Over the past few years, variations in both demand and supply have increased drastically, making demand and supply planning even more important to meet customer expectations. In 2025, while interest rates have stabilized, new cost pressures are emerging. The potential for increased tariffs, ongoing geopolitical uncertainties, and persistent inflation in logistics and raw materials, continue to impact supply chains. Holding higher inventory levels is no longer as financially punishing as during the peak of rising interest rates, excess stock still ties up capital and increases exposure to shifting trade politics and cost fluctuations.
Sales & Operations Planning (S&OP) remains essential for balancing demand and supply, ensuring companies can optimize costs, secure sales and maintain a strategy inventory mix in an evolving global trade landscape. Sales and operations planning is the process of balancing demand and supply, and having a stable process is key to secure sales, delivery service and keeping a good inventory mix.
In this white paper will provide basic theory on the subject and a list of key elements for a successful implementation. Our ambition is that you will find this white paper interesting no matter if you work in a smaller or larger company. As we see it, the basics are the same and having a process in place is important regardless of company size.
The S&OP planning process
The S&OP planning process is iterative in nature, typically following a monthly cycle of data gathering, demand planning, sales planning, alignment and decision meetings. Demand and sales planning are usually conducted with a planning horizon of 12 to 18 months.
To establish a consistent and effective S&OP process, cross-functional collaboration is essential, involving key functions such as sales & marketing, supply chain & operations, and procurement & sourcing. Clearly defining roles, responsibilities and structured processes is a fundamental requirement for success, ensuring accuntability and seamless execution across the organization.
Download our white paper to dive deeper and receive tips on how to implement each step in the S&OP process.
Key outtakes from our white paper
The supply chain's End in Mind
Beginning with the End in Mind means setting clear, strategic objectives and aligning operations with long-term goals. This process starts by defining what your ideal supply chain look like for your organization. Based on this ideal scenario, what are the key performance metrics you want to achieve (e.g., lead time, cost reduction, service level)? And how should your supply chain contribute to broader business goals (e.g., customer satisfaction, capital efficiency, sustainability)?
Implementing and developing the S&OP planning process
Some key learnings when implementing the sales and operations planning process includes: securing management commitment, setting up the organization for success, defining KPI:s and targets, planning the forecasting cycle, ensuring adequate preparation of data and meeting agendas, securing continuous improvement, and celebrating success. We dive deeper into these key learnings in our white paper.
Results and benefits
With a well-functioning sales and operations planning process, your supply chain will support the business in a sustainable and effective way. The process enables collaboration across the organization and ways of working more proactively towards customer planning, financial planning, supplier forecasting, and production planning.
Ready to explore more?
Download the full white paper to deep dive into the S&OP process and key success factors for implementing or developing your S&OP process.
