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How S&OP Drives Agility -- Supply Chain Insights Research Results (April 2012)

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Summary slides of research on how S&OP drives supply chain agility. Conducted by Supply Chain Insights in March-April 2012. …

Summary slides of research on how S&OP drives supply chain agility. Conducted by Supply Chain Insights in March-April 2012.
Objective: Assess the importance of supply chain agility and tactics used to improve agility – and specifically to understand the role of S&OP in driving agility in organizations.

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  • 1. How S&OP Drives Agility Research Results March-April 2012 Supply Chain Insights
  • 2. Key Findings• S&OP landscapes are more complex. The average company has five S&OP processes.• There is a gap in supply chain agility importance and performance.• Companies that are the most mature in S&OP are more agile.• 90% of companies believe that a mature S&OP improves agility.• Only 13% of companies have effectively tied S&OP planning to execution. Supply Chain Insights, LLC © 2012, p. 2
  • 3. Agenda Overview Demographics S&OP ProcessAgility Definition & Goals Agility Performance Supply Chain Insights, LLC © 2012, p. 3
  • 4. Study Overview WHY WHAT• OBJECTIVE: To assess the importance of • Survey topics included: supply chain agility and tactics used to • Supply chain organization definition improve agility and to understand the role of • Agility definition and techniques S&OP in driving agility in organizations. • S&OP process details and impact on agility• HYPOTHESIS: The greater the complexity of the supply chain, the more important it is to have a mature S&OP process. WHEN & HOW WHO• Online interviews were conducted between • 117 business leaders, primarily Managers and March 22 – April 9, 2012. above.• Respondents were recruited via email from • Across over 50 companies in 13+ industry Steelwedge. groups (primarily Food & Beverage, Make to Order Discrete, Consumer Packaged Goods, and High Tech & Electronics). • 62% from Process industries, and 34% from Discrete manufacturers. Supply Chain Insights, LLC © 2012, p. 4
  • 5. Agenda Overview Demographics Agility Definitions S&OP ProcessAgility Performance Supply Chain Insights, LLC © 2012, p. 5
  • 6. Who Was Surveyed? Industry, Company Size & Title62% Process vs. 34% Discrete Supply Chain Insights, LLC © 2012, p. 6
  • 7. Who Was Surveyed?Company Size & Title by Industry Supply Chain Insights, LLC © 2012, p. 7
  • 8. Who Was Surveyed? Companies Included Supply Chain Insights, LLC © 2012, p. 8
  • 9. Who Was Surveyed?Supply Chain Organization Supply Chain Insights, LLC © 2012, p. 9
  • 10. Who Was Surveyed?Supply Chain Complexity Supply Chain Insights, LLC © 2012, p. 10
  • 11. Who Was Surveyed?Supply Chain Complexity Supply Chain Insights, LLC © 2012, p. 11
  • 12. S&OP ProcessExistence & Processes Supply Chain Insights, LLC © 2012, p. 12
  • 13. Agenda Overview DemographicsAgility Definitions S&OP ProcessAgility Performance Supply Chain Insights, LLC © 2012, p. 13
  • 14. What is Agility? Supply Chain Insights, LLC © 2012, p. 14
  • 15. What is Agility?By Supply Chain Leader Supply Chain Insights, LLC © 2012, p. 15
  • 16. What is Agility? By S&OP Goal Supply Chain Insights, LLC © 2012, p. 16
  • 17. Agenda Overview DemographicsAgility Definitions S&OP ProcessAgility Performance Supply Chain Insights, LLC © 2012, p. 17
  • 18. S&OP Evolution Supply Chain Insights, LLC © 2012, p. 18
  • 19. S&OP GoalBy Supply Chain Leader Supply Chain Insights, LLC © 2012, p. 19
  • 20. S&OP Goal By Industry Supply Chain Insights, LLC © 2012, p. 20
  • 21. Importance of S&OP Process for Agility Supply Chain Insights, LLC © 2012, p. 21
  • 22. S&OP Plan Execution Supply Chain Insights, LLC © 2012, p. 22
  • 23. S&OP TechnologyExistence & Functions Supply Chain Insights, LLC © 2012, p. 23
  • 24. Impact of Supply Chain Challenges Supply Chain Insights, LLC © 2012, p. 24
  • 25. Agenda Overview Demographics Agility Definition S&OP ProcessAgility Performance Supply Chain Insights, LLC © 2012, p. 25
  • 26. Agility Importance vs. Performance Supply Chain Insights, LLC © 2012, p. 26
  • 27. Agility Today vs. Past By S&OP Goal Supply Chain Insights, LLC © 2012, p. 27
  • 28. Agility Techniques Supply Chain Insights, LLC © 2012, p. 28
  • 29. Top 5 Agility Techniques By Agility Definition Supply Chain Insights, LLC © 2012, p. 29
  • 30. Agility Challenges & Efforts Supply Chain Insights, LLC © 2012, p. 30
  • 31. Key Findings• S&OP landscapes are more complex. The average company has five S&OP processes.• There is a gap in supply chain agility performance.• Companies that are the most mature in S&OP are more agile.• 90% of companies believe that a mature S&OP improves agility.• Only 13% of companies have effectively tied S&OP planning to execution. Supply Chain Insights, LLC © 2012, p. 31
  • 32. Who is Lora?• Founder of Supply Chain Insights• Partner at Altimeter Group (leader in open research)• 7 years of Management Experience leading Analyst Teams at Gartner and AMR Research• 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA)• 15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble. Supply Chain Insights, LLC © 2012, p. 32
  • 33. Where do you find Lora? Contact Information: loracecere@gmail.com Blog: www.supplychainshaman.com (3500 pageviews/month) Twitter: lcecere 2900 followers. Rated as the top rated supply chain social network user. Linkedin: linkedin.com/pub/lora- cecere/0/196/573 (2300 in the network) Supply Chain Insights, LLC © 2012, p. 33

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