Supply Chain Insights LLC Copyright © 2015, p. 1 Sales and Operations Planning Study Summary Charts...

Supply Chain Insights LLC Copyright © 2015, p. 1

Sales and Operations Planning Study

Summary ChartsJanuary 6 – September 14, 2015


Agenda

Study Overview

Sales & Operations Planning

Supply Chain Agility

Company Performance


Study Overview


Most Respondents Are Manufacturers, in Process Industries, and with $6B in Revenue on Average


Top Industries for Respondents Include Food & Beverage, Chemical, and Consumer Packaged Goods


The Majority of Respondents Work in a Supply Chain Role,Primarily at the Director or Manager Levels,

and Are Based in North America or Western Europe


Agenda

Study Overview



Company Performance


Performance Summary


Respondent Profile by S&OP Effectiveness


Over Two-Thirds Use “S&OP” to Describe the Process


Companies Have 4 Distinct S&OP Processes on Average


Just Over Half Consider Their Primary S&OP Processto Be Effective


Volunteered Reasons for Why Primary S&OP ProcessIs Effective


Volunteered Reasons for Why Primary S&OP ProcessIs Less Than Effective


Most Common Goal of S&OP Process Is to Match Demand with Supply


Those Who Report an Effective S&OP Are More Likelyto Say the Goal Is to Determine the Most Profitable Plan


One Third Consider Their Primary S&OP Processto Balance the “S” and “OP”


Those Who Report an Effective S&OP Are More Likely to Report It Being Balanced


Two-Fifths Report Primary S&OP ProcessIs Executed at Least Most of the Time


Those Who Report an Effective S&OP Are More Likely to Report Executing Nearly All of the Time


Primary S&OP Processes Are Slightly More Aligned by Product; Typical Frequency Is Monthly


Spreadsheets Are the Most Common Technology Usedand SAP Is Most Common Product Used


Spreadsheets and Forecasting Are Used MoreOften by Those Who Report an Effective S&OP


For Over Half, the Budget Is an Input to the S&OP Processbut Does Not Constrain It


Those Who Report an Effective S&OP Are More Likely to Report Revenue Goals Are Determined by S&OP Output


Sales-Operations Collaboration Is Among Most Importantand Top Performing Element of S&OP Processes


Managing Opportunities/Risk, and Managing Process Flow Show Greatest Performance vs. Importance Gaps


Those Who Report an Effective S&OP Rate It Highest on Sales-Operations Collaboration;

Others Rate It Highest on CSR Goals


Most Common Challenge with S&OP ImplementationIs Getting to Right Data in Timely Fashion


Those Who Report an Effective S&OP Report HavingFewer Challenges at Implementation Than Others


Vast Majority Believe Their Primary S&OP Process Is Important for Improving Supply Chain Agility


Those Who Report an Effective S&OP Are More Likelyto Believe It Improves Supply Chain Agility


Agenda

Study Overview



Company Performance


Most Common Definition of Supply Chain “Agility” Is theAbility to Adapt to Variations in Demand and Supply


Agility Performance Is 37% Lower Than Importance


Current Agility Is Perceived to Be Over Three Times Higher Than One Year Ago


Those Who Report an Effective S&OP Also Rate Their Agility Higher Today –

Less So One Year Ago


Those Who Report an Effective S&OP Report 4.4X HigherAgility Than One Year Ago


Agenda

Study Overview



Company Performance


Top Supply Chain Descriptors: Room for Improvement, Tactical,

Many, Reactive, and Cautious


Top Supply Chain Strengths: Many and Controlled


Those Who Report an Effective S&OP Also Rate ThemselvesMore Highly on Positive Characteristics


Sales & Marketing Is Among Most Important to Be Aligned and Most Aligned


Greatest Alignment Gaps Are with Operations & IT, Sales & Operations, Marketing & Finance, and

New Product Development & Distribution


Those Who Report an Effective S&OP Are Also More Likelyto Report Team Alignment in Most Areas


Two-Thirds Report That Their Company IsDoing Well at Meeting Corporate Goals


Those Who Report an Effective S&OP Are Also More Likely to Report Company Is Meeting Corporate Goals


Most Important Measurements to Meet Goals IncludeEBITDA, Operating Margin, Cash-to-Cash Cycle,

and Days of Inventory


Most Commonly Tracked Measurements Include OperatingMargin, Days of Inventory, Cost of Goods Sold, EBITDA,

and Forecast Accuracy


Those Who Report an Effective S&OP Track MoreMeasurements


Top Areas of Business Pain Are Demand/Supply Volatility, Data, Alignment, and Visibility


Those Who Report an Effective S&OP Are MoreLikely to Report Demand/Supply Volatility as a

Top Business Pain

Supply Chain Insights LLC Copyright © 2015, p. 1 Sales and Operations Planning Study Summary Charts...

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