What is S&OP

Onive Consulting | Wat is S&OP

Sales & Operations Planning is a business planning process that aims to perfectly align supply and demand. The process is characterized by the following elements:

  • Both the demand (sales) and supply (production, transport and purchasing) side work with 1 plan.
  • The process consists of a (usually monthly) cycle of meetings, where each meeting adds to the insights in the future to balance the supply and demand.
  • Sales and Operations participate, under the leadership of Supply Chain and all participants have clear roles and responsibilities
  • The horizon is 1-12 month, where the hot spot is 2-3 months.


What are the benefits?

The benefits of S&OP mainly come from the alignment of sales and operations, that create opportunities for aligned optimization of efforts and reduction of waste due to misalignment. Examples are:

  • Reduction out of stocks
  • Optimization of stock levels
  • Reduction of non-sellable stock and/or waste
  • Optimization of promo-planning
  • Optimization of production planning (batch-size/frequency)
  • Optimization service levels


What else do you notice?

Besides these hard and tangible results, organizations will notice changes in the way the organization operates:

  • Improved alignment improves the cooperation between Sales and Operation
  • The operation will be steered proactively, which creates stability in the operation.


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