Supply Chain Shaman

SEPTEMBER 3, 2018

We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. Reward teams for cross-functional metrics. This is the goal of this post.

Supply Chain Planning Software 377

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Software 377

ToolsGroup

JULY 11, 2017

But by monetizing Sales & Operations Planning (S&OP), supply chain planners can speak the language of finance while developing S&OP into a more mature process. This isn’t just aligning financial planning with S&OP. Value-driven S&OP is about “what’s important”.

S&OP 92

S&OP Supply and Demand Inventory Reduction Price Reduction 92

AIMMS

MAY 14, 2018

In fact, it’s become internalized to a degree that companies often have several (competing) S&OP pro cesses in different geographies & business units. Why is it that despite its popularity, only 42% of companies rate their S&OP process as effective? . Your S&OP solution should: .

S&OP 207

S&OP Supply and Demand Meeting Prescriptive Analytics Software 207

Supply Chain Shaman

APRIL 24, 2025

Today’s planning market is muddy : the methodology is inadequate to compare entities that are not alike. I liken today’s selection process to making a bowl of minestrone soup. Let’s play out the analogy. For 80% of industries, the supply chain metrics represent more than 40% impact on value. The reason?

Gartner 195

Gartner Supply Chain Planning Software Supply Chain Planning Scenario Planning 195

Kinaxis

DECEMBER 3, 2014

Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric. Why do companies focus on reducing a specific metric? Sound ridiculous?

Expense Reduction 250

Expense Reduction Procurement Analytics Cost Reduction Strategies Metrics 250

Supply Chain Shaman

FEBRUARY 14, 2022

I wrote my first report on Sales and Operations Planning (S&OP) while sitting on the floor in the Atlanta airport in 2005 when I was an AMR Research analyst. The model in Figure 1 became the foundational model for the Gartner S&OP model. Sales and Operations Maturity Model from 2005-2008. Figures 2 and 3.

S&OP 195

S&OP Supply and Demand Procurement Analytics Manufacturing Procurement 195

Supply Chain Shaman

AUGUST 21, 2016

I will also pen my 95th report for this week’s Supply Chain Insight’s newsletter. It is one that is often asked: “S&OP How Do I Get Started?” ” S&OP: How Do I Get Started? I asked, “Why is S&OP important to your business?”

S&OP 150

S&OP Supply and Demand Supply Chain Planning Software Price Reduction 150

Supply Chain Shaman

JULY 11, 2015

Sales and Operations Planning (S&OP) is over thirty years old. With the rise of the global multi-national, S&OP increased in importance as a way to align and drive organizational balance. Today, companies do not have one S&OP solution. Our journey to better understand S&OP continues.

S&OP 150

S&OP Supply and Demand Supply Chain Planning Software Modeling 150

Supply Chain Shaman

SEPTEMBER 21, 2015

An effective S&OP plan is the goal of many, but there is no clear industry definition of an effectiveness. To better understand the characteristics of an effective S&OP plan, we just completed a study of seventy-three companies. 2) Tie the S&OP Plan to Execution. This is a maturity factor.

S&OP 150

S&OP Supply and Demand Supply Chain Planning Software Supply Chain Planning 150

Supply Chain Shaman

OCTOBER 25, 2015

” I think it is the most complete assessment of the S&OP value proposition I have seen in the industry. Building S&OP maturity takes time, discipline and focus. As shown in Table 1, one of the distinguishing characteristics of an effective S&OP plan is the time for planners to plan.

S&OP 150

S&OP Supply and Demand Supply Chain Planning Software Supply Chain Planning 150

Supply Chain Shaman

MAY 15, 2023

Use of Supply Chain Descriptors Most organizations are locked into functional silos driven by functional metrics. Stuck in a rut, supply chain leaders try to punch their way through a set of conflicting metrics and priorities each day. The metrics defining success in manufacturing and procurement do not align.

Manufacturing Procurement 468

Manufacturing Procurement Optimal Sourcing Agile and Lean Supply Chain Supply Chain Planning 468

DELMIA Quintiq

MAY 17, 2022

Unfortunately, the definitions of S&OP and IBP are often confusing as they seem to be both distinct and overlapping processes. Other activities, such as S&OP, still take place but as a second level of the overall process.

S&OP 156

S&OP Supply and Demand Supply Chain Planning Software Supply Chain Planning 156

Kinaxis

JULY 14, 2014

Supply Chain Metrics That Matter: A Focus on Aerospace and Defense. In Supply Chain Metrics That Matter: A Focus on Aerospace and Defense , Supply Chain Insights benchmarks A&D companies against other industries and dives into data from five top A&D companies over the last decade. Get the research.

Aerospace 190

Aerospace Metrics Supply Chain Planning S&OP 190

AIMMS

MAY 14, 2018

In fact, it’s become internalized to a degree that companies often have several (competing) S&OP pro cesses in different geographies & business units. Why is it that despite its popularity, only 42% of companies rate their S&OP process as effective? . That was a big eye-opener for us.

S&OP 156

S&OP Supply and Demand Meeting Scenario Planning 156

Logility

JULY 31, 2023

This turbulence sends ripples through their sales and operations planning (S&OP) process, adding complex layers and challenging the essence of effective decision-making. As these factors become increasingly prevalent, S&OP — the vital nerve center of an organization’s supply chain strategy — is being stretched thin.

S&OP 130

S&OP Supply and Demand Supply Chain Planning Software Supply Chain Design Software 130

Supply Chain Shaman

MAY 14, 2025

I laughed at Neils Van Hove’s recent post. Neil’s post in response to my post of Driving Value From Outside-in Planning : In her post, ‘Driving Value from Supply Chain Planning’, Lora Cecere provides great supply chain analysis and benchmarking for her supply chains to admire. His view is very different.

Modeling 195

Modeling Material Savings Vendor Strategies Supply and Demand 195

DELMIA Quintiq

DECEMBER 28, 2020

Ultimately, what KPIs, as metrics and indicators derived from the set of plans are taken into account and prepared for each scenario. Dashboard with scenario comparison and KPIs for decision making in S&OP. Technology for Effective Planning. Figure 1 shows a dashboard that exemplifies this concept.

Supply Chain Planning Software 296

Supply Chain Planning Software Scenario Planning Modeling Prescriptive Analytics Software 296

Kinaxis

JUNE 24, 2016

Puricelli A few weeks ago, I launched a new blog series on sales and operations planning (S&OP ). To make sure everyone is on the same page, I want to review the basics, the foundation, which is… what exactly is S&OP? S&OP is so much more than a process or a meeting.

S&OP 120

S&OP Supply and Demand Inventory Reduction Cost Reduction Strategies 120

Kinaxis

JUNE 2, 2017

by Alexa Cheater As Gartner Research Director Matthew Spooner noted in his recent presentation at the Gartner Supply Chain Executive Conference, advanced sales and operations planning (S&OP) is like a hotel. In fact, Spooner says S&OP isn’t a supply chain process at all. What exactly does that mean?

S&OP 111

S&OP Supply and Demand Forecasting Inventory Reduction 111

Supply Chain Shaman

JUNE 6, 2013

Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. Technology applications in this space include demand planning, tactical supply planning, procurement planning, multi-tier inventory optimization and Sales and Operations Planning (S&OP). Metrics Alignment.

Supply Chain Planning Software 330

Supply Chain Planning Software Supply Chain Planning Optimal Sourcing Scenario Planning 330

Arkieva

FEBRUARY 22, 2021

Let us explore how one can go about making the business case for a proposed S&OP project. Building the Business Case for Sales and Operations Planning (S&OP) was first posted on February 22, 2021 at 8:05 am.

S&OP 133

S&OP Supply and Demand Supply Chain Planning Scenario Planning 133

Kinaxis

AUGUST 31, 2015

by Lori Smith In a previous post , I talked about the ineffectiveness of Excel, ERP, and legacy planning for S&OP. A modern pilot embarks with a general flight plan, but then monitors a continuous readout of key metrics, which he uses to make numerous small course corrections to arrive at the proper destination on schedule.

S&OP 100

S&OP Supply and Demand Supply Chain Planning Software Los Angeles 100

Supply Chain Shaman

JUNE 5, 2013

Integration of corporate social responsibility metrics in planning. Sales & Operations Planning (S&OP). There is a lack of clarity on what drives value and metrics are functional. Planning data is often debated and participation in S&OP decisions is often ad hoc. Functional metric orientation.

Supply Chain Planning Software 255

Supply Chain Planning Software Supply Chain Planning Supply and Demand Supply Chain Design Software 255

Supply Chain Shaman

APRIL 18, 2023

For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. S&OP is too slow and cannot achieve the needed alignment. Process latency, the time for an organization to make a decision using a traditional S&OP process, is two-to-six weeks.

Supply Chain Planning Software 417

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Supply Chain Software 417

Silvon Software

JUNE 1, 2023

KPIs are essential in S&OP as they provide a quantitative framework for gaining visibility, aligning efforts, supporting decision-making, and driving continuous improvement across the business. Ideally, your S&OP KPIs should consist of a mix of strategic, tactical, and operational metrics.

S&OP 111

S&OP Supply and Demand Optimal Sourcing Supply Chain Planning Software 111

Supply Chain Shaman

OCTOBER 1, 2013

Over the last five years, I have helped two companies, Sonoco Products and Owens Illinois (OI) with their selection of technologies to improve Sales and Operations (S&OP) planning. Their journey to be more market driven with a strong focus on Sales and Operations Planning (S&OP) is now seven years old.

Illinois 253

Illinois Waste Reduction S&OP Supply Chain Planning Software 253

Supply Chain Shaman

APRIL 14, 2013

To understand supply chain excellence, Abby and I have been studying pattern recognition for industry peer groups at the intersection of the metrics in the Supply Chain Effective Frontier of growth, profitability, cycles and complexity. The links are listed below: S&OP: A State of the Union. Does S&OP improve agility?

Gartner 286

Gartner S&OP Pharmaceutical Supply Chain Planning Software 286

Kinaxis

MARCH 2, 2018

Effective, efficient sales and operations planning (S&OP) means you can respond to changes faster, spot opportunities earlier and better align your organization around a common set of goals. But the benefits of S&OP extend beyond that—they help to simplify the day-to-day work of nearly everyone in your company.

S&OP 111

S&OP Supply and Demand Optimal Sourcing Supply Chain Planning 111

DynaSys

MARCH 17, 2021

IBP vs S&OP. Organizational metrics are important. S&OP plans often focus on objectives like on-time in-full (OTIF) , inventory turns, and resource utilization. S&OP vs IBP, they have distinct time horizons that are not in alignment with one another. Financial Planning IBP vs S&OP.

S&OP 98

S&OP Supply and Demand Procurement Analytics Forecasting 98

Supply Chain Shaman

DECEMBER 15, 2022

To entice you to participate let’s look at the data more closely. These gaps cannot be closed by a simple focus on S&OP or the implementation of a technology. Functional Metrics. If you answer the survey, I will gladly give you a custom analysis of your organization against the peer group.

Manufacturing Procurement 397

Manufacturing Procurement Supply Chain Design Software Supply Chain Planning Software Procurement Analytics 397

Supply Chain Shaman

JUNE 24, 2022

One of my stark realizations this year is that smaller companies are beating larger and often more established companies on growth metrics, inventory turns, operating margin, and Return on Invested Capital (ROIC). (In The metrics selection resulted from work with Arizona State University in 2013.) Look for the full report next week.).

Supply Chain Planning Software 397

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Software 397

Kinaxis

JULY 14, 2016

Puricelli Last month, I launched a new blog series on sales and operations planning (S&OP). Building upon the last post about foundational elements behind S&OP, I want to consider a question I get all the time from executives: “who really owns, or should own S&OP”? Team Composition.

S&OP 100

S&OP Supply and Demand Supply Chain Strategy Strategy 100

Logistics Bureau

JANUARY 21, 2025

Let’s look at some of the best ways to make your supply chain more efficient. Here’s 10 things you should focus on to improve supply chain efficiency and performance: 1. It’s not enough to just categorise by product groups; you’ve got to dig deeper into line item analysis. What is Supply Chain Efficiency?

Supply Chain Design Software 98

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Supply Chain Design 98

Kinaxis

SEPTEMBER 14, 2015

by Lori Smith In a previous post , I discussed the sometimes surprising technology choices some organizations are making to manage their S&OP process. We know that successful S&OP must be fed by solid and complete information from across the extended supply chain and supported by robust advanced planning analytics.

S&OP 100

S&OP Supply and Demand Supply Chain Planning Software Analytics Software 100

Supply Chain Shaman

JULY 6, 2020

As a result, we shelved Ed’s idea. Testing Ed’s idea was beyond my circle of control. Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. Strength in S&OP. The So What? Organizational Alignment.

Agile and Lean Supply Chain 362

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Planning Software Supply Chain Strategy 362

Supply Chain Trend

NOVEMBER 7, 2016

In the last 30 years S&OP improved performance in many businesses. However, S&OP has not yet substantially delivered on its ultimate promise of enterprise wide resource management, rolling financial forecasting and strategy deployment. Worse, overall S&OP development and progress seems to have stalled.

S&OP 107

S&OP Supply and Demand Supply Chain Design Software Supply Chain Planning Software 107

Silvon Software

MARCH 3, 2023

Having a strong Sales & Operations Planning (S&OP) strategy ensures that your forecasts, raw materials availability and production capacity all match up and that the factory floor can meet its defined deadlines. But simply putting an S&OP strategy in place isn’t enough.

S&OP 89

S&OP Procurement Analytics Supply and Demand Analytics Software 89