We usually hear S&OP in Supply Chain Management, such as S&OP Planning, S&OP meeting, S&OP function.
It is a combination of three alphabets, i.e.
S represents Sales
O represents Operations
P represents Planning
S&OP planning is a proactive approach from intra-organizational partners and cross-functional departments to effectively meet supply and demand.
Furthermore, we can define S&OP planning as a process of aligning sales operations with manufacturing operations or production operations to create a single production plan.
S&OP integrate organization’s strategic, tactical or operational plans. S&OP's main goal is to ensure that the stock or product does not run out. Either the product is a raw material or an end product.
S&OP aims to balance the broad range of resources within an organization, whether it's human resources, mechanical resources, financial resources, or any material resources. If everything is balanced, then the cost will be kept to a minimum, efficient operations and client satisfaction will be enhanced.
S&OP consist of directly and indirectly involved players:
Directly involved:
Sales
Production
Indirectly involved:
Finance
R&D
Engineering
Procurement
Inventory
Logistics
#s&opprocess #supplychain #s&opdemandplanning
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