Integration is the Key Component in Gartner’s New S&OP Model
- July 27th, 2014
- By: Scott Robinson
The original 4-stage model – React; Anticipate; Collaborate; Orchestrate – did not adequately align supply chain strategy with anticipated consumer demand, argued industry executive David Vallejo. The new 5-stage model achieves this, he said.
“Stages three and four of this model evolve toward establishing a demand-driven S&OP process for a more profitable supply chain response that is aligned with strategy. Companies in these stages begin to look outside-in,” Vallejo said. “They sense and translate demand signals around their different products and channels, and they segment supply chain processes based on service expectations and volatility. Companies with the most mature processes extend their demand-driven approach to structured trading partner collaboration and orchestration of the extended value network.”
The new model “provides a more granular description and advice for each stage,“ he said.