Disparate S&OP processes that miss the planning mark
Supply chain leaders know that accurate sales and operations planning (S&OP) is the bedrock of efficiency and agility. But traditional supply chain planning processes often struggle to cope with the realities of today's complex business environment. Once-standard supply and demand forecasts don't reflect the growing trends of personalization, and the huge shift in demand patterns caused by COVID-19 has made historic data obsolete.
Typical planning challenges include inaccurate forecasts from multiple sets of books, limited visibility into demand drivers, and a growing number of inputs containing detailed intelligence but no systematic way to capture it.
Complicating matters further are the silos that come with running a global business. It's hard to achieve planning maturity across the board when every business unit in every geography has its own supply and demand cadence. Not to mention when different locations use their own metrics and amass data in a way that doesn't benefit the whole business.
These problems multiply when you don't use digital to best advantage. You're missing opportunities for all-encompassing strategies that incorporate and harmonize planning across supply, demand, execution, and sales.
All these issues make it hard to develop and execute a sound S&OP plan. They obscure the big picture your company needs to understand vital drivers of profit and growth. If you're still forecasting supply and demand manually, for example, you won't get accurate results. If you aren't gaining insights, solving problems, or creating scenarios with data, you can't course correct – or grab opportunities – by making prompt decisions. And you can't adjust prices quickly in response to the market, to risks, to service glitches, or to inventory that has aged out.