According to the "Sales and Operations Planning Handbook" by Civerolo and Rice, S&OP is a business process to establish a common language of discussion among marketing, sales, finance and manufacturing to develop integrated business plans and balance supply of products and services with demand. In addition, S&OP provides information for executives to validate business plans, and for operating managers to measure performance. It requires focus, alignment and engagement throughout the company.
AMR Research (now Gartner) states that key capabilities required for an effective S&OP are:
- data management and quality
- integration into operational planning
- new product introduction and management
- multi-level and multi-dimensional hierarchies
- assumption tracking and management
- workflow and process management
- constraint based planning
- performance management
- financial planning/budgeting integration
- scenario management with what-if simulation capabilities
Learn how RapidResponse can support all levels of a company's S&OP maturity, including an advanced "continuous S&OP" capability.