Supply Chain Shaman

SEPTEMBER 3, 2018

Over the last six years, we studied the connection between business results (growth, operating margin, inventory turns and Return on Invested Capital (ROIC)) and the link to company characteristics. Let’s Start with Definitions: One of the difficulties in supply chain is the lack of common definitions. What did we find?

Supply Chain Planning Software 377

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

Supply Chain Shaman

AUGUST 2, 2017

To align S&OP. As companies transitioned from regional to multi-national organizations, Sales and Operations Planning (S&OP) processes proliferated. Today, the average company has seven S&OP processes, but a global chemical company averages over 30. Each defining S&OP differently.

S&OP 170

S&OP Supply and Demand Supply Chain Design Software Supply Chain Planning Software 170

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. But with finance, it’s “show me the money”.

S&OP 92

S&OP Supply and Demand Inventory Reduction Price Reduction 92

Kinaxis

DECEMBER 3, 2014

Reason #6 Not effectively managing inventory. 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. There can be multiple reasons.

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

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

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

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. While many consultants argue on the name–the debate rages with strong arguments of “Should it be Integrated Business Planning (IBP), Sales Inventory and Operations Planning (SIOP), or consensus planning?”–the

S&OP 150

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

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. Sales & Operations Planning is, as it was originally defined, a process that focuses on the operational aspects of the business: orders, material, capacity, inventory, etc.

S&OP 156

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

JUNE 6, 2013

Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. More advanced supply chain leaders model the role of complexity (product and customer), the impact of risk, and opportunity of innovation as well as product shipping and manufacturing locations, and inventory policies.

Supply Chain Planning Software 330

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

Enchange Supply Chain Consultancy

JUNE 10, 2025

Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Do Embrace Technology and Data : Use real-time data for demand forecasting, inventory management, and route optimization. A well-equipped distributor is an extension of your brand and a key to market penetration.

Vendor Strategies 165

Vendor Strategies Waste Reduction Inventory Reduction Cost Reduction Strategies 165

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. Supply Chain Design.

Supply Chain Planning Software 255

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

Supply Chain Shaman

JUNE 24, 2022

The future inventory fire sale. 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.)

Supply Chain Planning Software 397

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

Supply Chain Shaman

JULY 6, 2020

Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. As a result, we shelved Ed’s idea. Testing Ed’s idea was beyond my circle of control. Strength in S&OP.

Agile and Lean Supply Chain 362

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

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. Inventory down 7%. Service up 8%.

S&OP 113

S&OP Supply and Demand Forecasting Inventory Reduction 113

Logistics Bureau

JANUARY 21, 2025

An efficient supply chain strategy is one that takes every aspect of your supply chain into account, from inventory management and warehouse design to freight tendering and transport optimisation. Let’s look at some of the best ways to make your supply chain more efficient. 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

Supply Chain Shaman

JANUARY 9, 2024

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. An average margin of 21% with inventory turns of 1.58 The group’s response is, “Are these supply chain metrics?”

Supply Chain Planning Software 386

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 386

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

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

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 Supply Chain Planning Software Optimal Sourcing 111

ToolsGroup

MARCH 18, 2019

In the first phase Mohawk overhauled its own internal operations, implementing a centralized Sales and Operations Planning (S&OP) process to manage its business in a more demand-driven way. They also cut inventory levels, grew sales and resolved capacity issues. Their S&OP program, however, was only the beginning.

Supply Chain Planning Software 228

Supply Chain Planning Software Supply Chain Planning Scenario Planning Agile and Lean Supply Chain 228

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

Kinaxis

MARCH 22, 2017

But the sheer complexity of supply chain networks, and the impact design decisions have on operational performance, makes supply chain inventory management aligning inventory investments with on-time customer delivery and margins a major challenge. Implementing inventory optimization. It’s certainly no walk in the park.

Optimal Sourcing 199

Optimal Sourcing Supply Chain Optimization Network Optimization Inventory Reduction 199

Supply Chain Shaman

OCTOBER 11, 2023

Let’s explore nine in this blog. Today’s supply chain leaders have a fascination with Artificial Intelligence (AI) but are blind to the advantages and capabilities of Web 2.0 Software built on graph technology can model flow, but the transactional paradigms of historic practices hold development team’s hostage.

Supply Chain Planning Software 417

Supply Chain Planning Software Supply Chain Software Forecasting Software Supply Chain Network Software 417

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. Support Long-Term Strategy.

S&OP 98

S&OP Supply and Demand Procurement Analytics Forecasting 98

Kinaxis

AUGUST 29, 2014

Supply Chain Insights recently published a Metrics That Matter report covering both the Semiconductor and Hard Disk Drive (HDD) industries. Semiconductor is poised to consolidate, which will have huge impact on the metrics. Understanding inventory planning will take on a new dynamic. by CJ Wehlage.

Metrics 175

Metrics Supply Chain Planning Software Manufacturing Procurement Thailand 175

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

JUNE 19, 2013

It comes in many flavors–increase in inventory, changes in sales policies, new product lines– all add to the complexity. The only industry that has made progress in inventory management is consumer electronics. It will be nice to be home and to have time to write on this second book, Metrics that Matter.

Forecasting 320

Forecasting Supply Chain Planning Software Agile and Lean Supply Chain Forecasting Software 320

Supply Chain Shaman

JUNE 29, 2014

It could no longer be just about inventory levels. This analysis needed to be completed monthly and fed to newer forms of inventory optimization technologies. The advanced Llamasoft user has a model on a computer tablet (Sherpa product) that enables the visualization of S&OP trade-offs within the S&OP meeting.

Supply Chain Design Software 268

Supply Chain Design Software Supply Chain Design Network Design Software Supply Chain Planning Software 268

Logility

AUGUST 3, 2012

In today’s uncertain times, a clear vision and strategy of where you need to be is the key to rally the company and propel your business forward; forward into new markets, new geographies and ahead of your competition. One of the key challenges to a successful global S&OP process is the language barrier. ” *.

S&OP 100

S&OP Inventory Reduction Global Expense Reduction 100

Supply Chain Shaman

AUGUST 11, 2014

Over the course of the last two years, we at Supply Chain Insight s have worked on a methodology to gauge supply chain improvement. We have found that supply chain metrics are gnarly and complicated.During Resiliency is the tightness of the pattern, or the reliability of operating margin and inventory turns results.

Case Study 305

Case Study Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software 305

Supply Chain Shaman

JULY 12, 2013

Focus the organization on understanding the “probability and patterns of demand” and how to design push/pull decoupling points, supplier networks and inventory buffers to improve agility (focusing on form and function of inventory in the supply chain). 2) Build Strong Horizontal Processes like S&OP.

Supply Chain Design Software 322

Supply Chain Design Software Supply Chain Planning Software Modeling Modeling Software 322

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

Supply Chain Shaman

MARCH 21, 2024

We explore the concept of holistic inventory strategies focused on the form and function of inventory. In the process, we learn that only 15-20% of inventories are safety stock and that the current APS frameworks do not enable a holistic analysis of the form and function of inventory. Lack of aligned metrics.

Inventory Reduction 434

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software 434

Supply Chain Shaman

OCTOBER 8, 2019

Next year’s conference will be on September 8th-11th in Franklin, TN, south of Nashville, TN. Granular data by volume is a must to be able to manage replenishment, network design, and inventory targets. Here are nine considerations: #1 S&OP Budget Constraints. The Role of the Budget in S&OP.

Supply Chain Design Software 207

Supply Chain Design Software Inventory Reduction Supply Chain Planning Software Forecasting 207

Logility

JANUARY 15, 2014

Frequently, I get asked the question, “What is the value of S&OP?” In 2005, I engaged with Sonoco Products, a packaging products and services company, to initiate some work on Sales and Operations Planning (S&OP). Alignment on a Metrics Portfolio. ” When I get the question, I smile.

S&OP 101

S&OP Illinois Agile and Lean Supply Chain Inventory Reduction 101