Request a Brochure

Learn, explore and unleash your inner chef.

For more information, contact:
Constandinos Vinall
ConstandinosV@marcusevanscy.com

Why is it important for the organisation as a whole to have integrated S&OP across functions?

I believe there are three key drivers for an organisation to have a joined-up, cross-functional S&OP process.

Firstly, an integrated S&OP process provides transparency on the medium-term health of the business, including a realistic view of demand for its products, its ability to supply them and the resulting impact on its financial performance. This transparency is only fully achieved when there is cross-functional input on the various dimensions of the business outlook.

Secondly, the cross-functional S&OP process drives alignment across the business both to deliver value to its customers and importantly to align tactical activities with company strategy. At its most basic level this means having assurance that there is supply chain capacity to meet customer demand and hence meet financial targets, but at a more sophisticated level its disciplined decision-making approach also drives alignment and engagement on complex issues requiring trade-offs across functions.

Finally, a well-embedded and participative S&OP

process increases efficiency. Without S&OP, it is not unusual to have different functions running their own distinct, parallel processes which result in several versions of sales and manufacturing volumes and values and also sales and profit forecasts. The enterprise-wide S&OP process allows the business to use ‘one version of the truth’ and this helps eliminate both parallel and duplicative working but also focuses decision-making on one set of figures which have been pressure-tested across functions.

What are the requirements for cross-functional collaboration to drive an effective and impactful S&OP process?

Creating cross-functional collaboration in S&OP requires attention on both the short-term and long-term enablers. In the short-term, some of the most critical requirements are;

• C-suite sponsorship – both to advocate and lead cross-functional engagement but often also to provide material investment to build and support this way of working

• Team Set-Up – Significant attention needs to be paid to two aspects of team set-up – firstly defining clear ways of working and boundaries for cross-functional S&OP teams which provide clear expectations and measures for effective contribution. Secondly, cross-functional teams require support to build and sustain the trust that is the foundation for genuine partnership.

• Information – the process needs enough information to be able to address the key issues and drive decision-making, but this does not necessarily mean holding off until the next big system implementation is complete or a potential new ERP tool is online – less sophisticated approaches can be used to get the process, and critically the cross-functional dialogue, up and running.

To embed and sustain cross-functional S&OP in the long-term other factors are also important. For example, securing senior management participation and engagement in the process, and building a culture and HR strategy that truly supports cross-functional working across the enterprise.

What are GSK’s key success factors for building and sustaining strong enterprise-wide engagement in a commercially-focused S&OP process?

I believe a combination of numerous approaches have been important in supporting GSK’s successful approach to deploying S&OP across its global businesses.

• C-suite sponsorship and engagement – both in the set-up and evolution of the process

• Appointing a senior leader with cross-functional experience and credibility to drive the deployment of the new global standard process

• Providing the right balance of expert ‘technical’ support and senior business leadership to build self-sufficient S&OP teams

• Hands-on coaching and mentoring of stakeholders in the various S&OP processes, ensuring that they understood not only the mechanics of the process but also their specific role in it

Why is it important for the different divisions to be involved in creating a fully aligned and collaborative S&OP process?

All functions involved in an enterprise-wide S&OP benefit in a number of areas;

Firstly, the transparency and regular cadence of the S&OP process means that there are far

fewer surprises on the state of the business and the various functional perspectives on it for teams to manage and consequently less firefighting with the attendant stress on partnerships that this causes. Secondly, the aligned and collaborative S&OP process also builds mutual understanding across functions in the context of the business strategy. Armed with this better understanding, functions can proactively shape better business solutions and support more optimised decision-making with their cross-functional partners. Finally, the clarity and discipline provided by the S&OP process sets clear boundaries and expectations for both individuals and teams and this clear line of sight on both purpose and delivery drives more effective and efficient operations across the teams.

What would you like to achieve by attending the 13th Annual Advancing S&OP to Integrated Business Planning conference?

I am really looking forward to the networking opportunity that the event provides and making use of that to really advance the discussion we have on building and embedding S&OP (and ultimately IBP). I am especially interested to engage with other leaders on how they see the challenge of creating enterprise-wide engagement in S&OP and what we can learn on key success factors for this in the various industry sectors represented at the event. I see a great opportunity for this, both around the speaker programme, but also in the interactive workshop on Change Management and Business Transformation prior to the main conference.

Ahead of the 13th Annual Advancing S&OP to Integrated Business Planning conference, read here an interview with Neil James, Vice-President, Core Commercial Cycle at GlaxoSmithKline about the importance of having an integrated S&OP across functions as well as the requirements for cross functional collaboration in order to drive an effective S&OP process. In addition, Mr. James sheds light on GSK’s successful approach to deploying S&OP across its global businesses. Finally, he explains how different divisions can benefit from collaborating and being aligned to the S&OP process.

Practical Insights From:

Neil James, Vice President, Core Commercial Cycle Global Manufacturing and Supply, GSK,
Marcelo Paroni, Global Head of S&OP, Diageo,
Richard Lemerle, Supply Chain Director, Mars
Jakob Lignell, Director, Global S&OP, Arla Foods,
Monica Prati, CFO, Wrigley,
Toni Sirviö,Director, Head of Planning, Konecranes,
Martin McKinnon Edwards, Senior Manager, Global S&OP Lead, Novozymes

About the conference:

This marcus evans event will provide the best platform for benchmarking and moving forward your S&OP efforts, with interactive discussions and practical case studies from top companies in Europe. The 13th Annual Advancing S&OP to Integrated Business Planning Conference will take place from the 8th until the 10th of February 2017 in Amsterdam, Netherlands.

Previous Attendees Include

Johnson & Johnson
Nestle
Proctor & Gamble
Shell
Sanofi
Nike
DHL
British American Tobacco
Honeywell
Unilever
Electrolux
Kia Motors Europe GmbH
Diageo
Allergan Pharmaceuticals
BASF
Carlsberg
Henkel AG & Co KGaA
Philip Morris International

About the speaker:

Neil has 20 years experience in the pharmaceutical industry, with an extensive track record of delivery in a range of commercial roles. He has wide leadership experience both in operational roles as a General Manager and in strategic transformation programmes. In addition to the experience of strategy development, he has successfully led numerous cross-functional implementation and change programmes at local, regional and global level to drive growth and profitability.

Since 2013, he has worked extensively on building cross-functional collaboration and partnership across Commercial, Finance and Supply Chain functions. He is currently Vice-President, Core Commercial Cycle for GlaxoSmithKline where he has been responsible for the successful global deployment of S&OP across its £24 billion global business.

An Overview of S&OP: A GSK Perspective

An interview with GlaxoSmithKline

Neil James

Vice-President, Core Commercial Cycle

GlaxoSmithKline