How S&OE Reduces Supply Chain Costs

Posted by Nick Ostdick on Apr 6, 2017 9:00:00 AM

Today’s global manufacturing supply chain is rapidly evolving and maturing thanks in large part to globalization and the advancements in technology and supply chain theory. As a result, manufacturing companies are tasked with competing in new and emerging markets often times with the same or limited amount of resources and manpower.

This is where S&OE (sales and operations execution) can be an extremely important value proposition for companies in reducing costs associated with their supply chain management. In alignment with lean manufacturing and supply principles, S&OE provides companies a method of checking the pulse of their overall supply situation in order to make critical adjustments for short, mid, and long-term success and viability. And because much of S&OE relies heavily on core industry drivers such as Industry 4.0, digitization, and other technological platforms, companies who embrace S&OE can often see significant enhancements of processes across other touch points of their value chain.

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Topics: Sales & Operations Execution (S&OE), Sales & Operations Planning (S&OP), Supply Chain Management, Lean Manufacturing

How S&OE Enhances Supply Chain Management

Posted by Nick Ostdick on Mar 21, 2017 9:00:00 AM

It was the Scottish poet Robert Burns who said it best: “The best laid plans of mice and men often go awry.” This sentiment is perhaps no more true than in today’s global, complex automotive supply chain where demand planning and production programs often shift and change depending on a wide range of variables and elements - everything from the availability of component parts to labor to facility capacity and job scheduling. 

But to cut the complexity of mid and long-term planning and supply chain management, planners and managers have a relatively new tool at their disposal: sales and operations execution (S&OE). Coined in the last few years by supply chain industry publication Gartner, S&OE acts as a demand planning supplement or safety net to detect the possibility of bottlenecks or breakdowns in larger-scale planning platforms. This in turn allows planners and managers to create and deploy solutions to these disruptions to enhance each touchpoint of a company’s overall value chain.

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Topics: Sales & Operations Execution (S&OE), Sales & Operations Planning (S&OP)

How to Make Your Supply Chain a Vehicle for Growth

Posted by Nick Ostdick on Mar 9, 2017 9:00:00 AM

For companies in the automotive industry, growth in large part depends on the success or failure of your supply chain. In a global, volatile, and variant-rich industry, the ability to seamlessly move products from the production floor to your customer’s door is top priority for supply chain planners and managers, and companies that achieve this desired result are able to leverage significant advantages over competitors when it comes to growing profits, revenues, and customer bases.

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Topics: Sales & Operations Execution (S&OE), Sales & Operations Planning (S&OP), Supply Chain Management

Back to Basics: The Importance of S&OP

Posted by Nick Ostdick on Feb 23, 2017 9:00:00 AM

With so much of the conversation in global supply chain management surrounding technological advancements and the digital revolution via platforms like Big Data, Industry 4.0, and advanced analytics, it’s sometimes easy to forget the core principles that have driven the automotive supply chain for the last two or three decades. S&OP (sales and operations planning) is one of these basic principles that, while critical to an efficient supply stream, can sometimes go overlooked in the most pressing discussions of the day.

It’s easy to get caught up in the newest and most disruptive technologies poised to impact the automotive supply chain - even when it comes to S&OP. For example, a recent survey conducted by Supply Chain Trends cited major technological and software complications in implementing sales and planning solutions. Contrast that with a report issued by Supply Chain Management Review in which companies surveyed said they allocate roughly 70 percent of their S&OP budget on developing and implementing new technologies.

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Topics: Supply Chain Planning, Sales & Operations Planning (S&OP), Supply Chain Management

Is It Time for S&OE to Move Beyond Descriptive and Diagnostic Analytics?

Posted by Kristin Masters on Feb 14, 2017 9:00:00 AM

How can organizations get the most out of their Sales and Operations Planning (S&OP) efforts? By establishing a separate Sales and Operations Execution (S&OE) process that focuses on short-term performance and supports the long-term goals of S&OP. While the S&OP team usually looks ahead by up to 18 months, the S&OE team concentrates on the next zero to three months. 

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Topics: Advanced Analytics, Sales & Operations Execution (S&OE), Sales & Operations Planning (S&OP)

Breaking Down Planning Silos In the Automotive Supply Chain

Posted by Nick Ostdick on Feb 9, 2017 9:00:00 AM

It’s the dead of winter and you wake in the morning to find your car windshield completely covered in a thick layer of ice. You turn on the defrost and wait for the ice to thaw, and after a few minutes a small patch of windshield is clear for you to see through. As you drive down the street, you realize you cannot see the entire road, are unable to spot potential hazards or obstructions in your path of travel, and have to slow your speed in order to avoid a collision or accident.

What does this have to do with global automotive supply chain management? Well, the danger of driving without a fully clear windshield is similar to OEMs who fall back on sequential planning silos as part of their demand capacity planning strategy. The lack of visibility, agility, and responsiveness that comes with driving with a blocked windshield is analogous to the lack of visibility and supply chain insight manufacturers struggle with when it comes to planning silos hampering their productivity and efficiency.

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Topics: Sales & Operations Execution (S&OE), Sales & Operations Planning (S&OP), Supply Chain Management

Why Your Business Should Plan for Global Deployment

Posted by Kristin Masters on Jan 12, 2017 9:00:00 AM

The role of international trade and investment has grown steadily since World War II. Yet we think of globalization as a relatively recent trend; indeed, rapid technological advances and other factors have changed the scale and direction of globalization. While large, multinational corporations once dominated the global market, now smaller enterprises have also gained entry.

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Topics: Supply Chain Logistics, Sales & Operations Execution (S&OE), Sales & Operations Planning (S&OP), Supply Chain Management

Is Developing an S&OE Protocol Worth the Investment?

Posted by Kristin Masters on Nov 22, 2016 9:00:00 AM

The manufacturing industry has been evolving rapidly thanks to globalization and technological advances. Global supply chain leaders often find themselves pulled in multiple directions, and they must decide which new strategies and approaches will offer maximum ROI.

One option that supply chain managers definitely shouldn't overlook is developing a Sales and Operations Execution (S&OE) process that's separate from the Sales and Operations Planning (S&OP) process. While these two processes seem like one in the same, creating a discrete S&OE process requires relatively little investment but can yield significant returns, not only in terms of daily operations cost, but also with regard to long-term strategic planning. 

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Topics: Sales & Operations Execution (S&OE), Sales & Operations Planning (S&OP)

S&OP and S&OE: A Symbiotic Relationship

Posted by Kristin Masters on Nov 8, 2016 9:00:00 AM

How often do your supply chain plans exactly match what happens in reality? Chances are, there's often deviation; even the most robust Sales and Operations Planning (S&OP) process cannot account for every eventuality.

That's where the Sales and Operations Execution (S&OE) has proven crucial, providing a process for addressing the daily complications of supply chain management and ensuring alignment between the strategic plan and execution. Indeed, effective S&OP and S&OE cannot exist without one another, and the most successful supply chain managers acknowledge and exploit this symbiotic relationship. 

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Topics: Sales & Operations Execution (S&OE), Sales & Operations Planning (S&OP)

Three Key S&OE Trends for 2017

Posted by Kristin Masters on Nov 3, 2016 9:00:00 AM

The manufacturing industry is changing: with the advent of Industry 4.0, an isolated supply chain is no longer sufficient for maintaining a competitive presence in the global market. In 2017 and beyond, Sales and Operations Planning (S&OP) will continue to move to a Sales and Operations Execution (S&OE) mindset, with a deeper focus on integrated processes, big data and transparent communication. S&OE represents a new frontier, one that industry leaders like Gartner are just diving into. Here's a look at how it will change the manufacturing industry. 

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Topics: Sales & Operations Execution (S&OE), Sales & Operations Planning (S&OP)