Supply Chain Digest’s Dan Gilmore recently spoke with Gaurang Pandya of i2 on several themes related to S&OP.
Gilmore: It is often said that “most companies do S&OP, but few do it well.” Is that an accurate summation of current conditions?
Pandya: I think so. The definition and understanding of the S&OP process varies across almost all companies. For some, it is merely a sales forecasting process, for others it is a more tactical process of making sure that demand is met. More often than not, neither considers the implications the tactical decisions will have on the overall business targets. There are varying levels of maturity and very few companies would qualify for what we see as the top 2 levels, which are “consumer driven-demand synchronization” and “consistent profitability.”