What is sales and operations planning (S&OP)? - Definition from Whatis.com

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sales and operations planning (S&OP)

Definition

sales and operations planning (S&OP)

Sales and operations planning (S&OP) is an iterative business management process that determines the optimum level of manufacturing output. The process is built upon stakeholder agreement and an approved consensus plan. To help stakeholders agree on a plan of action based on real-time data, S&OP software products include dashboards.that display data related to equipment, labor, facilities, material and finance. The purpose of the dashboards is to provide the stakeholders with a single, shared view of the data.

The business goals of S&OP include:

• Determining the balance between supply and demand.

• Avoiding wasteful production.

• Improving top line revenues.

• Optimizing resources for production.

Related glossary terms: work in progress (WIP), advanced shipping notice (ASN), logistics management, 3PL (third-party logistics), closed loop manufacturing resource planning (MRP), supply chain sustainability, inventory management, replenishment, finite capacity scheduling

This was last updated in December 2010

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