What is S&OP? An Expert's Definition of Sales and Operations Planning!

There are many different opinions about what Sales and Operations Planning (S&OP) entails. In this video, Doug shares his expertise and clearly layouts what S&OP really means.
S&OP is a management decision-making process that is used to identify the true story of what’s going on in a business. It is best practiced when executives use this information to help align different aspects of their business. By doing this, companies can better align their strategies and execute their plans, making for more efficient operations.
0:00 Intro
0:39 Defining S&OP
3:23 S&OP As A Management Process
3:40 S&OP and Your Strategic Plan
5:19 S&OP and Your Demand Plan
6:44 Discovering and Fixing Process Imbalances
7:36 Using S&OP To Manage Your Budget
8:37 Outcomes of S&OP
9:32 Setting The Flow Rate
10:20 Linking Strategy and Execution
11:30 Establishing Clear Accountabilities
12:21 A Regular and Repeatable Process
12:58 Measurable Results
13:54 Outro
Find the article about defining product families here:
dbmsys.com/post/snop-product-...
Find the article about linking your financial plan with your S&OP plan here:
dbmsys.com/post/s-op-and-the-...
Implement a sustainable S&OP process in your organization in just 6 months.
Learn more at dbmsys.com/process

[@davidhamming6206]

Thanks! I've got a job interview on S&OP tomorrow and this helps to get a good overview!

[@DBMSystemsLTD]

Best of luck!

[@alfredodelpino]

very clear explanation. Thank you!

[@DBMSystemsLTD]

Glad it was helpful! Thank you so much for the feedback.

[@greenshadowooo]

An useful sharing ! Thanks.😃😃😃

[@DBMSystemsLTD]

Glad it was helpful!

[@camiloernestocadena58]

Very helpful, but I wish it outlined the specific meetings, attendees, inputs and outputs.

[@DBMSystemsLTD]

Check out our other video's on the monthly process, including an in depth discussion in the livestreams. We hope that helps.

[@user-jz5vn4pi1j]

Hello, first of all, I want to thank you for the content. My question is, is S&OP intended for industrial supply chain scheduling and planning only, or is it also applicable to retail? Because when we say that S&OP is the input for MPS, it means it's not intended for sectors other than industrial supply chain.

[@DBMSystemsLTD]

Great question. We didn't mean to imply that S&OP only has applicability in the industrial sector. It is the area that we do most of our work in however. We've also done a significant amount of work in services and with consumer products. It would also apply to retail. S&OP is about balancing demand and supply and linking strategy and execution. In retail you may be looking at use of working capital tied up in inventory in which case you would want to be linking your sales forecasting (planning) to inventory objectives, product family mix and ultimately to buying decisions. It would also be applicable to decisions around staffing and even store openings. I would not recommend using S&OP for SKU mix planning (that is much more tactical), but evaluating the validity of your mix would be part of the process. Hope this helps. Thanks for watching!

[@shalinianunay2713]

lucid explanation.

[@DBMSystemsLTD]

Thankyou. Always trying to be lucid ;-)