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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. Drives Value.
Whether you are interested in S&OP, IBP or even simple planning on a spreadsheet you should get yourself along so start planning now! In fact, not many years have passed since there were two main boards so how has planning excellence leveraged performance through S&OP and other initiatives? Go on, check!
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.
What’s missing? In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Each is attempting to slather AI on today’s offering: this fueling a hype cycle for agentic AI. Technology can change or even improve work. It is a landgrab of sorts.
Dashboard with scenario comparison and KPIs for decision making in S&OP. Working with Excel spreadsheets does not contribute the efficiency, speed and agility necessary for planning teams to bring the best plans to the company. Figure 1 shows a dashboard that exemplifies this concept.
Your company has implemented an S&OP process. So how does a poor S&OP process cost money? S&OP is all about aligning manufacturing and sales. Companies without an effective S&OP are typically much slower to react to market changes. Tell me if you’ve heard this one before.
From my previous blog post , it’s clear that the road to achieving sales and operations planning (S&OP) excellence is not an easy one. Read on to learn how to transform your S&OP workflow, boost your scenario planning capabilities and get the most out of your S&OP process.
by Lori Smith Can the S&OP process be done without technology? So what technologies are today’s supply chain teams using to support the critical S&OP process? It never ceases to surprise me when I hear how many enterprises entrust a mission-critical task to the desktop spreadsheet software Excel®.
GEON Performance Solutions purchases plastic pellets and add plastic compounders to make products of different strength, resilience, and flexibility. The roots of IBP are in sales & operations planning (S&OP). S&OP is usually a month-long cross functional process that involves five steps.
Today’s headline news includes AllBirds, Boeing, Canada Goose, Chemours, EMC, Hanes Brands, Fisker, Ford, Krispy Kreme, LKQ, Ryder, Tesla, Timken, Tyson Foods, Weight Watchers International, and WestRock. Q3 is a tough quarter: the list of companies failing to meet revenue guidance will continue to grow. The trend is clear.
In this edition: Jaro Caban, Global S&OP, Cargill Animal Nutrition. My responsibility is Global S&OP and Process Improvement Lead and I take care of three elements: Firstly, to establish S&OP across CAN. Our buyers are purchasing micro ingredients, such as vitamins, additives, minerals, etc.
by John Westerveld I came across this blog on sales and operations planning (S&OP) from the Institute of Business Forecasting and Planning (IBF) the other day. Interestingly, it also describes the warning signs to look for if your S&OP process has fallen off the tracks. S&OP Warning Signs.
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.
My Monday morning staff meetings could have been a Saturday night live skit. Frank, the line manager for manufacturing, dominated the meetings. Ed argued that instead of buying new packaging equipment that we should work with R&D to have a base flavor and add the color and flavoring at the head of the machine.
Let’s Start With Clear Definitions My inbox is full. Let’s have fun! Let’s start with the definitions: Graph AI uses Machine Learning on graph-based technology to understand the relationships between variables to drive insights. Many of today’s solutions include Narrow AI. Or transform work?”
With the purchase of i2 by JDA, and Logictools by IBM, manufacturing companies serious about network design started looking for a company, with a well-established community, that was more serious about network design. Cost-to-Serve and Top-to-Top Meetings. Criticality of Corporate Social Responsibility. The gap is tough.
The focus is on the role of supply chain finance in driving supply chain excellence. Next year’s conference will be on September 8th-11th in Franklin, TN, south of Nashville, TN. The design of the conference includes tours of several modern warehouses and centers of excellence. The Role of the Budget in S&OP.
We conclude this two part series about manufacturing operations excellence by consultant Chuck Intrieri, by outlaying why manufacturers should focus on a critical component that will help sustain manufacturing operations excellence for years to come. What is Driving Sustainable Manufacturing Operations Excellence? Work centers?
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.
As manufacturers intentionally design their supply chain flows, AI becomes a key ally in synthesizing complex data sets, managing higher numbers of SKUs, and navigating intricate operations – while meeting rising expectations for faster fulfillment and customer satisfaction.” The same holds for the supply chain organization.
The visibility to spend allows them to provide excellent benchmarking in several areas. Initially, this product will focus on the purchase order (PO) acceptance process. Coupa’s Take on Platform Fatigue The top executives at Coupa had a private briefing for industry analysts. Coupa meets this definition.
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. These critics sensed a sinister “rebranding” ploy designed to get companies to purchase technology and services they already own but perhaps have not fully implemented.
While we might go and get the best of the solutions out there to meet today’s challenges and leverage today’s technology, that’s not going to come with a lifetime guarantee that it will meet all our needs in the years ahead. They can adjust quantities and generate supplier replenishment orders in PDF or Excel as needed.
Planting the Seeds of Resilience Most companies understand that accurate forecasts are critical to minimizing inventory, maximizing production efficiency, streamlining purchasing, optimizing distribution, minimizing waste, and projecting future performance confidently.
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.
Updated: June 26, 2024 Published: February 4, 2021 What is the Sales & Marketing Leader’s Role in S&OP? The Sales & Marketing leader is a key part of the Roles and Responsibilities of Sales and Operations (S&OP). Their role is to fill the pipeline of potential customers.
I asked the guys what the key success factors were: Know how to make a profit when buying and selling. I asked Rick what the toughest challenge was to meeting these success factors. They have multiple ERPs, external nodes, Excel files, etc., Who buys the most jewelry? Think “cash-flow” at every transaction.
I could write a blog about each story, but let’s save that for coffee.) Let’s take a discussion from my DM on LinkedIn from Ryan. similarly, over 95% of manufacturers invested and implemented supply chain planning, but their primary tool today is Excel. Meet my terrier crew. I don’t know. (I The result?
Most companies understand that accurate forecasts are a critical part of minimizing inventory, maximizing production efficiency, streamlining purchasing, optimizing distribution, minimizing waste, and projecting future performance confidently. Preparing for Market-Driven Demand.
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.
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.
Understanding the Operations Leader’s Role in S&OP Sales & Operations Planning (S&OP) requires a multi-functional team that allows each part of an organization to participate in the development of the process plan. The S&OP plan serves as a vital tool to be up-to-date with product changes.
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.
This can create a detrimental ripple effect, impairing your ability to meet your own financial obligations to suppliers, thereby propagating financial instability throughout the supply chain. The company focused on keeping essential products in stock and aligned its operations through strategic Sales & Operations Planning (S&OP).
This is the fifth post in a series where we investigate some of the myths and mistruths around Sales & Operations Planning (S&OP). Myth: “No Need for S&OP; We have Lean Manufacturing.” This mismatch in lead times requires shorter term S&OP.
Has your company ever suffered problems with, implemented, or even considered implementing a sales and operations (S&OP) planning process? But what makes it so challenging to implement S&OP successfully? Why S&OP Needs a Lot of Human Investment. Who’s Who in the S&OP Process?
At the break of the first sales kick-off meeting, I took a walk with a friend named Scott. As we walked, I reflected and kept asking Scott, “How can we optimize outcomes if companies are not clear on what defines excellence?” Sean’s answer was, “Doesn’t the software do that?” At the first meeting.
At the break of the first sales kick-off meeting, I took a walk with a friend named Scott. As we walked, I reflected and kept asking Scott, “How can we optimize outcomes if companies are not clear on what defines excellence?” Sean’s answer was, “Doesn’t the software do that?” At the first meeting.
In the age of the Amazon B2C, buy-it-now, get-it-now landscape, B2B buyers are finding themselves also wanting the quick and easy shopping experience B2C companies offer, and some actually excel at. Many had to scramble to meet the enormous demand and are still unsure of how to gain the upper hand. .
Therefore, evaluating performance and creating a comprehensive digitalization strategy are essential for a distributor’s success. The key is to balance having enough stock on hand to meet customer demand without maintaining excess inventory. Logistics KPI Dashboard Excel Template 4.
Just like the company creates new skin and hair care products to meet the consumer’s diverse and infinite needs is a company trademark, there’s opportunity for innovation in the supply chain. What is the strategy of the Company (or Division/Supply Chain): Operational Excellence, Product Leadership or Customer Intimacy?
The answer depends, of course, on your company’s objectives and, particularly, on your customer service promises. This process ensures that Amazon’s warehouse management system records the location of every item in the facility. In other words, it will be different for every enterprise or organisation.
Manufacturing operates like a Rolls Royce with the full raft of certification and manufacturing excellence credits. Sales & Operational Planning (S&OP) is alive and kicking and has the full buy-in of all functions, even sales and marketing. The top team has a monthly love-in with the Board S&OPmeeting.
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