S&OP 2015 Preliminary Summary Charts

Supply Chain Insights LLC Copyright © 2015, p. 1

Sales and Operations Planning Study

Preliminary Summary ChartsJanuary 6 – May 1, 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


Companies Have 4 Distinct S&OP Processes on Average


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


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 an S&OP Process Is to Match Demand with Supply


Less Than Half Consider Their Primary S&OP Processto Balance the “S” and “OP”


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


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


Spreadsheets Are the Most Common Technology Used andSAP Is Most Common Product Used


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


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


Managing Opportunities/Risk, Running What-if Analyses, and Using Technologies Show Greatest

Performance vs. Importance Gaps


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


Vast Majority Believe Their Primary S&OP Process Is Important for Improving 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 30% Lower Than Importance


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


Agenda

Study Overview



Company Performance


Top Supply Chain Descriptors: Many, Room for Improvement, Reactive,

Tactical, and Cautious


Top Supply Chain Strengths: Many, Controlled, and Aligned


Sales & Marketing and Manufacturing & ProcurementAre Most Important to Be Aligned and Most Aligned


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

New Product Development & Distribution


Over Three-Quarters Report That Their Company IsDoing Well at 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, EBITDA, Cost of Goods Sold,

Forecast Accuracy, and Days of Receivables


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

S&OP 2015 Preliminary Summary Charts

Documents

Transcript of S&OP 2015 Preliminary Summary Charts