What does S&OP mean?

sales & operations planning
S&OP, or sales & operations planning, is a monthly integrated business management process that empowers leadership to focus on key supply chain drivers, including sales, marketing, demand management, production, inventory management, and new product introduction.

What is an S&OP process?

Sales and operations planning (S&OP) is an integrated planning process that aligns demand, supply, and financial planning and is managed as part of a company’s master planning. S&OP is designed and executed to support executive decision-making related to approving a feasible and profitable material and financial plan.

How do I create a S&OP?

Jump to:

Implementing S&OP.
Typical S&OP Process.
S&OP Roles and Responsibilities.
Step 1: Gather and Manage Data.
Step 2: Develop Demand Plan.
Step 3: Supply Planning.
Step 4: Reconciliation of Plans | Pre-S&OP Meeting.
Step 5: Approve and Release | Executive S&OP Meeting.

What is S&OP and what are its goals?

Sales and operations planning (S&OP) is a process for better matching a manufacturer’s supply with demand by having the sales department collaborate with operations to create a single production plan. The broader goal is to align daily operations with corporate strategy.

Who uses S&OP?

The sales-and-operations-planning (S&OP) process is used by many companies to coordinate efforts of different functional units, including Sales, Marketing, Finance, HR (occasionally), and Operations, for medium-term supply-chain planning, an important hierarchy in 5 Levels of Supply Chain Planning.

Who owns S&OP process?

Either way, the head of planning (demand or supply) is what I typically see in high performing S&OP processes. Second, the owner of the process often depends on the structure of an organization, but I generally see, and recommend a general manager, brand manager, or divisional president / vice president as the owner.

What are two key S&OP metrics?

Here are our picks for five key metrics to keep an eye on to ensure your S&OP is on track.

Percentage On-time Delivery to Customer.
Production Plan Adherence.
Forecast Accuracy.
Order Cycle Time.
Capacity Plan vs Actual (Capacity Utilization)

Who owns the S&OP process?

What is S&OP dashboard?

2 S&OP Executive Review Dashboard: This dashboard facilitates the S&OP executive review process. The consensus or pre-S&OP meeting provides the details to the executive review process, and this dashboard provides visibility into the status of those submitted operations and supply chain plans.

Why is S&OP?

S&OP is a process to help you deliver better customer service, lower inventory, shorter lead times, more stable production rates, and better management of an overall business. This is where the Sales and Operations Planning Process comes in, to align the two numbers.

What is PSI production inventory?

This production-sales-inventory (PSI) report compares the planned production rate to the sales rate. This relatively stable production rate is used to fulfill the more variable demands.

How is S&OP calculated?

This metric is expressed as a percentage, calculated as (planned production – actual production)/planned production. It’s useful in determining if machinery is performing up to standards, or if one facility is falling behind another in terms of output.