Sales & Operations Planning

Summary

Following a rapid operational Healthcheck, LCP was requested to implement a comprehensive Sales & Operations Planning (S&OP) process; restructure and reconfigure the Oracle Manufacturing Planning System along with introducing operational improvements where appropriate.

Project Background

This Pharma business was experiencing poor Customer service and high Working Capital, yet the lead time for fulfilment was quite long.

Approach

This project embraced the total organisation - Marketing & Sales, Manufacturing, Customer Service and Supply Chain Management teams.

 LCP defined three main phases of work, combining a small number of LCP experts with local implementation teams, to own the solution delivery:

• Definition of business planning processes and systems specification where necessary

• Implementation of the physical S&OP process, from pilot and interim solution to full fledged process

• Factory Improvement Programme - dedicated and rapid action teams established to quickly assess the key areas for improvement, define the corrective actions and deliver their implementation, including full systems restructure and configuration

Client Testimonials

LCP deployed a small team of experts to coach, direct and work with local teams, across all functional areas, responsible for delivering the implementation.

The LCP approach, where a Client is heavily involved with the solution delivery, achieves real energy and ownership.

Business leadership and an uncompromising approach led to this work being delivered expediently.

Success Factors

The engagement of all functions (and notably Marketing & Sales), in committing to developing and implementing new ways of working, was exemplary.  

The scale of change in the timeline allowed and the significant tender activity were challenges to master.  The introduction of cross-functional planning and meetings supporting S&OP made a profound change to the way our Client now manages its business.

Within 6 months the S&OP process was imbedded into the Corporate psyche and way of doing business; with the 2 main production facilities being radically overhauled in terms of planning.

The improvements witnessed throughout the implementation were gratifying at all levels.

Results and Benefits

Business systems were reviewed and substantially updated:

• Design and implementation of a new forecasting system

• Master data reviewed and substantially cleansed

• New factory production scheduling system implemented

• Reconfiguration of the Oracle Capacity Planning tools

 The direct business benefits witnessed are:

• Reduced planning cycle time from 2 months to 4 weeks

• Full accountability and measurement of forecast performance

• Manufacturing planning horizon increased from 2 weeks to 13 weeks

• Working capital reduction was dramatic (circa 25%) with the management controls in place to secure the benefit

• Dramatic improvement in Customer Service, by achieving reliable Promise Dates, reduced customer queries and Marketing & Sales intervention

• A standard Business dashboard now monitors performance across all functions and is adopted by the Executive Board