New Research: Sales and Operations Planning
According to AMR Research, companies with mature Sales and Operations Planning (S&OP) processes achieved a 2 percent to 5 percent improvement in revenue; a 20 percent increase in commercialization reliability; as well as a 15 percent to 20 percent reduction in inventory. These results designate S&OP process improvements as primary starting points for companies that desire to be more demand driven.
In April, CGT partnered with Logility Inc. to take a look at S&OP in the consumer goods (CG) industry. What we found is consistent with a process still undergoing change: A wide range of responses with little consensus as to what the ultimate process should look like. However, while experts may claim to provide a text book definition of S&OP, companies may be better off determining the ideal implementation for their unique business situations.
The good news is that the overwhelming majority (80 percent) of CG companies have a formal S&OP process in place. Ownership of the process differs with almost half falling under the auspices of supply chain as well as almost one third instituting a collaborative multi-disciplinarian team. Interestingly, the supply chain is the process owner for almost all of the companies with more than $5 billion in revenue.
The other promising finding is that most companies involve at least five organizations in the process, particularly sales, supply chain and marketing. More than three quarters also include finance, and that number may have increased recently due to the downed economy.
Click here to read this research in its entirety and learn more about S&OP adoption in the CG industry, including the top qualitative benefits received so far by survey participants.
In April, CGT partnered with Logility Inc. to take a look at S&OP in the consumer goods (CG) industry. What we found is consistent with a process still undergoing change: A wide range of responses with little consensus as to what the ultimate process should look like. However, while experts may claim to provide a text book definition of S&OP, companies may be better off determining the ideal implementation for their unique business situations.
The good news is that the overwhelming majority (80 percent) of CG companies have a formal S&OP process in place. Ownership of the process differs with almost half falling under the auspices of supply chain as well as almost one third instituting a collaborative multi-disciplinarian team. Interestingly, the supply chain is the process owner for almost all of the companies with more than $5 billion in revenue.
The other promising finding is that most companies involve at least five organizations in the process, particularly sales, supply chain and marketing. More than three quarters also include finance, and that number may have increased recently due to the downed economy.
Click here to read this research in its entirety and learn more about S&OP adoption in the CG industry, including the top qualitative benefits received so far by survey participants.