Supply chain agility is an increasingly important concept for businesses that wish to maintain or develop a competitive advantage, but many managers do not actually understand what agility means in regards to their supply chain. Even fewer are aware of the specific areas that they can improve in order to increase the agility of their own supply chain.Read More
Determining the ideal product portfolio is an important component to the success of any Sales and Operations Planning (S&OP) strategy. Many product portfolios are significantly under-optimized, with businesses offering products that have net-negative effects on important metrics like costs, market share, cash flow and profit margins. Others fail to introduce products that would end up improving these same metrics.Read More
While embedding financials is the bedrock for expanding the value from S&OP, adding robust what-if analysis capabilities can unleash its maximum potential, thus delivering true Integrated Business Planning.
What-if analyses allow users to evaluate alternative strategies, policies, and tactics to maximize their revenue, profit, and working capital performance while delivering on service level commitments and properly considering risk and supply chain constraints. Over the past year, we’ve discussed this topic with current and potential customers and partners. We’ve found companies tend to be fairly clear in articulating their business needs. Surprisingly though, S&OP managers have more difficulty articulating the technology capabilities required to deliver on the business need.Read More
This post is the second in a series intended to provide guiding principles for S&OP managers and their partners to help them better understand which best practices are possible through what-if analyses.
As stated earlier in the first post of the series, Strengthening the S&OP Process with What-if Analyses – Demand Shaping, the key underlying requirement for maximizing value capture is the support for multi-dimensional analysis on a forward-looking basis. This multi-dimensional analysis capability allows decision makers to examine a business plan from multiple angles. Given this, I’ll explain how multi-dimensional analyses can be applied to Product Mix, increasing decision options for senior managers.Read More