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January-February 2016
It’s a new year. Most of us will have new budgets to meet and new expectations for the performance of our supply chains. Many will look to best practices from industry leaders to improve our operations. But, are best practices really the “best” way to go? As you think about 2016, I hope you ask the question: What better practices can I adopt for my supply chain? Browse this issue archive.Need Help? Contact customer service 847-559-7581 More options
Here’s an uncomfortable question: After 30 years of talking about sales and operations planning (S&OP), can we truly say it’s working?
S&OP is a terrific idea in principle. When it’s done right, it’s great in practice too. But the trouble is, it’s not often done right. Here’s how I know that.
Recently, my company, together with the trade organization Eye for Transport (EFT), surveyed 131 supply chain executives, mostly from large manufacturers, to explore their S&OP experiences. At first, the evidence was reassuring: 85 percent of respondents claimed to be following S&OP with discipline “somewhat to completely.” But answers to the follow-on questions weren’t so encouraging: Almost 40 percent said that they thought a monthly meeting was enough to qualify as S&OP, and a staggering 94 percent were making crucial supply chain decisions outside the process. (See Exhibit 1.) Not good.
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Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.
January-February 2016
It’s a new year. Most of us will have new budgets to meet and new expectations for the performance of our supply chains. Many will look to best practices from industry leaders to improve our operations. But, are… Browse this issue archive. Access your online digital edition.Download Article PDF |
Here's an uncomfortable question: After 30 years of talking about sales and operations planning (S&OP), can we truly say it's working?
S&OP is a terrific idea in principle. When it's done right, it's great in practice too. But the trouble is, it's not often done right. Here's how I know that.
Recently, my company, together with the trade organization Eye for Transport (EFT), surveyed 131 supply chain executives, mostly from large manufacturers, to explore their S&OP experiences. At first, the evidence was reassuring: 85 percent of respondents claimed to be following S&OP with discipline “somewhat to completely.” But answers to the follow-on questions weren't so encouraging: Almost 40 percent said that they thought a monthly meeting was enough to qualify as S&OP, and a staggering 94 percent were making crucial supply chain decisions outside the process. (See Exhibit 1.) Not good.
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