Sales & Operations Planning: All demand (sales) and supply (capacity, materials) of a product is balanced and planned to secure on-time delivery to our customers, while making optimal use of our full supply network.
Why is S&OP important?
Sales & Operations Planning is important as the plan agreed on is leading for the operational activities within any organisation,
S&OP is not a Supply Chain project, but a joined ownership of the organization
In many organisations, the advanced form of S&OP (where it is more than only balancing Demand & Supply) is often referred to as Integrated Business Planning (IBP). This to differentiate it from ‘just’ a Supply Chain process.
There are three main areas in S&OP
