Supply Chain Movement 13 – Sales & Operations Planning

Contents Supply Chain Movement 13: Sales & Operations Planning (S&OP) – 2014 Q2

7 | News & Background

• Barry Callebaut integrates S&OP into the daily process
• Winner of the last quarter: GAP
• Loser of the last quarter: Aston Martin

12 | IT Subway Map

Demand for supply chain software in Europe is notably strong in the otherwise slowly recovering economy. A growing number of companies are implementing software for sales & operations planning (S&OP) and supply chain visibility. There have also been several acquisitions in the software market. Those are the key conclusions from Supply Chain Movement’s annual market study to produce the globally appreciated IT Subway Map Europe.

14 | Profile Anita Arts, Liberty Global

In a company that employs more than 50 different nationalities, the fact that Anita Arts speaks five languages comes in handy. Fifteen different countries are represented in her own team of 25 people alone. Liberty Global is a patchwork of mergers and acquisitions in Northwest and Central Europe and Latin America. Up until two years ago each country was very much an island, each with its own operational management, processes and IT system. That has been changing rapidly, not least due to the recruitment of Arts to shape the supply chain centralisation process.

20 | Sales & Operations Poker

Sales & Operations Planning is the instrument that forces all the relevant players in the company to put their cards on the table so that the negotiating game can be played fairly. IT systems such as ERP primarily help by gathering together the data so that all the players can ‘see’ each other’s cards. But once the actual negotiation process gets underway, many companies still revert to that old faithful: Excel.

28 | Facts & Figures Sales & Operations Planning & IT

30 | Handing over the S&OP baton

Who is the real driver of sales & operations planning (S&OP)? And does this change when this framework for consultation evolves into a new phase? Supply Chain Movement asked a number of professionals for their thoughts on the potential shift in responsibility for S&OP.

32 | Patchwork of S&OP software

In the past year, many manufacturers have been busy rolling out and improving sales & operations planning (S&OP) processes. IT support is essential in gaining clarity and ultimately reaching a consensus on the figures and the planning. There are considerable differences between the various types of S&OP software currently available to buy, and selecting the right supplier is no easy task. Here, Supply Chain Movement provides an overview of the software market.

34 | Mindmap S&OP 2.0

Increased demand volatility is one of the main reasons why many companies are busy implementing Sales & Operations Planning (S&OP). They are trying to go further than simply balancing expected demand with production volumes, by also integrating financial budgets and business scenarios into the process. What should companies take into account in order to reach the next level of S&OP maturity? Consultancy firm Involvation and Supply Chain Movement have therefore designed a mind map, including practical directions and warning road signs.

37 | Tools & Technology

• Increasing the return on innovation
• Easier to use ERP-system

41 | Supply Chain Agenda of Jaro Caban

In 2011 Cargill, the multi billion-dollar agri-industrial conglomerate acquired animal nutrition specialist, Provimi. With a price tag of $2.1 billion dollars it was one of the company’s largest acquisitions. It consolidated Cargill’s global animal feed production and strengthened its internal supply chain capacity for food production and processing. It’s hard to imagine that Cargill began as a grain storage warehouse in Iowa, USA, in 1865. Today it operates in 67 countries with 143,000 employees and has 76 business units on six platforms that cover animal feed, food production, energy and transportation, financial services and pharmaceuticals.

Still, after nearly 150 years, it remains a privately owned company. Jaro Caban, moved with Provimi into the Cargill fold. Based in Rotterdam, he is responsible within the global supply chain of Cargill Animal Nutrition (CAN) for the task of establishing S&OP and Supply Chain Process Optimisation across five global regions with 250 factories, multiple distribution and warehousing activities and customer service points.