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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? How aligned do you believe your organization is to drive these metrics? My observation was that Mondelez’s processes were worse than Kraft’s.
” 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.
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. I wrote many reports on airport floors in those days–electrical plugs were just too scarce.) Sales and Operations Maturity Model from 2005-2008.
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.
Given your expertise, I’d love to hear what alternatives you recommend for better demand forecasting and real-time visibility beyond what’s commonly adopted today.” I know that your primary focus is procurement. Unfortunately, the industry is full of a lot of Anna(s) and her friends, the doubting Thomas (s).
The companies with the strongest year-over-year performance (placing in the winner’s circle for six more times in ten years) are Apple, L’Oreal, Nike, Paccar, TJX, and TSMC. How Do You Define Excellence? In retrospect, I find that technology is an enabler, but only if we are clear on what defines supply chain excellence.
Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Imagine that your child brings home their report card and it’s a mix of good and fair grades. Why do companies focus on reducing a specific metric?
Part 2 in the series explores the “analytical scenario exercise” and how decisions based on certain scenarios heavily impact each aspect of the value chain. Ultimately, what KPIs, as metrics and indicators derived from the set of plans are taken into account and prepared for each scenario. Technology for Effective Planning.
Let’s hope that these new executives see the light of a new day. Aptean is orchestrating the Blue Yonder/E2open/Infor playbook of buying undervalued assets and milking the maintenance and Software-as-a-Service contracts with existing customers. OMP’s press release this week announced nine new chiefs. Kinaxis and o9.
Sales and Operations Planning (S&OP) is a continuous business process that enables firms from hospitals to chemicals to respond to emerging situations intelligently. Our focus today is to discuss the relevance of buzz words such as Analytics, PredictiveAnalytics, Data Science, and Machine Learning, for S&OP.
In 2012, I published an article on Sales and Operations Technology (S&OP) Maturity. (I I never republished the report, because not enough has changed to warrant it.) The report centers on the concept of moving from inside-out to outside-in technologies. Let’s start with a definition of concurrency.
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.
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®.
Each executive has a different perspective on the definition of supply chain excellence, but they are never discussed and aligned. Let’s focus first on John. His organization purchased an advanced planning technology from well-known best of breed provider, and the implementation should have been successful, but it was not.
Let’s start with a definition. The implementations were longer, the purchasecosts were higher, and the functionality was less robust and lacking flexibility. If you share the data from your implementation, we promise to never share your or your company’s name. All of the results are reported in aggregate.
In my role, helping the sales team, I’m often asked to reproduce a report that the prospect currently uses to run the business. Creating even the most complex report in RapidResponse is a breeze so it’s not a big deal for us. So, we did that. We also added a few additional bits of information that they could never get before.
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. Most companies are still struggling with “what good looks like” and “what defines supply chain excellence.”
As Raheel Hussain, Director of the Supply Chain Center of Excellence at Reynolds Consumer Products notes during a recent webinar , a level of synchronization is critical to systemically share information and cut down the constant offline back-and-forth (conversations) between different functions.
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.
This means we need more agile, flexible, and scalable planning platforms to process and consolidate new data sources, drive insights using advanced analytics such as AI/ML to drive autonomous decisions, and expand collaboration within and outside our organizations. We need planning platforms to keep up with all the changes.
Pricing Structure Affordable pricing, with annual access to purchased courses and practical resources through Pro Plan. This learning platform covers every angle of supply chain management, from demand planning and inventory management to supplier relationship management, procurement, and logistics.
This technology allows businesses to unify their procurement, expense management, invoicing, payments, contract management, and spend analysis processes and reporting. The visibility to spend allows them to provide excellent benchmarking in several areas. Coupa solutions are also being used for S&OE.
In Figure 1, I show results from a recent S&OP study. S&OP Challenges. How do we harness the power of data with new forms of analytics? Jackie kept a lookout perched on puff’s gigantic tail. Today, technology providers are selling analytics. Puff, the magic dragon lived by the sea.
Sales and Operations Planning (S&OP) processes have evolved over the last 30 years to address this age-old problem, yet recently SCM World declared “S&OP is still the top inquiry within the SCM World community.”* The struggle to balance customer demand with available supply is as old as trade itself.
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.
I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. They also enable the evaluation of networks for both sales and procurement relationships to optimize the flows upstream and downstream. I believe that it matters.
While MRP and S&OP were defined as early as the 1980s, these provided rough cut analysis at the aggregate level, nowhere near the level of detail that is possible today. Now they want to deploy an S&OP process. However, excellence in corporate planning matters. Their words.
The power of Integrated Business Planning (IBP) comes in helping companies align financial, sales, production, procurement and marketing information into a single plan, grounded in modern-day reality. You need to examine revenue, cost and margin impacts of every scenario under consideration.
SmartOps was purchased by SAP. The press release last week cited the reason for the acquisition, “…as part of the strategy to build a real-time optimization solution for S&OP on SAP HANA. SAP released an S&OP solution using HANA in 2011. However, the picture is not that rosy.
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. The sad thing is that most companies will never know because they are blindly measuring the wrong metric and driving a supply-centric agenda.
Nick Lynch is the Global Excellence Manager at Shell Lubricants, a division of Shell Global. Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. What can often look like compliance in APO could actually be numbers calculated in Excel and posted into the SAP system.
Many of the case studies being presented at today’s conferences were born during the pandemic and the post-pandemic turbulence. Almost two decades of reporting. Leaders of the 90’s Are No Longer Leaders. The regional manufacturing-centric models that defined earlier leaders like P&G and Kraft-Heinz are obsolete.
Depending on who you ask, the answer can be anything from low costs and efficiency to a delicate balance between profitability and customer service. The fusion of General AI and Narrow AI – collectively termed AI+ – is set to revolutionize how knowledge workers engage with inventory management, S&OP, and supply planning.
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.
” At least, that’s what was promised. This includes the automation of path-to-purchase for consumer products, active shaping of demand through price, channel incentives and promotions, eCouponing and mobile commerce for retail, and product proliferation for all. My preference is monthly as part of the S&OP process.).
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. Planting the Seeds for Success.
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?
The bane of e-commerce is the large percentage of purchased items that are returned. As noted in the initial installment of this article, Elise Dopson reports, “Data suggests that 20% of online-bought products are returned, compared to just 9% of items bought in a brick-and-mortar store.”[1] Making the Best of a Growing Challenge.
ThroughPut AI: Best for supply chain analytics and decision intelligence WATCH ON-DEMAND THROUGHPUT AI DEMO With Artificial Intelligence (AI) and Machine Learning (ML), a very powerful force comes into play in your supply chain decision-making processes with ThroughPut AI.
Sales & Operations Planning (S&OP) should evolve into a strategic instrument for continuously aligning demand forecasts, production capacities, and inventory levels in the face of uncertainty. During the 2008 recession, Walmart strengthened its supply chain by investing in predictiveanalytics and real-time demand forecasting.
So, why would companies implement solutions that cost more, were longer to deploy, and had lower user satisfaction? Here are my thoughts: 1) Failure of the Industry Analyst Model. Buying these solutions is far more complicated than is represented in a simple four-box quadrant. I struggle to find both in today’s market.
One retail sector that witnessed a dramatic rise in online purchases during the pandemic was the grocery sector. Analysts from Chicory note, “The grocery shopper’s path to purchase from digital to in-store and other online environments has always been obscure.”[2] The Omnichannel Consumer. during 2020.
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. Corporate buying decisions are being made by a generation accustomed to quick turnaround purchases they experience as online consumers.
Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” We are systemically evaluating each industry in the Supply Chain Insights Metrics That Matter series of reports. These efforts are not enough.
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