Facts & Figures Sales & Operations Planning and IT REASONS FOR IMPLEMENTING S&OP
Improvement cross functional communication Improvement customer service Managing volatility in demand
Achieving consensus about One Number Plan Reducing risk in the supply chain Reducing supply chain costs Implementing strategic business plan Improving use of assets
Improving overview for management Improving revenue
0 10 20 30 40 50 60 70 80 90 100 Graphic: SC M REASONS FOR IMPLEMENTING S&OP Improving top line revenue
Reducing supply chain operating costs Management of increasing demand volatility
Customer mandates for faster, more accurate fulfilment
Need to utilize manufacturing assets with maximum efficiency
…a natural extension of ERP 29% …an extension of Sales Forecasting 29% …an extension of Business Intelligence 21% …an extension of Supply Chain tools 16% …should be a standalone functional capability 5%
Graphic: SC M
21% 16%
29% 29%
SEGMENTATION IN IMPLEMENTING S&OP No S&OP process
TECHNOLOGY ADOPTION FOR S&OP
Supply Planning Demand Planning
Legenda: ■ Best-in-Class ■ Average ■ Laggard
Graphic: SC M
Inventory Planning
Executive reporting/ Dashboards
0 10 20 30 40 50 60 Graphic: SC M
Regular alignment Finance & Supply Chain
Limited alignment Finance & Supply Chain
‘Islanders’ 18% Graphic: SC M CRITERIA FOR PURCHASING S&OP
Ease of use Flexibility
Feature/function to support S&OP process Integration with ERP systems
Proof of capability in similar environments Existing vendor relationship Integration with SCM tools Technical architecture
Vendor service and expertise Collaborative capabilities