What is S&OP?
S&OP stands for Sales and Operations Planning and is the process of developing a plan to allocate resources that will meet customer demand with high services levels and product quality at the lowest possible cost.
Generally, S&OP processes consider a horizon of 3-24 months or more, and take into consideration input from many different sources including Customers, Sales, Marketing, Development, Manufacturing, Logistics, Sourcing and Financials. There are many challenges around S&OP. Due to the lack of technology to support a real-time multiparty planning, the process often proceeds in a sequential or siloed manner rather than looking at all the components and tiers in real time. To make matters worse, this planning process is often done once a month, which is problematic as customer demands are constantly changing.
One Network’s Perspective on S&OP
Trying to maintain demand and supply equilibrium requires rapid and constant adjustments. One Network’s multiparty platform factors in all omnichannel demand streams and allow business to evaluate multiple scenarios, adjust parameters and review the outcomes/alternatives, in real time. The platform reflects demand, supply, and plans for all business partners in your extended supply chain network, and enables trading partners to collaborate in planning and all end-to-end processes, while incorporating real-time information as it is updated. And because all trading partners are on a single business network, the platform optimizes your supply chain – for all constituents.
Do planning and execution really need to be two separate applications? Is there a real business need underlying that separation? Or is it merely a limitation of today’s legacy software architectures?