The first order of business for market leaders is to establish effective operations in order to execute strategy and provide superior customer value. Outperforming the competition requires alignment across all functions and dimensions.
Most companies have established programs to improve alignment. While known by various names, including: Sales & Operations Planning (S&OP), Executive S&OP, Sales, Inventory and Operations Planning (SIOP) and Integrated Business Planning (IBP), their primary purpose is improved alignment through cross-functional collaboration and improved information flow.
It’s not difficult to find examples of program success. But far too many companies have only realized a small portion of their program’s potential. The primary reason is the scope of the program and therefore the scope of alignment. Successful programs have aligned all functional areas – product, sales, marketing, supply operations and finance - so that each is working with the best information. Programs that have not lived up to their potential are likely to be limited in scope, just one or two functional areas. Many do not have active participation outside of supply operations.
The consequences of misaligned planning can be seen in common performance metrics and each reflect the misalignment between specific plans.
Revenue Shortfall Low Gross Margin Low Customer Service Levels
Low Forecast Accuracy High Cash Requirements High Distressed Inventory
Valizant’s S&OP Upgrade helps organizations realize full value from their aligned planning program by extending it's scope for maximum alignment and effective operations. Learn how Valizant products and services accelerate your journey.