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.