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Sales and Operations Planning

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Demand Planning

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The process of forecasting customer demand to drive the supply chain management process.

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Supply Planning

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Involves the allocation of resources to meet the demands forecasted by demand planning.

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Executive Review

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Senior management's evaluation of the S&OP strategy to ensure alignment with corporate objectives.

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S&OP Cycle

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The series of steps that are regularly repeated on a monthly or weekly basis as part of S&OP.

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Consensus Demand Plan

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An agreed-upon forecast that incorporates input from multiple functions within the organization.

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Pre-S&OP Meeting

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An internal meeting before the executive S&OP meeting where mid-level managers discuss potential issues and scenarios.

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Production Plan

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A schedule for manufacturing operations that indicates the quantity and timing of production.

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Inventory Policy

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Guidelines for maintaining optimal inventory levels to meet service levels while minimizing costs.

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Scenario Planning

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The process of creating and analyzing hypothetical situations to anticipate potential future conditions.

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Gap Analysis

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The comparison of actual performance with potential or desired performance.

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New Product Introduction (NPI)

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The process of bringing a new product to the market and integrating it into the S&OP process.

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Integrated Business Planning (IBP)

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An advanced form of S&OP that integrates diverse business processes to align operations with financial performance.

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Master Production Schedule (MPS)

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A detailed plan that specifies how many of which products need to be produced and when.

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Rough-Cut Capacity Planning (RCCP)

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A technique used to check the feasibility of the Master Production Schedule against key capacity constraints.

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Demand-Supply Balancing

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The process of matching available capacity and inventory with customer demand to create a balanced plan.

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Order Fulfillment

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The complete process from receiving customer orders to delivering the goods and services.

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Financial Planning

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The process of estimating the financial outcomes of an S&OP plan.

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S&OP Metrics

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Key performance indicators (KPIs) used to evaluate the effectiveness of the S&OP process.

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Continuous Improvement

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An ongoing effort to improve products, services, or processes in S&OP.

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Product Portfolio Management

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The process of managing a company's collection of products to optimize performance and align with the business strategy.

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Sales Planning

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The process of determining the sales strategies and efforts required to meet the sales forecast.

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Resource Allocation

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The process of assigning available resources in the most effective way to support the S&OP plan.

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Market Intelligence

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The information gathered about current market trends, competitors, and customers to inform the S&OP process.

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S&OP Meeting

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A regular cross-functional meeting focused on achieving alignment and coordination across the various stakeholders of the S&OP process.

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Collaboration & Communication

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The continuous interaction between different departments to ensure a synchronized approach to achieving the S&OP goals.

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