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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. Metrics Definition. Businesses are different.
We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. In our monthly webinar last Wednesday, I presented these results.
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.
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. Why do companies focus on reducing a specific metric? Sound ridiculous?
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.
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. What exactly does that mean?
I have heard presentation after presentation on supply chain excellence, and I have heard industry leaders wax eloquently on how their supply chain objectives have improved value. However, we have found that only a few companies are improving the potential of their supply chain to balance supply chain metrics. ” Related.
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. ” *.
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. So, as I cleared my throat to present at the Summercon conference, I looked into the eyes of over 500 supply chain professionals. It is serious business.
When I finished the presentation (the materials are available on slideshare.) Companies with strong horizontal processes of revenue management, new product launch, Sales and Operations Planning (S&OP), Supplier Development and Corporate Social Responsibility have higher performance. I asked for questions. 5) Alignment.
A new report from Nucleus Research, Value Drivers of Single Model S&OP , concludes that the historical disconnect between planning and execution in S&OP is best bridged by a single unified data model that allows companies to continuously synchronize their strategic, tactical and execution plans.
On Friday, I presented an overview of outside-in planning to a consulting group. I love the questions when I present. Today, I am again teaching an open class on outside-in planning concept s. In today’s training class, we focused on determining the balanced scorecard. If not, let’s pack more hamburger.
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 In our program, cost avoidance, while desirable, does not count towards the metric. We named it the Supply Chain Index.
The presentations from the Summit are posted now on the Supply Chain Insights You Tube Channel. Next year’s conference will be on September 8th-11th in Franklin, TN, south of Nashville, TN. Here are nine considerations: #1 S&OP Budget Constraints. The Role of the Budget in S&OP. The takeaway?
The event, themed “Generating Value Together: Beyond Accuracy, Toward Intelligence,” included presentations, discussions and networking opportunities that highlighted the importance of intelligent decision-making to balance margin, cash and growth, moving beyond the traditional focus on forecast accuracy.
Maturity in horizontal process development– Sales and Operations Planning (S&OP) and new product launch—also drives value. We selected these metrics based on correlation work with Arizona State University in 2012. The companies I work with struggle to set metrics targets. Outside-in Processes. Target Setting.
My schedule had me on a plane to Chicago at the time of the presentation. We rescheduled my flight and I quickly put together some slides for the presentation. (To I had successfully adapted to give a presentation on agility to 254 people. Is it S&OP? The APICS event was not there. Defining Agility.
Over the course of the last decade, I have carefully recorded and reported presentation after presentation from conference after conference and interview after interview with supply chain leaders. Many would argue it’s because supply chains grew more complex. Here they are: The Lie of Inventory Reduction. The reason?
Session Title: “End to End Visibility and Supply Planning — Schneider Electric” In Alain’s main stage presentation hear how end-to-end supply chain visibility is key for becoming demand-driven and building value in supply networks. Alain Huillet, SIOP business transformation director, Schneider Electric Industries SAS.
However, this year promises a significant paradigm shift where traditional performance metrics are replaced by technology-driven frameworks, as recent breakthroughs with Generative AI in supply chains have demonstrated. Enter our list of supply chain trends for 2024. The integration of AI+ will usher in a profound impact on demand planners.
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.
Pete Bennett, and his co-presenter, Mary Byrne, the vice president of supply and demand planning, spoke during a presentation at Kinaxis’ user conference Kinexions. This COE was tasked with improving sales & operations planning (S&OP) maturity and supporting other strategic business process initiatives and best practices.
In today’s competitive manufacturing environment, the only metrics that count are how a change impacts the company’s goals. Put this information into the hands of your planners and suddenly they are making decisions based on the impact to the company, not just to their own internal metrics (like expediting costs). So what do you think?
Enterprise and departmental silos are reinforced by today’s ERP systems given the fragmented environment present across most supply networks. As mentioned above, technology isn’t the total answer, but is critical to providing the infrastructure to enable these process improvements.
Are able to switch to the loss frame when new information is presented. Have difficulty switching to the gain frame when new information is presented. So why am I sharing this with you in a blog about S&OP. Admittedly, I am no social scientist but I have some knowledge of S&OP meetings.
In order to accelerate the learning, this article has gathered 20+ most sought-after supply chain case studies, analyzed/categorized them by industry and the findings are presented. This creates the perception among consumers that Zara''s products are unique and you have to take it while stock lasts.
Enable Optimized Decision-Making In today’s fast-paced business environment, achieving alignment across all departments and trading partners is crucial for sustainable success. Effective Sales and Operations Planning (S&OP) plays a crucial role in enhancing this business alignment.
In this blog, we will present first hand visuals on how sales, marketing, and finance can realistically use AI-powered collaboration, what challenges each department might face, and how they can overcome them. The collaboration here is part of the Demand Planning process which is the start of the S&OP process for most companies.
Inflation is today’s reality. …or long laborious discussions of the differences between Integrated Business Planning (IBP) and Sales & Operations Planning (S&OP). Today’s processes are inside-out not outside-in. Let’s examine the market reality by looking at a peer group.
In this blog, we will present first hand visuals on how sales, marketing, and finance can realistically use AI-powered collaboration, what challenges each department might face, and how they can overcome them. The collaboration here is part of the Demand Planning process which is the start of the S&OP process for most companies.
The demand for software solutions for sales & operations planning (S&OP) in particular is attracting new players, and cloud-based supply chain software solutions appear to be making a breakthrough. 24 | Management: Forecasting noise disturbs S&OP process. 33 | Overview S&OP software in Europe.
At the end of the presentation today, it happened. Let’s start with the difference between market-driven versus marketing-driven processes. Today’s conventional supply chains only respond, and the design of the systems usually gives us a “fairly dumb response” based on history. It is ok. .
AI has presented challenges and opportunities for business leaders seeking to leverage its potential across their organizations to improve efficiency and increase profitability. However, AI is based on artificial intelligence and machine learning methodologies that have continuously evolved since the 1950’s.
Labor day also signals the end of summer, and for many supply chain leaders the beginning of 2017 strategy discussions and intense S&OP debates to finalize Q3 and Q4 planning. Pick five-to-seven balanced metrics and hold all functions accountable to these corporate metrics. I look forward to hearing from you!
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.
This blog post is in response to recent results from the APICS/Logility Survey, Consumer Goods S&OP research, and ChainLink’s end-user research. I recently read a very good survey by Consumer Goods Technology , focused on S&OP.
After his presentation, there was a facilitated networking session on the role of the CFO in supply chain. In our research for the book Supply Chain Metrics That Matter , we find that this is the case for 90% of companies. As a result, if inventory is is arbitrarily reduced you can hurt the company’s ability to meet orders.
Unfortunately, though, some sales organizations—or at least some sales professionals—are reluctant to engage in the demand planning and S&OP process. This article presents 18 ideas that can be used by supply chain leaders to improve participation by their sales organizations in the process.
Has your company ever suffered problems with, implemented, or even considered implementing a sales and operations (S&OP) planning process? But what makes it so challenging to implement S&OP successfully? Why S&OP Needs a Lot of Human Investment. Who’s Who in the S&OP Process?
The day kicked off with some very interesting and engaging presentations by Deloitte , Roland DG , Mitsubishi , and a Kinaxis keynote delivered by me. Here are some common themes based on the presentations and the conversations I had with the event attendees: Organizations are looking to digital supply chains as a differentiator.
Unfortunately, we find most companies are moving backwards on the Supply Chain Metrics That Matter™ or making progress on singular metrics versus driving performance improvement on a balanced portfolio of supply chain metrics that correlate to market capitalization. (If We hope to see you there!
Pros: Utilizes a hands-on approach with simulated problem-solving and team collaboration Offers a self-assessment document to assess your own S&OP process Keep track of how well you’re doing while you complete the learning goals. The information is presented in a simple and understandable way.
Use our Metrics That Matter methodology to look at improvement and performance. The game is designed to simulate an S&OP environment. At each round, employees gain an understanding of the value of supply chain decisions through the sharing on the Supply Chain Metrics That Matter. How does it help? 1200 per person.
Yesterday, I presented to 700 global attendees on an APICS webinar. In the presentation, I shared data on the evolution of supply chain planning and the results on user satisfaction. I struggle to find both in today’s market. The results confound me. They are not consistent with market perception. Let me share the story.
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