Once More Unto The Breach

You could hear the groans around the room when the FMCG CEO announced to the company that they had decided to implement Sales & Operational Planning (S&OP). After months of prevarication and toing and froing, a decision had finally been made! Enchange was tasked with facilitating the implementation - no, the groaners were not groaning at Enchange! The mumbling was partly generated by previous failures at S&OP introduction and the general misconception that S&OP is disruptive and means much more work.

Previous attempts at implementation were not well structured with ad hoc meetings having far too many attendees for decent review, debate and decision making. These mass meetings could take up a whole day and even run into the next, on occasions. A complete waste of time and resources and in this context you can understand why staff associated S&OP with disruption and extra work.

Communication Abomination

Meeting dynamics made the UK Prime Minister's Question Time look like a well-behaved school for nuns under a vow of silence. All basic meetings within the very broad church of S&OP were crammed into one disorganised rabble of a meeting. A gang fight, a rugby scrum and January sales all rolled into one ugly mosh pit without the background music.

The Finance guy would ignore all protestations and insist the monthly forecast must be exactly equal to the volume and financial numbers in the annual plan. The planners would double guess the demand as there was no forward forecast or reliable history. The marketing representative arrived late, left early and his contribution was miniscule - when an empty lift arrived at the floor, the marketing guy stepped out! The salesperson present did not really know why he was invited as he had nothing to do with supply and maintained a bemused frown that said, 'I’m a salesman, get me out of here!'

The Only Way is Up

Introduction to a series of routine meetings with different objectives, data and KPI input/output requirements and actions was never going to be easy. Some heads needed banging together and some egos needed to be massaged but slowly but surely the semblance of a functional S&OP was ground out. Discrete meetings for demand and supply planning, NPD/innovation, Finance and pre-S&OP were inserted in diaries 12 months ahead and rolling.

Meaningful minutes and actions were issued and blame-storming through the circular firing squad reduced as team members realised the value and purpose of cooperating within S&OP. The Board S&OP meeting was a very short session where the decision makers helped the junior team overcome issues and challenges and fine tune priorities before one set of numbers were agreed and EVERYBODY worked towards the same, shared target. 

Ease Their Pain

By far the biggest revelation of this often painful implementation exercise? Work load DECREASED significantly as people gradually started to work more efficiently on what really mattered to the business and not on what was best for their department or themselves. KPIs were used to identify areas of weakness/opportunity and make adjustments rather than being used to score points against colleagues. Strictly looking at only 1 set of numbers meant everyone was aligned. 

Frankly, working life became a lot less stressful and wastefully combative!

Psst! Note to CEOs only – the company in question actually reduced staffing levels AND increased sales!

Help! I need somebody

If you have any Supply Chain or Route to Market problems or opportunities you would like to discuss - like S&OP -  then please reach out to Enchange.com via telephone, email, or live chat.