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Organizations use S&OP as a hammer in search of a nail. As a contrarian voice in the industry, I want to share some research to steer the conversations towards a more fact-based dialogue. (I In this post, I want to focus on tactics that work and don’t drive success based on recent research of 107 business respondents.
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.
Or they may have expertise in manufacturing processes and have flexible capacity to allow contract manufacturing for new product introduction. An example of this is Vendor Management Inventory and Capacity Collaboration for contract manufacturing. Nari Viswanathan is a six times SDCExec Supply Chain Pro to Know award winner.
To align S&OP. As companies transitioned from regional to multi-national organizations, Sales and Operations Planning (S&OP) processes proliferated. The average company has seven S&OP processes, but a global chemical company averages over 30. Businesses are different. Reporting Structure.
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.
Sales and Operations Planning (S&OP), a process often focused around a monthly meeting, is evolving into a more continuous process. S&OP is a process where decisions are traditionally made once a month as a part of an executive review. Or as Gartner Research states, “The No. January 2016).
Now the writing follows the research. I mix the quantitative research with my observations and interviews, and the posts seem to roll from my fingers. If you would like to participate in a current research study, we would love your help and participation in the contract manufacturing study. It was a struggle!)
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? Each is attempting to slather AI on today’s offering: this fueling a hype cycle for agentic AI. Technology can automate role-based views up and down the river of demand for all roles: marketing, sales, finance, manufacturing, procurement, transportation, and human resources. It is a landgrab of sorts.
According to my research, top-performing supply chains possess three very different qualities. Let’s Start with Definitions: One of the difficulties in supply chain is the lack of common definitions. To help the reader, let’s start with definitions used in our research: Efficiency. What did we find?
“Based on our research, every organization which aligns top-down financial plans with bottom-up demand plans, as part of their S&OP, sees an improvement in the accuracy and predictability of their financial forecast.” - Matthew Spooner, Research Director at Gartner. Advanced S&OP Process Success.
I will also pen my 95th report for this week’s Supply Chain Insight’s newsletter. The open content research model is working. Figure 1: Driving Open Content Research. In the course of the cycle of building content–research, writing and speaking–I get many questions. How do I get started?”
Let’s take an example. ” When I asked the question, I got an answer from LinkedIn that the research focused on digital maturity with SAP. The research is generated by SAP. Let’s take another example. Translation of the demand forecast into planned orders to minimize manufacturing constraints.
Manufacturers like Hyundai are experiencing a shortage of components that threaten s to halt production. First reaction s to the outbreak . A recent online survey conducted b y MIT’s Center for Transportation & Logistics aimed to understand how companies are reacting to the Coronavirus outbreak.
The best research requires input from supply chain experts like you! Get your voice heard and share your insights on how Sales and Operations Planning (S&OP) is conducted at your company. Lora Cecere, founder of Supply Chain Insights, has kicked off research for the report, “How S&OP Drives Agility.”
The past approach of limited, incremental improvements is not sufficient for today’s supply chain needs. Intelligent and agentic: The company indicated that its cognitive solutions are inherently intelligent and agentic, leveraging Blue Yonder’s history as an early adopter of machine learning and other forms of AI.
1 challenge among manufacturing companies is connecting sales and operations planning (S&OP) to operational plan/execution.” – Gartner Research 1. Her 2015 survey showed that only 11% of the manufacturers “nearly always” effectively tie S&OP planning to execution and only 19% can do it “most of the time”.
In research study after study, we see that the greatest challenge to achieving supply chain excellence is the understanding of the supply chain by the leadership team. The executive focus should be on the output of strategic planning into the tactical process of S&OP. Hoping to see you there!
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. Let’s have an honest discussion. Let’s go back to OMP. How so, you might ask?
I have worked for Gartner Group, AMR Research, Altimeter Group and now my own company, Supply Chain Insights. Here, I would like to share some background information on the Index and how I intend to use it in developing a higher level of research. It will become one of the cornerstones of our research. How was it developed?
Ever been involved with launching a new manufacturing or distribution company? If so, you know what it’s like to work under pressure to contain costs. They’re familiar to most business users, and easy to learn for anyone who’s just starting their career. S&OP software enables actual business processes.
When I finished the blog post last week, I sent the research to fifteen supply chain leaders in manufacturing and asked for their opinions on the study. These were large multi-national manufacturing companies with very senior supply chain leaders. So, what should a global manufacturer do? Their response surprised me.
Frank, the line manager for manufacturing, dominated the meetings. As a result, we shelved Ed’s idea. Testing Ed’s idea was beyond my circle of control. Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance.
When the mist clears can we see a picture of S&OP? Last week, with several feet of snow out my window, I had some fun trying to visualize sales and operations planning (S&OP). The idea is to identify which words are closely related, relevant and impact S&OP in the mind of an industry expert.
Manufacturing is designed and planned in isolation. Integration with manufacturing systems to understand actual run times and Operating Efficiency (OEE). Sales & Operations Planning (S&OP). Planning data is often debated and participation in S&OP decisions is often ad hoc. Manufacturing.
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. The IBP Process Over Promises and Under Delivers Research by McKinsey concludes that all too often IBP is an ineffective process. “In It’s the narrative.
McKinsey & Company research recently revealed that 76% of surveyed consumers experimented with new shopping behaviors during the pandemic primarily because of product availability – an area in which larger competitors have an advantage. And the stakes have never been higher. Yielding Winning Outcomes in a Field of Uncertainty.
by CJ Wehlage This past week was the IE Group’s S&OP Innovation Summit at the beautiful venue of the Bellagio in Las Vegas. Her keynote hit the main theme of the conference: S&OP Skills. The contract manufacturer, Celestica, already manages manufacturing and inventory.
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.
What exactly is Sales and Operations Execution (S&OE)? If you look at the continuum of your supply chain processes, all the way from supply to customer, S&OE falls somewhere between production and workforce scheduling and demand forecasting. It resides in the realm of Accurate Planning and picks up where S&OP leaves off.
Introduction For many companies the implementation of a formal Sales and Operation Planning (“S&OP”) process has not delivered the expected improvement in demand and supply integration. Overly focused on efficiency and cost savings, i.e. on the “O,” the “S” in S&OP now seems to have become an afterthought.
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.
Sales & Operations Planning (S&OP) has been around for over three decades. Some analysts insist it’s time companies move on. Other analysts insist the purposes behind S&OP remain as relevant as ever. ”[2] He cites research from two firms supporting his assertion: Optilon and Gartner.
I recently read a roundup of all the research Gartner Group has published around S&OP. I’m struck by the fact the research points to 70% of companies are at a maturity level of 2 or lower even after 30 years of S&OP chest beating by the supply chain industry. So, where is the disconnect?
I recently read a roundup of all the research Gartner Group has published around S&OP. I’m struck by the fact the research points to 70% of companies are at a maturity level of 2 or lower even after 30 years of S&OP chest beating by the supply chain industry. So, where is the disconnect?
I recently read a roundup of all the research Gartner Group has published around S&OP. I’m struck by the fact the research points to 70% of companies are at a maturity level of 2 or lower even after 30 years of S&OP chest beating by the supply chain industry. So, where is the disconnect?
Let’s Start With Clear Definitions My inbox is full. I am a researcher. 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.
In my research, I find that the lack of alignment has a direct impact to value (operating margin and market price to book value). To entice you to participate let’s look at the data more closely. These gaps cannot be closed by a simple focus on S&OP or the implementation of a technology. Functional Metrics.
JDA’s own research among planners tells us that they tend to spend 70% of their time fire-fighting supply chain disruptions. To answer a basic question, S&OE is not the new S&OP, but instead, an important and separate planning process designed to address the much-needed frequent cadence.
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.
A lemming’s population rises and falls. In this blog post, I share quantitative research, mixed with stories, of Sales and Operations Planning (S&OP). In this blog post, I share quantitative research, mixed with stories, of Sales and Operations Planning (S&OP). The Research. .
Few companies design their supply chains (research data shows that 9% of companies actively design their supply chains), and few planning systems actively analyze and drive answers to the questions: Do I have a good plan? In the Global Supply Chain, there are More Constraints To Address Than Just Manufacturing. S&OP Is Over-Played.
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. ” *.
During the 1980s, I was on a management team for a large manufacturer. The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team. The problem is more profound.
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