Improvements in Sales and Operations Planning Necessary to Meet Global Challenges

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BearingPoint’s new S&OP survey shows importance of a mature planning process and reveals current weaknesses

BearingPoint Red Paper Sales & Operations Planning

As global businesses face increasing pressure across all their planning and resources, Sales & Operations Planning provides the foundation for successfully coping with the dynamic and continually changing future market environments.

Management and technology consultancy BearingPoint (http://www.bearingpoint.com) launched a global study detailing the scale of the challenges facing global businesses today and the importance of Sales & Operations Planning (S&OP) to meet those challenges.

Yvon Donval, firm-wide SCM team Partner at BearingPoint, comments: “As global businesses face increasing pressure across all their planning and resources, Sales & Operations Planning provides the foundation for successfully coping with the dynamic and continually changing future market environments. Getting it right can directly create competitive advantage.”

The study focused specifically on process industries headquartered predominantly in Western Europe, and discovered that although the concept of S&OP is not a new one, 72 percent of the responding companies have only just started working with S&OP in the last five years. The main findings of the survey focused on the current maturity of this process, meaning how efficiently each company could deliver effective results by organizing and aligning its people to provide decisions based on accurate planning data. The biggest weaknesses in the S&OP process were identified as being the supporting IT systems and a lack of S&OP integration to risk management to the Finance function as well as to Supply Chain partners. In addition, top-management sponsorship and endorsement of the process was considered to be comparatively low. Despite the fact that more than half of the respondents stated that they are somewhat content with the organization and execution of the S&OP meetings, there appears to be too broad a focus in many meetings, leading to less acceptance at an executive level.

The survey finds four areas where S&OP process improvements could be made:

  • Central process governance for effective process implementation and correct execution
  • Network collaboration across the company and across borders
  • Measurement and transparency to aid control over the business and its processes
  • IT support systems that can increase systems integration, levels of automation and speed

Matthias Görtzen, Partner at BearingPoint and responsible for the study, comments: “Our study has shown that although Sales and Operations Planning is a core business process that has a significant impact on the value drivers of a business, there is still much work to be done to tighten up these processes. In addition to improvements in financial figures and customer satisfaction, S&OP helps to address many of the upcoming challenges companies are facing, and at a time of so much change, that is vital for creating business success.”

To download a copy of the complete study visit http://www.bearingpoint.com/en-uk/7-7071/

About BearingPoint
BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and organizations. Our 3500 people, together with our global consulting network serve clients in more than 70 countries and engage with them for measurable results and long-lasting success.

For more information, please visit: http://www.bearingpoint.com

Press Contact
BearingPoint GmbH
Alexander Bock
Manager Communications
Tel. +49 89 540338029
Mailto: alexander.bock(at)bearingpoint(dot)com

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Alexander Bock

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