Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
of participants are at least moderately familiar with sales & operations planning
90%
www.apqc.org
Date Collected: January 2019. Number of respondents = 256.
CURRENT STATE:
SALES & OPERATIONS PLANNINGAPQC and Supply Chain Management Review asked supply chain professionals to answer five questions about Sales & Operations Planning in January 2019.
Sales & Operations Planning (S&OP) is a process that closely integrates and aligns cross-functional supply, demand, and production plans to establish a tight connection between an enterprise’s strategic objectives and operational plans.
FAMILIARITY WITH S&OP
USE AND EXPLORATION
40%
Cultural challenges and reluctance to adopt new processes are reported as the 2 biggest barriers to adoption of S&OP
NOT THE NEW KID ON THE BLOCK
s and Operations Planning Reportck Poll #7 - Sales & Operations Planning (S&OP)
2019 3:48 PM CST
miliar are you with the term sales & operations planning?
38%
34%
18%
6%3%
Extremely familiar Very familiar Moderately familiar Slightly familiar Not at all familiar
Showing rows 1 - 6 of 6
mely familiar
miliar
ately familiar
y familiar
all familiar
es and Operations Planning Reportuick Poll #7 - Sales & Operations Planning (S&OP)y 7, 2019 3:48 PM CST
amiliar are you with the term sales & operations planning?
38%
34%
18%
6%3%
Extremely familiar Very familiar Moderately familiar Slightly familiar Not at all familiar
Showing rows 1 - 6 of 6
eld
xtremely familiar
ery familiar
oderately familiar
ightly familiar
ot at all familiar
WALKING THE TALK
of respondents are currently using a formal S&OP process in supply chain
19% are currently exploring S&OP
6 out of 10 respondents are using
or exploring S&OP
About 1/3 are not currently using or exploring a formal
S&OP process
Is your company currently using or exploring a formal sales & operations planning process
for your supply chain?
Yes, currently using Currently exploring No Don't know
40%Yes, currently using
19%Currently exploring
34%No
Showing rows 1 - 5 of 5
# Field Percentage
1 Yes, currently using 40%
2 Yes, currently exploring 19%
3 No 34%
4 Don't know 7%
295
40%
19%
34%
7%
Yes, currently using Yes, currently exploring No Don't know
r company currently using or exploring a formal sales & operations planning
supply chain?
Yes, currently using Currently exploring No Don't know
40%Yes, currently using
19%Currently exploring
34%No
Showing rows 1 - 5 of 5
ld
s, currently using
s, currently exploring
n't know
40%
19%
34%
7%
Yes, currently using Yes, currently exploring No Don't know
LIKELIHOOD TO IMPLEMENT IN THE NEXT 2 YEARS
COMING SOON
are at least moderately likely to implement S&OP in the next 2 years
BENEFITS OF S&OP
IMPROVED DEMAND FORECASTING ACCURACY
IMPROVED CUSTOMER SERVICE AND SATISFACTION
INVENTORY OPTIMIZATION
GREATER VISIBILITY OF SUPPLY AND DEMAND
68% of respondents also cited the following benefits of S&OP:
Almost 3/4 of respondents see the alignment of financial and operational plans as the top benefit of deploying S&OP.
Most of the top benefits of S&OP are quantifiable and verifiable with direct customer impact making the move to a formal Sales & Operations Planning process a clear win.
Which of the following, if any, do you see as benefits of the widespread deployment of
sales & operations planning in your supply chain? (Please select all that apply.)
74%
68% 68% 68% 68%
Alignment offinancial and
operational plans
Improved demandforecasting accuracy
Improved customerservice andsatisfaction
Inventoryoptimization
Greater visibilityof supply and demand
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
# Field Percentage
1 Increased employee productivity 7%
2 Alignment of financial and operational plans 11%
3 Improved demand forecasting accuracy 10%
4 Inventory optimization 10%
5 Greater visibility of supply and demand across the enterprise 10%
6 Improved order fill rates 8%
7 Efficient working capital management 8%
8 Risk mitigation 7%
9 Better management of supply constraints 9%
10 Faster resolution of bottlenecks 7%
Which of the following, if any, do you see as hurdles to the widespread adoption of sales
& operations planning for your supply chain? (Please select all that apply.)
60% 59%
47%45% 43%
31%
Culturalchallenges
Reluctance toadopt newprocesses
No clearlydefined processor methodology
Technologylimitations
Disparity inindividualfunctional
objectives andmeasures
Lack ofexecutivesupport
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Showing rows 1 - 10 of 10
# Field Percentage
1 Cultural challenges 17%
2 Reluctance to adopt new processes 17%
3 Technology limitations 13%
4 Disparity in individual functional objectives and measures 12%
5 Rewards not aligned to common goals 8%
6 Limited employee bandwidth 8%
7 No clearly defined process or methodology 14%
8 Lack of executive support 9%
9 Other: Please specify. 2%
866
HURDLES TO FORMAL S&OP PROCESSES
GOOD NEWS: Almost all of the top barriers can be overcome by appointing a S&OP champion to properly message the change and provide the needed support across functional silos. Almost all of the top barriers can be overcome by appointing a S&OP champion to properly message the change and provide the needed support across functional silos.
EVOLVING FOR THE FUTURE
Given its heavy dependence on accurate and timely data, S&OP is evolving as process automation and emerging technologies continue to advance and improve in reliability and security. Shifting to a technology-enhanced integrated business planning approach, organizations will increasingly have more options for a robust alignment of tactical and strategic plans to make a positive impact on their customers.
Culturalchallenges
Reluctance toadopt newprocesses
No clearlydefined processor methodology
Technologylimitations
Disparity in individualfunctional objectives
and measures
Lack ofexecutivesupport
Alignment offinancial and
operational plans
Improved demandforecasting
accuracy
Improved customerservice andsatisfaction
Inventoryoptimization
Greater visibilityof supply and
demand