The high-tech industry is characterized by fickle consumers and demand, market volatility and a move towards highly-customized solutions. These market forces create immense pressure on managing a global supply chain. In last week’s Steelwedge Agility Series Webinar, experienced Chief Supply Chain Officer, Dennis Omanoff, addressed the hit-and-miss realities of using sales and operations planning (S&OP) to make a difference in high-tech business. As he stated:
“We are in a world today of tremendous opportunity and the challenge now is how to unlock this box.”
Dennis explained that if you focus less on the sales order and more on the value of getting it right - you can:
• Maximize revenue
• Build customer loyalty
• Create stockholder and shareholder value
According to Dennis, “The best way to drive that value is by powering better data visibility.” He added, “Breaking down paradigms of how companies share information and what companies share, we all win together.”
This includes a shift in:
• Leadership/internal engagement
• Customer engagement
• Connecting to the “other side” of the order: Supplier engagement
• Information visibility
Yet, according to statistics from a fall report by SCM World, only a few organizations have embraced this shift and maximized that value from their S&OP.
Here is a look at where leading global manufacturers are CAPTURING VALUE FROM S&OP today. Does this look like your situation?
If you look at the above chart, only 10 percent of global organizations have externally aligned with suppliers and customers, etc. What seems to be missing is any mechanism for placing a meaningful value on the flexibility that customers demand from their suppliers. Think of the opportunity to drive value here!
By rethinking existing, siloed processes and developing new ones that anticipate demand, we can react more quickly to the unexpected. Are you ready?
If missed this webinar, you can check out the replay here.
Have you unlocked the potential of your S&OP? If so, we’d love to hear from you.