Managing sales and operations planning (S&OP) in a formalized way can put an electronics OEM at the head of the pack, and lead to a good year-end sales report. That's the gift that keeps on giving during the holiday season.
Although accurate forecasting leads to myriad benefits, getting there can make even the most sophisticated organization feel less than merry. In fact, one in five organizations tags S&OP processes as the single most significant opportunity for improvement, according to research by E2Open.
Another study, by the Aberdeen Group, indicates that more than 60% of leading companies point to a formal S&OP process as a strategic priority for their organization -- and it shows. These organizations, on average, are 18% more accurate in their forecasts. APIC, the association for operations management, meanwhile, points to a variety of potential benefits for organizations focusing on S&OP, including:
- Gross margin improvements of 25% to 35%
- Significant savings from product and customer rationalization
- Customer retention improvements of 10% or more
- Order fulfillment rate improvements of 20% to 40%
- Product introduction success rates growing in direct proportion to S&OP maturity
Want to get your organization from the naughty to nice on the list of S&OP leaders? The infographic below offers some tips on how to be really, really good at this type of planning. Let us know in comments how your organization is doing.
— Hailey Lynne McKeefry, Editor in Chief, EBN