The speed of business continues to accelerate and with the empowered consumer now dictating channels, any confusion about priorities or delays in fulfillment can result in increased costs and even loss of business. The Best-in-Class prioritize cost reduction; 61% consider reducing supply chain costs as the number one pressure that they face, followed by increasing customer mandates for faster, more accurate and unique fulfillment at 42%. So, the need for organizational alignment is more critical than ever before.
The S&OP process is the perfect vehicle to evaluate and determine the impact of these pressures, to effectively communicate them across the organization, and, ultimately, to align the entire organization to “one plan.” If you don’t have an S&OP process, now is the time to establish one. If you already have one in place, consider yourself fortunate and focus on maximizing its effectiveness.
At the heart of the S&OP process is the supply/demand match, which is the basis for alignment, with the overall intent of making sure that operations are in sync with expected demand. Understanding the key factors that go into achieving this match is critical to success; for example, sub processes such as a robust demand planning process and the ability to model upside and downside scenarios are used to test the plan and prepare for all eventualities.
The S&OP process is essential for companies striving to maximize their business performance, and achieve the superior results of Best-in-Class organizations.
Join me on Tuesday, February 24, 2015 at 1 pm EST, to learn more about how to implement an effective S&OP, the positive impact that it is having on business metrics, and what you can be doing better if you already have one.