Operations Planning (S&OP) has enabled firms to dramatically grow revenue, reduce costs, increase customer service levels, and drive improved financial performance. Demand, supply, new products, strategic projects, and the resulting financial implications are considered while tying departmental tactical plans to the organization’s strategy and ensuring appropriate allocation of critical resources, such as people, equipment, materials, and money.
An effective S&OP process gets everyone on the same page in terms of demand, supply, new product introductions, and the timing of strategic projects to grow revenue or improve operational performance. S&OP is also used for effective supply chain management.
