In the last decade, the industries have experienced an explosive growth of products, technology, business process outsourcing, and increased demand for configured solution in a global marketplace. In last few years the companies have faced far bigger challenges with shrinking profit margin, price pressure from global competition, cash flow difficulties and keeping the checks and balance for the business operation. This emerging economic environment will drive enterprise to focus on linking the business process for making best tactical and strategic decisions to satisfy customer.

Sales and operation planning (S&OP) is a mutually exclusive business process and technologies that enable to synchronize the supply and demand imbalances in an enterprise over a planning cycle. S&OP aligns the best alternatives scenario from the value chain by optimizing the unconstrained demand, manufacturing and distribution constraints. It enables management to visualize sales target, customer service levels, asset utilization, and optimized production plan. The planning cycle could be tactical over four weeks or strategic over 24 months to effectively balance supply and demand.

S&OP process is the most important competitive advantage for returning to profitability by servicing right customers through right channel with right products, process, people, pricing strategy, and performance metrics. The greatest challenge to successful S&OP program is to leverage both internal best process, integration of disparate systems and collaborate with key trading partners.