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As companies consider purchasing new solutions based on better planning engines—machine learning, rules-based ontological frameworks, narrow AI, pattern recognition, large language models, and sentiment analysis— I ask for the use of caution. However, SAP supply chain planning is an excellent system of record. You need both.
In my recent Mea Culpa post, I mentioned my prior work on Sales and Operations Planning (S&OP), and the importance of leadership. Leadership and S&OP? Observations on What It Takes In the Mea Culpa post, I wrote that I used to believe that excellence in S&OP was a ratio of 60/30/10. (60%
The journey for S&OP is a road with many ruts and potholes. In my twenty years of following the progression of S&OP as an analyst, I am amazed at the number of “experts” with so little expertise. For most companies, building a great S&OP process is a missed opportunity. Governance.
I spent time this week completing reference calls on the use of S&OP technologies. Eerily the case studies sound the same as the ones heard when I completed S&OP research in 2004. Eerily the case studies sound the same as the ones heard when I completed S&OP research in 2004. Dependency on Excel.
Importance Versus Effectiveness of Demand and S&OP Planning Solutions. The third issue is the lack of understanding that global processes–to maximize the economies of scale in transportation and material buying–need strong governance. You would be right. What Drives Dissatisfaction?
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.
” Followed by “How are you organized, and what defines functional excellence? And, how do you tie functional excellence to corporate value?” Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. This gap grew over the last decade.
In 2012, I published an article on Sales and Operations Technology (S&OP) Maturity. (I At the time, one of the people (let’s call him Noel) that I great respect for in the industry called me to say, “Lora, I don’t get it. Let’s start with a definition of concurrency.
There is a lot of evidence that S&OP is hard to implement and get right. And when S&OP is implemented it often stalls, doesn’t make enough progress and doesn’t deliver enough value. Maybe at the start of the S&OP project executives buy in and employees are still eager.
Early challenges to IBP included a lack of an accepted academic definition, the absence of a governing body and a bias toward supply chain applications. But research suggests the most widespread and stinging criticism of IBP was that it was just mature Sales & Operations Planning (S&OP) by any other name.
This morning, the New York Times pushed me an article by Peter S. Let’s face it our historic practices for demand planning create waste in a more variable world. So, my reply to Peter S. The days of the functional manager focused on OEE (Operational Equipment Efficiency) and POV (Purchase Price Variance) need to end.
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.
Whether you''re a manufacturing company in China, a sourcing agent in London or a world''s leading company in Silicon Valley, we''re all in a global supply chain networks. That''s why we ask our experts a very simple question " How to improve the operational efficiency in global supply chain? These are three examples: Rule 3.1:
…for 8:00 AM strategy meeting(s) with clients.) To use the Barnes example, in this blog post, let’s focus on simplicity. Let’s start with a definition. Companies with a deep focus on Sales and Operations Planning (S&OP) will often default to this definition. What is integrated planning?
Today hurricane Nate’s north winds are pushing against the bayous of Louisiana. Today’s demand processes are inside-out. In today’s architectures, there is no place to put outside-in data like VMI, Point of Sale (POS) or rating/review data. Today’s demand management processes have many issues.
Analysts at Gartner predict circular economies will replace today’s wasteful linear economies over the next decade or so. There are a number of excellent reasons circular economies are desirable, including less waste and better use of limited resources. The world’s waste problem. 4] Smart Cities World , op.
In today’s fast-paced business landscape, having an efficient supply chain department is more important than ever. Here’s why a structured approach is important: Efficiency A structured department creates a clear division of labor and defines processes for procurement, production, distribution, and returns. Enroll Now!
Best in class organizations such as Amazon have transformed the paradigm through their use of analytics and predictive modelling, but it should not be overlooked that the foundations of their success are rooted in excellent data management. This involves getting the buy in and validation of planners who need to own the operational delivery.
Over a third of the world’s food produce and products are wasted. For example the Raven Food Co-op, a Warsaw-based food cooperative is committed to preventing food waste before it occurs. Local governments are increasingly introducing composting bins to separate food waste from general waste. Commercial composting.
Yet there’s a profound difference between companies that merely collect data and those that transform it into a strategic asset capable of driving meaningful business outcomes. Let’s explore the critical steps in this journey.
To help you determine what tactics, processes, technologies and practices are a must-have in a winning supply chain strategy, we reached out to a panel of supply chain professionals and asked them to answer this question: “What’s the single most effective way to create a winning supply chain strategy?”
Supply chain sustainability is defined as embedding environmental, social, or corporate governance considerations as raw materials are sourced, converted into products, and delivered to the market. Breaking up with Excel: Digital Sales Planning Success with Concord Foods. Webinar: Register Now.
Let’s start with the COVID impact. Semiconductor manufacturing consumes 10% of the island’s water supply. Let’s Start With Demand. Ukraine currently provides nearly 70 percent of the world’s neon gas capacity.) Russia produces 40% of the world’s palladium. ” I laughed.
Today, only 4% of companies are the first to buy new technology—a 40% decline from post Y2K in 2001. ” Let’s set the stage. Lucas had a team that dictated sourcing based on excel spreadsheet analysis to reduce cost and improve tax efficiency. Unfortunately, excel spreadsheets drive 93% of supply chain decisions.
Today, only 4% of companies are the first to buy new technology—a 40% decline from post Y2K in 2001. Lucas had a team that dictated sourcing based on excel spreadsheet analysis to reduce cost and improve tax efficiency. Govern by implementing stage-gate processes (analogous to those in the management of product innovation.)
Building supply chain resilience isn’t a new goal, but it’s become a primary focus for supply chain leaders in the wake of the pandemic crisis, particularly in the hardest-hit industries, such as food and beverage. Develop a clearly defined risk mitigation governance structure. ” — Michael Varney and Wil G.
The ABCDs of an Excellent Supply Chain. In this 2-part Supply chain strategy post , the Managing Director at Solventure – Bram Desmet, discusses the key elements of an excellent supply chain. So, as I sit down to write this blog, I wonder what are some of the things that make supply chains excellent? Please subscribe here.
Let’s delve into this emerging concept. Companies with advanced supply chain practices excel in delivering quality third-party logistics management, SKU optimization, efficient transport management, and swift handling of B2B/B2C shipments. By incorporating SRM into SCaaS, companies can avoid being burdened with these risks.
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