Lassoing S&OP

Supply Chain Shaman

Metrics Definition. The organization needs to be clear on the Metrics That Matter and the alignment of vertical silos’ metrics to the balanced portfolio. A lasso is what supply chain leaders would like to have. 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.

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Lassoing S&OP

Supply Chain Shaman

Metrics Definition. The organization needs to be clear on the Metrics That Matter and the alignment of vertical silos’ metrics to the balanced portfolio. A lasso is what supply chain leaders would like to have. To align S&OP. The processes are out of control. Let me explain. As companies transitioned from regional to multi-national organizations, Sales and Operations Planning (S&OP) processes proliferated.

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Is S&OP Excellence Slip Slidin’ Away?

Supply Chain Shaman

build alignment (driving goal congruence), building reward systems (defining a cross-functional set of metrics to align to the strategy) and defining the right reporting relationships (the S&OP process needs to report to the profit center manager). At what point does erosion cause the side of a mountain to give way? It is usually the small shifts… over time, there is degradation. And, then suddenly, the mountain gives way collapsing to the land below.

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Five Insights on Effective S&OP

Supply Chain Shaman

Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. An effective S&OP plan is the goal of many, but there is no clear industry definition of an effectiveness. While there are many maturity models, most are not research based. To better understand the characteristics of an effective S&OP plan, we just completed a study of seventy-three companies.

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Nine Myths of S&OP Technology Selection

Supply Chain Shaman

Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. Sales and Operations Planning (S&OP) is in a renaissance. The reason? With growth slowing and complexity rising, S&OP is more important than ever. It is not sexy, and it requires hard work; but the greatest value of S&OP is profitable growth. The technology market is rife with unsubstantiated claims and myths.

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Four Keys to S&OP Effectiveness

Kinaxis

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. Linking financial metrics (such as revenue, margin, and cash flow) to operational metrics (such as orders delivered on-time and in-full, inventory turns, and capacity utilization) gives you a way to check if your operational decisions are consistent with your financial objective.

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S&OP: Five Steps to Get Started

Supply Chain Shaman

We discussed the Supply Chain Metrics That Matter research and the fact that a balanced portfolio of metrics drives a higher market capitalization than a focus on functional metrics or single metrics. We reviewed the orbit charts for the Supply Chains to Admire Winners and discussed the pitfalls and potholes that he was experiencing in the establishment of metrics.) It is Sunday. Today, I assume a familiar position.

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What is S&OP and Why Should Finance Care?

River Logic

Initially, planning activities were centered entirely on metrics, such as: S&OP Prescriptive Analytics Financial Planning Finance Supply Planning

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

ToolsGroup

To achieve Stage 5, S&OP must be “a fully integrated business planning forum… (where) metrics are value-based and aligned across the network and enterprise to support the required trade-offs.”. Her research shows that effective Sales and Operations Planning is one of the most highly correlated factors to achieving high level financial success metrics, such a company’s stock price to tangible book value. Supply and Operations Planning (S&OP

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Driving profitability through advanced S&OP

Kinaxis

When everyone’s aligned to the same plan, the same metrics and the same corporate vision, improving your P&L statement becomes a monumentally easier task. 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. It’s “somewhere you visit, not somewhere you live.” What exactly does that mean?

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Top Four Most Vital S&OP Technology Capabilities

Kinaxis

Evaluate different scenarios simultaneously, and against multiple operational and financial metrics. by Lori Smith In a previous post , I discussed the sometimes surprising technology choices some organizations are making to manage their S&OP process. Now I’d like to take a look at the Top 4 technology capabilities you need in order to achieve a successful sales and operations planning process: #1: A single application with deep data.

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Supply Chain Movement 17 – S&OP

Supply Chain Movement

Reports ASML Carlsberg checklist demand orchestration forecasting Harold Bol IT Subway Map KPI Lora Cecere metrics mindmap operational cost overview Pierre Mille S&OP software Supply Chain Insights Supply Chain Movement supply chain planningContents Supply Chain Movement 17 – 2015 Q2. Publishing date: 15 May 2015. 7 | News & Background. – Launch of Supply Chain Professionals Club in Turkey. – Winner of the last quarter: Raytheon.

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S&OP: A Tough Nut to Crack

Supply Chain Shaman

Too few companies understand that the supply chain as a complex system with finite and non-linear relationships between the metrics. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. Definition. A Tough Nut to Crack: A problem that is very difficult to solve. Cambridge Dictionary. Sales and Operations Planning (S&OP) is over thirty years old.

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How to make S&OP meetings a highlight in your team’s calendar

AIMMS

Common causes for this include poor change and process management, misalignment in terms of business strategy, mismatched metrics across the business, dysfunctional technology and lack of expertise to operate and implement technology. Sales and Operations Plan ning has become a standard process to improve business performance, collaboration and predictability.

Who owns S&OP? by Accenture Strategy Guest Blogger

Kinaxis

Think about it – in most organizations today, there are so many performance metrics (by functional area), yet not one is common across the business. And certainly there aren’t aligned incentives or common management metrics tied to compensation plans. Defining common metrics for the S&OP team that each department and functional area are measured on, and held accountable to, helps support the effectiveness of the team. by Steven J.

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What is S&OP? By Accenture Strategy Guest Blogger

Kinaxis

Metrics and Dashboard Reviews. by Steven J. Puricelli A few weeks ago, I launched a new blog series on sales and operations planning (S&OP ). In that introductory post, I outlined a number of important topics that I plan to explore in more detail throughout the summer. To make sure everyone is on the same page, I want to review the basics, the foundation, which is… what exactly is S&OP? I’ve seen and heard so many different answers and perspectives in response to this question.

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It’s not just supply chain planners who benefit from improved S&OP

Kinaxis

Instead of working to individual or functional metrics, the entire organization aligns to key financial goals. by Alexa Cheater. It’s the entire company—from planners to executives and everyone in between. Effective, efficient sales and operations planning (S&OP) means you can respond to changes faster, spot opportunities earlier and better align your organization around a common set of goals.

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Analysts Support a Single Model for Sales and Operations Planning

ToolsGroup

Uniting planning and operations in one model also enables companies to reconcile customer constraints with their own high-level decisions and performance metrics. Click below to read the new Nucleus report on employing a single model for Sales and Operations Planning: Supply and Operations Planning (S&OP

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Why we need S&OP Vision, Culture, and Language

Supply Chain Trend

When It Comes to Metrics for S&OP, “One Size Fits All.”. PREVIEW In their three-part Foresight series entitled “Misconceptions, Missteps, and Bad Practices in S&OP,” ( Foresight issues 46, 47, 48) Chris Gray and John Dougherty expose a baker’s dozen of blunders blocking the road to an effective S&OP process. . S&OP Is the New Name for ERP. To Make S&OP Work, We’ll Need New Software.

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S&OP, a vision for the future. The expert interview series #1

Supply Chain Trend

Also, building in S&OP process metrics, not just business operating metrics is critical to success. Also, to make the process work best, the organization needs to utilize a continuous improvement mentality, identifying process metrics to assure that S&OP is functioning well. Jim: This is a classic process, system, people, metrics opportunity/challenge. Introduction. In the last 30 years S&OP improved performance in many businesses.

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S&OP, a vision for the future. The expert interview series #3

Supply Chain Trend

So what I think is missing is both its positioning as a strategic alignment activity, one that needs to continue right down to the point that the customer successfully receives their order, and the alignment of metrics and behaviours to support the plan’s execution. Make sure the processes, metrics, behaviours and aligned, and the system capability and data is available. Introduction. In the last 30 years S&OP improved performance in many businesses.

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S&OP, a vision for the future. The expert interview series #5

Supply Chain Trend

For example, if you can add product to your catalog you can sell without having to inventory you end up with a nearly infinite profit that boosts overall inventory turns metrics. Introduction. 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.

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Is Your S&OP Glass Half-Full Or Half-Empty?

Arkieva

Think Forecast or Plan accuracy metrics (MAPE, WMAPE, BIAS etc.). I recently watched a TED talk video by Alison Ledgerwood on YouTube. In the video, Alison gives the example of her paper getting accepted for publication (positive news) and another one getting rejected for publication (negative news). She talks about how it takes longer to recover from (i.e., go back to being her normal self) a piece of negative news as compared to a piece of positive news.

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Where Is Your Company on the S&OP Maturity Curve?

Supply Chain Nation

For companies operating at lower levels of S&OP maturity, the process is often siloed by department or business unit, with locally optimized or department-specific metrics. With integrated business planning, the metrics are not departmental metrics, but corporate performance metrics – driving decision-making consensus about what’s best for the organization. Metrics: are you focused on departmental objectives or organization-wide objectives?

Where Is Your Company on the S&OP Maturity Curve?

Supply Chain Nation

For companies operating at lower levels of S&OP maturity, the process is often siloed by department or business unit, with locally optimized or department-specific metrics. With integrated business planning, the metrics are not departmental metrics, but corporate performance metrics – driving decision-making consensus about what’s best for the organization. Metrics: are you focused on departmental objectives or organization-wide objectives?

Analytics and S&OP: What is Analytics, and how to spot Buzzwords

Arkieva

We might use “availability in Excel directly or with Add-ons” as an “age metric’.). Sales and Operations Planning (S&OP) is a continuous business process that enables firms from hospitals to chemicals to respond to emerging situations intelligently. To learn more, please read my previous blog ‘ A Guide to Supply Chain Management: Making Intuition More Valuable ’.

How to Supercharge Your S&OP Process

Supply Chain 24/7

In this white paper, we explain how by explicitly linking decisions with the most important corporate metrics, Enterprise Optimization™ enables S&OP alignment with corporate strategy and facilitates value capture

S&OP, a vision for the future. The expert interview series #2

Supply Chain Trend

We have a connected global management team that is armed with process, information, and decision support to make the most profitable intermediate term decisions that “operationalize” the strategy while monitoring the underlying process execution and associated metrics. Introduction. In the last 30 years S&OP improved performance in many businesses.

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Is Your S&OP Meeting Mostly About The Past And The Present?

Arkieva

At the outset, I was introduced as the outside party and a remark was made to remind everyone to “behave themselves” The meeting started quite serenely; an agenda for the next 90 minutes was presented by the coordinator and the next 20 minutes were spent discussing some of the key metrics over the last 3 months. Key Point : A Sales and Operation Planning (S&OP) meeting is a meeting to design the future course of a business.