Only 14 percent of companies satisfied with their sales and operations planning process, Aberdeen benchmark survey finds
Boston August 8, 2006 Companies' sales and operations planning (S&OP) processes are failing to improve enterprise-wide performance, and few companies believe that their S&OP process is adequate, according to a new Aberdeen benchmark report of more than 140 companies.
While a majority of responding companies in the Aberdeen research said that S&OP has helped improve forecast accuracy and enhanced cross-departmental communication, most companies have not seen improvements in profit-related metrics like gross margins and customer retention, Aberdeen reported in its new study, "The Technology Strategies for Integrated Business Planning Benchmark Report."
"Current S&OP processes are failing to deliver the financial results expected," said Nari Viswanathan, research director at Aberdeen and author of the report. "Our research shows that best-in-class companies are moving past traditional S&OP toward 'integrated business planning.' This is a technology-enabled process that supports profit optimization and includes all elements of demand, supply, and financial analysis in relation to business goals and strategy."
According to Aberdeen report, companies today have under-invested in supporting S&OP technology:
"Fortunately, companies with best-in-class order fill rates plan to spend more on S&OP technology than their peers (an average of $250,000)," he said. "This indicates that the best-in-class companies see S&OP technology as critical to improving on their already strong corporate performance."
The report goes on to explain how the new integrated business planning approach addresses these issues. The report is available through the Aberdeen Web site at http://www.aberdeen.com/summary/report/benchmark/RA_IntegratedBusinessPlanning_NV_3298.asp.
Additional Articles of Interest
Read about one high-tech manufacturer's quest to deliver near-perfect fill rates across its global service organization in "Managing a Global Supply Chain in a 'Flat' World," from the June/July 2006 issue of Supply & Demand Chain Executive.
Got warehouses? Got manual processes? Read the case for thoughtful automation in the fulfillment center in "Optimization is a Four-letter Word," the Final Thoughts column in the June/July 2006 issue of Supply & Demand Chain Executive.
Boston August 8, 2006 Companies' sales and operations planning (S&OP) processes are failing to improve enterprise-wide performance, and few companies believe that their S&OP process is adequate, according to a new Aberdeen benchmark report of more than 140 companies.
While a majority of responding companies in the Aberdeen research said that S&OP has helped improve forecast accuracy and enhanced cross-departmental communication, most companies have not seen improvements in profit-related metrics like gross margins and customer retention, Aberdeen reported in its new study, "The Technology Strategies for Integrated Business Planning Benchmark Report."
"Current S&OP processes are failing to deliver the financial results expected," said Nari Viswanathan, research director at Aberdeen and author of the report. "Our research shows that best-in-class companies are moving past traditional S&OP toward 'integrated business planning.' This is a technology-enabled process that supports profit optimization and includes all elements of demand, supply, and financial analysis in relation to business goals and strategy."
According to Aberdeen report, companies today have under-invested in supporting S&OP technology:
- More than 40 percent of respondents report they use spreadsheets for their S&OP processes;
- Only 16 percent of companies employ best-of-breed S&OP technology.
"Fortunately, companies with best-in-class order fill rates plan to spend more on S&OP technology than their peers (an average of $250,000)," he said. "This indicates that the best-in-class companies see S&OP technology as critical to improving on their already strong corporate performance."
The report goes on to explain how the new integrated business planning approach addresses these issues. The report is available through the Aberdeen Web site at http://www.aberdeen.com/summary/report/benchmark/RA_IntegratedBusinessPlanning_NV_3298.asp.
Additional Articles of Interest
Read about one high-tech manufacturer's quest to deliver near-perfect fill rates across its global service organization in "Managing a Global Supply Chain in a 'Flat' World," from the June/July 2006 issue of Supply & Demand Chain Executive.
Got warehouses? Got manual processes? Read the case for thoughtful automation in the fulfillment center in "Optimization is a Four-letter Word," the Final Thoughts column in the June/July 2006 issue of Supply & Demand Chain Executive.
- More research from AberdeenGroup.
