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In many companies, especially those in the manufacturing industry, the focus on supply chain is no longer limited to the shop floor. This critical operating process has now found its way to the board room. The reason is clear. Several studies have shown that improving the supply chain processes leads to significant benefits both on the cost and the customer side of the profitability equation. Companies applying best-in-class Sales and Operations Planning processes (S&OP) were found to run with 50-80% lower inventories than the median while providing 15% higher on-time deliveries and 40-64% shorter cash-to-cash cycle times.
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