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Logistics & Supply Chain vocabulary · Demand Planning

S&OP

Meaning in logistics & supply chain, with examples

abbreviationAdvanced term

In logistics & supply chain, S&OP means: Short for sales and operations planning: a regular, usually monthly, process in which sales, operations, supply chain and finance agree one plan that balances demand and supply.

In Turkish: satış ve operasyon planlaması, S&OP

How it is used

Said 'S and O P'. It typically runs as a monthly cycle of data preparation, demand review, supply review and an executive meeting. A wider version that also covers financial planning is called integrated business planning (IBP).

Example sentences

  1. In this month's S&OP meeting we agreed to build extra stock before the summer.

  2. Without a proper S&OP process, sales and production were working from different numbers.

Common collocations

  • S&OP meeting
  • S&OP process
  • monthly S&OP cycle
  • S&OP review
  • demand planningThe process of predicting future demand and agreeing on one demand plan that the company then uses to plan purchasing, production and stock.
  • demand forecastingThe process of estimating how much of a product customers will buy in a future period, using sales history, market information and planned promotions.
  • MRPShort for material requirements planning: a system that uses the production plan, bills of materials and stock levels to calculate which materials to order or make, and when.
  • supply chainThe whole network of companies, people and activities that turns raw materials into a finished product and moves it to the final customer.

More terms: Demand Planning

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