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5 Recommendations towards a Resilient S&OP

Logistics Viewpoints

Sales & Operations Planning (S&OP) as a process has been around since the 1980’s. While the terminology evolved, the underlying thesis of S&OP has stayed the same, i.e., bridge the divide between sales forecasts and operational plans while respecting the budget.

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How We Stubbed Our Toe in The Evolution of S&OP

Supply Chain Shaman

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.

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Supply Chain Normalcy? Think Again.

Supply Chain Shaman

The global supply chain is built on three assumptions: rational government policy, availability of reasonably priced logistics, and low variability. 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.

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Avoid “Lost in Translation”. Monetize S&OP to Include Finance.

ToolsGroup

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. It’s a problem of “lost in translation”—the differing lingo used by the finance side versus planning, supply, production and logistics.

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Supply Chain Department – A Typical Structure

SCMDOJO

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.

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Four Ways of Using Cluster Analysis in Retail Management to Improve Sales

Logistics Viewpoints

Price index and price elasticity are useful metrics on their own, and a combination of these can help determine the right price point to maximize revenue and profit. Since there are often differences in store sizes, a metric representing the size can be added as well for a two-dimensional clustering approach.

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Dispelling Untruths: 10 Generative AI Myths

Logility

However, AI is based on artificial intelligence and machine learning methodologies that have continuously evolved since the 1950’s. Because of a personal relationship, the supply chain manager knows they can call their colleague from sourcing to lean on their vendors to get the shipments expedited.