Maverick Research:
The Digital Era – The End of S&OP?

“Technology has evolved to meet the challenge of orchestrating faster and better decisions, but planning processes have not – and they have started to become barriers to success.”

Gartner presents key findings and recommendations for companies struggling with S&OP and calls for the evolution of planning processes.

  • The pace of business is accelerating. Thirty percent of organizations claim speed and quality of decision making is one of the top three internal obstacles to achieving supply chain goals and objectives, according to the 2021 Gartner Supply Chain User Wants and Needs Survey
  • Supply chain planning applications dramatically improved, and they have been considered among the most important technologies to drive supply chain transformation initiatives over the past three years. However, resistance to change from decision stakeholders remains the key barrier to adoption.
  • Sixty three percent of supply chain leaders confirm their enterprise will expect the supply chain to maintain current margins and profitability while meeting expanding demands. Current supply chain planning processes are not prepared to enable these outcomes, so organizations need to rethink the structure of planning and decision-making processes to keep up with volatility and disruption.

*This Maverick research contradicts prevailing wisdom that current, well-known planning processes – namely sales and operations planning (S&OP), but also integrated business planning (IBP) and sales and operations execution (S&OE) – are the optimal way to plan our supply chains. Its findings and advice should therefore be treated with caution.

Download this complimentary Gartner report for a guide on how to redesign and improve your planning process.

Maverick Research: The Digital Era – The End of S&OP?, Pia Orup Lund and Cristina Carvallo, 27 June 2022

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