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Hello, my name is Eric Wilson.
I'm the Director of
Thought Leadership
for the Institute of
Business Forecasting.
Today, I want to talk about
sales and operations planning.
What exactly sales and
operations planning is,
how it fits into
demand planning,
business forecasting, and
business planning as a whole.
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Before I get into
what exactly S&OP is,
I want to talk a
little bit about
the history of sales and
operations planning.
Sales and operations planning has
been around for a few decades.
It actually started
in the late 1980s,
and it started off as consulting
working for the government
of the United States.
From there, large organizations
started to pick it up.
And through the 1990s,
a lot of large
Fortune 100 companies
and Fortune 500
companies started to do
sales and operations planning.
By the 2000s,
they'd seen it was more than just
balancing supply and demand,
so they started to bring
inventory into it as well.
That's when you see acronyms like
SI&OP start to become more popular.
Then, in the late 2008, 2009,
the same consulting
company decided to rebrand
the traditional sales
and operations planning
as integrated business planning.
With that, they added a
couple of extra steps,
but more so, it was just
a rebranding exercise
to allow them to restart to
sell it into organizations.
Where we are today,
we have IBP, SI&OP, S&OP.
With that, there's
a lot of other
software providers, consultants
that got into it as well
and started to add more
and more acronyms.
The important thing of this
journey is the fundamentals
of what sales and
operations planning is
has not changed a
lot since the 1990s.
It matters less what we call it,
and more what we're trying
to accomplish with it
and what the underlying
tenets of S&OP are.
