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The Global Challenge
With growth as the number one focus for 2011, firms are gearing up for increasing sales, new products, new brands, and expansion in emerging markets. And to support that, they need a steering mechanism that works to take advantage of richer market opportunities. That means more effective management and investment in technology.
Sales and Operations Planning (S&OP) has been talked about, and written about for over two decades. Best practice pundits have advocated it. And technology providers have answered the call and developed better and better solutions. Yet S&OP practices and the supporting technologies, though a fast-growing segment in the supply chain world, have yet to hit full speed.
We need to get good at this fast, since firms have become more diffused in their business models, as global competition for scarce resources increases and new competitive entrants compete for our customers, and economic volatility impact growth and profit.
The pure structure of corporations today (multi-site/multinational), coupled with the complexity of having multiple trading partners, has led us to redraw the concept of the corporation. Even small organizations depend on partners—distributors, contract manufacturers, design partners—challenging the concept of a cohesive organization.
And the volume of digital interactions (no longer just transactions, but plans, emails, input from the web, and now, social networks) makes understanding and absorbing change extremely vexing.
To tackle these challenges, the S&OP effort was top of the list for focus to gain control of communication and planning.
This article will review six recommendations accumulated from our research2 on who got it right, and tell you how to get your S&OP in high gear—fit for global competition
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