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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? Observations on What It Takes In the Mea Culpa post, I wrote that I used to believe that excellence in S&OP was a ratio of 60/30/10. (60%
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.
” To demonstrate the point, let me share a discussion with a client; let’s call him Joe. Joe’s selection team is large (twelve people from multiple organizations), and they are not clear on what defines a good plan. “We are considering the purchase of Blue Yonder, Logility, Kinaxis, o9, or OMP.
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.
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. Dependency on Excel.
Whether you are interested in S&OP, IBP or even simple planning on a spreadsheet you should get yourself along so start planning now! In fact, not many years have passed since there were two main boards so how has planning excellence leveraged performance through S&OP and other initiatives? Go on, check!
Sales and Operations Planning (S&OP) is in a renaissance. 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. S&OP is moving to the cloud. The reason?
” Followed by “How are you organized, and what defines functional excellence? And, how do you tie functional excellence to corporate value?” Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. This gap grew over the last decade.
Dashboard with scenario comparison and KPIs for decision making in S&OP. Working with Excel spreadsheets does not contribute the efficiency, speed and agility necessary for planning teams to bring the best plans to the company. Figure 1 shows a dashboard that exemplifies this concept.
Your company has implemented an S&OP process. So how does a poor S&OP process cost money? S&OP is all about aligning manufacturing and sales. Companies without an effective S&OP are typically much slower to react to market changes. Tell me if you’ve heard this one before.
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). Or planned orders to purchase orders?)
” To demonstrate the point, let me share a discussion with a client; let’s call him Joe. Joe’s selection team is large (twelve people from multiple organizations), and they are not clear on what defines a good plan. “We are considering the purchase of Blue Yonder, Logility, Kinaxis, o9, or OMP.
From my previous blog post , it’s clear that the road to achieving sales and operations planning (S&OP) excellence is not an easy one. Read on to learn how to transform your S&OP workflow, boost your scenario planning capabilities and get the most out 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? It never ceases to surprise me when I hear how many enterprises entrust a mission-critical task to the desktop spreadsheet software Excel®.
The evolution of S&OP to IBP increased process latency in 70% of companies. The shifts over the last decade are profound: Is the answer a Supply Chain Center of Excellence? So, creating a Supply Chain Center of Excellence might sound like a good idea to start. Lack of executive buy-in. Let me explain.
In this edition: Jaro Caban, Global S&OP, Cargill Animal Nutrition. My responsibility is Global S&OP and Process Improvement Lead and I take care of three elements: Firstly, to establish S&OP across CAN. Our buyers are purchasing micro ingredients, such as vitamins, additives, minerals, etc.
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. How Do You Define Excellence? In retrospect, I find that technology is an enabler, but only if we are clear on what defines supply chain excellence.
The Center of Excellence at the company wanted to improve base-level capabilities but struggled to move forward due to the traditional views of the planning team, which they felt were self-serving. (The The team was not calibrated on the role of forecasting and the basics around process excellence. Let’s start with the basics.
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.
They are a supply chain that I very much like, especially from an S&OP practice. Their S&OP is great across these business units. During the Panel, I was asked to comment on the 5 leading factors that make a difference: A clear definition of supply chain excellence by leadership. Intentional design.
by John Westerveld I came across this blog on sales and operations planning (S&OP) from the Institute of Business Forecasting and Planning (IBF) the other day. Interestingly, it also describes the warning signs to look for if your S&OP process has fallen off the tracks. S&OP Warning Signs.
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.
Sales and Operations Planning (S&OP) processes have evolved over the last 30 years to address this age-old problem, yet recently SCM World declared “S&OP is still the top inquiry within the SCM World community.”* The struggle to balance customer demand with available supply is as old as trade itself.
I wanted to say, “You let the consultants influence you to buy the wrong technologies based on IT standardization. Today, since many do not test the solutions and often buy based on IT standardization, the probability of success is about the same as playing the tables in Las Vegas. Most planning happens in Excel Spreadsheets.
As Raheel Hussain, Director of the Supply Chain Center of Excellence at Reynolds Consumer Products notes during a recent webinar , a level of synchronization is critical to systemically share information and cut down the constant offline back-and-forth (conversations) between different functions.
GEON Performance Solutions purchases plastic pellets and add plastic compounders to make products of different strength, resilience, and flexibility. The roots of IBP are in sales & operations planning (S&OP). S&OP is usually a month-long cross functional process that involves five steps.
Sales and Operations Planning (S&OP) is a continuous business process that enables firms from hospitals to chemicals to respond to emerging situations intelligently. Our focus today is to discuss the relevance of buzz words such as Analytics, Predictive Analytics, Data Science, and Machine Learning, for S&OP.
Let’s Start With Clear Definitions My inbox is full. Let’s have fun! Let’s start with the definitions: Graph AI uses Machine Learning on graph-based technology to understand the relationships between variables to drive insights. Many of today’s solutions include Narrow AI. Or transform work?”
The prospect gets value because the report that I’ve just built in RapidResponse replaces an Excel report that takes hours every day to update. One company we were selling to a few years ago wanted us to reproduce a report that alerted the buyer whenever a purchase order was changed by the supplier through the on-line portal.
Each executive has a different perspective on the definition of supply chain excellence, but they are never discussed and aligned. Let’s focus first on John. His organization purchased an advanced planning technology from well-known best of breed provider, and the implementation should have been successful, but it was not.
In my recent work with clients, I have been thinking a lot about S&OP and how we screwed it up. In Figure 1, note the decline in perceived S&OP effectiveness over the past three years. S&OP Effectiveness in 2019 Versus 2016. Tight integration to the financial budget through S&OP.
Q: Is it only inventory disrupting the agility resulting from inaccurate forecasts by S&OP? Is it S&OP? Also, invest time in improving the cross-functional processes of revenue management, Sales and Operations Planning (S&OP) and Supplier Development. Tips on Executing Agility Well.
We find that companies with an analytics center of excellence drove progress faster than those with a supply chain center of excellence. While companies build Supply Chain Centers of Excellence, most are not clear on what good looks like. When you ask, “What defines supply chain excellence?” The other issue?
With the purchase of i2 by JDA, and Logictools by IBM, manufacturing companies serious about network design started looking for a company, with a well-established community, that was more serious about network design. Most companies are still struggling with “what good looks like” and “what defines supply chain excellence.”
SmartOps was purchased by SAP. The press release last week cited the reason for the acquisition, “…as part of the strategy to build a real-time optimization solution for S&OP on SAP HANA. SAP released an S&OP solution using HANA in 2011. However, the picture is not that rosy.
There is a lot of evidence that S&OP is hard to implement and get right. And when S&OP is implemented it often stalls, doesn’t make enough progress and doesn’t deliver enough value. Maybe at the start of the S&OP project executives buy in and employees are still eager.
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. Now they want to deploy an S&OP process. However, excellence in corporate planning matters.
In 2012, I published an article on Sales and Operations Technology (S&OP) Maturity. (I At the time, one of the people (let’s call him Noel) that I great respect for in the industry called me to say, “Lora, I don’t get it. Let’s start with a definition of concurrency.
At Dow, Mr. Baker had Purchasing experience in raw materials, and logistics for their plastics supply chain. That meant Myers had limited capabilities when it came to sales & operational planning (S&OP). You know it’s really good. Actually, it’s really exceptionally good,” Mr. Baker exclaimed.
Reason #4 Making key decisions by modelling the supply chain in Excel. I lost track of how many carrots we had and ended up buying more when we really didn’t need any. In a make to stock environment, if I have a 6 month cumulative lead time, my forecast is being used to buy inventory today for something I’m going to sell in 6 months.
When compared to the S&OP plan, how did the mix change? How does this compare to the S&OP plan? Only one in three companies have this capability, and only one in two companies feel that they can tie S&OP planning to execution. The desire for precision s a hard habit to break. My caution?
We conclude this two part series about manufacturing operations excellence by consultant Chuck Intrieri, by outlaying why manufacturers should focus on a critical component that will help sustain manufacturing operations excellence for years to come. What is Driving Sustainable Manufacturing Operations Excellence? Work centers?
Founded in 2000, Steelwedge was an innovator in Sales and Operations Planning (S&OP) and was an early provider of cloud solutions for supply chain. ” The company’s press release rhetoric is bullish. ” I struggled to understand how a company focused just on S&OP could be viable.
Ed argued that instead of buying new packaging equipment that we should work with R&D to have a base flavor and add the color and flavoring at the head of the machine. As a result, we shelved Ed’s idea. Testing Ed’s idea was beyond my circle of control. Strength in S&OP.
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