The traditional concepts of sole focus on inventory levels, lower cost of operations and shorter lead times are not necessarily the top design choices. Supply chain resiliency is.
Then Why Spend Money on S&OP Alone? S&OP solution by itself is only half the solution that is needed to plan and execute the plan accurately.
Resiliency of your supply chain implies the ability to withstand unanticipated events, big or small. Your resiliency depends on many factors.
Predictable supply chains, examine the likelihood of events in future and their potential causes using advanced ML algorithms.
Supply chains need to be digitalized to become resilient not to just react and respond. Predicting potential issues and being ready is very different from virtually running around performing what-if this and what-if that!
S&OP technology is a rough modeling of the supply chain that does not take into account the variability of resource availability and delivery of raw materials as well as likelihood of disruptions.
At the start of the pandemic the demand (new patients) for PPEs went up dramatically. There were limited amount of supplies and surge in demand for N95 masks, ventilators, hospital beds etc.
We are at a point to deploy planning systems that are accurate and intelligent enough to more or less run the supply chain autonomously.
With three ingredients, companies can get very close to autonomous supply chain planning or digitalization. Just like an autonomous vehicle.
Model accuracy cannot come from simple S&OP solutions that are now so prolific. S&OP systems by themselves are a rough model of the supply chain.