S&OP – a major driver in maximizing business profitability?

Increasing market dynamics and volatility put more emphasis on achieving planning excellence and raise the general level of attention for this topic. Although a recognized concept for many years, comprehensive deployment of S&OP has only occurred in recent years within the process industries.

Some of the key findings regarding the current status of S&OP process maturity include:

  • Many of the responding companies in the industry sector have already established a well-organized S&OP process, however some weaker areas with improvement potential exist
  • A clear link between the planning maturity and profitability of companies confirms a clear value creation hypothesis
  • Ongoing economic macro trends suggest that the significance of S&OP will continue in the future

The study highlights the outstanding role of a company-wide integrated Sales & Operations Planning process as a driver for sustainability, customer orientation and profit maximization. Therefore S&OP is an increasingly important element of strategic and operational corporate management.

Therefore, BearingPoint proposes a value-oriented approach to evaluate and improve current S&OP processes to be prepared for upcoming challenges.

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