Aberdeen executive sales and operations planning maturity levels and key solution criterion (may 2011) (1)
1. May, 2011
Executive Sales and Operations Planning
Maturity Levels and Key Solution Criterion
Sales and Operations Planning (S&OP) is the key integrated process that the Research Brief
supply chain organization (specifically the Chief Supply Chain Officer) can Aberdeen’s Research Briefs
leverage to achieve visibility and transformation across the entire provide a detailed exploration
organization and throughout the value chain. There are several stages in the of a key finding from a primary
maturity of S&OP processes, and associated technology enablers that can research study, including key
help companies reach them. In addition industry specific differences abound performance indicators, Best-
that complicate the process of gaining success with respect to S&OP. In this in-Class insight, and vendor
Research Brief, we will explore the current business challenges faced by insight.
companies, the priority allocated to S&OP, the maturity levels associated
with S&OP and the role of technology enablers.
Business Context
Thus far, 2011 has been an extremely challenging year with unstable
economic conditions, awful and unexpected catastrophic events, and
continued political unrest. As can be seen from Figure 1, the top pressures
that companies are facing today (chief supply chain officer survey, January "Our top pressure, due to the
2011) include rising costs and the growing complexity of global operations. economy, as been mostly
The goal of S&OP is to maximize the profitability of the business for which reducing costs within the
cost control and reduction is a key driver. organization in order to stay
competitive within our
Figure 1: Top Pressures Facing Companies with respect to Supply industry. We have researched
alternate suppliers and left
Chain Management from 196 enterprises some open employment
positions empty in an attempt
Rising supply chain management to lower our overall costs.
costs
50% While this was difficult at first,
we have managed to survive
Growing complexity of global and now have multiple
operations
36% employees cross-trained in
various departments."
Escalating demand for service from ~ Supply Chain Planner at Mid-
31%
customers size Health Care Manufacturer
Increased demand volatility 28%
Increased supply chain risk exposure 13%
0% 20% 40% 60%
Percent of Respondents
Source: Aberdeen Group, January 2011
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