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S&OP Advantages


S&OP encompasses all aspects of supply chain operations. This is far from a simple task, but it yields incredible results. In this article, we will detail some of the advantages of conducting an effective S&OP. Let’s get started!

The 5 Advantages of S&OP

Here are the five advantages of S&OP that you should know about:

Advantage #1: Increased Financial Data Insight

In today’s economic climate, the pressure is to create lean supply chain processes, minimize costs, and maximize delivery. These are some hefty, yet admirable goals that are difficult to achieve with supply chains that are inherently uncertain. 

S&OP is a process that helps to provide a backbone to achieve these goals by integrating data streams for improved financial forecasting. 

Advantage #2: Increased Growth Thanks To Demand Prediction

A common enemy when it comes to costly supply chains is a poor sense of demand. This can be an issue of under-ordering stock, forcing companies to expedite more products out into the world. Unfortunately, this expedited process means more money spent on production and shipping, which can cost a lot of money. The second issue is when unanticipated buffers hinder the shipment process, which happens during inventory handoff. These delays can also cost a fortune.

S&OP, when structured effectively, can help iron out potential issues and provide a road map to problem-solving for every imaginable issue that might arise. It reduces inventory levels, expedites shipping, increases fill rates, eliminates stock-outs, and improves customer service and satisfaction. 

Advantage #3: Reduced Costs Thanks To Transportation Management

Every company loves hearing that they can reduce costs, and that’s exactly what this benefit does. S&OP means effectively understanding all shipment options available, and this is achieved with the right visibility platform. As a result, you’ll be able to find the most reliable transportation method and provider at the best prices.

Advantage #4: Inventory Planning Master

Supply chain profitability needs critical inputs like inventory levels and supply shaping to maximize earnings. A mature S&OP process is perfect for inventory optimization. Not only does it help you better understand it, but it’s also great for implementation. Through a well-crafted framework, companies can consolidate goods into fully optimized shipments. As a result, they reduce import/export fees, reduce inventory levels, and acquire the most cost-effective transportation vendors.

Advantage #5: Improved Touchpoint Visibility

The improvements available through S&OP software underpin a goal of supply chain management which is process visibility. Through S&OP, you better understand the supply chain while creating a winning strategy. In order to achieve ultimate supply chain optimization need to acquire a platform that outlines the supply chain from start to finish while providing accurate performance data.


There are so many benefits to a well-crafted S&OP plan. It’s even better when you use the right tools. Check out John Galt for the best supply chain planning tool you’ll ever need! Our Atlas Planning Platform is all you’ve been searching for and more!

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