Sales and operations (S&OP) planning software bridges the gaps between finance, procurement, logistics, marketing, and manufacturing departments to galvanize supply chains in response to fluctuations in sales forecasts. More typically, the S&OP process is part of integrated business planning, as it involves collaborations across multiple departments and even companies to ensure the right amount of product is available during periodic adjustments to sales plans, capital investments, and logistics strategies. Due to the complex, multiparty nature of this process, S&OP software is needed for the storage of consistent data across organizations and automation of processes such as demand planning, supply chain planning, and inventory control. Demand planning is a vital function of this tool, as it helps recalibrate sales targets, plan supply chains, and provide opportunities for marketing departments to execute promotional campaigns.
In addition, S&OP tools help sales, finance, and marketing departments determine the viability of sales and marketing plans through scenario simulation and what-if analyses to determine whether the proposed changes maximize profit margins, reduce costs, and align with supply chain capacity. Workflows then allow software users to map out the entire process of procurement, manufacturing, and distribution of goods for sale. To evaluate the performance of the S&OP process, this software also provides dashboards and key performance indicator (KPI) metrics.
To qualify for inclusion in the Sales & Operations Planning category, a product must:
Provide supply chain planning functionalities, such as demand planning, replenishment, and capacity planning, to periodically recalibrate sales and inventory targets
Allow simulations and what-if analyses to determine the viability of proposed changes to business strategy
Use workflows to map out the tactical executions of sales and inventory plans
Provide dashboards and analytics to visualize and measure KPIs
Integrate with CRM and ERP systems to sync up sales activities, manufacturing, and procurement with supply chain operations
Track and optimize warehouse activity to ensure the right amount of product is available at the right time
