S&OP
Supply Chain
S&OP (Sales and Operations Planning)
Sales and Operations Planning
Monthly cross-functional process that aligns demand, supply, inventory and financial plans at an aggregate level.
Examples
- 01The monthly S&OP meeting compares the demand plan of 42,000 units with a capacity of 38,000 and decides to build stock in the quiet months.
- 02In the S&OP process, sales, production, purchasing and finance review one set of numbers by product family before the executive meeting.
- 03When S&OP shows a capacity gap for the next quarter, management approves an extra shift instead of letting delivery times slip.