Last week, Argon & Co hosted an enlightening roundtable which took on the task of debunking five common myths surrounding Sales and Operations Planning (S&OP), a crucial topic that resonates with many in the Planning industry. Here’s what we uncovered:
Myth one: S&OP aligns everyone to a single figure
Reality one: It’s more about aligning to a single plan that has considered a range of demand inputs and supply chain responses
Myth two: S&OP is a five-step process of equal importance
Reality two: While structure is important, the emphasis on each step can vary by organisation
Myth three: S&OP is a monthly process
Reality three: The intensity of the cycle can vary depending on the financial calendar and industry dynamics
Myth four: S&OP and Integrated Business Planning (IBP) are inherently different
Reality four: They share more similarities than differences, with IBP being an evolution of S&OP
Myth five: The relevance of S&OP is diminishing
Reality five: On the contrary, its significance is only growing in today’s complex business environment
The virtual roundtable prompted a lively discussion, revealing a consensus that navigating S&OP efficiently remains a challenge for many, with companies often rating their processes as having low to medium efficiency.
We concluded with a forward-looking perspective, focusing on the potential transformations in S&OP through the integration of artificial intelligence, enhanced visibility, and the consideration of sustainability impacts.