S&OP and Agility Study- Summary Charts - May 2013

TM
S&OP and Agility Study:
Summary Charts
May 2013

Supply Chain Insights LLC Copyright © 2013, p. 2
Agenda

Study Overview

Respondents Are Evenly Split
Between Discrete and Process Industries

Respondents are Largely Managers/Directors
and Based in the US or Western Europe

Respondents Work for Companies with an
Average of 17,000 Employees
and $3 Billion in Revenue

Agenda

There Is Not Much Agreement on the
Definition of Supply Chain “Agility”

Recalibration in the Face of Volatility Is
the Top Agility Definition in Both 2012 and 2013

Nearly All Believe It Is Important for a
Supply Chain to be Agile

Perceived Supply Chain Agility Is Notably Low

Compared to 2012, There Is No Difference in
Perceived Supply Chain Agility

Those with More Mature S&OP Goals Report
Greater Supply Chain Agility

While Supply Chain Agility Is Important,
Perceived Agility Is Limited

Three-Quarters Report Being More Agile Than
Five Years Ago; One-Third Report Being
More Agile Than One Year Ago

Compared to One Year Ago,
Discrete Industries Are Reportedly
More Agile Than Process

Those with a More Mature Agility Definition Are
More Likely to Report Increased Agility
vs. Five Years Ago

Top Technique for Improving Agility Is
Better Visibility of Market Events

Better Visibility and Improved Forecasting Are
Top Two Techniques for Improving Agility
in Both 2012 and 2013

More Likely to Work on Better Market Visibility
to Improve Supply Chain Agility

Volunteered Efforts to Improve Agility
(Open-Ended)

(Open-Ended), Continued

Agenda

Four in Five Have a Formal S&OP Process and
There Are 4 S&OP Processes on Average

Discrete and Process Industries Are Equally
Likely to Have a Sales & Operations
Planning (S&OP) Process

Compared to 2012, Respondents Are Somewhat
Less Likely to Report Having a S&OP Process

Matching Demand with Supply Is the
Most Common S&OP Process Goal

Compared to 2012, There Are No Notable
Differences in S&OP Process Goals

More Likely to Report a Mature S&OP Goal

S&OP Process Is Seen as Very Important for
Both Supply Chain Agility and Company Goals

All Respondents Report that S&OP Is Important
for Improving Supply Chain Agility

Nearly All Respondents Report that S&OP Is
Important for Meeting Company Goals

Top S&OP Challenge:
Executive Team Support and Technology

For Less Than One Quarter, the S&OP Process Is
Constrained by the Budget

For Most, the Typical S&OP Process Frequency
Is Monthly, Especially for Process Industries

Compared to 2012, Respondents Are More Likely
to Report Monthly Frequency of S&OP Processes

Those with More S&OP Process Report
Having a Higher Process Frequency

Over Half Execute the S&OP Plan
at Least MOST of the Time

to Monitor and Adjust the S&OP Plan

Nearly Half of Those with S&OP Process
Also Use S&OP Technology

to Report Using S&OP Technology

Greatest Opportunity for S&OP Technology
Lies in What-if Modeling

Those with More Mature S&OP Goals Are More
Likely to Report High Performance of S&OP
Technology in Terms of Alignment Plan

Agenda

Those in Process Industries Rate
Themselves Slightly Higher Than Discrete
on Meeting Corporate Goals

Demand Volatility and the Need to Improve
Profit Margin Have Impacted Companies Most

Compared to 2012, Respondents Are Less Likely
to Report Impact from Supply Prices

Demand and Supply Volatility Is Top Element of
Supply Chain Pain

Operating Margin Is Among Most Tracked
and Used Metric to Meet Corporate Goals

Top Measurements Tracked:
Operating Margin, Cost of Goods Sold,
Days of Inventory & Volume Sold

Top Five Measurements Tracked:
Operating Margin, Shipments, Forecast Accuracy,
Days of Inventory, Market Share

Operating Margin Is Among Most Tracked
and Used to Meet Corporate Goals

More Mature Companies (by Agility Definition
or S&OP Goal) Track Return on Assets
and/or Cash-to-Cash Cycle

Alignment Is Seen as Most Important for
Sales & Operations, Sales & Marketing and
Manufacturing & Procurement

Alignment with Sales Is Among Most Important
for Operations, Marketing and Finance

Most Aligned Teams Are Sales & Marketing,
Manufacturing & Procurement
and Finance & Operations

Alignment with Sales Is Among the Highest
Rated for Marketing and Finance

Those with More Mature S&OP Goals Report
Greater Alignment, Especially CSR & Operations

Greatest Alignment Opportunity:
Sales & Operations

Discrete and Process Agree on Where Alignment
Matters Most; but Process Industries
Rate Many Teams Higher Than Discrete

Those with More Mature Agility Definition
Struggle More with Using Data,
but Less with Talent

“Supply Chain Planning” Is Most Common
Function Reporting Through
Supply Chain Organization

Over Half Report That the Supply Chain
Organization Reports to the
Leader of Operations or Leader of Supply Chain

S&OP and Agility Study- Summary Charts - May 2013

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S&OP and Agility Study- Summary Charts - May 2013