Sales and Operations Planning (S&OP) is a cross-functional planning process that aligns demand, inventory, and financial plans. In ecommerce, it connects sales expectations with operational capacity and inventory decisions.
Sales and Operations Planning is also referred to as S&OP; this article uses “S&OP” consistently.
S&OP is a recurring planning process that balances demand forecasts with supply and inventory constraints. Its purpose is to ensure sales goals are operationally and financially feasible.
In ecommerce, S&OP translates growth plans, promotions, and channel strategies into inventory and replenishment plans that operations can execute.
Unlike isolated forecasting, S&OP creates a single agreed-upon plan across teams, reducing conflicting assumptions and reactive decisions.
S&OP is relevant for ecommerce brands and aggregators operating with cross-functional complexity.
Shopify-based brands use S&OP to align marketing plans with inventory availability.
Amazon and Walmart 3P sellers rely on S&OP to coordinate replenishment into FBA or WFS with expected demand.
Multichannel teams benefit most, as S&OP forces alignment across channels, inventory pools, and cash planning.
S&OP runs on a fixed cadence, often monthly. Demand forecasts are reviewed first, incorporating sales plans and promotions.
Supply and inventory constraints are then evaluated, including lead times, supplier capacity, and current stock.
Trade-offs are discussed explicitly, such as adjusting sales expectations or increasing inventory investment.
The outcome is a single operational plan used to guide purchasing, replenishment, and financial expectations.
Inventory turnover shows whether S&OP decisions balance growth and inventory efficiency.
Sell-through rate reflects whether agreed plans resulted in inventory that sold as expected.
Weeks of supply reveals how S&OP decisions translated into inventory coverage.
Fill rate indicates whether aligned planning maintained customer service levels.
Is S&OP only for large companies?
No. Mid-market ecommerce brands benefit significantly from lightweight S&OP.
Who participates in S&OP?
Typically operations, finance, and sales or marketing leaders.
How is S&OP different from demand planning?
Demand planning feeds S&OP; S&OP reconciles demand with supply and finance.
How formal should S&OP be?
Enough to create alignment, without excessive bureaucracy.
Does S&OP work with fast-moving ecommerce cycles?
Yes, when adapted to shorter planning cadences.