S&OP Maturity Series, part 5 of 5
All good things come to an end, and so it is with our journey with Andrew. We have watched his growth from an energetic floor manager to a seasoned, accomplished industry veteran. Before we part ways, there is just one more challenge for Q Co. and its country manager.
Q Co. has expanded to the fifth and final level of S&OP maturity. The company holds a stable position in the global market and is now ready to introduce a new range of products that would not only set the company apart from the competition, but introduce it to a completely untouched market. This is a substantial risk for Q Co.: Millions of dollars have been invested on R&D, not to mention the time and energy spent. A wrong move would mean that it was all for nothing.
Rising to the occasion
Andrew meets with Shelly, the global supply chain director, to plan the product rollout. Using the Demand Planner’s EOL (End of Life) support, they are able to forecast the most optimal strategy to phase out old products and facilitate NPI (New Product Introduction).
Their S&OP solution shows them the impact of the new product portfolio on their plants, suppliers and contractors. Using what-if scenarios, they identify potential issues and try various measures to arrive at the best possible plan. The impact of every change in their S&OP on their finances is also immediately visible, allowing them to make adjustments where necessary.
With the support of the Promotion Management module, the marketing team plans a series of marketing campaigns for the new product launches. Q Co. is poised to lead the market for at least the next five years.
No matter which stage of S&OP maturity your company is at, it’s always the right time to ask the same question Andrew did: Are you getting the most out of your S&OP process?
I leave you with two reference materials:
- How S&OP can help metal manufacturers get ahead in the business. Read it here.
- An S&OP ROI calculator that breaks down the savings you stand to gain. This includes efficiency improvement, raw materials, inventory obsolescence, labor hours and transportation costs.
