Trends in Sales & Operations Planning - E2open€¦ · Trends in Sales & Operations Planning...
Transcript of Trends in Sales & Operations Planning - E2open€¦ · Trends in Sales & Operations Planning...
65%intend to improve timely
visibility into demandand supply changes
58%plan to handle data volume,
velocity and complexity better
43%aim to invest in enabling
technology such as demand sensing, supply planning or
inventory optimization applications
60%For most companies,
gaining access to better &more timely data fromall sources is critical
Adding Capabilities Setting Goals
52%Executive dashboards &analytics are high on the
list for 52% of respondents
50%Half the respondents are
considering adding demandsensing capabilities to
improve forecast accuracy
E2OPEN.com
Conducted in 2017, the S&OP Planning Trends survey polled supply chain and operations decision-makers at the VP, director and manager levels from companies ranging from smaller firms to those with revenue exceeding $1.5 billion.
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Trends in Sales &Operations Planning
INFOGRAPHIC
Survey Highlights
Accurate demand forecasts, decision-grade data, what-if simulations and
supply chain prof itability are just a few characteristics of mature sales
and operations planning (S&OP) processes. Yet S&OP suffers in many
areas. Participation from critical functions like marketing and product
engineering is lacking, and channel partners are poorly represented.
Operational plans fail to close the loop by feeding back into strategic plans,
and too many f irms are shackled by error-prone, spreadsheet-based
manual processes. A large number of companies agree on the value of
taking action and have ambitious goals for improvement.
The following highlights from the S&OP Planning Trends survey provide
insight into the state of S&OP processes and planned improvements
from senior-level supply chain and operations executives across a
variety of industries.
Participants in the S&OP Process
Suppliers
External Stakeholder Participation
43%
Customers
37%
ContractManufacturers
28%
Distributors
25%Internal
Stakeholders
Internal
Stakeholder
Participation
in S&OP
Sales:
77%participate
Supplyplanning &materials
management:
73%participate
Demandplanning &
forecasting:
65%participate
46%report that S&OP helpsthem & their externalpartners respond tochange with agility
Inaccurate Demand Forecasts
70%Forecasting is a foundational
capability, but mostreported poor accuracy.
Time-ConsumingManual Processes
53%The majority struggle here,
likely because they don’t usepurpose-built S&OP software.
83%A vast majority ofrespondents think improvingthe design of their S&OPprocess is important.
Finance:
61%participate
���
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� � �Product planning
& engineering:
44%participate
Marketing:Only
49%participate
Procurement:Only
48%participate
Sales and marketing should influence product planning and vice versa, yet
participation from marketing, procurement, and product planning and
engineering is lacking. Involving external functions shows process
maturity, but less than 45% report any external stakeholder participation.
S&OP enables most companies (73%) to align demand plans with capacity
and supply. Yet few report that S&OP helps them and their partners
respond to demand and supply changes with agility (46%) or helps the
end-to-end supply chain run profitably (41%).
Leveraging S&OP Data
Why S&OP is Importantfor the Supply Chain
Challenges
Who Plans to Move Forward?Importance of Improving S&OP ProcessDesign to Better Support the Supply Chain
The Changing Landscape of S&OP
Fail to leveragethis data source45%
Customer relationship management (CRM) pipeline:
51%Very Important
17%Not Very
Important
32%SomewhatImportant
Get Started Today!
73%f ind that S&OP aligns
their demand plan withavailable capacity & supply,
long and short term
41%say S&OP consistently
ensures that the supplychain runs profitably