Sales & Operations Planning (S&OP) is a process that provides management with the ability to strategically direct its business to achieve competitive advantage, on a continuous basis, by integrating consumer focused marketing plans for new & existing products, with the management of the Supply Chain. 

S&OP is a decision-making process, to balance demand and supply, to align volume and mix and to integrate financial and operating plans. It is a tactical level planning process that links the company strategy with the operational levels of execution.

S&OP process enables the company to effectively manage the demand of its customers with the capacity of its operations.  It generates a uniform, agreed to, set of numbers which drive the business.

This process brings together all plans for the Business (sales, marketing, product development, manufacturing, sourcing and financial) into one integrated set of plans.

It pro-actively balance the Demand & Supply, the Sites’ need for standardized information; against regions’ need for flexibility; and the Stock-outs and backorders vs. excessive inventory levels and slow movers.

S&OP is also a tool that can dramatically strengthen the internal functions collaboration processes and can bring significant results in terms of profit margin, cost reduction and customer service level.