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Sales & Operation Planning | S&OP

Sales & Operations Planning or S&OP is the keystone of a production planning system. It should reflect a coherence between the company’s industrial activity, marketing plan and financial strategy. S&OP brings together volume, product families and budget. It operates on the tactical plane: according to the nature of the business, it takes into account seasonality and is developed using months as the unit of time.

 

Sales & Operations Planning helps you to balance supplies according to trends in demand. The search for this balance depends notably on the integration of incoming data such as:

- Sales forecasts,

- Firm orders confirmed by the customer,

- A marketing plan with a provisional schedule for new products

 

The S&OP helps in defining a long-term strategy by determining on a month-to-month basis across the entire planning time frame:

- Volumes to be manufactured by product family

- Workforce and estimated hours

- Subcontracting requirements

- Necessary investments or their removal

- Supplies of raw materials and components

 

All of these forecasts will be transformed into a Master Production Schedule or MPS, which will break down the data article by article on the operational plane.




Related definitions

Master Production Schedule | MPS