S&OP: The Linchpin Planning Process

SalesandOperationsPlanning(S&OP)isaroutinetacticalplanningprocessthatmatches supply anddemandplans over a medium-termplanninghorizon.Itis one of threelevels ofplanning at most companies. In the spirit ofintegratedplanning, some mightbelieve that Strategic Planning can bepart of S&OP, or at least done in conjunction withS&OP. However, allplanninglevels needtobedistinctandseparatelyrunto ensurethattheystayfocused ontheplanningframework within whichthey operate.Integration oftheprocessesis about making surethat strategy and operations are connectedandthatallplanningactivities striveto achieve aconsistentsetofstrategicgoals andobjectives. LARRy LAPIDE |Dr.LapideisaResearchAffiliateatMITandaLecturerattheUniversityofMassachusetts, BostonCampus.Hehas extensive experienceinindustry, consulting,business research, and academia as well as a broad range of forecasting experiences. He was an industry forecaster for many years, has led forecasting related consultingprojectsfor clients across a variety ofindustries, andhas researched as well astaughtforecasting.He was alsoa marketanalystresearchingforecastingandsupplychain software. (Thisis an ongoingcolumnin The Journal, whichisintended togive ...