Survey reveals contradictions between S&OP’s positive status and the limited extent to which it is being implemented
International supply chain consultancy Hughenden Consulting and eft, the global leader in business intelligence and C-level networking for the transport, logistics and supply chain industry, today released the results of their first sales and operations planning (S&OP) survey. The survey, which polled 131 global supply chain executives, mostly from large manufacturers, showed promising signs of S&OP delivering tangible benefits and gaining board level sponsorship. However it also revealed an uncomfortable paradox: while companies appear to buy into S&OP and recognise its value, they are only implementing it in a very limited capacity.
On the one hand…
More than 60% of respondents report having achieved tangible benefits
Nearly 80% are receiving some degree of active board level sponsorship
60% said that corporate management had either a significant or complete understanding of S&OP
Nearly 70% thought it was enough to have an S&OP process that consisted solely of one monthly meeting
Only one in five companies use S&OP as a core decision-making process
Only 6% said that decisions are never taken outside of the S&OP process
According to Hugh Williams, managing director, Hughenden Consulting, “It’s obviously very encouraging to see how well S&OP is perceived in organisations and the strong executive sponsorship it seems to enjoy. However, it’s equally alarming to see how many companies have reduced S&OP to a single monthly meeting! This suggests to me that companies genuinely struggle with how to make the cultural changes that take them from ‘good to great’. These invariably call for people to establish new ways of working and thinking, which requires patience, perseverance and strong leadership.”
Learn more about the research
For a more detailed analysis of these findings, Hugh Williams, Managing Director of Hughenden Consulting, is publishing an e-book in partnership with eft that includes a three-part article series on the S&OP survey findings. All the content is available to view here
About Hughenden Consulting
Hughenden Consulting is a specialist international consultancy, delivering supply chain change management by focusing on People. Its consultants are experts in very specific fields of supply chain change management covering areas such as sales forecasting, inventory planning, production planning & scheduling, materials planning and sales & operations planning - all the areas that are recognised as critical contributors to the financial performance of a business. For more information visit www.hughendenconsulting.com
eft is the global leader in business intelligence and C-level networking for the transport, logistics and supply chain industry. We specialize in connecting senior industry executives with their industry peers, and with the crucial information they need to excel in their work. For 15 years, eft has provided the industry with essential business intelligence in the form of news, reports, benchmarking data, white papers and high-level events.