S&OP Planning
Overview
The S&OP Planning reference architecture integrates demand and supply planning processes into a single collaborative platform that supports the monthly S&OP cycle, from demand signal collection through statistical forecasting, unconstrained and constrained planning, consensus review, and executive sign-off.
Architecture Diagram
Component Descriptions
- S&OP Platform: Collaborative planning workspace supporting scenario modelling, multi-step approval workflows, and plan version management.
- Demand Sensing: Feeds short-term demand signals (POS data, order trends) into the statistical baseline.
- ERP/APS: Source of actuals, inventory, and supply constraints; receives the approved consensus plan for execution.
- Financial Integration: Bridges the volume plan to the financial P&L for alignment with budget and latest estimates.
Key Design Decisions
- A single S&OP platform owns the consensus plan; ERP/APS is the execution system, not the planning system of record.
- All plan versions are retained for audit and deviation analysis.
- The monthly cycle is supported by automated data loading to reduce manual preparation effort.