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This is more evident in supplychain, where time-tested methods are being replaced with new ones. 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.
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 , SupplyChain 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. Let me start by saying that t he process is not a panacea to solve all supplychain ills.
Organizations use S&OP as a hammer in search of a nail. Currently, LinkedIn is flooded with smiling pictures of supplychain business leaders attending conferences. The panel group is sourced from my group of LinkedIn followers. I know, a SupplyChain Center of Excellence sounds like a good idea.
Speaker: Fernando Penteado, CPSM - Supply Chain and Logistics Executive, Global Markets Expert, and International Speaker
The still-persistent effects of the pandemic have made it clear that the skills and tools that characterize traditional S&OP are not enough to respond to unprecedented interruptions. How should the S&OP process evolve to face these challenging times?
Sales and Operations Planning (S&OP) is a business process. When the design is a supplychain-centric design, problems arise. I have tracked maturity levels in S&OP for the past two decades and note that most companies are stuck unable to drive progress. I would like to help. Sound familiar?
What’s missing? Today, in supplychain planning, this could not be further from reality. Employees Cannot Get to the Right Data at the Speed of Business A war is raging between Oracle, Salesforce and SAP to automate supplychains. The signal is clear for commercial teams, but not for supply.
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.
Harvard Business Review recently published an article, “ To Build Resilience, CEOs Need to Become Supply-Chain Experts ”. In this article, we wanted to discuss one aspect of supplychain that is often not given enough attention – building strategic relationships and shared value with direct spend suppliers.
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.
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 supplychain modeling to the highest priority in Gartner’s Market Ranking of S&OP Capabilities.
Supplychains large and small are under siege by constant supplychain disruption. 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. Functional collaboration is essential.
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?
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.
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.
ToolsGroup identifies five key drivers shaping the future of supplychains: changing customer expectations, heightened competition, rising operational complexity, technological advancements, and geopolitical tensions. Optimize Distribution Networks Adapt warehouse locations and logistics for localized supplychains.
The phrase signified uncharted or dangerous areas where cartographers warned mariners “we don’t know what’s there, so beware.” ” Dragons are a good analogy for the risks faced by supplychains. No one can say for sure what dragons lie ahead in 2025 for supplychains, but some risks are known.
S&OP and Multi-Horizon Integrated Business Planning Manual supplychain processes are a real headache. And next to impossible is creating plans in a timely manner when monitoring unrelated KPIs across multiple disconnected sources of data. Supplychain organizations are no strangers to this frustration.
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.
Our team put several resources together to help supplychain organizations navigate through this crisis safely. . The next 2-4 weeks are critical to understand the exposure throughout your value chain, take actions to address anticipated shortages , and ensure resource requirements to restart. Evaluate different scenarios .
She wrote, “I have been working in the supplychain for 35 years, and we are still trying to solve the “demand” issue. Solving from a supply side seems to work for many companies I work with. Unfortunately, the industry is full of a lot of Anna(s) and her friends, the doubting Thomas (s).
Many of the case studies being presented at today’s conferences were born during the pandemic and the post-pandemic turbulence. While companies talk digital, the projects follow traditional supply-centric paths. My lessons learned from doing ten years of analysis include the following: Lack of SupplyChain Economies of Scale.
Sales and operations planning, also known as S&OP, is a key business activity for production heavy firms. It integrates sales & marketing strategies with supplychain considerations, allowing for a more unified mission across multiple departments of the business. Why Focus on S&OP?
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.
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.
Supplychains are messy. Blockchain in SupplyChain Can Help. WHITE PAPER] The Top SupplyChain Trends that Will Impact SupplyChain Management in 2018. The inefficiencies that plague supplychains have seemingly been around forever. Blockchain in supplychain changes that.
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, SupplyChain Research Team, 4 May 2020).
What’s on the horizon for supplychain professionals? Moving past waste, water, and C02 reduction, they have begun searching for renewable energy sources, different forms of packaging, and increased efficiency overall. Many are relying on advanced analytics to optimize their supplychain for sustainability.
What we do at Enchange SupplyChain & RtM Consultancy 💹 Deliver sales growth for our clients 🌏 Work globally, with our local experts 🎓 We are Route to Market & SupplyChain experts At Enchange our passion is helping companies improve their route to market and supplychain so they can sell more, at a higher margin and lower cost.
It is one of those high-end brands with global recognition, and to my surprise, the manufacturer’s own website did not have any stock and no indication on when it would be available. When the pandemic started in 2020, no one could foresee the impacts of the global supplychain disturbances would last this long.
What is Demand Forecasting in SupplyChain Management? Demand forecasting in supplychain management is the process of predicting customer demand, supply trends, and pricing fluctuations. To help you stay ahead, here are four strategies that supplychains leaders are using to win at demand forecasting.
Dear S&OP, First of all, “A for Effort”. For 10 years, you touted the Secret Sauce to SupplyChain optimization. “There’s S&OP…and then there’s the real world.” The reality is… Planning doesn’t make a supplychain agile. S&OP is hard to implement.
Dear S&OP, First of all, “A for Effort”. For 10 years, you touted the Secret Sauce to SupplyChain optimization. There’s S&OP.and then there’s the real world.". Planning doesn't make a supplychain agile. Only 11% of manufacturers are able to consistently, accurately tie S&OP to execution.
With over 6,700 SKUs across various brands and locations, the team needed to modernize its sales and operations planning (S&OP) process with new technology. Our existing technology couldn’t support our S&OP efforts”, explained Pascal Lamy, director of finance, controlling, supplychain and IT at MSE.
Source: Gartner SupplyChain Executive Conference. Procter & Gamble (P&G) is known for best-in-class supplychain planning. Equally it poses huge supplychain planning challenges. P&G’s existing planning system, designed for its main supplychain, couldn’t support GDM’s complexity.
Companies implementing supplychain planning (SCP) have traditionally been very big companies or companies with complex supplychains. Supplychain planning is not just for the big boys. In September of 2020, the company hired Jeff Baker to be their Vice President of Procurement and Integrated SupplyChain.
The supplychain space is heavily laden with acronyms, gobbledygook, false narratives, and over-hyped, fast-talking technology sales teams. Let’s take an example. “At the Digital SupplyChain event at SAP. Let’s take another example. In my writing, I try to get clear on definitions.
Sales and operations planning (S&OP) has been a longstanding practice for businesses across nearly every industry. However, this critical supplychain process has been under enormous stress lately from departmental silos, complex trading partner networks, and geopolitical turmoil.
Recent supplychain disruptions are forcing organizations to challenge the prevailing wisdom and look for newer approaches to decision making. The simultaneous shocks to demand and supply, and the magnitude of these shocks are not something the world ever experienced.
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.
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