Sales and Operations Planning (S&OP) is not a new idea, but many organizations report that their efforts have been less than effective. As the saying goes, though, when you get lemons, it's a good time to make lemonade. That is, rather than a point of failure, S&OP improvement offers an opportunity for great improvement.
In a study titled Race for Supply Chain Insights 2020, which outlines research by Supply Chain Insights, 71% of organizations surveyed reported having an S&OP process in place. When asked to rate the effectiveness of that process, though, 43% felt that it was effective, while 20% said that it was not and 24% were neutral.
“Why, after more than 20 years, does S&OP still top so many executives' lists as an area of great opportunity for supply chain improvement?” wrote Sean Rollings, vice president of product marketing at E2Open in a blog. “The truth is that most companies have plateaued with the return on their efforts, yet they expect more from such a promising collaborative process.”
Supply Chain Insights reported that competing priorities and lack of understanding and support from the executive team topped the list of stumbling blocks around improving the S&OP process.
The infographic below, created by E2Open, outlines some basics around creating a process that works. Take a look, and then let us know about your experiences with S&OP improvement. What worked well? Where were the stumbling blocks?
— Hailey Lynne McKeefry, Editor in Chief, EBN