FAIL TO PLAN ,
PLAN TO FAIL
Sales and operations planning is designed to allow businesses to cope with change , but has S & OP itself needed to change in such challenging times ?
WRITTEN BY : SEAN ASHCROFT
Sales and operation planning ( S & OP ) has been around since the early 1990s , which saw the dawn of decision-making processes designed to balance demand and supply , integrate financial planning and operational planning , and link strategic plans with day-to-day operations .
In short , it ’ s an integrated monthly process that helps businesses manage in the midst of change – and we ’ ve never before experienced such times of change as these past few years .
But is S & OP itself having to change to meet these challenges ?
To help us answer this , and other questions , we turned to Paul Brody ( PB ), Global Blockchain Business Lead at EY , and Mark Levy ( ML ), who is Supply Chain Planning Advisory MD at KPMG .
How is digitalisation changing S & OP ? PB : S & OP has been digital for decades . The opportunities on the horizon aren ' t about going from analogue to digital , but from silos to integration .
Nearly all big companies have digital data , but it ’ s locked in their own operational silos . The way forward on this is , I believe , blockchains .
Blockchain standardises how we represent supply chain assets and also enables visibility to key business partners . For example , a joint initiative with [ blockchain protocol ] Polygon is enabling EY clients to conduct private transactions , and the [ open-source blockchain ] Ethereum Mainnet has been pivotal in this process .
Because we don ’ t re-enter data each time an asset crosses company boundaries , we get
38 December 2022