Although Sales & Operational Planning (S&OP) should be defined for each organisation, certain characteristics apply:
- S&OP is a collaborative cross functional process that engages all functions to produce an integrated set of plans that all are committed to support.
- Its purpose is to balance demand & supply in the supply chain.
- It is performed periodically – monthly or weekly.
- It aligns operational plans to high level business & strategic plans.
- It can be implemented at a market, regional or global level.
- At its core is a single set of numbers for the business.
- It uses standardised processes, calendars of events & meetings & Key Performance Indicators.
S&OP & Where it Fits
The Purpose of S&OP
The purpose of S&OP is to achieve the optimal balance between supply and demand. A streamlined planning process will result through increased communication and teamwork between departments within your organisation. This collaborative approach will align the sales and operational processes and ensure that the demands of the marketplace are met.
The Benefits of S&OP
Enchange experience of S&OP projects is that considerable improvements in supply chain performance 
and business performance is possible. A business case is normally built upon improvements in P&L and working capital as follows:
- Strategic Benefits
- A key enabler of growth.
- Risk mitigation – Enchange experience is that poorly performing supply chain operations can significantly hinder growth including expansion of portfolio.
- P&L Impact
- Sales uplift e.g. from improved customer service, reduced stock outs (mobile phones, pre-paid cards, network spares) & improved distributor performance.
- Reduced supply chain costs.
- Reduced stock loss.
- Balance Sheet Impact
- Reduced working capital as inventory is optimised to support service levels
- People
- Increased accountability as decision making is taken at the correct level of the organisation.
- Improved communication.
- Improved supply chain skills in areas impacted by the programme.
- Reduced workload as rework is reduced.
Enchange S&OP projects typically deliver an ROI (Return on Investment) of well over 500%; indeed Enchange projects have had ROIs exceeding 1,000% & beyond.