Design and implementation of S&OP / IBP

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Company profile 

We performed a project on the design and implementation of S&OP / IBP for the leading company in natural food preservation, biochemicals and innovation leader in biobased and biodegradable plastics. The current organization is the result of a merger of two former divisions with different business characteristics. At the starting moment, the attempts to implement S&OP have not been successful with involving sales, finance, and senior leadership. At the start S&OP had a negative connotation within the company. Due to the growing business, cross functional alignment was needed to optimize capacity and shape demand to optimize profit.  

The project 

In very close collaboration with the customer, we designed an S&OP blueprint, which fits the new organizational structure by leveraging existing meetings. Moreover, the design onboards both sales and finance next to operations (incl. procurement), while at the same time respecting differences in business characteristics in the markets. Lastly, involving the executives was an essential component of the design. We implemented the blueprint globally including KPI dashboarding and meeting packages, and we coached key players on behavior. Change management was the key success factor in the project with various steps from creating a new branding for S&OP up to training and coaching of senior leadership on demonstrating the right behavior.  

Results 

The monthly S&OP / IBP process is running from downstream sales and factories up to executive level. We trained the S&OP/ IBP lead and process manager that sustained and improved the process. The process resulted in better decision making with the focus on medium and long-term important topics without (bilateral) shortcuts. The process is fact-based and forward looking instead of backward looking. Over time, the process has grown to a true IBP process at a level 4 (Gartner). The company is now considered a thought leader in the field of IBP.  

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