S&OP Process Design, Development, and Implementation
PROJECT TYPE
IBP S&OP
CLIENT PROFILE
CPG Natural Healthcare
DATE COMPLETED
2021
Client Problem
Client’s demand-driven forecasting was either informal or non-existent and promotional planning was largely uncommunicated. Performance against sales targets were largely uncommunicated while performance against production targets were communicated without consequence. No shared financial or performance metrics were available among the three groups (demand, supply, finance).
SCMC Solution
Client concluded that an integrated planning process needed to be designed and implemented among the three parties (demand, supply, finance). SCMC crafted a process analysis and design project to implement what was termed version 1.0 of their S&OP planning process.
Results
Finance is now able to compare revenue forecast to independently created demand forecast. Discovery of a 10-30% excess grow capacity with limited channels for disposition – a cost reduction opportunity in production. Identified target levels for WIP and stored inventory and conducted version 1.0 of supply planning that identified excess. Provided opportunity for significant inventory reduction.
