Analyst Insight: Not sensing the upturn in the economy is almost as bad as being hit with the downturn. Value chains have slashed inventories in their effort to remain cash-positive. Some are already scrambling as their sales pick up but their inventory coffers are empty. It's not surprising that sales and operations planning initiatives have grown in importance.
Analyst Insight: S&OP can provide a powerful way to drive better functional coordination and synchronization, particularly in the current uncertain business climate. Yet, it is a process that has had a hard time withstanding the test of time and is subject to repeated re-designs and re-imagining.
Analyst Insight: Ideally, the output of the S&OP plan should drive companies' income statement and balance sheets. Companies should create internal projects and SWAT teams wherein the S&OP plan is mapped to the key financial documents with collaboration between finance and supply chain.
Analyst Insight: Leading companies have a portfolio of true end-to-end supply chain metrics, use those metrics in key processes such as S&OP, supplement the metrics with customer and supplier dashboards, and have an open attitude and metrics culture that drives them through an upward spiral of increasingly higher levels of performance. Most importantly: they understand they cannot be good at everything, and they consciously manage tradeoffs.
Analyst Insight: This software market, like most, took a hit in 2009, but we still like its long-term growth potential. We continue to see companies adopting service parts management software successfully, saving millions of dollars in inventory costs.
The latest news, analysis, trends and solutions regarding sales and operations planning (S&OP) and its impact on supply chain management. New technologies in S&OP are transforming the way companies do business - and allowing them to stay ahead of the competition in their industries. As these solutions continue to evolve, businesses are discovering new ways to increase efficiency and cut costs. Learn how companies around the world are using S&OP solutions for supply chain optimization.
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