Unraveling the Enigma of S&OP Specters with The Supply Chain SleuthTM!
In the bustling world of a company offering services to numerous clients across various industries, change was on the horizon. With two dozen operating facilities employing thousands worldwide, the company had no formal Sales & Operations Planning (S&OP) or Supply Chain Operations Planning (SIOP) process in place.
A new chapter began when a S&OP expert was hired to steer the company towards a more coordinated and efficient future. The expert's first task was to communicate roles, responsibilities, and timings to all stakeholders, with a deadline of one month to have the entire S&OP process up and operational.
However, the journey was not without its challenges. The Operations teams were in varying states of readiness, with some facilities requiring education and hand-holding. Simultaneously, the Sales team was passively blocking the new S&OP process due to perceived loss of control and increased accountability.
The Sales team's historical practice of managing all forecasts independently from their individual customers added to the complexity. Some teams were providing inputs inconsistently and incompletely, further complicating the process.
To address these issues, the S&OP expert emphasised teamwork, with everyone working together using one version of the truth. Phantoms (unseen issues) were investigated, resolved, and moved the business forward. Unclear responsibilities, lack of cross-departmental coordination, and insufficient data quality were identified as the main phantoms hindering progress.
The Sales team was also found to be working subversively to stall the implementation of the S&OP process. They were not pressing customers for forecast information due to a fear of rocking the boat. This behaviour was addressed, and concerns about loss of control and responsibility were discussed, with accountabilities outlined.
Monthly S&OP meetings were introduced to address and resolve any issues with data or assumptions. Education was reinforced, and the ability to forecast, plan, schedule, and execute improved, benefiting customers, shareholders, and employees alike.
Despite promises, the S&OP process was still not up and running after a couple of months. However, the monthly S&OP process drove a level of common understanding and synchronisation unprecedented in the company's history. The emphasis was on teamwork, with everyone working together using one version of the truth.
The new CEO's recognition of the need for an S&OP process and the hiring of an expert to implement it marked a significant step forward for the company. The journey to a more coordinated and efficient future was underway, and the benefits were already being felt.
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