• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Is S&OP Still a Relevant Concept When Companies Are Focusing on Mere Survival? JDA Software Thinks So.

Is S&OP Still a Relevant Concept When Companies Are Focusing on Mere Survival? JDA Software Thinks So.

March 27, 2009
Global Logistics & Supply Chain Strategies

There has been talk recently that sales and operations planning (S&OP) software hasn't caught on with business to the degree that vendors had hoped. But JDA Software Group believes the concept still has validity. In fact, the company says, the next generation of S&OP applications can play a major role in helping retailers, distributors and manufacturers to cope with negative economic conditions.

Companies adopting S&OP today are ranging beyond its use as a tactical weapon to one that can aid in the alignment of product launches, marketing and sales programs, production plans and resource allocations, claims David Johnston, senior vice president of manufacturing and wholesale distribution with JDA. Industry leaders, he says, "understand that the optimized alignment of supply and demand can only be achieved through a formal, disciplined S&OP process that blends cross-functional collaboration, business-process integration and advanced technology into a single and comprehensive solution."

In moving away from the tactical approach, companies begin to incorporate S&OP into integrated business planning efforts. They align supply chain plans with corporate financial strategy, eliminating the corporate silos that block cross-divisional cooperation. Johnston says it's crucial to bridge gaps between the demand and supply side of operations, bringing together manufacturing, logistics, purchasing and upstream suppliers. At the same time, companies need to deploy profitability analysis with the participation of senior leadership. Built-in, best-practice workflows can make the most out of an integrated S&OP system, avoiding the trap of running disconnected software applications supported by non-current data. S&OP can help companies to realize continuous improvement in such areas as inventory turns, sales, cost and manufacturing effectiveness-but only if they rely on a set of key corporate metrics and take a long-term view of forecasting and planning. Each individual in the chain must be held accountable to a unified S&OP plan, based on the application of relevant benchmarks. Finally, Johnston calls for a formalized leadership structure within the user's organization, including monthly reviews by senior management, to ensure accountability for achieving the full benefits of an S&OP installation. In a recent JDA survey, "nearly 75 percent of respondents cited corporate culture issues as barriers to effective S&OP implementation." Only 16 percent of chief executive officers were involved in the process, Johnston says. "Accountability was low across the board."

Visit www.jda.com

RELATED CONTENT

RELATED VIDEOS

Logistics Outsourcing Technology Product Lifecycle Management Sales & Operations Planning SC Finance & Revenue Management Business Strategy Alignment Global Supply Chain Management Quality & Metrics
KEYWORDS Business Strategy Alignment Global Supply Chain Management Logistics Outsourcing Product Lifecycle Management Quality & Metrics RFID & Barcode Sales & Operations Planning SC Finance & Revenue Management Supply Chain Analysis & Consulting Technology
  • Related Articles

    JDA Debuts Updated Version of Executive S&OP Workbench Software

    Why Your S&OP Strategy Is Still Lagging in 2015

    Big Data Is Becoming a Big Deal for Agile S&OP

  • Related Events

    Let Increased Visibility Ignite Your Supply Chain to Become More Resilient and Agile

Global Logistics & Supply Chain Strategies

TNT Logistics Sports New Name: CEVA Logistics

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Biden Seeks $1.9 Trillion for Relief Bill; India to Supply Millions of Vaccine Doses to Neighbors

    Coronavirus
  • U.S. and China Trade

    How China Won Trump’s Trade War and Got Americans to Foot the Bill

    Global Supply Chain Management
  • Obtaining Adequate Supplies of PPE in the Pandemic

    Watch: Obtaining Adequate Supplies of PPE in the Pandemic

    Coronavirus
  • AT&T

    How the Pandemic Has Altered AT&T’s Global Sourcing Strategy

    Coronavirus
  • Transforming Your Supply Chain Into an Opportunity Center

    How the Internet of Things Boosts Supply-Chain Visibility

    Technology

Digital Edition

Scb home issue 27

2020 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

  • LSP Wows Global Client, Quickly Advances to Become End-to-End Provider

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact GEP Honeywell Intelligrated
Infor Logility Magnitude Software
MPO Old Dominion Oliver Wight
OpenSky Ports America Purolator
QAD Precision Red Classic Riskmethods
TGW Systems Transportation Insights Watson Land Company
Westfalia Technologies Workjam Yang Ming
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright © 2016 - 2018 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing