A low percentage, 14%, of companies responding to an industry survey, reported that sales and operations planning processes (S&OP) are not improving enterprise-wide performance.
"Current S&OP processes are failing to deliver the financial results expected," says Nari Viswanathan, research director at Boston-based Aberdeen Group. "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."
On reason for the lack of results is that companies are not investing in supporting S&OP technology. "One impact of poor technology is that three-quarters of companies say they don't have adequate executive-level reporting on the key performance indicators of their S&OP process," adds Viswanathan.
"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 says.
For a copy of the report, " The Technology Strategies for Integrated Business Planning Benchmark Report" visit here.
Interested in information related to this topic? Subscribe to our weekly Value-chain eNewsletter.