Describe Sales and operations planning (S&OP)?

Sales and operations planning (S&OP) is a strategic business process that aligns a company's sales and operations functions to ensure that they are working together effectively to meet customer demand and achieve business goals.

The goal of S&OP is to create a unified plan that balances supply and demand, optimizes inventory levels, and maximizes operational efficiency. This process involves cross-functional collaboration between sales, operations, finance, and other key departments to develop a comprehensive plan that takes into account factors such as sales forecasts, production capacity, inventory levels, and financial constraints.

S&OP typically involves a series of steps, including demand planning, supply planning, and reconciliation of the two plans to create a single, consensus plan that can be used to guide decision-making and resource allocation throughout the organization. By aligning sales and operations in this way, companies can improve customer service, reduce costs, and increase profitability.