Design of a Sales and Operations Planning (S&OP) process – case study

Abstract Nowadays, companies are facing a constant need to develop and increase coordination between operational functions to respond rapidly and accurately to customer requests. Linked with this need, an increasing number of practitioners are resorting to an established and integrated business management methodology, the Sales and Operations Planning (S&OP). The concept of S&OP has gained increased recognition over the years by several authors and companies. This project describes the S&OP implementation in Sogrape Vinhos (wines) S.A., a Portuguese wine producer and distributer. The company was confronted with low accuracy in the establishing the forecast demand plans, especially on a long-term horizon. In order to increase the demand plans accuracy, the company started a S&OP implementation program. This paper describes the company’s current planning process, explains the S&OP’s implementation model presenting the selected parameters adequate to the company’s context, and finally, evaluate the expected outcomes of this project. Preliminary results from the S&OP implementation project at Sogrape indicate significant savings at the operational level and greater effectiveness in developing the company’s demand plans.