In the past, the true value of Sales and Operations Planning (S&OP) has often been difficult to realize due to a lack of enterprise-wide, strategic and operational alignment and intent. Out-of-date and therefore unactionable data – often presented in spreadsheets – and the inability to perform what-if analysis has hindered the decision-making process.
Disruptions such as the COVID-19 pandemic clearly illustrate the importance of S&OP. Historical forecasts are no longer reliable; businesses need current data to make intelligent and informed decisions based on what happened as recently as yesterday or even this morning, what capacities are available and what can be done to meet the challenges of unexpected and dramatic variations in demand and supply.
Critical to a successful S&OP process is a digital twin that accurately represents your physical supply chain and supports continuous planning. Fueled with real-time and near real-time data, the supply chain digital twin allows you to model all networks continuously so you can quickly make intelligent plans and calculations on what’s feasible and in alignment with existing goals.
This video demonstrates the power of continuous planning for:
- Reviewing forecast accuracy and comparing multiple forecasts to build consensus and see the value you are adding to your bottom line
- Evaluating demand signals from multiple internal or external data sources and seeing how they are affecting the forecast
- Performing what-if analysis from a common platform to promote collaboration and empowered decision-making, and easily adjusting plans or scenarios over time
- Exploring capacity scenarios and alternatives and understanding the financial implications of operational adjustments before committing resources