How to Build an S&OP Process That Actually Works

For many operations teams, Sales & Operations Planning (S&OP) feels less like a strategic advantage and more like a recurring nightmare. It’s a cycle of endless meetings, conflicting spreadsheets, and executive frustration.

The data backs up this feeling. According to a 2024 Gartner Report, only 15% of planning organizations report successful S&OP adoption—meaning a staggering 85% struggle or fail to see value.

Why is the failure rate so high? The truth is, S&OP isn't about implementing fancy software or complex dashboards. It is about rhythm—a structured monthly cadence that aligns Sales, Operations, and Finance around one single plan.

Before you can build a process that works, you have to eliminate the three "Process Killers" that destroy S&OP value.

1. Missing Decision Rights

When no one knows who owns the forecast, meetings spiral into debates rather than decisions. Sales blames Ops for stockouts; Ops blames Sales for sandbagging the numbers; Finance quietly adjusts the budget in the background.

The Fix: You need a clear RACI Matrix embedded in your S&OP Charter. You must define exactly who is Responsible for the number, who is Accountable for the inventory risk, and who merely needs to be Informed. Without clear accountability, the process becomes noise.

2. No Standard Agenda

Too many S&OP meetings devolve into tactical firefighting. Instead of discussing 18-month capacity trends, the team argues about a late truck from yesterday or a specific SKU-level stockout.

The Fix: Implement a Standard Agenda that acts as a guardrail. A robust Demand Review or Executive S&OP meeting must remain strategic and forward-looking. If a topic is tactical (inside the "frozen zone"), it belongs in a weekly execution meeting, not the monthly executive review.

3. Tool Fatigue & Disconnected Data

Most teams try to solve process problems with expensive software, only to realize they can't automate a mess. Or, they drown in dozens of disconnected spreadsheets where version control is non-existent.

The Fix: Effective S&OP doesn't require reinventing the wheel. It requires a standardized toolkit that enforces the right behavior. The S&OP and Inventory Planning Kit was designed especially for that, giving teams a ready-to-run framework, moving them from chaos to clarity — without needing a new system or consultant.

Download the S&OP Workbook