With the rise of the global multi-national organization, Sales and Operations Planning (S&OP) increases in importance. It is a way to align and drive balance within the organization to align strategy to execution.
Traditional approaches are not sufficient. For the past three decades, S&OP focused on volume-based decisions. Today, there is the opportunity to shift the discussion from volume (quantity available) to value (price and revenue management). With 90% of industry sectors losing ground on operating margin over the last decade, the shift in the S&OP process from volume to value is critical. As companies move from a regional to global focus, this capability increases in importance. However, it requires new capabilities in technology investments. Companies need to reskill.
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