Based on a survey of nearly 140 enterprises between June and July 2006, Aberdeen research finds that the top 5 pressures for improving S&OP processes are rising customer order fill rate expectations, better return on net assets, shrinking profit margins, customer retention pressures and extended lead-times due to global sourcing.

However, current S&OP processes are failing to alleviate many of these pressures. While a majority of companies report that S&OP has helped improve forecast accuracy and improved cross-departmental communication, most companies have failed to see improvements in profit-related metrics like gross margin and customer retention.

Aberdeen research finds that traditional sales and operations planning (S&OP) processes and supporting technologies are no longer sufficient in today's high-pressured business environment. Sales and Operations Planning has evolved to become Integrated Business Planning. It is a truly cross-functional, multi-dimensional process that includes all elements of demand, supply and financial analysis in relation to the business goals and strategy.