S&OP is good, but why not great!

If you are reading this, you are very familiar with S&OP solutions and their benefits. You might even be a user of S&OP and recently implemented one. Then the questions to ask are:

How accurate are your Sales and Operations Planning S&OP generated supply plans? Is it accurate enough to be executed without constant user modifications?

  • Do you have the ability to truly optimize your sourcing choices or even manufacturing sites alternatives?
  • Do you have order level pegging capability?
  • Are you modeling the capacities in buckets just like a spreadsheet technique of the ’60s?
  • Are you assuming static and fixed lead-times for your manufacturing?
  • Are you defining bottleneck work centers statically rather than the system being able to identify them dynamically based on product mix?
  • Does your S&OP provide a release production plan that is executable by the sites?
  • Can you trace final demand orders all the way back to suppliers and their attributes?
  • Can you specify alternative methods of production and sourcing based on cost and optimization?
  • Do your long-term plans and short-term execution plans sync?
  • Does your plan perform inventory optimization at different stages of the supply chain?
  • Does the system give you accurate ATP/CTP in sub-seconds?

If you answered “NO” to any of the above then you might as well use a spreadsheet for your supply-side planning, because that is exactly what you will pay for to have an S&OP system that does not have execution capability or S&OE (Sales and Operations Execution as defined by Gartner). We firmly believe that A good plan is one that can be executed, otherwise, it is wishful thinking and a waste of time. Plan accuracy depends on the ability of the system to model your supply chain environment realistically not like a spreadsheet, volume based in buckets! To learn more about how Adexa enhances S&OP with S&OE, click Here

“Sales and operations execution (S&OE) process is a vital component in a manufacturing company’s ability to execute its business plans. S&OE provides much-needed visibility to supply chain, finance and business leaders into how the plans and assumptions made during midterm planning are being realized and supports their informed decision making when it is needed.”

Gartner