Sales and operations planning

'''Sales and operations planning''' ('''S&OP''') is a [[business management|business]] [[management process|management planning process]] that integrates [[demand forecasting]] with [[Supply (economics)|supply]] [[planning]] to create a plan that attempts to balance demand with available resources.{{Cite web |last=Lapide |first=Larry |date=2004 |title=Sales and Operations Planning Part I: The Process, Massachusetts Institute of Technology |url=https://ctl.mit.edu/pub/sales_and_operations_planning_part_i_the_process |url-status=live |access-date=December 2, 2025 |website=MIT Center for Transportation and Logistics}}

'''Sales and operations planning''' ('''S&OP''') is a [[business management|business]] [[management process|management planning process]] that integrates [[demand forecasting]] with [[Supply (economics)|supply]] [[planning]] to create a plan that attempts to balance demand with available resources.{{Cite web |last=Lapide |first=Larry |date=2004 |title=Sales and Operations Planning Part I: The Process, Massachusetts Institute of Technology |url=https://ctl.mit.edu/pub/sales_and_operations_planning_part_i_the_process |url-status=live |access-date=December 2, 2025 |website=MIT Center for Transportation and Logistics}}

This process brings together [[sales operations]], production capacity, [[inventory]] levels, and [[Budget|budgets]] so that all part of company amalgamate and work from the same assumptions.{{Cite journal |last1=Kristensen |first1=Jesper |last2=Jonsson |first2=Patrik |date=2018-02-22 |title=Context-based sales and operations planning (S&OP) research: A literature review and future agenda |url=https://www.emerald.com/insight/content/doi/10.1108/IJPDLM-11-2017-0352/full/html |journal=International Journal of Physical Distribution & Logistics Management |language=en |volume=48 |issue=1 |pages=19–46 |doi=10.1108/IJPDLM-11-2017-0352 |issn=0960-0035 |url-access=subscription}} These plans are reviewed and updated as conditions change.

The process brings together [[sales operations]], production capacity, [[inventory]] levels, and [[Budget|budgets]] so that different parts of the company work from the same assumptions.{{Cite journal |last1=Kristensen |first1=Jesper |last2=Jonsson |first2=Patrik |date=2018-02-22 |title=Context-based sales and operations planning (S&OP) research: A literature review and future agenda |url=https://www.emerald.com/insight/content/doi/10.1108/IJPDLM-11-2017-0352/full/html |journal=International Journal of Physical Distribution & Logistics Management |language=en |volume=48 |issue=1 |pages=19–46 |doi=10.1108/IJPDLM-11-2017-0352 |issn=0960-0035 |url-access=subscription}} These plans are reviewed and updated as conditions change.

When using S&OP, managers compare expected customer demand with available supply to understand how the business is performing at a given time and what is likely to happen next.{{Cite web |last=Here |first=Admin |date=2025-06-22 |title=Sales and Operations Planning (S&OP) Cheat Sheet. - |url=https://www.supplychaintoday.com/sales-and-operations-planning-sop-cheat-sheet/ |access-date=2026-04-17 |website=Supply Chain Today - Home Page |language=en-US}}

When using S&OP, managers compare expected customer demand with available supply to understand how the business is performing at a given time and what is likely to happen next.{{Cite web |last=Here |first=Admin |date=2025-06-22 |title=Sales and Operations Planning (S&OP) Cheat Sheet. - |url=https://www.supplychaintoday.com/sales-and-operations-planning-sop-cheat-sheet/ |access-date=2026-04-17 |website=Supply Chain Today - Home Page |language=en-US}}

== Output of S&OP ==

== Output of S&OP ==

The main output obtained from S&OP is the integration of the plans of Marketing, Sales, Operations and Finance. The integration of plans is allowed by the [[Cross-functional team|cross-functional integration]] fostered by S&OP. The integration is different from coordination: in fact, it takes into consideration the target, while the coordination takes it for granted. To achieve the integration, the main precursors are informational quality (it's important that the information for the decisions is appropriate in terms of content and form), procedural quality (the rules at stake are clear for all the departments involved), alignment quality (ensuring synchronization between organizational goals and operational actions to satisfy the [[Stakeholder (corporate)|stakeholder]]), and constructive engagement (the participants are proactive in the process and defend their interests. A high level of constructive engagement leads to a greater level of S&OP [[effectiveness]]).{{Cite journal |last1=Oliva |first1=Rogelio |last2=Watson |first2=Noel |date=2011 |title=Cross-functional alignment in supply chain planning: A case study of sales and operations planning |url=http://doi.wiley.com/10.1016/j.jom.2010.11.012 |journal=Journal of Operations Management |language=en |volume=29 |issue=5 |pages=434–448 |doi=10.1016/j.jom.2010.11.012|url-access=subscription }}

The main output from S&OP is the integration of the plans of Marketing, Sales, Operations and Finance. The integration of plans is allowed by the [[Cross-functional team|cross-functional integration]] fostered by S&OP. The integration is different from coordination: in fact, it takes into consideration the target, while the coordination takes it for granted. To achieve the integration, the main precursors are informational quality (it's important that the information for the decisions is appropriate in terms of content and form), procedural quality (the rules at stake are clear for all the departments involved), alignment quality (ensuring synchronization between organizational goals and operational actions to satisfy the [[Stakeholder (corporate)|stakeholder]]), and constructive engagement (the participants are proactive in the process and defend their interests. A high level of constructive engagement leads to a greater level of S&OP [[effectiveness]]).{{Cite journal |last1=Oliva |first1=Rogelio |last2=Watson |first2=Noel |date=2011 |title=Cross-functional alignment in supply chain planning: A case study of sales and operations planning |url=http://doi.wiley.com/10.1016/j.jom.2010.11.012 |journal=Journal of Operations Management |language=en |volume=29 |issue=5 |pages=434–448 |doi=10.1016/j.jom.2010.11.012|url-access=subscription }}

== Goals of S&OP ==

== Goals of S&OP ==