Sales and operations planning (S&OP) is a set of decision-making processes that regulate and coordinate overall capacity, inventory levels, and lead times across engineering, projects, manufacturing, finance, supply chain, and operations based on forecast information about the market. S&OP focuses on changes from the previous plan and links that with the strategic goals of cost and lead time reduction to determine suitable capacity adjustment actions. This article will provide the framework and key concepts to using SAP Integrated Business Planning (IBP) for Supply Chain to effectively balance demand and supply and attain financial targets.
After reading this article you will be able to:
- List and define the five essential steps of S&OP
- Explain how S&OP fits into the larger manufacturing planning and control hierarchy
- Apply the components of S&OP to data gathering, demand and supply planning, and supplier collaboration
MEET THE AUTHORS
Venkata Ramana Nethi, Manager IT Build-Run Operations & Quality at Schlumberger, has 20 years of experience including SAP and domain expertise in manufacturing and planning. He joined Cameron in 2010, which was acquired by Schlumberger in 2016, and is responsible for SAP production planning, advanced planning and optimization (APO), and Quality modules including process study, design, implementation, and support in manufacturing and supply chain business transformation solutions. Before joining Schlumberger, Venkata was an SAP production planning consultant at Wipro Technologies, where he led SAP PP implementation and support projects for a global client base. Prior to that, he was manager at VOLTAS manufacturing unit based in India where he was responsible of production planning and shop floor manufacturing processes of refrigerator and commercial cooler products for CPG customers. Venkata has CSCP and CPIM certifications and his expertise ranges from business case analysis to implementation and production support engagements in manufacturing and supply chain planning transformation initiatives. He is also involved in sales and operations planning supported by SAP Integrated Business Planning and the solution’s integration with various systems to support demand and supply planning.