TABLE OF CONTENTS Sales and operations planning (S&OP) has been used in well-managed businesses for years. Also referred to as sales, inventory, and operations planning (SIOP) in many circles, this top-management planning process is the directional management system that sets the monthly cycle and calibrates the execution with the strategic plans of a business. The flexibility as well as effectiveness of this process is obvious. Businesses that enjoy benefits from this planning tool and methodology include manufacturing businesses, banking institutions, distribution companies, and even consulting companies. In fact, any business that manages demand and synchronizes resources such as capital, manpower, machinery, or brick and mortar to that demand has a need for a robust S&OP process.
The S&OP process is an effective, inexpensive improvement mechanism that more and more companies are starting to recognize for its benefits. Managers around the world are starting to focus on improvements in this important area of business control. The S&OP methodology is one of the hottest topics in business today. It is not a new process; in fact some might say that it is an old process. It is, however, garnering a lot of renewed interest and for good reason: it pays off. Freudenberg-NOK, a well-respected auto
manufacturing first-tier supplier known for its lean focus, is an example of this focus, as is Electrolux Home Products (Frigidaire), a market leader in kitchen appliances. Many organizations already honed their S&OP processes years ago, such as Honeywell and Nestle.
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