The S&OP (Sales & Operations Planning), known as PIC (Plan Industriel et Commercial) in French, is a recurring process that reconciles sales forecasts with production, supply and storage capacity, in order to balance supply and demand over a horizon of several months.
A collective steering cycle
The PIC/S&OP typically runs on a monthly cycle that brings together sales, production, supply chain and often finance. It starts from sales forecasts, generally aggregated by product family rather than by precise reference, and compares them with the company's real capacity (production lines, workforce, suppliers, warehouses). The aim is to spot gaps early between what sales expects to sell and what the industrial setup can actually produce or supply, then collectively decide on the necessary adjustments: smoothing production, using subcontractors, revising sales targets. The PIC is generally revised at each cycle, on a rolling horizon of several months, to stay aligned with actual demand trends.
In English, the term S&OP is sometimes used to describe a slightly broader approach than the historical PIC, integrating the financial dimension more systematically; in common French usage, however, the two terms are largely treated as synonyms. The PIC sits at a more aggregated, more upstream level than the MPS (Master Production Schedule), which is its detailed operational translation, reference by reference.
The PIC/S&OP acts as an arbitrator: it is the forum where the company decides, for example, to temporarily increase production capacity, use a subcontractor, smooth out a workload peak over several months, or, conversely, revise sales targets deemed unrealistic given industrial constraints. Done well, it limits decisions made under pressure at the operational level and safeguards downstream indicators, notably the service rate and OTIF.
FAQ
What is the difference between S&OP and PIC?
These are two names, one in English and one in French, for the same monthly process of reconciling sales forecasts with industrial capacity. In practice, S&OP sometimes refers to an approach that includes the financial dimension more heavily, but in common usage in France, the two terms are treated as synonyms.
What is the difference between PIC and MPS?
PIC (or S&OP) works at an aggregated level, by product family, over a horizon of several months. The MPS (Master Production Schedule) is its operational breakdown, with precise quantities per reference and over a shorter period, often the week.
Related terms
MPS (Master Production Schedule) · MRP / DDMRP · Logistics KPI · Scheduling · Lead time · Push / pull flows · Logistics vs supply chain.
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