S&OP

Summary

Following a distribution strategy review by LCP, we were asked to design and implement a global sales and operations planning (S&OP) process with a focus on enabling the company to match the growth rate of its more advanced markets.

Project Background

The company had a strong development portfolio with a track record of late new product introductions. It also found the investment timing on capital equipment with long lead times difficult to integrate into overall market planning. A previous failed approach to S&OP approach had created a lot of skepticism which needed to be overcome.

Approach

The objective was to design and implement a new S&OP process. This required buy in across organisational boundaries starting with the executive. The project was divided into 3 phases:
• Design
This defined the business process and organisational roles to be able to operate the process with plants in the UK and Finland, development in Sweden and around 13 sales organisations globally. This led to changes in the organisational structure and recruitment of new supply chain planning roles
• Pilot Implementation and Training
Training was essential to enable all functional participants to be able to understand their roles within the process. Training material was developed and documented with training conducted just in time to enable a successful pilot implementation
• Implementation
The LCP team worked closely with the client to implement the process but also on coaching and communication which is essential to create a technical solution with an organisational underpinning.

Client Testimonials

A small LCP team collaborated across the organisation enabling all functions to understand and contribute to effective process implementation. The operations director remarked “This is the best managed project in the company for at least the last two years, as it was on-time, and on-budget – and is now our way of doing things.”

Success Factors

The initial challenge was caused by a previous S&OP approach which had gained little traction within the organisation and generated strong skepticism. The success of the project was driven by the technical solution being complemented by emphasis on communication and training which enabled everybody, across functional boundaries, to move forward with the process.
LCP consulting were asked back to the client to audit the process and its further development after 12 months.

Results and Benefits

The S&OP process was implemented across the organisation within 6 months of starting the process design
• New product introduction was integrated into the planning process
• A new planning team was recruited and located in Sweden to run the new process
• Historical forecast bias was corrected through sales area participation in the process.