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The groundbreaking technology is transforming how companies manage sales and operations planning (S&OP). S&OP provides the perfect starting point for companies interested in putting AI to work. A significant advantage of GenAI in S&OP is the automation of complex data analysis.
However, one-third of SCP leaders cite “the lack of effective decision making in the S&OP meeting process as the most critical problem to solve for their function’s overall performance” (source: Gartner, Improve S&OP Decision Making Through Scenario Planning , Supply Chain Research Team, 4 May 2020).
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. For most companies, building a great S&OP process is a missed opportunity. Drives Value.
Sales and Operations Planning (S&OP) is a business process. I have tracked maturity levels in S&OP for the past two decades and note that most companies are stuck unable to drive progress. Largest Challenges with S&OP In this post, my focus will be on the technology selection. Sound familiar?
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.
Gartner Research just released its new Magic Quadrant for Sales & Operations Planning Systems of Differentiation (S&OP SOD). One example of a changing user requirement is the ascendancy of supply chain modeling to the highest priority in Gartner’s Market Ranking of S&OP Capabilities.
I spent time this week completing reference calls on the use of S&OP technologies. Eerily the case studies sound the same as the ones heard when I completed S&OP research in 2004. Eerily the case studies sound the same as the ones heard when I completed S&OP research in 2004. What am I hearing?
But by monetizing Sales & Operations Planning (S&OP), supply chain 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. Value-driven S&OP is about “what’s important”.
Companies find themselves struggling to serve customers, source materials, manage costs, handle supply constraints and shortages and, above all, gain visibility into what’s next. The latest generation of sales and operations planning (S&OP) applications are providing better tools for managing supply chains internally.
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. Driving Change: While companies desire agility, today’s supply chains are largely reactive. Maturity in S&OP.
What’s missing? Each is attempting to slather AI on today’s offering: this fueling a hype cycle for agentic AI. Supply chain was defined in 1982 as interoperability between source, make and deliver. The goal should not be making today’s planning processes faster and hands-free. It is a landgrab of sorts.
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.
However, one-third of SCP leaders cite “the lack of effective decision making in the S&OP meeting process as the most critical problem to solve for their function’s overall performance” (source: Gartner, Improve S&OP Decision Making Through Scenario Planning, Supply Chain Research Team, 4 May 2020).
Given your expertise, I’d love to hear what alternatives you recommend for better demand forecasting and real-time visibility beyond what’s commonly adopted today.” Unfortunately, the industry is full of a lot of Anna(s) and her friends, the doubting Thomas (s). Most of the industry is composed of doubting Thomas(s).
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. How so, you might ask? The reason? They are too different.
Sales and operations planning (S&OP) has been a longstanding practice for businesses across nearly every industry. Yet, as supply chain innovators, we also know the rich history of applying technologies to continuously resolve these challenges and optimize S&OP outcomes.
Why It Matters Q3 earnings reports continue to make headline news. FactSet reports that 66% of companies in Q3 2023 beat revenue guidance. PWC’s Digital Trends in Supply Chain Survey reports that 83% of manufacturers say that supply chain technologies have not delivered the expected results. The trend is clear.
S&OP is too slow and cannot achieve the needed alignment. Process latency, the time for an organization to make a decision using a traditional S&OP process, is two-to-six weeks. Build in-market sourcing. Rationalize global strategies to focus on building markets based on in-market sourcing.
Food and beverage companies that engage in sales and operations planning (S&OP) and act on those strategies early are the ones that can safeguard their profitability, satisfy consumers, and operate more responsively than their competition. Yielding Winning Outcomes in a Field of Uncertainty. Improved customer satisfaction.
The phrase signified uncharted or dangerous areas where cartographers warned mariners “we don’t know what’s there, so beware.” Like medieval cartographers, honest prognosticators say, “We don’t know everything that’s out there, so beware?” Supply Chain Restrictions.
Execution of S&OP through a sales and operations execution process is what sets top brands apart. S&OP Defined. The goal of S&OP is to create an overall strategy that helps resource allocation and management meet customer needs while controlling costs. S&OE Bridges the Gap.
The topic that often comes up in these conversations is Sales & Operations Planning (S&OP). While S&OP as a discipline has been around for over two decades, it has been generating great interest recently. From time to time, I hear comments such as: “My monthly S&OP process takes 6 weeks to execute”. “We
Comprehensive view of source, make and deliver. Most often the focus is on transportation or logistics, but does not take into consideration the trade-offs between make, source and deliver. Focus is on make, source and deliver together. Sales & Operations Planning (S&OP). Supply Chain Design. Related.
What’s on the horizon for supply chain professionals? Moving past waste, water, and C02 reduction, they have begun searching for renewable energy sources, different forms of packaging, and increased efficiency overall. Supporting S&OP with prescriptive analytics . This promises to be a very eventful year.
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. ” The purpose of S&OP. S&OP approval at an executive meeting.
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? It is simple.
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? It is simple.
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? It is simple.
Each day through the COVID-19 pandemic, I tune into Anthony Cuomo’s (governor of New York) daily briefings. His opening line is, “Let’s start with facts. While we all have opinions, let’s start by reviewing the facts.” So, let’s start with the data. Balance in S&OP.
It will be launched during a webinar on April 25, 2013 and through a series of reports that will run in our May newsletter and throughout the summer. They will be digitally shared through Amazon, iTunes and other sources. The links are listed below: S&OP: A State of the Union. Does S&OP improve agility?
Our cloud-based planning layer enables the sharing of S&OP data across key stakeholders within the retail supply network. Once captured, this downstream data is available for analysis in workbenches, dashboards, and various reports along with rolling up into the S&OP process.
Sales and Operations Planning (S&OP) has been around for three decades. Many pundits, however, believe the S&OP process, as originally conceived, needs to change. What’s going on? ”[2] Think back 30 years to around the time the S&OP concept was first developed. They are: 1.
Is it identical to sales and operations Planning (S&OP), an extension of it, or something altogether separate? Call it what you want, IBP is probably best thought of as mature S&OP. Be prepared to work hard developing a single source of truth. What is the goal of your S&OP process?
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.
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.
Yet, few have a sales and operations planning (S&OP) process, as well as the reporting tools and integrated, coordinated network of partners, that’s comprehensive and responsive enough to keep up. We can now decide when to act to mitigate risk in the future.
S&OP collective memory. S&OP is the most collaborative process that exists in most businesses. S&OP is all about reaching a consensus about what we are going to do and how we are going to do it. S&OP and Collective memory. We also have socialisation within the S&OP system.
Let’s examine some of the facts from recent research. An IBM surveys report that 51% of companies are seeing an increase in turnover of supply chain leaders. If so, let’s start working on an answer. Planning roles are at the bull’s eye of this “perfect storm.” Cross Train. Invest in Learning.
As a result, we shelved Ed’s idea. Testing Ed’s idea was beyond my circle of control. I am currently writing the Supply Chains to Admire report for 2020. Each year, when I publish the report, the first question from a supply chain leader is , “What technologies does winner x use?” The reason?
ToolsGroup Named a Leader in IDC MarketScape Worldwide Demand Planning Market Report. According to IDC’s website, the “IDC Manufacturing Insights report uses the IDC MarketScape model to provide an assessment of a number of providers participating in the worldwide supply chain demand planning market. Source: [link].
Many of the case studies being presented at today’s conferences were born during the pandemic and the post-pandemic turbulence. Almost two decades of reporting. Leaders of the 90’s Are No Longer Leaders. Today’s risk management solutions focus largely on supply sensing and early alerting.
Key elements that must be brought together as part of this holistic approach are overall network assets, demand and supply information, market demographics, financial data, trading contracts, material sourcing, commodity pricing, and any relevant standards bodies, statutory, or regulatory requirements.
Have you ever seen a situation where some result from a system– whether a bill from the phone company, a stock report or MRP recommended actions have been messed up? So imagine that you are a supply planner and the MRP report is telling you to increase orders 10x for an expensive component. Do you do it?
In their recent report titled Carefully Assess Which Tools Are Right for Each Stage of Supply Chain Planning Maturity (20 October 2017, Tim Payne & Amber Salley), the analyst firm describes the right tools to get from one level to the next. Build more resilient supply chain plans (e.g., Stage 4 firms want more responsiveness and agility.
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