Sales and Operations Planning (S&OP) is a strategic process that aligns the sales and operations functions within an organization. It involves the coordination and integration of these two key areas to ensure that the organization’s sales goals are met while also considering operational constraints and capacity. The main objective of S&OP is to balance demand and supply across the entire organization.
The process typically involves a series of meetings where sales and operations teams come together to review and update demand forecasts, inventory levels, production plans, and other key metrics.