Sales and Operations Planning

Sales and Operations Planning (S&OP) is a process that aligns a company’s sales forecasts with its operational capabilities, ensuring efficiency and balance. In the context of demand planning, S&OP involves predicting customer demand for products and coordinating resources, such as production and inventory, to meet that demand. This collaborative planning seeks to optimize supply chain performance, reduce costs, and improve customer satisfaction by ensuring the right products are available at the right time. Essentially, it’s about creating a clear picture of future demand and adjusting operations accordingly to meet business goals.