From the course: Supply Chain Foundations: Sales and Operations Planning (S&OP)
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S&OP cycle overview
From the course: Supply Chain Foundations: Sales and Operations Planning (S&OP)
S&OP cycle overview
- The Institute of Business Forecasting and Planning and Oliver Wight found that companies with a strong S&OP culture realize anywhere from a 1% to 30% increase in revenue, a 25% increase in gross margin, 25% improvement in cash flow and working capital, and up to a 49% improvement in asset utilization. These are powerful stats to use when you're looking to gain support and engagement for your S&OP cycle. Let's pull out the list you created when we talked about stakeholders. You will need it for the rest of this chapter. Now that we have identified who should be involved in your S&OP process, what data we need, and where it lives, it's time to actually execute. Ideally, we would like to complete the S&OP cycle every month based on a four-week month where there is one meeting every week. This may not be possible if you're just starting out. I have seen S&OP cycles take as many as three months to complete when teams have low data governance maturity, a lack of integration between…
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