How to make S&OP
the vector of progress of my company?

How to make S&OP
the vector of progress of my company?

How to make S&OP
the vector of progress of my company?
1572 1179 Citwell UK

Many companies want to advance the Sales & Operations Planning process to better anticipate, implement strategic goals, and improve collaboration among decision makers.

During the 10th edition of Agrovif in Nantes, Jean-Pascal Chichmanian, Manager at Citwell gave us his advice and his point of view on this trend through a short interview.

Are there favourable contexts for conducting an S&OP in the industrial sector? 

Jean-Pascal Chichmanian : “What really counts is the structuring of the company, its growth when it reaches a certain size, its international development or on a wider range. Mechanically enough, we need coordination, synchronization and S&OP-type processes to coordinate, of course, all the company’s plans on the sales side of the business, marketing and industrial side, production and purchasing. When you are an SME, it is still possible to coordinate between two or three people but when you expand and develop, it becomes much more complicated. This is a very favourable context for an S&OP approach”

And it also concerns multi-site structures?

JP. C. : “Yes of course, and even more so when you have different production sites, different storage locations, different sales places, these parameters increase the interest of setting up the S&OP process.”

As a firm, you make studies of ROI, contributions following the conduct of its projects, so today with your feedback, what are the assets that benefit the customers that you accompany?

JP. C. :”The first contribution concerns the management of the business, i.e. the match between what we want to sell and what we will produce. 18 months is the time needed to establish arbitration and define which source to choose, how much to ask its suppliers and its supplier. During these 18 months, it is also necessary to take into account the concerns of shortages in the food sector in order to make balances between the pushed flows of culture and the flows drawn by the demand. If the management of the business is well coordinated between the different functions of the company, it will gain agility, responsiveness in the short term and adapt to customer demand and not suffer.”

What are the elements of resistance to driving this type of project that affects both personnel and information systems? 

JP. C. :“The first important point is to understand the interest of an S&OP. Depending on the individual culture of the executives or a management committee it varies a lot from one company to another. It’s really the culture of the person and the company itself, so there is evangelistic work to be done on the subject of S&OP, but this subject is becoming more and more commonplace, large groups are doing it all. So the trend is really a backdrop for several years. What is still often to show is evidence by example, very concrete situations where we show that a relevant decision-making via the S&OP process has allowed to gain market share, maintain a service rate in a complex situation of capabilities … And finally, the tool, in any case the capabilities of simulations to make the right decisions. This is one of the S&OP’s out-performance criteria. At some point, you have to be able to equip yourself with a tool when you have reached a correct level of maturity and have developed a somewhat sophisticated excel in order to perpetuate it, extend it and make it more robust. It is necessary to have a more durable level of maturity thanks to the tool, but it is not a sufficient condition, because even with a tool one can regress, one must always maintain the level of competence and interest of the people and often it goes through a strong conviction of a management committee.”

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