The Planning Process
S&OP is the result of monthly planning activities. It is usually based on an Annual Operations Plan (AOP) that acts as the company's annual target in terms of sales and supply. Therefore, the sales and operations plans are a means to gradually accomplish the AOP targets - by linking monthly sales and marketing planning directly to the operations side of a business. The process for deciding upon the monthly S&OP is illustrated in the figure below.
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Monthly S&OP Process
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