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Effective URL: https://www.gartner.com/smarterwithgartner/5-ways-to-mature-sales-and-operations-planning-sop-in-supply-chain?msID=c53cc...
Submission: On November 17 via manual from IN — Scanned from DE
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<li>
<a href="javascript:void(0)" data-value="ANGOLA">Angola</a>
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<li>
<a href="javascript:void(0)" data-value="ANGUILLA">Anguilla</a>
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<li>
<a href="javascript:void(0)" data-value="ANTARCTICA">Antarctica</a>
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<li>
<a href="javascript:void(0)" data-value="ARMENIA">Armenia</a>
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<li>
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<li>
<a href="javascript:void(0)" data-value="AUSTRIA">Austria</a>
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<li>
<a href="javascript:void(0)" data-value="AZERBAIJAN">Azerbaijan</a>
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<li>
<a href="javascript:void(0)" data-value="BAHAMAS">Bahamas</a>
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<li>
<a href="javascript:void(0)" data-value="BAHRAIN">Bahrain</a>
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<li>
<a href="javascript:void(0)" data-value="BANGLADESH">Bangladesh</a>
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<li>
<a href="javascript:void(0)" data-value="BARBADOS">Barbados</a>
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<li>
<a href="javascript:void(0)" data-value="BELARUS">Belarus</a>
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<li>
<a href="javascript:void(0)" data-value="BELGIUM">Belgium</a>
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<li>
<a href="javascript:void(0)" data-value="BELIZE">Belize</a>
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<li>
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<li>
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<li>
<a href="javascript:void(0)" data-value="BHUTAN">Bhutan</a>
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<a href="javascript:void(0)" data-value="CONGO">Congo</a>
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<a href="javascript:void(0)" data-value="CONGO, THE DEMOCRATIC REPUBLIC OF THE">Congo, The Democratic Republic of the</a>
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<a href="javascript:void(0)" data-value="CÔTE D'IVOIRE">Côte D'Ivoire</a>
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<li>
<a href="javascript:void(0)" data-value="FRENCH SOUTHERN TERRITORIES">French Southern Territories</a>
</li>
<li>
<a href="javascript:void(0)" data-value="GABON">Gabon</a>
</li>
<li>
<a href="javascript:void(0)" data-value="GAMBIA">Gambia</a>
</li>
<li>
<a href="javascript:void(0)" data-value="GEORGIA">Georgia</a>
</li>
<li>
<a href="javascript:void(0)" data-value="GERMANY">Germany</a>
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<li>
<a href="javascript:void(0)" data-value="GHANA">Ghana</a>
</li>
<li>
<a href="javascript:void(0)" data-value="GIBRALTAR">Gibraltar</a>
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<li>
<a href="javascript:void(0)" data-value="GREECE">Greece</a>
</li>
<li>
<a href="javascript:void(0)" data-value="GREENLAND">Greenland</a>
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<li>
<a href="javascript:void(0)" data-value="GRENADA">Grenada</a>
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<li>
<a href="javascript:void(0)" data-value="GUADELOUPE">Guadeloupe</a>
</li>
<li>
<a href="javascript:void(0)" data-value="GUAM">Guam</a>
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<li>
<a href="javascript:void(0)" data-value="GUATEMALA">Guatemala</a>
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<li>
<a href="javascript:void(0)" data-value="GUERNSEY">Guernsey</a>
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<li>
<a href="javascript:void(0)" data-value="GUINEA">Guinea</a>
</li>
<li>
<a href="javascript:void(0)" data-value="GUINEA-BISSAU">Guinea-Bissau</a>
</li>
<li>
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<li>
<a href="javascript:void(0)" data-value="HAITI">Haiti</a>
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<li>
<a href="javascript:void(0)" data-value="HEARD/MCDONALD ISLS.">Heard/McDonald Isls.</a>
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<li>
<a href="javascript:void(0)" data-value="HONG KONG">Hong Kong</a>
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<li>
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<li>
<a href="javascript:void(0)" data-value="ICELAND">Iceland</a>
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<li>
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<li>
<a href="javascript:void(0)" data-value="IRAN, ISLAMIC REPUBLIC OF">Iran, Islamic Republic of</a>
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<li>
<a href="javascript:void(0)" data-value="IRAQ">Iraq</a>
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<a href="javascript:void(0)" data-value="IRELAND">Ireland</a>
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<a href="javascript:void(0)" data-value="ISLE OF MAN">Isle of Man</a>
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<a href="javascript:void(0)" data-value="ISRAEL">Israel</a>
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<li>
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<a href="javascript:void(0)" data-value="JAPAN">Japan</a>
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<li>
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<li>
<a href="javascript:void(0)" data-value="KOREA, REPUBLIC OF">Korea, Republic of</a>
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<li>
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<a href="javascript:void(0)" data-value="LAO PEOPLE'S DEMOCRATIC REPUBLIC">Lao People's Democratic Republic</a>
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<li>
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<li>
<a href="javascript:void(0)" data-value="LEBANON">Lebanon</a>
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<li>
<a href="javascript:void(0)" data-value="LESOTHO">Lesotho</a>
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<li>
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<li>
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<li>
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<li>
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<li>
<a href="javascript:void(0)" data-value="MACEDONIA, THE FORMER YUGOSLAV REPUBLIC OF">Macedonia, The Former Yugoslav Republic of</a>
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<li>
<a href="javascript:void(0)" data-value="MADAGASCAR">Madagascar</a>
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<li>
<a href="javascript:void(0)" data-value="MALAWI">Malawi</a>
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<li>
<a href="javascript:void(0)" data-value="MALAYSIA">Malaysia</a>
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<li>
<a href="javascript:void(0)" data-value="MALDIVES">Maldives</a>
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<li>
<a href="javascript:void(0)" data-value="MALI">Mali</a>
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<li>
<a href="javascript:void(0)" data-value="MALTA">Malta</a>
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<li>
<a href="javascript:void(0)" data-value="MARSHALL ISLANDS">Marshall Islands</a>
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<li>
<a href="javascript:void(0)" data-value="MARTINIQUE">Martinique</a>
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<li>
<a href="javascript:void(0)" data-value="MAURITANIA">Mauritania</a>
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<li>
<a href="javascript:void(0)" data-value="MAURITIUS">Mauritius</a>
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<li>
<a href="javascript:void(0)" data-value="MAYOTTE">Mayotte</a>
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<li>
<a href="javascript:void(0)" data-value="MEXICO">Mexico</a>
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<li>
<a href="javascript:void(0)" data-value="MICRONESIA, FEDERATED STATES OF">Micronesia, Federated States of</a>
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<li>
<a href="javascript:void(0)" data-value="MOLDOVA, REPUBLIC OF">Moldova, Republic of</a>
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<li>
<a href="javascript:void(0)" data-value="MONACO">Monaco</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MONGOLIA">Mongolia</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MONTENEGRO">Montenegro</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MONTSERRAT">Montserrat</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MOROCCO">Morocco</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MOZAMBIQUE">Mozambique</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MYANMAR">Myanmar</a>
</li>
<li>
<a href="javascript:void(0)" data-value="NAMIBIA">Namibia</a>
</li>
<li>
<a href="javascript:void(0)" data-value="NAURU">Nauru</a>
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<li>
<a href="javascript:void(0)" data-value="NEPAL">Nepal</a>
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<li>
<a href="javascript:void(0)" data-value="NETHERLANDS">Netherlands</a>
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<li>
<a href="javascript:void(0)" data-value="NETHERLANDS ANTILLES">Netherlands Antilles</a>
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<li>
<a href="javascript:void(0)" data-value="NEW CALEDONIA">New Caledonia</a>
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<li>
<a href="javascript:void(0)" data-value="NEW ZEALAND">New Zealand</a>
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<li>
<a href="javascript:void(0)" data-value="NICARAGUA">Nicaragua</a>
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<li>
<a href="javascript:void(0)" data-value="NIGER">Niger</a>
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<li>
<a href="javascript:void(0)" data-value="NIGERIA">Nigeria</a>
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<li>
<a href="javascript:void(0)" data-value="NIUE">Niue</a>
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<li>
<a href="javascript:void(0)" data-value="NORFOLK ISLAND">Norfolk Island</a>
</li>
<li>
<a href="javascript:void(0)" data-value="NORTHERN MARIANA ISLANDS">Northern Mariana Islands</a>
</li>
<li>
<a href="javascript:void(0)" data-value="NORWAY">Norway</a>
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<li>
<a href="javascript:void(0)" data-value="OMAN">Oman</a>
</li>
<li>
<a href="javascript:void(0)" data-value="PAKISTAN">Pakistan</a>
</li>
<li>
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My Account Conferences About Newsroom Careers * Insights Featured * All Insights * New Topic Guides * Gartner Business Quarterly * Strategic Planning * Leadership Vision * Recession Guidance * Future of Work Reinvented * Sustainable Business Strategy * Diversity, Equity and Inclusion By Function * Audit & Risk * Customer Service & Support * Cybersecurity * Data & Analytics * Finance * Human Resources * Information Technology * Legal & Compliance * Marketing & Communications * Product * R&D & Corporate Strategy * Sales * Supply Chain By Industry * Education * Energy & Utilities * Financial Services * Government & Public Sector * Healthcare * High Tech & Telecom * Investment Services * Manufacturing * Retail Expert Guidance Tools Overview * Tools to Make Smarter, Faster Decisions Featured Tools * BuySmart: Buy Technology with Confidence * Critical Capabilities: Analyze Products & Services * Digital IQ: Power of My Brand Positioning * Hype Cycle: Measure Technology Lifecycle * Magic Quadrant: Market Analysis of Competitive Players * Product Decisions: Power Your Product Strategy Templates & Frameworks * Benchmarking: Best in Class Diagnostics * Cost Optimization: Drive Growth and Efficiency * Strategic Planning: Turn Strategy into Action Connect with Peers Overview * Connect with Peers on Your Mission-Critical Priorities Conferences * All Conferences * Asia/Pacific and Japan * Europe, Middle East and Africa * North America * Virtual Communities * Peer Insights: Guide Decisions with Peer-Driven Insights * Evanta: Connecting C-Level Executives Conferences About Newsroom Careers * Become a Client or call +498938035421 * Supply Chain * Roles * CSCO: Chief Supply Chain Officer * Supply Chain Customer Fulfillment & Collaboration * Digital Supply Chain Operations and Technology Solutions * Supply Chain Logistics Management and Leadership Strategy * Supply Chain Manufacturing Operations & Strategy * Supply Chain Planning & Optimization * Supply Chain Quality Management * Supply Chain Sourcing and Procurement Leaders * Experts * Research & Tools * All Research * Future of Supply Chain * Gartner Supply Chain Top 25 * Gartner Power of the Profession Awards * BuySmart * Cost Optimization * Executive Reports * Gartner Healthcare Supply Chain Top 25 * Gartner Supply Chain Top 25 * Insights * Trending Topics * Beyond Supply Chain Blog * Power of the Profession Blog * Global CSCO Community * Events * Live Forums * Webinars * Client Success Stories * Supply Chain * Roles * Global CSCO Community * CSCO: Chief Supply Chain Officer * Supply Chain Customer Fulfillment & Collaboration * Digital Supply Chain Operations and Technology Solutions * Supply Chain Logistics Management and Leadership Strategy * Supply Chain Manufacturing Operations & Strategy * Supply Chain Planning & Optimization * Supply Chain Quality Management * Supply Chain Sourcing and Procurement Leaders * Experts * Research Analysts * Executive Advisory Board * Research & Tools * All Research * Future of Supply Chain * Gartner Supply Chain Top 25 * Gartner Power of the Profession Awards * Supply Chain Benchmarking * Supply Chain Strategic Planning * BuySmart * Cost Optimization * Executive Reports * Insights * Trending Topics * Beyond Supply Chain Blog * Power of the Profession Blog * Smarter with Gartner * Events * Conferences * Webinars * Client Success Stories * Become a Client or call +498938035421 * Gartner client? Log in for personalized search results. INSIGHTS / SUPPLY CHAIN / ARTICLE 5 WAYS TO MATURE SALES AND OPERATIONS PLANNING (S&OP) IN SUPPLY CHAIN Menu * * Supply Chain * Roles * Overview * Global CSCO Community * CSCO: Chief Supply Chain Officer * Supply Chain Customer Fulfillment & Collaboration * Digital Supply Chain Operations and Technology Solutions * Supply Chain Logistics Management and Leadership Strategy * Supply Chain Manufacturing Operations & Strategy * Supply Chain Planning & Optimization * Supply Chain Quality Management * Supply Chain Sourcing and Procurement Leaders * Experts * Overview * Research Analysts * Executive Advisory Board * Research & Tools * Overview * All Research * Future of Supply Chain * Gartner Supply Chain Top 25 * Gartner Power of the Profession Awards * Supply Chain Benchmarking * Supply Chain Strategic Planning * BuySmart * Cost Optimization * Executive Reports * Insights * Overview * Trending Topics * Beyond Supply Chain Blog * Power of the Profession Blog * Smarter with Gartner * Events * Overview * Conferences * Webinars * Client Success Stories * Conferences * About * Newsroom * Careers Menu * * Supply Chain * Roles * Overview * CSCO: Chief Supply Chain Officer * Supply Chain Customer Fulfillment & Collaboration * Digital Supply Chain Operations and Technology Solutions * Supply Chain Logistics Management and Leadership Strategy * Supply Chain Manufacturing Operations & Strategy * Supply Chain Planning & Optimization * Supply Chain Quality Management * Supply Chain Sourcing and Procurement Leaders * Experts * Research & Tools * Overview * All Research * Future of Supply Chain * Gartner Supply Chain Top 25 * Gartner Power of the Profession Awards * BuySmart * Cost Optimization * Executive Reports * Gartner Healthcare Supply Chain Top 25 * Gartner Supply Chain Top 25 * Insights * Overview * Trending Topics * Beyond Supply Chain Blog * Power of the Profession Blog * Global CSCO Community * Events * Overview * Live Forums * Webinars * Client Success Stories * Share on Twitter * Share on LinkedIn * Share on Facebook * Share by Email April 12, 2021 Contributor: Sarah Hippold Supply chain leaders who implement a mature S&OP process can expect significant returns, including increased revenue and profitability. Download eBook: Supply Chain Leadership Vision for 2022 The S&OP process frequently can be challenging to supply chain planning leaders. It’s crucial to business success, but rarely delivers on its full potential. That’s because it relies — more than any other supply chain process — on people from functions outside the supply chain recognizing and addressing the interdependencies between projects, product launches and phase-outs, and all the other things that make up an organization’s business. “S&OP is the single most important and critical cross-functional process,” says Micheal Youssef, Senior Director Analyst, Gartner. “If S&OP is done properly, it leads to significant returns, including increased revenue and profitability.” Download eBook: 5 Key Trends Transforming Supply Chain However, supply chain sales operations and planning is often a struggle, because it consists of so many component pieces and people — all of which must be aligned to work toward a common goal. Supply chain leaders can begin to drive more business value from the S&OP process by improving in the following five areas. S&OP MUST BE DECISION-ORIENTED In Gartner’s 2020 Agenda Poll for Supply Chain Leaders, one-third of planning leaders cited the lack of effective decision making in the S&OP meeting process as the most critical problem to solve for their function’s overall performance. Read more: The 7 Dimensions of Digital Supply Chain Planning S&OP meetings become information-sharing exercises rather than the decision-making process they’re supposed to be for many reasons. Some attendees might want to leverage the meeting to showcase the great work they’ve done; others are interested in doing a “deep dive” analysis on something that went wrong. Neither contributes to the aim of the meeting. S&OP should be about decisions and managing exceptions, not about reviewing data. Rather than stuffing the meeting presentation with tons of analysis and spreadsheets, it’s better to share those things ahead of time. A good rule of thumb is that 80% of the slides shown at the actual meeting should require a decision to be made based on the analysis and numbers that should already be familiar to all participants. S&OP MUST BE FOCUSED ON DELIVERING COMPANY OBJECTIVES To create an effective S&OP process, it’s important to limit the scope and focus on how the meeting can support the organization’s highest priorities. This works best when a top-down approach is combined with a bottom-up approach. The top-down approach identifies the small number of outcomes that S&OP will deliver really well based on the priorities of the C-suite. The bottom-up approach is the best method for solving the operational issues — process steps, agenda items, roles and responsibilities. Once this is set up, the planning leader must ensure that the meeting stays in line with the executive priorities and continues to deliver value to the organization. S&OP MUST BE A MEDIUM-TERM PROCESS A recent Gartner survey shows that 27% of respondents still have an S&OP time horizon that is less than 12 months, and 62% of respondents’ S&OP time horizon is less than 18 months. Short-term S&OP drives more tactical discussions and decisions in S&OP meetings and fails to enable the participants to look beyond the 12-month horizon. However, many decisions need to be made well in advance, such as building and increasing manufacturing or warehouse capacity or negotiating contract volumes with suppliers. Read more: Outside-In: A New Mindset for Supply Chain Planning “S&OP should be a medium-term process that looks on the horizon between 3 and 18 to 24 months into the future. By tackling important issues well in advance, planning leaders can ensure that things are done on time and for a reasonable price,” Youssef says. S&OP MUST BE SCENARIO-BASED Most organizations wait for something to happen and then respond, but leading companies plan for multiple eventualities to enable an agile response. For example, companies that have a more mature planning process create multiple supply response scenarios. This enables them to decide on the best solution for the business. Reviewing a handful of scenarios at each S&OP meeting is also a manageable amount, especially if it follows a structured process. While basic scenarios can live in an Excel sheet, mature S&OP organizations deploy advanced analytics tools to calculate scenarios and their impact on the business in real time. If the database allows, analytics can even provide decision support and make recommendations. Download guide: Supply Chain Scenario Planning S&OP MUST ALWAYS EVOLVE TO IMPROVE S&OP is a process that must evolve in line with business requirements as well as product and portfolio changes. Many improvements are incremental, but the evolution can also occur in much larger leaps, when conditions demand it. A significant refresh of S&OP may require an enormous level of effort and investment in technology. When the new process is launched, it may be seen as a great success. However, without a program of continuous improvements over time, the new process will become stale, business requirements will change and S&OP effectiveness will decline in the same way as the previous S&OP process. Continuous change that adapts to whatever the business currently needs is less flashy, but more ultimately, more sustainable. EXPERIENCE SUPPLY CHAIN CONFERENCES Join your peers for the unveiling of the latest insights at Gartner conferences. 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