Supply Chain Blog

FMCG/Pharma S&OP; a healthy obsession?

Posted by Christian Cusworth on Tue, Aug 24, 2010

Reading through commentary and professional opinion on the subject of S&OP, best practice processes, its alignment to ERP etc, it’s pretty clear that raving about the importance of embedding S&OP will always grab popular support and light applause. It’s a little like election hopefuls pledging extra funds to the health service and to lower taxes. I am as guilty as everybody else on this one. The less prominent message seems to be the given that the businesses Order to Cash processes are robust and responsive enough, not only to execute the S&OP plan but to deliver it at low cost and to the maximum level of customer service. Following a week in Central Eastern Europe discussing Supply Chain issues with a number of multinational businesses, I have decided to put down my S&OP drum for a few weeks. (was that a distant hurrah !) – and pick up on some current issues around cash flow and customer service. The following series of blogs will look at some common faults in order to cash processes and how they can end up costing the business far more than first thought if not addressed. Over the coming weeks I will look at some practical solutions that could deliver great results. If any of the below targets touch a nerve – keep track of our updates over the next few days :

  • Providing accurate information to customers (eg delivery / availability)
  • PCO/CCFOT or equivalent order fulfilment/case fill KPI improvement
  • Invoicing accuracy & timeliness (working capital benefit)
  • Clear definition of internal roles and responsibilities across the OTC process
  • Transport cost reduction
  • Streamlined Order capture and more efficient working
  • Sales force automation
  • Organisation re alignment (automation / improved ERP utilisation / freeing up time for customer focussed activities particularly in sales)

After all business is primarily about customers and cash ?

Order to Cash

Tagss: CEE, S&OP, Forecasting & Demand Planning, Order to Cash