Sales & Operations Planning Process
The S&OP process (Sales and Operations Planning) is a formal and structured business decision-making process that includes processes such as Product Management Review, Demand Review, Supply Review and Business Management Review. This is an iterative process that should also include an integrated reconciliation with the company’s financial goals and corporate strategy.
The aim is to achieve a comprehensive and holistic view of planning, transversal collaboration between the different departments and functions of the company and to carry out operations and business activities in an agile and synchronized way.
The S&OP process generally includes a Product Management Review, Demand Review, Supply Review, and Management Business Review.
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- Product Review: Goal is to discuss current and future assortment, go over the trends, the new product introductions, end of life strategy and assortment rationalization.
- Demand Review: The process in which the agreed demand plan (generated from internal and external inputs) is aligned with the actuals and the budget. It is about bridging the GAP and aligning on actions to maximize opportunity and mitigate risk.
- Supply Review: Defines the supply response constraints and gaps in fulfilling the consensus demand; aligns demand, supply and financials; and develops options to mitigate financial and capability gaps.
- Business Review: Resolves critical gaps between demand, supply and financials (Strategic integration of business plans for exception-based decision making).
