Sales & Operations Planning (S&OP) has long been a trusted mechanism for aligning demand, supply, finance, and sales around a single plan. Its tactical counterpart, Sales & Operations Execution (S&OE), extends this alignment to a weekly or even daily cadence, helping organizations respond quickly to disruptions.
For many businesses, these processes have become the backbone of cross-functional planning. Yet one function is too often left outside the discussion: logistics. As supply chains grow more complex and vulnerable, it is increasingly clear that transportation, warehousing, and delivery must move from the periphery into the center of strategic planning.
In a recent webinar, JBF's CEO, Brad Forester, and IBP2's Senior Director, Jeff Coble, sat down to explore the importance of bringing logistics into the S&OP conversation.
Watch their conversation here or keep reading for a summary.
From Coordination to Resilience
At its core, S&OP ensures synchronization. By uniting functions under one plan, companies reduce the costs and risks of fragmented decision-making. The focus has traditionally been supply and demand alignment, but over time, the scope has broadened. HR, for example, now plays a role in planning where seasonal labor is critical.
Logistics is the next necessary expansion. Freight capacity, warehouse space, and final-mile delivery are not merely operational details; they are determining factors in whether a plan succeeds or fails. Without incorporating these constraints, even the most carefully aligned strategies risk breaking down in execution.
Disruptions Have Changed the Stakes
Recent years have underscored the urgency of including logistics in enterprise planning. The COVID-19 pandemic exposed supply chain fragility. Tariff changes reshaped global sourcing patterns almost overnight. The surge in e-commerce and the influence of Amazon strained parcel networks in ways few had anticipated. Geopolitical conflicts further disrupted global flows of materials and capacity.
In each case, logistics was decisive. Businesses that lacked visibility into transportation capacity or alternative sourcing lanes found themselves scrambling. Those with better foresight and stronger planning processes were able to adapt more quickly and at lower cost.
Technology as a Catalyst
S&OP has always been a process first, but technology has become indispensable. Modern digital platforms allow information to flow seamlessly, elevating decisions and disseminating them quickly. The major enterprise systems—SAP, Oracle, Blue Yonder—provide the backbone for tactical synchronization, while AI and machine learning add speed and intelligence.
Crucially, AI is helping organizations move beyond the limitations of traditional systems. Instead of stalling at incomplete or inconsistent data, AI can interpret gaps, incorporate external signals, and generate insights that humans can validate. In logistics, where translating forecasts into pallets, truckloads, and lanes has often been complex, these advances unlock a new level of precision.
Communication and Trust as Strategic Assets
Forecasts are never perfect. What matters most is the dialogue they generate. Consistent, transparent updates—delivered weekly or even daily—help partners adjust, reduce surprises, and build mutual trust. This level of communication transforms planning from a static snapshot into a living process, where risks are identified early and variances are managed constructively.
One telling indicator is the use of premium freight. When expedited modes like air freight or team drivers become the norm rather than the exception, it signals that volatility has outpaced planning. Integrated S&OP and S&OE processes that fully include logistics reduce these reactive costs and build long-term stability.
The Strategic Payoff
The inclusion of logistics in planning discussions is not simply about avoiding crises. It is about building resilience and positioning the business for growth. Companies that integrate logistics into S&OP and S&OE routinely see measurable benefits—often a 1–3% improvement in cost of goods sold. More importantly, they gain agility: the ability to pivot when global events or market shifts inevitably occur.
Rethinking What Belongs at the Table
The role of S&OP and S&OE is evolving. What began as a way to synchronize supply and demand has matured into a broader forum for aligning strategy, execution, and resilience. Just as HR joined the conversation when labor became a constraint, logistics now demands inclusion as supply chains extend across geographies and face new forms of volatility.
For executive teams, the imperative is clear: treat logistics not as a tactical afterthought, but as a strategic partner. Doing so ensures that planning processes reflect the full reality of the business and that execution can keep pace with ambition.
In a world defined by disruption, resilience is the true measure of competitiveness.
JBF Consulting helps shippers unlock cost savings, improve visibility, and build scalable logistics technology strategies. Contact us today to learn how our proven approach can deliver measurable benefits for your organization.
About the Author
Brad Forester is a highly recognized senior supply chain leader with over 23 years managing, designing, and implementing freight transport technology, Brad has a unique mix of carrier, shipper, software, and consulting experiences that benefit clients.
With functional expertise in Global TMS Programs, Change Management, Organizational Design, and Systems Integration, he has been leveraging these skills to benefit clients since he founded JBF in 2003. Brad has a BA in logistics management from Michigan State University.
FAQs
Sales & Operations Planning (S&OP) focuses on aligning demand, supply, finance, and sales around a unified monthly or quarterly plan. Sales & Operations Execution (S&OE), on the other hand, extends this alignment into weekly or daily cycles, enabling organizations to respond more quickly to disruptions and operational changes.
Logistics—encompassing transportation, warehousing, and delivery—is often a deciding factor in whether a plan succeeds or fails. Without integrating logistics constraints, even the best-aligned supply and demand strategies can break down in execution. Including logistics ensures that planning reflects real-world capacity and builds resilience against disruptions.
Beyond avoiding crises, integrating logistics into S&OP and S&OE drives measurable improvements—such as a 1–3% reduction in cost of goods sold—and builds agility. It positions businesses to pivot quickly in response to market changes, strengthens resilience, reduces reliance on expensive expedited freight, and fosters long-term stability and trust across partners.
The COVID-19 pandemic, tariff changes, the rise of e-commerce, and geopolitical conflicts have all disrupted supply chains. Companies without visibility into transportation capacity or alternative logistics options struggled, while those with integrated planning adapted faster and more cost-effectively.
Technology serves as a catalyst for more efficient and intelligent planning. Enterprise platforms like SAP, Oracle, and Blue Yonder synchronize data, while AI and machine learning enhance planning by filling data gaps, analyzing external signals, and translating forecasts into actionable logistics needs such as pallets, truckloads, and lanes.
