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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.
There’s a lot of flux in the chemical industry. Selling prices vary depending on international markets and what’s happening in certain countries. Many chemical companies are using S&OP (Sales & Operations Planning) as a tool to tie up operational planning and activity with financial goals and strategy.
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.
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.
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. Quantity of goods in the order.
SCMDOJO Academy elevates your procurement and supply chain skills through its extensive course library. Mastering Procurement – Essentials Skills and Competencies Mastering Procurement by Maryna Trepova is the ultimate Procurement and Purchase Management course for Engineers, Entrepreneurs, Managers, and Students.
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.
Here are ways smart supply chain planning can help you minimize those post-pandemic shortages while still meeting your business objectives. The following strategies, based on data, analytics, and collaboration, are helping planners around the globe overcome a disrupted supply chain. Get your product portfolio in shape.
IBP vs S&OP. Determine The Financial Costs Of Supply And Planning Decisions. Organizational metrics are important. S&OP plans often focus on objectives like on-time in-full (OTIF) , inventory turns, and resource utilization. IBP allows to integrate the S&OP plan with the financial plan.
There is so much data, and to make use of it, we need to use data mining and analytics to drive meaningful insights that can be put to some good use. ABC analysis creates product segments by grouping products with similar sales volume or purchase frequency to enable category managers to focus on what matters most.
One day, a product is flying off the shelves, and the next, it’s gathering dust. That’s why staying on top of the latest supply chain planning trends is so important – they can make all the difference when it comes to staying competitive, reducing costs, and meeting your customers’ needs.
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.
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.
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.
Digital commerce efficiently requires the digitalization of many customer-facing operations and sourcing and procurement. The First Step: Bring all the data together and ensure analytics and planning can happen on the same platform. . Accurate and timely reconciliation of purchase orders with receipts.
Next year’s conference will be on September 8th-11th in Franklin, TN, south of Nashville, TN. The budget is for a fiscal year with quarter reporting and updates. Financial forecasts tend to have a negative bias (forecasts less than market potential) to ensure that employees have a better probability of meeting their bonuses.
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. So what to do? Composability is the answer to that challenge.
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? In addition, companies will have two to five S&OP processes working independently.”. Provide in-depth analysis using complex analytics.
Computing power and storage capacity have grown exponentially, while the cost of both have plummeted. More and better data has turned demand analytics into mainstream reality. It typically involves meeting with multiple stakeholders and building consensus forecasts. Let’s take a few minutes to decode it. Demand Planning.
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.
This technology allows businesses to unify their procurement, expense management, invoicing, payments, contract management, and spend analysis processes and reporting. I saw how their platform unified finance and procurement activities, but not supply chain. Coupa meets this definition. That has recently changed.
In today’s volatile global trade landscape, enterprises face ongoing pressure to optimize their supply chain operations. Rising costs, geopolitical tensions, and tariffs demand a strategic and holistic approach to maintain profitability and competitive advantage. There are many ways an organization can cut supply chain costs.
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.
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.
That takes a data-driven approach to forecasting, procurement and distribution. Predict the Blitz With QADs AI-driven forecasting, anticipate demand shifts, adjust production schedules, and avoid scrambling at the last minute. As mentioned, the secret is agility, resilience, and efficiencyoptimizing your people, processes and systems.
Walmart brings extreme fulfillment expertise to the table, and Google has the technologies for language processing, artificial intelligence (AI) and analytics. Traditional calendar-based sales and operations planning (S&OP) is blown out of the water, as there will always be the requirement to adapt to what consumers want.
SIOP stands for “Sales, Inventory, Operations Plan”, not to be confused with “S&OP”. Traditional S&OP planning often deals with product families or wide-ranging product categories and though providing valuable data, this process delivers results at an aggregate or macro level.
Corporate purchasing leaders must not only manage transactional data effectively but also use this data from stakeholders across the organization to create a more collaborative environment that creates trust and benefits to both customers and suppliers. Grammer uses QAD SRM to manage its supply base.
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 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. During the 2008 recession, Walmart strengthened its supply chain by investing in predictiveanalytics and real-time demand forecasting.
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.
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.
.”[1] At the same time, writes SAS’ Rodney Weidemann, “The impact of emerging technologies such as artificial intelligence, machine learning and cognitive computing — the latter underpinned by big data and advanced data analytics — is beginning to be felt.”[2] Path to Purchase. ”[3]. They are: 1.
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.
That’s why the supply chain team proactively kicked off a series of meetings. Long lead times left them exposed, they could burn through safety stock and not have enough inventory to meet an order. Ipsen purchased the RapidResponse supply chain planning product from Kinaxis. Ipsen also need to reduce their lead times.
To spur trade and create wealth, explorers have plied the world’s oceans and have traversed the globe’s landmasses. And] 30% of major retailers will adopt a retail omnichannel commerce platform that integrates a data analytics layer that centrally orchestrates omnichannel capabilities.” ”[2].
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.
Time travel still only exists in science fiction; however, if I could go back, based on what I know today, I can think of a few supply chain-related things I would have done differently when I was implementing and running sales and operation planning processes ( S&OP ).
Computing power and storage capacity have grown exponentially, while the cost of both have plummeted. More and better data has turned demand analytics into mainstream reality. It typically involves meeting with multiple stakeholders and building consensus forecasts. Let’s take a few minutes to decode it. Demand Planning.
As Tom Standage ( @tomstandage ), editor of The Economist ‘s ‘ The World in 2021 ‘, reminds us, the digital path to purchase is increasingly becoming the customer journey of choice. ”[2] Were that survey conducted today, I suspect an even larger number of consumers would report losing confidence in the supply chain.
This creates the perception among consumers that Zara''s products are unique and you have to take it while stock lasts. To cope with this, P&G conducts a merchandise testing at the pilot stores to determine the customer''s response to new product before the launch. If product sales is good, a larger batch will be ordered.
This is the first of a series of five posts that investigates common myths and mistruths I have heard over the last 20+ years regarding Sales & Operations Planning (S&OP). Hopefully, by exploring these myths we can generate a greater understanding of what S&OP is and what it is not.
A new Bloomberg Business Week Research Services survey and report makes it clear that innovative supply chain tools are widely acknowledged to be crucial to meeting corporate goals now and in the future as supply chains grow more complex, customers become more demanding and globalization accelerates. He is certified as a C.P.M.,CPIM,
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