Sales and Operations Planning

The Challenge

To contain the loss in retail sales of a leading fast-moving consumer goods manufacturer, as a result of poor supply in full and on-time performance. At the same time, check the continuing build up of excess inventories and write-off of stock.

The Solution

After analysing the imbalances between supply and demand using ‘pereto’ analysis, we went on to work with the manufacturer to:

• implement sales and operations planning processes that linked what sales forecast to what production supplied

• implement performance measurement and management systems of supplier and manufacturing performances against plan, sales and marketing demand accuracy and other factors

• align roles and responsibilities into a supply group that aligned with the sales and marketing teams to ensure internal demand and supply contracts were fulfilled

• scope out new sales, order forecasting and inventory management processes and implement training to support sales operations planning

• use the processes to evaluate the best system that met forecasting, inventory and production management needs

• negotiate the best systems supply arrangements (software, implementation and training)

• oversee the implementation of the systems.

The Benefits

• Improved margins over the year to more than 20% on capital through better delivery in full and on time, lower write downs and holding costs, and improved manufacturing productivity

• Enhanced value of the brand among retailers and consumers as the range and on-shelf availability of products improved