All companies use some form of sales and operations planning (S&OP) to synchronize market data with production output. But most practice a planning process based on logistics rather than strategy. Taking a more strategic approach, however, the S&OP process can be designed to bring together a company’s marketing, finance, sales, and operations departments to continuously monitor—and meet—customer demand.
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reaping the benefits of effective S&OP, many others continue to take a more static approach. By using a five-step review process, however, companies can review and evaluate new products in development and future plans in the context of demand, supply, financial reconciliation, and management analysis. The result is an S&OP process that begins to follow the model of the companies that are leaders in this process. With integrated S&OP processes, companies are better able to synchronize supply and demand,