S&OP and Demand Management 2016 Summary Charts - 16 AUG 2016

Supply Chain Insights LLC Copyright © 2016, p. 1

S&OP and Demand Management Study

Summary ChartsFebruary 12 – May 26, 2016


Agenda

Study Overview Decision-Making Solutions

Sales & Operations Planning

Demand Management

New Solution

Inventory and ERP


Study Overview


Most Respondents Are Manufacturers and Are Split Between Process and Discrete Industries


Respondents Are Evenly Split by Process vs. Discrete Industries


Most Work in Supply Chain; Most Are in Manager-DirectorLevels; Over Half Are Based in North America


All Respondents Were Required to Be At Least “A Little” Familiar with Either S&OP and/or Demand Management Processes


About Half Consider Their Company to Be in the Middle Relative to Others WhenIt Comes to Trying New Technologies


Those with Lower Revenue or Based in North America Are More Likely to Be Among Last to Try New Technology


Those Who Use SAP for S&OP Are More Likely to BeAmong First to Try New Technology


Those in the Middle Relative to Others When TryingNew Technology Are More Likely to Have Higher

Revenue and More ERP Instances


Agenda

Study Overview

Decision-Making Solutions Sales & Operations Planning

Demand Management

New Solution

Inventory and ERP


Decision-Making Solutions


For Both S&OP and Demand Management, the ProcessIs More Important Than It Is Effective


Those Rating Their Processes as Less Effective Are MoreLikely to Be in a Process Industry


Most Important Factors in Choosing Decision-MakingSoftware Include Ease of Integration, Ease of Working with

Company, Financial Viability, and Ease of Use


Those Rating Their S&OP Process as More Effective CareMore About Depth of Insights and Implementation Speed


Those Who Classify Themselves as Being in the Middlefor Trying New Technology Care More about Global Reach

When Choosing Decision-Making Software


S&OP and Demand Management Processes Mirror EachOther in Terms of Performing Best on Seeing the Past and

Worst on Seeing the Future


Agenda

Study Overview


Sales & Operations Planning Demand Management

New Solution

Inventory and ERP


S&OP Definition


Almost All Consider S&OP Processes to Be Important;Just Over Half Consider Them to Be Effective


Top S&OP Challenges Include Being Tactical and Reactive;Strengths Are Having Consistent Metrics and

Being Integrated


Those Who Describe Their S&OP as “Reactive” AreMore Likely to Be Slower to Try New Technology

Yet More Likely to Buy New Decision-Making Solution


Those Who Do Not Use SAP Are More Likely to ConsiderTheir S&OP Processes to Be Disparate and Proactive


S&OP Processes Perform Best on Seeing the Past andWorst on Seeing the Future


Those Who Rate Their S&OP Lower on Getting InsightfulData and Collaborating on Data Also Rate Themselves

as Slower to Try New Technology


S&OP Satisfaction Is Highest with Planners and Lowest with Executives


Microsoft Office Tools Are Both the Most Familiar andMost Used S&OP Technology


On Average, Three S&OP Technologies Are Used


Those in Process Industries Are More Likely Than Othersto Use SAP and Less Likely to Use Home-Grown Options

for Their S&OP Technology


Top Three S&OP Technologies Are Consistent AcrossThose Who Rate Process as Effective vs. Not


Those Using SAP for S&OP Are More Likely to BeManufacturers and in the Process Industry


The Most Important Technologies Include Microsoft OfficeTools, SAP ERP, and SAP APO


Sixty Percent Consider Their Most Important S&OP Technology to Be Effective


Most Important S&OP Technology Performs Best on Global Reach and IT Standardization


Most Important S&OP Technology Has Greatest Performance Gap on Price, Ease of Integration,

and Ease of Working with the Company


S&OP Technology Areas in Need of Work:Price, Depth of Insights, and Implementation Speed


Most Important S&OP Technology Performs Best onReach and IT Standardization Regardless of Overall

Effectiveness


Agenda

Study Overview



Demand Management New Solution

Inventory and ERP


Demand Management Definition


Those with Demand Management Processes HaveFive Processes on Average


Nearly All Consider Demand Management Processes to BeImportant, but Less Than Half Consider Them Effective


Those Based in North America Are More Likely to Rate TheirDemand Management Processes as Effective


S&OP Processes Perform Best on Seeing the Past andWorst on Seeing the Future


Those Who Rate Their Demand Management Process Lower on Getting Insightful Data or Collaborating with Data Are

More Likely to Purchase the New Decision-Making Solution


Over Half Report That Forecast Error Has DECREASEDCompared to Five Years Ago


Agenda

Study Overview



Demand Management

New Solution Inventory and ERP


Nearly One-Quarter Are at Least Somewhat Likely to Purchase Proposed Decision-Making Solution


Interest in the Proposed Solution Is Greater Among Those in Process Industries and Those with Higher Revenue


There Is No Difference in Likelihood to Purchase ProposedSolution by Current Process Effectiveness


There Is No Difference in Likelihood to Purchase ProposedSolution by Current Use of SAP for S&OP


Those Who Consider Their Company “In the Middle” in Termsof Trying New Technology Are More Interested in

the New Decision-Making Solution


Those Likely to Purchase the Potential New Solution Rate Ease of Integration, Speed of Implementation,

and Industry Leadership as More Important


Agenda

Study Overview



Demand Management

New Solution

Inventory and ERP


Top Inventory Management Challenges Are Being Reactive and Difficulty Managing Slow and Obsolete Inventory


Almost One-Third Consider Their Product Portfolio andRevenue / Margin Effectiveness Planning to Be Aligned


Over 80% Have at Least One ERP System;Have Ten Systems on Average


SAP Is the Primary ERP Provider for 60% of Those with ERP Systems

S&OP and Demand Management 2016 Summary Charts - 16 AUG 2016

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