Question:
Elaborate why S&OP implementations fail
Author: liv daAnswer:
First, It is essential to obtain executive-level people sponsorship. It will fail if there is no topdown support for the agreed plan. Next, cross-functional teams need to be created consisting of marketing, sales, planning and finance team members Although the formal meeting structure is extremely important, effective S&OP involves more than holding monthly meetings. The project is also about producing real-time supply and demand visibility and making sure that business intelligence can be added continuously. Also important to compare all planning scenarios on their profitability and strategic customer impact. Lastly, if you don’t measure, you can’t improve. The risk of failure deals with the inability of an organisation to show, share and adjust their performance measures and metrics. All people involved in the S&OP process need to share the same vision and need to be measured along the same line. This will foster an environment of continuous improvement and business growth.
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