Procurement Magazine June 2025 | Page 16

SALES AND OPERA PLANNING IN NUM

Sales and operations planning represents a unified planning approach that synchronises demand, supply and financial planning within an organisation’ s wider planning framework.

More frequently referred to as S & OP, it is structured to support executive decision-making by facilitating the approval of material and financial plans that are both achievable and profitable.
According to tech giant SAP, the S & OP planning process delivers an“ updated, rolling operational and demand plan” that typically extends at least 18 months into the future.
By allocating resources efficiently to meet demand, while also maximising revenue and profit, S & OP enhances supply chain management and facilitates more resilient operations – especially critical during periods of disruption.

10 %

Extent to which companies with effective S & OP processes can cut costs( Moody’ s Analytics)

30 %

Extent to which companies with mature S & OP processes are more likely to achieve above-average profitability( Gartner)

16 June 2025