The Sales and Operations Planning (S&OP) process

Course Overview

The Sales and Operations Planning (S&OP) process brings together executives from all major operational departments sales, marketing, materials/procurement, manufacturing, transportation, and finance to determine how best to manage company resources to profitably satisfy customer demands over the coming months and quarters. During this high-level decision-making activity executives discuss customer service, inventory investments, production capabilities, supply availability, and distribution concerns in order to strike the optimum balance between generating profit and satisfying the company's important operational goals.

Every successful S&OP process requires reliable, accurate information regarding time-phased demand, production capabilities, inventory status, and any limitations on resource availability, such as warehouse space, transportation capacity, and limits on cash or credit. A number of tasks and analyses must be completed prior to the executive S&OP meeting in order to make best use of this planning session.

These include:

  • Innovation and Strategy Review of the impact of new product introductions (NPIs)
  • Demand Review of base-line demand as well as demand sensing and demand shaping activities
  • Supply Review of inventory levels and production capabilities
  • Financial Review of company financial objectives and ability to stay within working capital constraints
  • Executive Business Review of future plans and impacts with regard to all major departments

These tasks gather and prepare the full range of information the S&OP team requires for a good decision-making process. The team can confidently make tough decisions that will ultimately determine how well the company performs against its priorities and challenges.

Course Objectives

To help ensure data quality and drive towards determining a feasible plan where consensus can be reached by participnats of all attending departments

Course Content

1.  S&OP Process Challenges

  • Data timeliness and quality
  • Using plan in daily operations
  • Connecting strategy to S&OP
  • Moving from demand/supply focus to profitability
  • Getting plan agreement

2.  Step 1 Innovation and Strategy Review

  • What products should we introduce to the marketplace?
  • When should we introduce them?
  • What products should we sunset or discontinue?

3.  Step 2 Demand Review

  • Demand Sensing
  • Demand Shaping

4.  Step 3 Supply review

  • Inventory Optimization
  • Operations Planning

5.  Step 4 Financial Integration

6.  Step 5 Executive Business Review

7.  A Plan Goes in to Action

Course Methodology

The training is going to be highly interactive combination of lectures, group discussions, questionnaires, individual reflections, role plays, simulations and videos.

Target Audience

Sales Managers, Key accpunt managers, resgional managers, inventory managers, warehouse managers, trnasportation managers and losgistics managers.


2 Days (08:30–14:30) with appropriate breaks for tea/refreshments and lunch.

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