Considering the current maturity of organizations in Sales and Operations Planning (S&OP) and the existing challenges and opportunities, LTPlabs has sought to assist organizations through the development of new analytical models that capitalize on the current context.
Three trends have guided (and should continue to guide) the development of S&OP models:
- Inclusion of new decisions in S&OP models: There is an increasing need for models to consider previously unmanaged decisions in an integrated manner. Topics such as contract management in business-to-business contexts, price and promotional activity management, and portfolio management should be increasingly considered in tactical decisions falling within the scope of this level of planning.
- Enhanced consideration of uncertainty in decision-making: Explicitly considering uncertainty in decision-making allows for anticipating and accommodating diverse contexts when generating plans. Stochastic and/or robust approaches to plan generation have emerged as complements to the commonly available what-if simulation techniques.
- Increasing convergence between predictive and prescriptive domains: As the generation of an S&OP plan falls within the realm of prescriptive analytics, its success largely depends, in most cases, on generating forecasts that anticipate the expected business behavior. Emerging developments in machine learning and artificial intelligence have led to unprecedented changes in the field of predictive analytics, with the democratization of new techniques (e.g., generative AI). Thus, organizations should position themselves as pioneers in utilizing these new techniques in generating S&OP plans.
LTPlabs is dedicated to supporting organizations in their Sales and Operations Planning journey. By developing new analytical models that align with current trends, such as incorporating new decisions, considering uncertainty, and embracing predictive analytics, organizations can optimize their S&OP processes.
By staying proactive and leveraging innovative techniques, organizations can navigate challenges, seize opportunities, and drive sustainable growth in today’s dynamic business landscape.
