• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to footer

Before Header

  • Customer Training
  • Customer Support
  • Blog

Search

  • English

    Supply Chain Management Software (SCM Software) by Logility

    • Solutions
      • Advanced Analytics
      • Integrated Business Planning
      • Demand Optimization
      • Inventory Optimization
      • Sourcing Management
      • Supply Optimization
      • Quality & Compliance
      • Retail Optimization
      • Product Life Cycle Management
      • Supply Chain Data Management
      • Cloud Services
    • Industries
      • Consumer Goods
      • Furniture / Durable Goods
      • Electronics
      • Food & Beverage
      • Life Sciences
      • Process / Chemical
      • Retail
      • Service / Aftermarket Parts
      • Apparel / Softgoods
      • Wholesale Distribution
    • Resource Center
    • Company
      • Investor Relations
      • Contact Us
      • Careers
      • Leadership Team
      • Office Locations
      • Our Brands
      • Partners
    • News and Events
      • In The News
      • Events and Conferences
      • Press Releases
      • Press Inquiries
    • Contact Us
    • Solutions
      • Advanced Analytics
      • Integrated Business Planning
      • Demand Optimization
      • Inventory Optimization
      • Sourcing Management
      • Supply Optimization
      • Quality & Compliance
      • Retail Optimization
      • Product Life Cycle Management
      • Supply Chain Data Management
      • Cloud Services
    • Industries
      • Consumer Goods
      • Furniture / Durable Goods
      • Electronics
      • Food & Beverage
      • Life Sciences
      • Process / Chemical
      • Retail
      • Service / Aftermarket Parts
      • Apparel / Softgoods
      • Wholesale Distribution
    • Resource Center
    • Company
      • Investor Relations
      • Contact Us
      • Careers
      • Leadership Team
      • Office Locations
      • Our Brands
      • Partners
    • News and Events
      • In The News
      • Events and Conferences
      • Press Releases
      • Press Inquiries
    • Contact Us
    • Blog
    • Customer Support
    • Customer Training

    S&OP Maturity — Going Beyond the Demand-Supply Match

    July 14, 2015 //  by Logility Staff

    S&OP Maturity — Going Beyond the Demand-Supply Match

    1. Home
    2. Blog
    3. S&OP Maturity — Going Beyond the Demand-Supply Match

    We’ve seen many companies reach plateaus in their S&OP maturity. For some organizations, the momentum slows shortly after they successfully balance demand and supply volumes. This is the point where, in order to keep the S&OP benefits growing, ownership of the S&OP effort must expand beyond the primary jurisdiction of the supply chain team. It’s the point where executive sponsorship becomes crucial. It’s also the point where a “one plan” predictive process model for enterprise-wide business improvement is closer than ever.
    S&OP Maturity — Going Beyond the Demand-Supply Match
    For some companies, their progress along the S&OP maturity curve as a gentle climb, while others may see it more as a cliff face. Once the demand-supply matching process is mastered within the supply chain organization, the question “what next?” is often answered with two words: “inventory optimization.” Leading companies that have successfully forged ahead on the maturity journey also emphasize managing supply constraints and building customer collaboration initiatives for better forecasting.

    A recent study conducted by Aberdeen Group reveals that Best-in-Class companies put a higher priority on these goals than do companies outside of the top 20%, which tend to focus on formalizing their S&OP and demand planning processes, as well as integrating financial planning into S&OP.

    According to Aberdeen Group’s report, S&OP: Beyond the Demand/Supply Match — A Journey, Not a Destination, Best-in-Class companies have the following in common:
    –    47% have established an inventory optimization initiative as a strategic action
    –    They are more than twice as likely to include marketing in the demand planning process
    –    58% more likely to quickly respond to unplanned events in alignment with S&OP objectives
    –    77% more likely to  have the ability to evaluate unconstrained planning scenarios during the demand/supply balancing process

    But what are the real keys to breaking out of the S&OP plateau and continuing your progression? We have found, and the Aberdeen research supports this, that the ability to segment demand based on characteristics of customers, channels, markets or products is key to launching the next round of S&OP maturity. Enhancing decision support processes by developing the ability to respond to unplanned events (minimize “firefighting”) is another important goal. Note, this capability can only be built on a solid foundation of scenario planning expertise. As confidence builds in the organization’s scenario analysis prowess, departments start to become enthusiastic believers in, and adopters of, the S&OP plan. As Aberdeen puts it, at this point “getting buy-in to one plan is no longer a struggle, but a way of life.” Our experience with companies across a wide spectrum of industries confirms that view.

    Finally, tools and technology are a major determining factor in whether an organization is capable of moving their sales and operations planning forward to new levels of customer service and overall supply chain performance. It is vital that you adopt strong supply chain management solutions that enable activities such as demand shaping, trading partner collaboration, predictive analytics, inventory optimization, and more.

    Bottom line: by adopting the right priorities and the best tools, your S&OP journey can push past the plateau and become a long and fruitful endeavor that drives continual business improvement and a tangible competitive advantage in both good and challenging economic environments.

    Download: S&OP: Beyond the Demand/Supply Match — A Journey, Not a Destination

    Logility Staff
    Logility Staff

    Recent Posts

    • 12 Steps to a Resilient Enterprise: Part 2 of 4
    • Import Bans from China Grow in US and UK
    • How Do You Turn Supply Chain Data Into Actionable Information?
    • Lot Traceability in the Fashion Industry
    • How Can Manufacturers Manage Disruption and Improve Productivity?

    Related White Papers

    • Five Ways to Build Advanced Supply Chain Planning and Optimization Capabilities in Process Chemical Industries
    • Utilizing S&OP to Mitigate Risk and Plan for the Unexpected
    • Smooth Sailing with S&OP

    Success with Logility

    • Haggar Crafts an Exceptional Supply Chain
    • Farnell Synchronizes Its Supply Chain to Boost Customer Service
    • ChemPoint Balances Inventory with SIOP
    Supply Chain Brief

    Category: S&OPAsset Category: S&OP/IBP

    Previous Post: « Gartner: Recognize and Embrace Change – 2015 Keynote Address
    Next Post: An S&OP Q&A with SCM World’s Kevin O’Marah »

    Footer

    Solutions

    • Advanced Analytics
    • Integrated Business Planning
    • Demand Optimization
    • Inventory Optimization
    • Sourcing Management
    • Supply Optimization
    • Quality & Compliance
    • Retail Optimization
    • Product Life Cycle Management
    • Supply Chain Data Management
    • Cloud Services

    Industries

    • Consumer Goods
    • Furniture / Durable Goods
    • Electronics
    • Food & Beverage
    • Life Sciences
    • Process / Chemical
    • Retail
    • Service / Aftermarket Parts
    • Apparel / Softgoods
    • Wholesale Distribution

    Other

    • White Papers
    • Press Releases
    • Company
    • Careers
    • Contact Us
    • Investor Relations
    • Privacy Policy
    • Terms of Use
    • Cookie Policy
    • Forward Looking Statement

    Our Brands

    • Logility Solutions
    • Halo Business Intelligence
    • Demand Solutions
    • NGC Software

    Social Media

    © 2021 American Software, Inc. All rights reserved.