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Predict, Not Just Respond

S&OE is More than a Bridge to Execution

Many supply chain leaders view Sales & Operation Execution (S&OE) as a bridge between S&OP and execution. Although metaphorically it helps to identify the complimentary power of S&OE, however it does not reflect the real value and power of S&OE. We believe that S&OE is a more complete version of S&OP in the evolutionary process. S&OE is closer to execution but it is also more accurate version of S&OP. It is actually a digital twin of the physical supply in its ultimate form.

S&OP is a high level and incomplete version of your supply chain. It helps you to identify long term demand and supply and financial projections. However, given the inaccuracy of the model in terms of actual capacities and supply capabilities, it can only reflect an approximation of financial projections.

S&OE more than execution

On the other hand, by adding more detail to the model, that is if S&OP can handle more detailed data (most cannot), then the model can be more accurate and financial projections are more precise. To this end S&OE is a continuum to S&OP and not a bridge to execution for S&OP. There is really no distinct separation between S&OP and S&OE. The only way that would happen is if you implement them separately instead of transitioning from one to the other by adding more detail. This is why a uniform data model becomes critical to merging planning and execution. In the absence of that, you end up with two separate models of your supply chain with S&OP feeding the wrong information to S&OE; and the latter trying to make some impossible assumptions made earlier possible! That is the reason why S&OP requires so much manual intervention and wasting planners time to make it work! Think of S&OE as a grown-up version and evolved version of S&OP. Thus, when you acquire S&OP you have a vision of where you would be when the time comes for autonomous planning and formation of digital twin. For more information on S&OE click Here.

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