Matching inventory with demand has never been more important. Yet, with all of the tools at our disposal, too many manufacturers and distributors still find themselves with too much of what customers don't want and too little of what is selling.
You would think that sales and operations planning, or S&OP, would be both widely deployed and the answer to supply chain managers' prayers. Indeed, companies like Red Wing Shoes have realized impressive results after streamlining their S&OP process. Yet the theme running through articles we've published in SCMR from Bain & Company and Hughenden Consulting, too often S&OP results are falling short of expectations.
What has been the experience of readers of SCMR? To find out, Peerless Research Group surveyed our readers. Here's some of what we learned.
1. Only a slight majority have adopted
While you might think that S&OP is ubiquitous, only 57% of respondents have adopted S&OP. The remainder are assessing their needs or considering adoption in the next year.
2. It’s good news, bad news
Here's the good news: Nearly 21% say their S&OP process is highly effective. A similar number – 17% say they're not realizing much, while a 62% majority say their process is somewhat effective at best. Clearly there is room for improvement.
3. Hope (for improvement) springs eternal
Respondents appear to recognize the potential for improvement in customer service (67%), overall supply chain improvement (66%), information accuracy (61%), better management of company resources (59%) and improved on hand inventory levels (58%).
How is your S&OP process working? We’d love to hear from you at [email protected].
Bob Trebilcock is the editorial director of SCMR. He can be reached at [email protected]. Judd Aschenbrand is the research director of Peerless Research Group. He can be reached [email protected].
SC
MR
Latest Supply Chain News
- Despite American political environment, global geopolitical risks may be easing
- Joseph Esteves named CEO of SGS Maine Pointe
- Employees, employers hold divergent views on upskilling the workforce
- April manufacturing output slides after growing in March
- Q1 sees a solid finish with positive U.S.-bound import growth, notes S&P Global Market Intelligence
- More News
Latest Podcast
Explore
Latest Supply Chain News
- Despite American political environment, global geopolitical risks may be easing
- Joseph Esteves named CEO of SGS Maine Pointe
- Employees, employers hold divergent views on upskilling the workforce
- April manufacturing output slides after growing in March
- Q1 sees a solid finish with positive U.S.-bound import growth, notes S&P Global Market Intelligence
- World Trade Centers offers a helping hand to create resilient, interconnected supply chains
- More latest news