Describe sales and operations planning in terms of its purpose, components, and frequency and how they support the business strategy.

Describe sales and operations planning in terms of its purpose, components, and frequency and how they support the business strategy.

Sales and operations planning (S&OP)—sometimes known as aggregate planning—is a process where executive level management regularly meet and review projections for demand, supply, and the resulting financial impact. S&OP is a decision-making process that makes certain that tactical plans in every business area are in line with the overall view of the company’s business plan (Links to an external site.) (Murray, Martin 2019)

Whereas strategic planning looks at the company’s plan years into the future, tactical plans look at the company’s business plan over the coming year. Tactical plans take into account the overall strategies of the company, which are found in the strategic plan. Sales and operations planning is aimed at helping companies develop and align the tactical plans developed by the various business areas. There are two approaches that are used in sales and operations planning; top-down planning and bottom-up planning (Murray, Martin 2019)

Planning helps the company see where they are at the moment and where they will stand later on down the line.Planning also helps the company figure out what areas may need improvement.

There are two approaches that are used in sales and operations planning; top-down planning and bottom-up planning.(Murray, Martin 2019)

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