3 common myths about Sales & Operations Planning (S&OP) refraining you from implementing SAP IBP
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By: Krypt Team - February 5th, 2021




Authored by: Vijendra Kargudri

Background

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 a right planning platform in place.

SAP Integrated Business Planning (SAP IBP) helps organization 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 successful integration & implementation of SAP IBP, SAP GTS, SAP TM & SAP EWM.

We offer 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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Image Credit: Pixabay

 




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