What Is the Value Proposition of Sales and Operations Planning? 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

Sales & Operations Planning Supply Chain Agility

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 or Not


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

Sales & Operations Planning

Supply Chain Agility 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

Sales & Operations Planning

Supply Chain Agility

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


Those Who Report an Effective S&OP Also Rate ThemselvesMore Highly on Being Agile, Pull, Outside-in and Strategic


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