Posts categorized as 'Sales and operations planning (S&OP)'

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

AlexaCheater

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

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.

But the benefits of S&OP extend beyond that—they help to simplify the day-to-day work of nearly everyone in your company. Improving S&OP means breaking down silos, connecting disparate data sources, exploring what-if simulations and developing cross-functional collaboration.

If you’re an executive, that translates into the ability to see a complete picture of the entire supply chain in an instant, with the most up-to-date data and changes reflected. Since you’ll be able to see risk or opportunity earlier, you’ll be able to make smarter business decisions faster, keeping your company on track to competition and financial success.

If you work in finance, improved S&OP means peace of mind that everyone puts what’s best for the business at the heart of every decision they make. Instead of working to individual or functional metrics, the entire organization aligns to key financial goals.

Read the full story

Benefits of integrating finance and supply chain operations

AlexaCheater

Bridging finance and supply chain operations improves efficiency

In my earlier blogFinance & Supply Chain Operations Integration , I examined common obstacles organizations face when bringing together finance and supply chain operations. Now let’s look at the rewards you can reap by actually doing so.

Bringing together finance and supply chain operations can make your company more operationally savvy and improve financial efficiency through:

  • Exposing potential risks and enabling executable and optimized plans
  • Driving sustainable cost reduction and profitable growth through more mature planning models
  • Combining rolling forecasts and S&OP to streamline business processes

Tighter integration can also lessen the pain of the budgeting process since a forward rolling plan means managers will already have consensus approval for some of the next year’s requirements through confirmation of the S&OP process. Without finance’s involvement in S&OP, the budget will start from a common plan based on what has happened in past years, and not one actually associated with what your operations team is forecasting will happen next year.

Read the full story

The sales and operations planning journey: Starting off on the right foot

AndrewDunbar

S&OP journeyLast week I attended the IBF Business Planning, Forecasting & S&OP: Best Practices Conference in Orlando, Florida. If you’re involved in your company’s sales & operations planning processes and you haven’t heard of the IBF, stop reading now and go check them out here! These guys bring supply chain rookies and the best-of-the-best together to talk forecasting and S&OP in a variety of different forums throughout the year.

This year’s conference was a great opportunity for me to talk with demand planners and other supply chain practitioners about their S&OP journey, and the common pitfalls along the way.

A big theme of the conference this year was that to be effective with S&OP, it’s important to focus on three pillars of success:

  1. People – It’s important to continually invest in your people to generate a competitive advantage because you rely on them to be the care-takers of your supply chain.
  2. Processes – Best practices in supply chain are continually evolving, but you likely face unique challenges in your business that require innovative solutions.
  3. Technology (enabler) – It’s tough to compete against your competitors’ supply chains without an advanced analytics tool designed to enable the S&OP process.

Read the full story

Driving profitability through advanced S&OP

AlexaCheater

profitabilityAs 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? Essentially that while it can, and in many cases does, drive improvements to your balance sheet, it’s not a blanket, one size fits all process that applies to every aspect of your company’s supply chain.

In fact, Spooner says S&OP isn’t a supply chain process at all. It’s a business one. Also often referred to as integrated business planning (IBP), it’s just one way many businesses are evolving to stay competitive in a changing landscape. Uncertainty around high-impact events, expanded global presence, pricing pressures and increasing product mix complexity are just some of the reasons more companies are looking to kick their traditional supply chain practices into high gear.

Improving P&L

As outlined in Spooner’s presentation, companies with higher S&OP maturity are clearly seeing a positive improvement when it comes to profit and loss (P&L) statements. According to data from Gartner’s 2013 S&OP Maturity Research Study, higher maturity businesses saw a 5.6% increase in revenue, 7.5% decrease in costs and a 7.2% increase in profitability because of successful advanced S&OP.

Read the full story

[Video] Roland DG: Transforming its sales and operations planning process

MelissaClow

This blog is part of a video interview series. Check out the video below as well as links to other supply chain practitioner and Kinaxis executive interviews.

The long-term objective at Roland DG Corp. is to elevate its supply chain organization to the strategic decision-making level, says Zoltan Pekar, vice president of the company’s global supply chain division.

To achieve that, the manufacturer of wide-format printers, needs a truly collaborative environment and a consolidated sales and operations planning process. Roland is relying on RapidResponse from Kinaxis to help it realize that goal, Pekar says. With RapidResponse, the organization has connected the company data worldwide, and provided transparency and accurate reporting across the organization.

The company-wide transformation that Pekar speaks of required a change in mind-set. “That was critical in the process, and I’m very happy to say that now we have a full sales and operations process, we have people coming together to search for information, and it’s all based on RapidResponse. It’s been valuable, and we have lots of other plans to build on this data platform.”

Pekar dismisses criticism of S&OP as a minor process. “The key factor for us was to bring the sales and operational sides together because we were a very fragmented organization with silos, and the RapidResponse tool has brought these sides of the business to the same table to make decisions.”

Roland DG: Role of IT as Competitive Global SCM Strategy

/div>

Read the full story

Goodbye scheduled decision-making, hello concurrent planning

AlexaCheater

Sales and operations planningThe face of sales and operations planning (S&OP) is changing. Gone are the days when sequential, isolated planning and monthly meetings based on out-of-date data are sufficient to drive stability and success.

End-to-end initiatives now span beyond the confines of a single company’s supply chain, encompassing extended supplier and customer value networks, as well. Digitization, sparked by the rise of the Internet of Things (IoT), the expanding number of connected devices and big data, is driving a shift in consumerism. Your company needs to keep pace, or risk falling behind forever.

The reality is, supply and demand waits for no one — not even your executive team.

Running a profitable global business requires speed and agility in both strategic and
tactical planning. But transitioning to a new way of looking at S&OP means saying goodbye to scheduled decision-making, a frightening thought for many. It may seem like an impossible step. How can you let go of the security of regular meetings planned weeks in advance? Or the safety of knowing those big decisions only come around once a month?

Read the full story

[Video] TE Connectivity – A continuous sales and operations planning process

MelissaClow

This blog is part of a video interview series. Check out the video below as well as links to other supply chain practitioner and Kinaxis executive interviews.

The task of linking sales and operations planning systems of any company with truly global reach is difficult enough to begin with, says Lindsey Kathmann, supply chain analyst at TE Connectivity. But complexity is heightened when the enterprise is structured into separate business units, some with their own spinoffs.

That’s the situation faced by TE Connectivity, which specializes in designing sensors for several industries. It’s divided into Transportation Solutions, which focuses on cars, planes and trains; Aerospace, Defense & Marine; and Industrial, which specializes in consumer products, such as cell phones.

TE Connectivity: Continuous sales and operations planning process

/div>

Read the full story

Kinaxis Positioned in the Leaders Quadrant of Gartner’s Magic Quadrant for Sales and Operations Planning System of Differentiation

MelissaClow

Gartner S&OP SOD Magic QuadrantIt is with great pride that we announce Kinaxis® has been placed in the Leaders quadrant of the recently published Gartner Magic Quadrant for Sales and Operations Planning Systems of Differentiation.

Gartner defines a sales and operations planning (S&OP) System of Differentiation (SOD) as a software solution that supports a Stage 4 or higher maturity S&OP process. According to the report, “Leaders have a strong vision for their S&OP SOD capabilities. They recognize the role they will need to play in enabling the move toward multienterprise horizontal planning allied with vertical integration that links strategy to operations and execution. They are looking at developing analytics to support probability-focused end-to-end predictive and prescriptive analytics to support profitability trade-offs and supply chain design and configuration capability.”1

Because of our unique ability to provide concurrent planning, Kinaxis RapidResponse® is an ideal solution to take companies through the various stages of S&OP maturity. We believe the next revolution in supply chain performance can only be achieved by realizing the speed of cross-functional decision making. As today’s press release indicated, our goal is to advance our customers’ S&OP processes from early stages through to Stage 4, and beyond, over time by taking advantage of all full capabilities in our single product.

Read the full story