Steelwedge Software

Steelwedge Software

What questions AREN’T you answering with S&OP today?

Posted: 23 Aug 2012 06:00 AM PDT

The good news: 87% of companies see S&OP as key to driving better agility and growth in a tumultuous business climate. And, the average enterprise has at least five S&OP initiatives in play to handle better balance of supply/demand/ finance. These initiatives cross multiple dimensions including: business units, product families and geographies. The bad news: Without a connected, collaborative view of S&OP across the enterprise, companies are leaving some pivotal business questions unanswered. Following are a few questions you should be answering today as well as some perspective on the risk– or cost– of not getting them on your company's radar. Are you answering the right questions today? 1. What is the variance between my revenue forecast, budget and compensation target by service line? Cost of not knowing: inability to understand how much of budget should be allocated for each service line; and understanding which service lines are truly improving company performance vs. which are impeding company performance 2. How much revenue does each business unit expect to earn in the coming quarter? Cost of not knowing: ineffective trade promotion budget allocation. In CPG industries if the revenue projection of each business unit is available then the optimal allocation of trade promotion funds can be made.… Read the rest

Posted by computer at 9:17 AM  

0 comments:

Post a Comment