May, 2011 Executive Sales and Operations Planning Maturity Levels and Key Solution CriterionSales and Operations Planning (S&OP) is the key integrated process that the Research Briefsupply chain organization (specifically the Chief Supply Chain Officer) can Aberdeen’s Research Briefsleverage to achieve visibility and transformation across the entire provide a detailed explorationorganization and throughout the value chain. There are several stages in the of a key finding from a primarymaturity of S&OP processes, and associated technology enablers that can research study, including keyhelp companies reach them. In addition industry specific differences abound performance indicators, Best-that complicate the process of gaining success with respect to S&OP. In this in-Class insight, and vendorResearch Brief, we will explore the current business challenges faced by insight.companies, the priority allocated to S&OP, the maturity levels associatedwith S&OP and the role of technology enablers.Business ContextThus far, 2011 has been an extremely challenging year with unstableeconomic conditions, awful and unexpected catastrophic events, andcontinued political unrest. As can be seen from Figure 1, the top pressuresthat companies are facing today (chief supply chain officer survey, January "Our top pressure, due to the2011) include rising costs and the growing complexity of global operations. economy, as been mostlyThe goal of S&OP is to maximize the profitability of the business for which reducing costs within thecost control and reduction is a key driver. organization in order to stay competitive within ourFigure 1: Top Pressures Facing Companies with respect to Supply industry. We have researched alternate suppliers and leftChain Management from 196 enterprises some open employment positions empty in an attempt Rising supply chain management to lower our overall costs. costs 50% While this was difficult at first, we have managed to survive Growing complexity of global and now have multiple operations 36% employees cross-trained in various departments." Escalating demand for service from ~ Supply Chain Planner at Mid- 31% customers size Health Care Manufacturer Increased demand volatility 28%Increased supply chain risk exposure 13% 0% 20% 40% 60% Percent of Respondents Source: Aberdeen Group, January 2011This document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologies provide for objective fact-based research andrepresent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc.and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.