Straight Talk - Supply Chain Insights - Sales and Operation Planning #269

In 2019 only 35% of manufacturing leaders rate their Sales and Operations Planning processes effective. In contrast, 65% rated the processes effective in 2016. In this podcast, Lora Cecere, founder of Supply Chain Insights shares the reasons for this precipitous decline. The remedy is enlightened leadership. To make the shift, companies need to define what defines supply chain excellence and how it ties to the business strategy. Then manage the supply chain as a complex non-linear system to ensure the recognition of constraints, the design of buffers, and the impact of changes in mix. Only 30% of companies have “what if analysis” and only 50% of companies tie the output of the tactical plan in S&OP to execution. As organizational complexity increases—with seven S&OP processes using five different technologies—getting the basics right matters more than ever.

Tags: Sales and Operations Planning, IBP, Supply Chain Excellence, Demand planning,