S&OP has never been more important or more confusing. For the supply chain leader, it is growing in importance and is on the top of the list for a 2014 focus. However, the market for technology solutions is confusing. We count more than thirty-five solution providers claiming to provide S&OP solutions with a range of capabilities. Here we share insights on why it matters. - Lora Cecere, CEO and Founder, Supply Chain Insights
Analyst Insight: Buckle your seat belts. Supply chain planning, a mature and stagnant technology market, is changing. This change will not be gradual; instead, it is the redefinition of planning platforms. The value proposition is large; but not as large as the change management hurdles. To prepare, we have to learn, unlearn and prepare to relearn a new language and way of thinking. - Lora Cecere, CEO and Founder, Supply Chain Insights
Analyst Insight: The critical value-add of a manufacturing supply chain comes from constantly asking, "Can we make what we sell and sell what we make?" This is sales and operations planning (S&OP): a process of constant vigilance to meet customer commitments, while optimizing scarce working capital. Supply-chain optimization efforts can benefit from approaching projects as a hybrid of S&OP and supply chain. This places the focus on value creation over functional excellence. - Jon Kirkegaard, President, DCRA Inc.
One can be hopeful about the future of manufacturing in the U.S. for a fundamental reason. It is the economy best positioned to seize on deeper changes that can lead to a real, sustainable manufacturing renaissance, one based on software technology and its profound effect on the entire manufacturing value chain.
Aramex has launched a new cold supply chain service, available across all its MENA markets. Biocare, a solution for the healthcare sector, is designed to provide an end-to-end temperature-controlled delivery solution to move clinical specimens and medical samples domestically and globally for laboratories, hospitals and pharmaceutical companies.
Analyst Insight: The sales and operations planning process has fairly deep roots in most companies. Research by SCM World shows that many have been able to extend the process across most internal functions. However, few companies have extended the process externally to trading partners. The incentive structure of buyers and sellers tends to set these groups at cross-purposes. Flexibility pricing can shift the incentives in a direction that forces companies to negotiate the value of flexibility. - Barry Blake, Vice President, Research, SCM World
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