Profit, Sales and Operations Planning (PS&OP) is a disciplined process that balances demand planning with supply constraints while driving profitability for the organisation.
The PS&OP process provides an integrated link between demand and supply management as well as finance and aligns demand and supply actions across the organisation allowing the achievement of business objectives. Alignment is possible via the establishment of PS&OP guiding principles, a charter and sound business rules.
The objective of PS&OP is the formulation of a single plan that articulates the sales, materials requirements, distribution, and financial targets to be achieved throughout the business in the future.