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The journey for S&OP is a road with many ruts and potholes. In my twenty years of following the progression of S&OP as an analyst, I am amazed at the number of “experts” with so little expertise. Let me start by saying that t he process is not a panacea to solve all supplychain ills.
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? If you have walked in the shoes of the supplychain leader, you are probably laughing by now. Supplychain complexity is analogous to cholesterol.
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.
Sales & Operations Planning (S&OP) is an established industry process that aims at finding a balance between demand and supply and streamlining cross-functional collaboration. Procurement People should learn the Sales & Operations Planning (S&OP) Process.
” Here is an excerpt from the article: “…it isn’t by becoming more efficient that the supplychains of Wal-Mart, Dell, and Amazon have given those companies an edge over their competitors. According to my research, top-performing supplychains possess three very different qualities.
Self-congratulations notes abounded this week as vendor-after-vendor shared their rankings on the Gartner Magic Quadrant for SupplyChain Planning. I believe that the Gartner Magic Quadrant is a barrier to progress in supplychain planning, and that vendors that rally in support have a false sense of superiority.
Let me explain, if you fill out one of my surveys on LinkedIn, I share the research results in front of the paywall (I believe that supplychain research should be readily available and not locked behind a paywall.) (If Most see their supplychain as fixed and insular.
I laughed at Neils Van Hove’s recent post. Neil’s post in response to my post of Driving Value From Outside-in Planning : In her post, ‘Driving Value from SupplyChain Planning’, Lora Cecere provides great supplychain analysis and benchmarking for her supplychains to admire.
A lasso is what supplychain 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. Metrics Definition. There needs to be a common definition of supplychain excellence.
The global supplychain is built on three assumptions: rational government policy, availability of reasonably priced logistics, and low variability. In March 2023, the Global SupplyChain Pressure Index fell to the lowest level since November 2008. S&OP is too slow and cannot achieve the needed alignment.
Sales & Operations Planning: Why Execution is Essential In today’s fast-changing business environment, Sales and Operations Planning (S&OP) is essential for aligning demand, supply, and financials goals. Underwhelming S&OP outcomes and lost opportunities. The result?
Over the years, working for and with numerous manufacturing companies, I’ve seen many supplychain practices that cost companies money. Reason #3 Not having end-to-end supplychain visibility. Reason #4 Making key decisions by modelling the supplychain in Excel. by John Westerveld.
A lasso is what supplychain 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 proliferation of S&OP is not a trivial topic. Metrics Definition.
Life for the supplychain leader is more complex. We are living in a world of rich supplychain case studies. Each day, the Wall Street Journal features a supplychain failure as front-page news. Traditional processes accelerate the bullwhip impact leaving leaders chained and forced into reactive behavior.
Finance speaks a different language than supplychain. But by monetizing Sales & Operations Planning (S&OP), supplychain planners can speak the language of finance while developing S&OP into a more mature process. This isn’t just aligning financial planning with S&OP.
This is a story for the Eds, Franks, and Toms working together in supplychains across the globe. It is also a story for a young supplychain manager attempting to make a difference, but feeling stymied. As a result, we shelved Ed’s idea. Testing Ed’s idea was beyond my circle of control.
Today, we published The SupplyChains to Admire for 2023. The companies with the strongest year-over-year performance (placing in the winner’s circle for six more times in ten years) are Apple, L’Oreal, Nike, Paccar, TJX, and TSMC. SupplyChains to Admire Winners 2023 Examine Your Own Paradigm.
In fact, it’s become internalized to a degree that companies often have several (competing) S&OP pro cesses in different geographies & business units. Why is it that despite its popularity, only 42% of companies rate their S&OP process as effective? . Your S&OP solution should: .
by Melissa Clow Just a quick post to share some research courtesy of Lora Cecere of SupplyChain Insights LLC. SupplyChainMetrics That Matter: A Focus on Aerospace and Defense. The research highlights the supplychain challenges for this industry, as well as the critical importance of getting it right.
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.
An efficient supplychain strategy is one that takes every aspect of your supplychain into account, from inventory management and warehouse design to freight tendering and transport optimisation. Let’s look at some of the best ways to make your supplychain more efficient.
Their goals were lofty, but their understanding of supplychain planning was hazy. In 2006, they made a decision to implement a supplychain planning solution. Integration of corporate social responsibility metrics in planning. SupplyChain Design. Frequent and systemic supplychain design.
I will also pen my 95th report for this week’sSupplyChain Insight’s newsletter. We now reach 23,000 supplychain leaders globally with our newsletter and have over 50,000 views/month on Slideshare. It is one that is often asked: “S&OP How Do I Get Started?”
Sales and Operations Planning (S&OP) is over thirty years old. With the rise of the global multi-national, S&OP increased in importance as a way to align and drive organizational balance. Today, companies do not have one S&OP solution. Our journey to better understand S&OP continues.
An effective S&OP plan is the goal of many, but there is no clear industry definition of an effectiveness. To better understand the characteristics of an effective S&OP plan, we just completed a study of seventy-three companies. 2) Tie the S&OP Plan to Execution. This is a maturity factor.
” I think it is the most complete assessment of the S&OP value proposition I have seen in the industry. Names for the Cross-Functional Process to Align Demand and Supply. Building S&OP maturity takes time, discipline and focus. Profile of S&OP Respondents. S&OP Challenges.
Over the course of the last two years, we at SupplyChain Insight s have worked on a methodology to gauge supplychain improvement. We named it the SupplyChain Index. We have found that supplychainmetrics are gnarly and complicated.During Background on the SupplyChain Index.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives. A well-equipped distributor is an extension of your brand and a key to market penetration.
Many organizations are still struggling to understand and implement basic Sales and Operations Planning processes to cope with supplychain disruption. Unfortunately, the definitions of S&OP and IBP are often confusing as they seem to be both distinct and overlapping processes. There’s a clue in the name.
Yesterday, I finished a post on supplychain planning maturity. A client had asked me, “How do I know if we have a mature supplychain planning organization?” Excellence in supplychain planning is a cultural shift. The average supplychain leader has five distinct supplychains.
I feel that topic of supplychain management is analogous to the downward cycle of the news channels. What Drives SupplyChain Excellence? I analyze supplychain management. Maturity in horizontal process development– Sales and Operations Planning (S&OP) and new product launch—also drives value.
In a survey of 150 global manufacturing executives, 47% committed to improving supplychain visibility and tracking. According to the Global SupplyChain Disruption and Future Strategies Survey Report, this goal was the top-ranked planned tool investment. What is supplychain visibility?
When reviewing strategy decks for supplychain teams, I often see statements like “move from a functional-silo’d focus to a drive a more holistic response.” Companies became less clear on the definition of supplychain excellence and how to implement decision support technologies. ” Sound familiar?
Therefore, traditional push-driven supplychains are wholly unfit for this situation. 1] Mohawk sought to profit from the resurgent demand for ‘ analog experiences ’ by owning the fine paper space and transforming its extended supplychain. Their S&OP program, however, was only the beginning.
Businesses are grappling with many uncertainties, from fluctuating market trends to unforeseen supplychain disruptions. This turbulence sends ripples through their sales and operations planning (S&OP) process, adding complex layers and challenging the essence of effective decision-making.
Definition As I follow the evolution of supplychain technology, I am struck by what I see as a stream of paradox and anomaly, and the tendency of supplychain leaders to cling to convention. Let’s explore nine in this blog. Building the Effective Global SupplyChain. Art of the Possible.
In fact, it’s become internalized to a degree that companies often have several (competing) S&OP pro cesses in different geographies & business units. Why is it that despite its popularity, only 42% of companies rate their S&OP process as effective? . That was a big eye-opener for us.
Before that I was in management consulting doing what would be called supplychain design or reengineering today. While MRP and S&OP were defined as early as the 1980s, these provided rough cut analysis at the aggregate level, nowhere near the level of detail that is possible today. Their words. She states that.
I have worked for Gartner Group, AMR Research, Altimeter Group and now my own company, SupplyChain Insights. I have now been an industry analyst in the supplychain management space for ten years. This month, I am proud that the SupplyChain Insights team will announce the SupplyChain Index.
KPIs are essential in S&OP as they provide a quantitative framework for gaining visibility, aligning efforts, supporting decision-making, and driving continuous improvement across the business. But how do you know if you are using the right KPIs, including both stakeholder and supplychain performance measures?
Over the last five years, I have helped two companies, Sonoco Products and Owens Illinois (OI) with their selection of technologies to improve Sales and Operations (S&OP) planning. They were unclear on their supplychain strategy and the role of supplychain planning. Owens Illinois (OI), a $6.3
by Alexa Cheater Bridging finance and supplychain operations improves efficiency. In my earlier blog , I examined common obstacles organizations face when bringing together finance and supplychain operations. Combining rolling forecasts and S&OP to streamline business processes.
by John Westerveld Over the years, working for and with numerous manufacturing companies, I’ve seen many supplychain practices that cost companies money. Reason #3 Not having end-to-end supplychain visibility. Reason #4 Making key decisions by modelling the supplychain in Excel.
Puricelli A few weeks ago, I launched a new blog series on sales and operations planning (S&OP ). To make sure everyone is on the same page, I want to review the basics, the foundation, which is… what exactly is S&OP? S&OP is so much more than a process or a meeting.
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