In a marketplace of constant change, sales and operations planning (S&OP) has become one of the most critical business processes required to enable companies to achieve profitable growth. S&OP strategies accomplish this goal by helping companies to make “right-timed” tactical planning decisions on the best combination of customers, products, and markets to serve within the normal tactical planning period of four weeks to as long as two years.
 
More than 70% of respondents to Aberdeen’s survey indicated that they are actively engaged in enhancing their existing S&OP capabilities. These respondents are driven mainly by a combination of shrinking profit margins, a slowdown in business growth, and competitive pressures.
 
Many enterprises today have continued expectations that improving S&OP practices drives key performance gains across the value chain — from sales and marketing, through distribution and manufacturing, and procurement. Very few enterprises today have no S&OP process to align demand and supply. There is a growing gap in business performance between those enterprises that are focusing on a holistic S&OP strategy and those enterprises that operate S&OP tactically.