Why Many Companies Think They Have S&OP — But Actually Don’t
Consultants must first objectively assess the client’s as-is S&OP process instead of assuming maturity based on meeting names or tools used; the real indicators are governance, discipline, KPIs, and decision behaviour.
Consultants can use the below questionnaire table to capture client responses by selecting one of the four possible options for each question
| Question | Score: 4 | Score: 3 | Score: 2 | Score: 1 |
1 | How Frequently are S&OP meetings held? | Regularly (e.g., monthly) | Occasionally (e.g., quarterly) | Infrequently (e.g., semi-annually or annually) | Rarely or never |
2 | Who Participates in S&OP meetings? | Cross-functional team including senior leadership | Cross-functional team but not senior leadership | Representatives from key departments only | Limited to one or two departments |
3 | How well-defined are Roles and Responsibilities in the S&OP process? | Clearly defined and documented for all participants | Mostly defined, but some roles are unclear | Partially defined, with significant ambiguities | Not defined or documented |
4 | How well does the organization adhere to the S&OP Process Schedule and Deadlines? | Always adheres | Mostly adheres | Occasionally misses | Frequently misses |
5 | How well does your organization Adhere to the established production plans or forecasts ? | Very Well – Consistently follows the established plans with minimal changes | Well – Makes occasional adjustments based on significant changes in demand or supply. | Moderately – Frequently makes changes to the plans to adapt to new information or unexpected events | Poorly – Rarely follows the established plans, leading to a highly reactive environment. |
6 | How effective is the Communication of S&OP plans and decisions across the organization? | Very effective, with clear and consistent communication. | Generally effective, but some gaps exist | Occasionally effective, with significant communication gaps | Ineffective, with poor or inconsistent communication |
7 | How well does the organization leverage Technology and Tools in the S&OP process? | Extensively uses advanced technology and tools | Uses some technology and tools, but not extensively | Minimal use of technology and tools | No use of technology and tools |
8 | How Standardized is your current S&OP process across the organization? | Highly Standardized | Moderately Standardized | Minimally Standardized | Not Standardized |
9 | To what extent is your S&OP process Integrated with other business processes? | Fully Integrated | Partially Integrated | Minimally Integrated | Not Integrated |
10 | How well does your S&OP process support Strategic Decision-making? | Very Well | Well | Adequately | Poorly |
11 | How well-defined and actively used are S&OP KPIs | KPIs such as Forecast Accuracy, Plan Adherence, Service Level, Inventory Turns are clearly defined, reviewed in every S&OP cycle, and drive decisions | KPIs exist and are reviewed, but not consistently used to drive corrective actions | Some KPIs exist, but tracking is manual or irregular | No formal KPIs or performance measurement for S&OP |
The points across all 11 questions are then aggregated, and the total score determines the client’s S&OP maturity level.
Total Score | S&OP Maturity Level | Current State Interpretation | SAP IBP Implementation Guidance |
37 – 44 | Highly Mature | S&OP is strategic, KPI-driven, and deeply embedded in business decision-making. Cross-functional alignment is strong, plans are stable, and decisions are scenario-led. | Position SAP IBP as a strategic decision platform. Focus on advanced capabilities such as scenario simulations, supply and financial balancing, Order-based planning, Analytic Stories, and exception-driven alerts. |
28 – 36 | Mature | S&OP is well established with regular cadence, governance, and KPIs. Some inconsistencies exist in integration, standardization, or analytical depth. | Use SAP IBP to standardize and integrate the process end-to-end. Emphasize demand-supply reconciliation, KPI automation, cross-functional visibility, and tighter integration with S/4. |
19 – 27 | Developing | S&OP exists but is inconsistently executed. Planning is reactive, KPIs are limited or manual, and alignment across functions is partial. | Leverage SAP IBP as a process stabilizer and enabler. Start with core demand and supply planning, basic S&OP cycles, and standardized data models. |
11 – 18 | Early Stages | S&OP is largely ad-hoc with limited structure, governance, or performance measurement. Decisions are reactive and silo driven. | Implement SAP IBP as a foundational transformation tool. Begin with simplified planning models, governance setup, and basic KPIs. |
