Sales & Operations Planning
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Sales & Operations Planning (S&OP) is an integrated management process through which the executive team continually achieves focus and alignment between all the functions of the organization. It is truly a cross functional and cross company process that integrates all aspects of demand planning, supply chain management, and financial analysis into a one centralized business and strategic process.  Often, even the best corporations have solid strategies and business plans, but no methodology for disseminating it to the rest of the organization. The ability to rapidly re-plan and re-align an organization as market conditions change, is what sets market leaders apart from their competitors.

A properly implemented S&OP process routinely reviews customer demand and supply resources and “re-plans” quantitatively across an agreed rolling horizon. The re-planning process focuses on changes from the previously agreed sales and operations plan. While it helps the management team to understand how the company achieved its current level of performance, its primary focus is on future actions and anticipated results. Companies that have an integrated business management process use the S&OP process to monitor the execution of the company’s strategies.

Robert Hirneisen, an expert in Operational Excellence, Sales & Operations Planning, and Supply Chain Management, is the author of Sales & Operations Planning: Creating a Formula for Success.

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