Facts & Figures Implication Sales & Operations Planning (S&OP) REASONS FOR IMPLEMENTING S&OP
To improve interdisciplinary communication
To create consensus for stand- ardized ‘one-number plan’
To reduce supply chain costs
To implement strategic business plan
To improve insight for executive management
To reduce risk in supply chain network
To improve customer service To manage demand volatility To improve turnover level
To improve resource utilization
To create competitive advantage
To integrate customers and/or suppliers
0 Graphic: SC M 10 20 30 40 50 60 70 80 90 100 BARRIERS TO IMPLEMENTING S&OP Employee skills/resources
Support from senior managers
Process discipline Organizational ‘silo’ structure
Accuracy and reliability of data
Clear division of roles and responsibilities
Too many other business priorities
KEY ACTIVITIES * * in an S&OP process
Integration of financial planning and budgeting
Creation of balanced supply/ demand plan focused on profit optimization
Management of demand forecasting within S&OP
Management of supply limitations within the S&OP plan
Scenario planning to achieve optimal financial results
Maintaining alignment with the business strategy on a monthly basis
Trying to minimize inventory to free up working capital
Scenario planning to reduce supply chain risks
Active management of the product portfolio
Joint planning with customers/suppliers
Graphic: SC M 0 10 20 30 40 50 60 70 80
■ Yes ■ No ■ Don’t know
Technical and systems capacity
Lack of clear S&OP implementation plan
Obstructive behaviour
Lack of clear business strategy
Lack of time to execute the process
Graphic: SC M 0 10 20 INNOVATIE EN BEDRIJFSCULTUUR
PROCESS INNOVATION IN S&OP *
* perception by professionals/experts
17% 32% 51% 51%
INNOVATION IN S&OP *
* perception by professionals/experts
COMPANY CULTURE *
* does this receive sufficient attention during S&OP implementation?
19% 30% 63% 5% 32% 31 30 40 50 60 70 Graphic: SC M
INTEGRATION OF FINANCIAL PLANNING * * + budgeting, in S&OP process, long-term trend
2010 2011 2012 2014 2015 2017
0 10 20 30 40 50 60 70 80
SUPPLY CHAIN MOVEMENT, No.29, Q2 2018
Source: Supply Chain Trend 2017/Niels van Hove
Source: Supply Chain Trend 2017/Niels van Hove
Source: Supply Chain Trend 2017/Niels van Hove Source: Supply Chain Trend 2017/Niels van Hove
Source: Supply Chain Trend 2017/Niels van Hove
FROM S&OP TO IBP
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