No Match Found
For companies up and down the consumer packaged goods (CPG) value chain, now is the time to take a fresh look at sales and operations planning (S&OP) processes. Although S&OP is a well-established, proven tool in the CPG industry, nearly a quarter of companies still do not use it, and many others could be realizing greater benefits than they do today from their S&OP efforts. Increased complexity in the value chain is putting pressure even on well-run S&OP processes, making accurate forecasting and planning more difficult. Strategy& advises CPG industry participants to keep in mind seven key parameters when refreshing their S&OP approach: Match objectives to processes; adopt an integrated value chain perspective; reflect tailored business streams in policies; leverage technology; get closer to demand; account for unpredictable elements in new product and promotion cycles; and align to harmonized key performance indicators.
A fresh look at S&OP can be of equal benefit to companies that are implementing it for the first time and companies that have had it in place long enough for it to get stale. S&OP is more than a series of policies that support a highly functional tool. Rather, it allows companies to define and implement their own strategies and then to take those strategies beyond the company walls to share them with strategic partners. S&OP therefore needs to be frequently refreshed based on the changing realities of customer demand and value chain structure. With complexity increasing, companies need to build advanced capabilities to ensure that ongoing critical trade-offs can be made to efficiently and optimally drive growth and profit across the value chain (“S&OP Success Stories”).
S&OP success stories