This page contains a Flash digital edition of a book.
Ownership


Sponsor Owner


Coordinator


Non-compliance or apathy Grudging compliance


2 ORGANISATION


Meeting structure


Competencies


next level S&OP


Data INFORMATION 3 ERP Systems


Demand Planning Supply Planning


Executive tools Business Intelligence tools Hierarchy


Product Geography Customers Time


No ERP One ERP


Multiple ERP


Short term forecast tools Long Term forecast tools Scenario support


Production planning Scheduling


Volume/value conversion Online scenario capabilities


Commitment


Participants Calendar Frequency Format agenda Documented


Internal Training External Training Consultancy


Availability Consistency Definition Easily accessible


One set of numbers Reliable


Standard reports Reproducibility


Compliance Commitment


The Fresh Connection Oliver Wight


ses, we observe that the step from level 2 (demand-supply matching) to level 3 (profitability) is the most dif- ficult one. Many companies stumble and S&OP remains a supply chain driven process with non-committed stakeholders and non-binding agree- ments. Valuable but not optimal. Why is getting to level 3 so difficult? Firstly, the owner needs to change


from supply chain to the P&L owner. Supply chain has to “let go” and the P&L owner must take accountability. Secondly, the focus has to shift from volume to value and to financial business drivers. Finance must be involved and should claim a key role. Good preparations and finding the right allies can reduce the jump from 2 to 3 to a feasible step…


The critical resource: people… Do we need new tools? Maybe. Very often however, there is already a gap between the systems in place and the people using them. Advanced tools can create extra problems instead of solving them, unless people are brought up to the challenge. Only the right balance between implementing advanced


tools and developing professional people will give real added value by reaching the next S&OP maturity level.


33


SUPPLY CHAIN MOVEMENT, No. 1, Q1 2012


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40