Value of speed

At a time of profound disruption, organizations are digitizing their supply chain operations, yet many of them have failed to address the human element—specifically, how employees can absorb and use all the valuable new information to make decisions. This report helps companies accelerate decision making by analyzing the challenges that need to be overcome and the benefits of establishing collaborative processes that cut across silos.

This report focuses on the sales and operations planning (S&OP) process. It explains how to begin simplifying and accelerating decision making and outlines the tangible value of faster decisions, as demonstrated in a supply chain simulation model. Companies aiming to digitize the supply chain must start with a sound cross-functional decision-making framework, where technological innovation, organizational alignment and human intelligence intersect, the report says.

The analysis discusses a range of pressing issues when enhancing the role of S&OP. Readers will learn how to refine decision making and create a cross-functional matrix to enable agreement on the organization’s demand & supply plans.

The report then explains some of the benefits of quick decision making. These include:

• Improved customer service
• Lower cost and improved margin
• Better inventory planning
• Enhanced value from digital investments
• More predictable financial results.

Put together, these benefits are likely to help the company set and meet earnings targets. KPMG studies have shown that they may also lead to a higher return on equity.

Without a solid sales and operating decision-making model, companies cannot experience the full benefits of new supply chain technologies. Each proven success in supply chain transformation will bolster the business case for improved data quality, stronger governance and an established central planning capability. This new KPMG report lays out a clear framework for understanding the challenges facing supply-chain decision makers and underscores the value in solving these challenges.