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“Since we are in economic conditions we have not seen in quite awhile (if ever), forecasters will not be able to put as much weight on historical patterns as the basis for demand forecasting. Demand during these economic times will likely be more volatile then they have seen and heavily dependent on what is happening in the economy”
Dr. Larry Lapide MIT Supply Chain Digest 2/2009
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Competing for Profitability in the “New Normal”
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The “new normal” is what some are calling our current challenging economic environment. Balancing supply and demand has never been more challenging. Organizations are misaligned, planning tools are proving to be inadequate and service expectations are skyrocketing. Increased demand volatility and supply chain complexity are driving higher inventory and operating costs, stressing working capital. New buying behaviors and anxiety in the supply chain are wreaking havoc on forecasts and plans. Planners are struggling for new insights as the traditional key indicators and forecasting assumptions are proving inadequate to manage in the “new normal.”
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Have your investments in S&OP paid off?
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While companies have invested heavily in S&OP software and consulting services, many are still unable to effectively manage through today's challenges. Getting the wrong answer faster or more consistently doesn't help. Similarly, operations executives have enough expensive consultant deliverables gathering dust while the company's heroes jump through hoops to meet customer expectations. And despite previous efforts, the information needed to make timely and accurate decisions is still scattered in different systems and formats, making visibility difficult.
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| As a result of these shortcomings, operations
executives often feel stuck. It's difficult to invest more to
solve the problems because of the low return from previous initiatives.
Yet, supply chains are getting more complex and expensive to
operate, bad decisions are becoming increasingly damaging, and
customers are expecting higher levels of service. Something
must be done, and leading companies are doing it. |
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| Typical value achieved
in the first year: |
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- Improved revenue by 1%
- 2%
- Reduced Inventory by 20%
- 40%
- Reduced COGS by 5%
- 10%
- Decreased Operating Expense
by 5% - 10%
- Improved forecast accuracy
at the SKU level
- Improved supplier fill
rate
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a Client Success Story (2MB)
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Our softwares and services include operations services and s&op, revenue management software, pricing optimization, pricing management, pricing analytics, operations management software & integrated business planning software
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