SCALA CASE STUDY
Sales & Operations Planning Improvement
Food Manufacturer
Background & Brief
This leading branded food manufacture following a merger with another food manufacturer embarked on a fast track integration process to maximise synergies from the merger. Sales and Operations Planning (S&OP) had been implemented to various levels in both businesses but focused on reconciling demand and supply. The process was not well defined in terms of business benefits, process ownership, policies and procedures leading to sub optimal results.
Project Approach
SCALA agreed with senior management the objective to design the S&OP business model in order to support the new integrated organisation by utilising existing resources – people and tools. The SCALA methodology was to;
Review and assess the current S&OP process versus recognised best practices including the use of systems
Assess gaps in current capability to implement best practice, develop and deliver appropriate training programmes to achieve desired results
Attend and participate in the current process meetings to assess organisational behaviours and understand the S&OP principles
Interview all key stakeholders to ascertain expectations and support for S&OP
Benefits & Results
The project delivered the following:
Quantified business benefits e.g. in first six months improved margin by £0.75m
S&OP business model setting out the process steps that supported senior management’s business objectives
A balanced scorecard for measuring business performance that included agreed targets reflecting best practices
Training programme delivered to meet identified learning needs
Improved forecast accuracy to upper quartile performance levels
Final Outcome
The company was able to build on the work of the project and continuously improve the S&OP process, giving senior management better control to successfully grow and develop the business.