Insight
How to select software for Sales & Operations Planning
The DNA of S&OP software
If like many companies nowadays you are looking for Sales & Operations Planning (S&OP) software, it is wise to take a closer look at exactly what is on offer before making your final decision. Functionality is important, of course, but it is also essential to consider the software vendors’ origins and their references, and also to check that the solution matches with your situation in terms of your company’s size, market complexity and supply chain dynamics. This avoids a lengthy selection process that could even result in the wrong solution. By Hans van der Drift and Martijn Lofvers
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he Sales & Operations Planning (S&OP) software market has evolved significantly over the past few years, with lots of providers having developed, updated and in some cases completely reshaped their offerings. The best-known cases are probably E2Open’s acquisition of Steelwedge and Terra Technologies, and SAP’s ongoing transition from advanced planning opti- mization (APO) to integrated business planning (IBP). On a less visible scale, it has also been a period in which suppli- ers have been very active in upgrading and updating their solutions from both a functional and a technical perspective.
Many potential solutions
One of the consequences is that, for all but the most unique cases, there is now a significant list of software solutions that in principle should be up to the job.
Besides state-of-the-art demand, supply and capacity planning functionalities, many of
these modern systems offer essential S&OP capabilities like aggrega- tion/disaggregation, scenario planning, product life cycle management, perfor- mance management, S&OP process management, financial impact analysis and collaboration, to name but a few. However, it is important to note that, under the hood, there can be very signifi- cant differences impacting the flexibility, configurability and ultimately effective- ness of the solutions.
One of the consequences of this matur- ing S&OP software market is that a successful selection process has to dig deeper now; simply checking the claimed system functionalities against functional requirements is no longer enough. Rather than diving into the detail, it is much more effective to focus on the big
picture first. This conclusion stems from the fact that, in the vast majority of cases, selection decisions are not based on long and detailed lists at all, but rather on a limited set of key criteria. In line with this philosophy, your selection process should start by addressing the big ques- tion: what are the top five criteria that will ultimately drive our decision? What makes our company unique?
Typical areas of focus
These criteria obviously vary for each company, but it is still possible to focus on a limited set of generic areas to con- sider. A number of simple and high- level criteria that should be on the list are explained below. They are partially vendor-related and partly linked to func- tionality.
Most solutions have initially been devel- oped with a certain industry segment
SUPPLY CHAIN MOVEMENT, No.29, Q2 2018
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