Next Generation of S&OP: Scenario Planning with Predictive Analytics & Digital Modeling

Although the Sales & Operations Planning process presently lies at the center of our business, businesses have yet to take full advantage of it. This article describes what is missing in our process; in particular, how to deal with uncertainty, complexity, and risk using scenario planning through probabilistic planning, predictive analytics, and “what if” simulation. GREGORY L. SCHLEGEL | Mr. Schlegel is VP Business Development for SherTrack LLC, professor of supply chain at Lehigh University, and Past President of the APICS organization. He has served as a supply chain executive for several Fortune 100 companies, including IBM. PETER MURRAY | Mr. Murray is Global Supply Chain Development & Innovation Leader of E. I. du Pont de Nemours and Company and has implemented demand management across DuPont s 14 strategic business units. He is currently on the APICS board of directors. T T hose who have been in the operations/supply chain management arena for a good portion of their professional careers know very well that the Sales & Operations Planning (S&OP) process lies at the center of our business because it is where disparate functional areas convene to gain consensus. ...