Authored by: Vijendra Kargudri
The success of an organization is determined by its ability to take real-time decision for any given scenario that is about to unfold or has unfolded already. The sooner the better. The ability to do so is an outcome of real-time visibility between disparate processes across the supply chain that helps arrive at the best Sales & Operations Planning (S&OP). SAP Integrated Business Planning (SAP IBP) is one such holistic solution that helps integrate all the supply chain processes in a place. But there are some common myths about S&OP that refrain organizations from implementing SAP Integrated Business Planning. Let us explore the three most common ones.
Myth 1: Businesses really do not need a planning solution to drive an effective S&OP process.
To improve the effectiveness of one’s business’s existing S&OP process, it comes down to finding the right solution. As per a study report, most organizations are comfortable with the current setup of spreadsheets and enterprise business applications. They seem reluctant to adopt a long term sales & operations planning software. Imagine being one of those organizations functioning in a global supply chain landscape, tracking all sales and operations processes manually in a spreadsheet! But with spreadsheets, how efficient & successful can your business be? Well, the chances are, most unlikely. Yet, half of such organizations continue to believe that their processes are efficient.
It is unimaginable if those S&OP processes are on a global scale — like procuring a raw material from a supplier in China while factory is in the U.S., many continents away. This has been obvious during the COVID-19 disruption on a global scale. Without a proper tool, it will be impossible to have complete visibility into such a distant supplier’s operations. But integrating all the disparate processes with the right solution will facilitate easy & efficient collaboration with all the stake holders of the supply chain – suppliers, distributors, and other trade partners — in a single place, allowing a better grip on the situation.
Myth 2: A mere spreadsheet is adequate to effectively model S&OP
If the data and the market were to remain static it is possible. But the supply chain and global trade landscape is dynamic, interconnected, and inter-dependent. Such precipitating factors lead to disruption(s) that no organization would be able to respond holistically using a mere spreadsheet. An organization will need to drill down to micro level details during the S&OP process. Spreadsheets are a good starting point for an organization. But they aren’t equipped to run the “what-if” scenarios or provide an exhaustive deep dive into the raw data to help drive growth and improve the bottom-line.
Albeit, organizations that use an integrated planning solution, can rapidly analyze the impact of disruptive or amenable events to determine the optimal response. Creating “what-if” scenarios to evaluate a hypothetical change in master data like launching a new product is not possible using a mere spreadsheet!
And, according to the Association of Chartered Certified Accountants (ACCA), in excess of 90%, spreadsheets are replete with errors, convincing an equal percentage of spreadsheet users that their S&OP models are bang on.
Myth 3: Supply chains are dynamic to render companies devoid of time to plan.
Realistically, most organizations are deprived of enough time to plan without the right planning platform in place.
SAP Integrated Business Planning (SAP IBP) helps organizations keep up with the market irregularities due to supply & demand variations.
How can Krypt help?
Krypt is an SAP preferred partner and has assisted in the success of global businesses across industries & geographies. We have helped businesses through the successful integration & implementation of SAP IBP, SAP GTS, SAP TM & SAP EWM.
We offer the following time-saving processes to expedite SAP IBP implementation and future-proof your business –
- Pre-configured solutions
- Process Mapping to carry out S&OP
- Pre-Built Planning View Templates to plan ― S&OP, Demand, Supply, Inventory, and Shelf Life
- Dashboard & Analytics View set up for demos
- How-To-Do S&OP videos & PowerPoint presentations
- What-If scenarios
If your organization regularly requires to plan supply chain activities on a weekly or monthly basis in advance, then Krypt can help you implement/integrate SAP IBP to quickly analyze & respond to any scenario in near real-time using an informed decision.
And, to know more about our products/services, please request a DEMO or do Contact Us.
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