The S&OP Pulse Check 2017 Your yearly dose of S&OP insights
Niels van Hove, author of the blog
Supply Chain Trend
Background
I started the S&OP Pulse check i to fi d a s ers I could ’t get fro a y
conference, consultant or whitepaper. Now in its 6th year, it is still there to share
insights and knowledge with S&OP practitioners
As a coach, I’ ery i terested i culture, i dset a d
behaviours. The S&OP pulse check 2017 shows that:
1. Effective S&OP is related to positive cultural change
2. Mental Toughness supports effective S&OP
3. Behaviours are not addressed enough in S&OP
I hope you enjoy this years insights
Summary
Key insights S&OP pulse check 2017
People
&
Culture
Process
&
Systems
• Effective S&OP processes see more positive cultural change
• Mental Toughness supports effective S&OP
• Behaviours are not addressed enough in S&OP implementations
• Integrating financial planning is now the main action in S&OP
• Managing the product portfolio remains underused
• 51% believes there is a lack of S&OP process & system innovation
• 64% believes there is a need for more S&OP standards
• People skills & resources is the main roadblock to implement S&OP
The main cultural changes driven by S&OP
Question: What are the main cultural changes driven by S&OP? (n=59)
Source: Supply Chain Trend 2017
The main cultural change due to S&OP is improved understanding,
communication and collaboration between functions
22%
25%
27%
29%
34%
36%
49%
53%
54%
54%
68%
75%
More willingnes for people to change
Better conflict resolution
Improved constructive behaviours ingeneral
A more positive business andatmosphere
Less animosity and finger pointing
Improved understanding of companygoals
More empowered decision making
Improved team work and holisticbusiness views
Improved trust between functions andpeers
More data driven and factual decisionmaking
Improved collaboration betweenfunctions
Better understanding andcommunication between functions
The main cultural changes driven by S&OP
Question: What are the main cultural changes driven by S&OP? (n=59)
Source: Supply Chain Trend 2017
However, effective S&OP processes see much more positive
cultural change impact versus non-effective S&OP processes
31%
69%
54%
38%
54%
21%
39%
27%
18%
21%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Better conflict
resolution
Improved team work
and holistic business views
Improved trust between
functions and peers
Improved constructive
behaviours in general
Improved understanding
of company goals
Other Effective S&OP
Parti ipa ts i effective S&OP processes,
see significant more proof of trust,
teamwork, constructive behaviours and
u dersta di g of o pa y goals.
Niels van Hove
1. Control: ‘I really believe I can do it’. ‘I can keep my emotions in check when doing it’. Self worth, Efficacy.
2. Commitment: ‘I promise to do it – I’ll set a goal’. ‘I’ll plan it’. Tenacity, Stickability, Grit.
3. Challenge: ‘I am driven to do it’. ‘Setbacks make me stronger.’ Seeing opportunities not threats.
4. Confidence: ‘I believe I have the ability to do it.’ ‘I can stand my ground if I need to.’ Self Belief.
Mental Toughness supports effective S&OP
The 4 C’s of Mental Toughness
Mentally Tough individuals are pro-active, perform under pressure, are open to
change and confident. Mental Toughness has four components
Mental Toughness can be measured and improved.
For more information go to MentalToughness.online
88%
88%
69%
69%
85%
42%
33%
42%
45%
36%
S&OP stakeholders show commitment to theS&OP process, meeting agenda and planning
rules.
Our leadership team is willing to change directionswhen circumstances change
In S&OP meetings we keep our emotions undercontrol, even when we disagree.
In our business it is common to pro-activelyengage across different functions to solve issues.
In S&OP meetings we challenge each other andthe status quo.
Other Effective S&OP
Question: what is your level of agreement with the following statements?
(n=59). Percentages in graph shows agree and strongly agree
Source: Supply Chain Trend 2017
Mental Toughness supports effective S&OP
Organizations with effective S&OP processes show more commitment,
challenge, emotional control and willingness to change
Challenge
Take
Control
Emotional
Control
Confidence
Change
Commitment
Behaviours are not addressed enough
Question: Do you think behaviours are addressed
enough in S&OP implementations? (n=59) Source: Supply Chain Trend 2017
63% of practitioners think that behaviours are not addressed
enough in S&OP implementations
O er ti e, o pa y eha iours defi e o pa y ulture. If eha iours are ot addressed, o pa y ulture ill ot sig ifi a tly ha ge
Niels van Hove
32%
63%
5%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No Don't Know
The main actions in the S&OP process are evolving
Question: What are the most important actions in an S&OP process? (n=59)
Source: Supply Chain Trend 2017
Integrating financial planning & budgeting is chosen
as the main action in S&OP for the first time since 2010
27%
36%
42%
46%
53%
54%
54%
63%
64%
75%
Collaborative planning with customers/vendors
Actively manage our product portfolio
Scenario planning to reduce supply chain risks
Trying to reduce inventory to free up workingcapital
Stay aligned with the company strategy onmonthly basis
Scenario planning to achieve optimal financialresults
Manage supply constraints within the S&OP plan
Manage demand forecasts within S&OP
Create a profit optimized supply-demandbalanced plan
Integrate financial planning & budgetting with theS&OP process
The main actions in the S&OP process: trends
Question: What are the main actions
in an S&OP process?
2010
(n=50)
2011
(n=134)
2012
(n=52)
2014
(n=40)
2015
(n=123)
2017
(n=59)
Integrate financial planning & Budgeting
in the S&OP plan 49% 52% 56% 67% 56% 75%
Actively manage our Product Portfolio 23% 23% 24% 36%
Including the integration of financial planning has been growing,
whilst product portfolio management remains underused
49% 52%
56%
67%
56%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010 2011 2012 2014 2015 2017
Integrate financial planning & budgetting
in the S&OP plan
There is a perceived lack of S&OP innovation
Question: Do you think there is enough
coordinated process innovation in S&OP? (n=59) Source: Supply Chain Trend 2017
Over 50% of participants think there is a lack of
S&OP process and system innovation
Question: Do you think there is enough
innovation in S&OP systems? (n=59) Source: Supply Chain Trend 2017
There see s to e a dis o e t et ee hat e dors thi k S&OP i o atio is a d hat the pra titio er thi ks this is
Niels van Hove
32%
51%
17%
0%
10%
20%
30%
40%
50%
60%
Yes No Don't Know
31%
51%
19%
0%
10%
20%
30%
40%
50%
60%
Yes No Don't Know
S&OP and IBP definitions and standards
Question: Do you think there is a difference
between S&OP and IBP? (n=59) Source: Supply Chain Trend 2017
For practitioners it is still unclear if there is a difference between S&OP and IBP.
There is a clear need for industry standards
Question: Do you think we need more industry
standards around S&OP? (n=59) Source: Supply Chain Trend 2017
Niels van Hove
If after 30 years of de elopi g S&OP a d IBP e e supply hai people struggle to u dersta d hat it is, ho a e get other usi ess fu tio s o oard?
53%
29%
19%
0%
10%
20%
30%
40%
50%
60%
Yes No Don't Know
64%
25%
10%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No Don't Know
The main reasons to implement S&OP
Question: What are the main reasons to implement S&OP? (n=59)
Source: Supply Chain Trend 2017
For the 6th year in a row, the top two reasons to implement S&OP
are about communication and creating consensus
24%
25%
37%
39%
46%
53%
54%
54%
56%
58%
73%
81%
Integrate customers and/or suppliers
Create competitive advantage
Improve asset utilization
Improve top line revenue
Manage demand volatility
Improve customer service
Reduce risks in supply chain network
Improve executive visibility
Implement company strategic plan
Reduce supply chain costs
Create a consensus standardized one number plan
Improve cross functional communicationTop 2
since 2010
The main roadblocks to implement S&OP
Question: What are the main roadblocks in implementing S&OP? (n=59)
Source: Supply Chain Trend 2017
People skills & resources is now the main roadblock in implementing S&OP,
overtaking the usual number 1 senior leadership support
15%
22%
22%
31%
36%
41%
41%
44%
44%
47%
51%
58%
Lack of time to run the process
Lack of a clear companystrategy
Obstructive behaviours
No clear S&OPimplementation plan
Technical and systemcapability
Too many other businesspriorities
Clear roles & accountability's
Data accuracy and integrity
The organizational silo's
Process discipline
Senior leadership support
People skills/resources
2%
10%
25%
36%
20%
3%
3%
Consultant
Analyst
Manager
Senior Manager
Director
President/VP
CEO/MD/Owner
0%
10%
10%
3%
0%
69%
2%
Marketing
Finance
Operations
Logistics
Sales
Supply Chain
Procurement
Survey Demographics
The 2017 S&OP pulse check had a total of 59 participants
Job level Functional area
5% 3%
2%
8%
3%
15%
29%
19%
3% 5%
2%
5%
Agriculture Automotive Biotechnology Chemical Consulting ConsumerProducts
Food, Beverage &Tobacco
Manufacturing Pharmaceuticals Retail &Wholesale
Transportation &Warehousing
Other
Industry
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Building Mental Toughness
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Toughness and measure yourself
The S&OP Pulse Check 2017 Your yearly dose of S&OP insights
Thank You