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Sales and Operations Planning (S&OP)

S&OP is top managementís handle on the business.  It is the activity of balancing demand and supply on a regular and formal basis.






High performing manufacturers know that costs are lowest, on-time shipments are highest, and inventories are most strategically deployed when demand and supply are properly balanced. For this to happen effectively a handshake between sales, production, procurement, finance, engineering, quality, and human resources is required on a periodic and formal basis. Sales and Operations Planning (S&OP) has become the widely accepted top management method for making timely proactive resourcing decisions for labor, fixed cost, capital, and key materials based on balanced demand and supply. Recently, many manufacturers have discovered the power of this practice and are successfully applying it to lower cost, provide the best service, and minimize investment.