Success Story - Sales and Operations Planning
We are proud of our trustful collaboration with a DAX30 company, which always leads the game to new heights in the sporting goods industry, but most importantly changes lives through sports.
The integrated S&OP planning program was set to deliver on the same level of excellence and create a fundamentally better way of alignment between functions, people and plans.
It was set quite clearly set by the Finance SVP. So, we just quote him here:
“Transform local and static planning solutions into a globally consistent integrated planning framework that involves and gives transparency to all stakeholders and facilitates informed decision making on tactical level across all sales channels.”
It was easy to see from the very beginning that the objective comes with a set of obstacles to be overcome. The biggest of which were:
Disconnected and isolated plans by functions as well as by organizational entities.
Focus on data collection and reconciliation instead of analysis and simulation.
No common language in the planning process.
Lengthy planning cycles, which gave signals to supply, operations and top management way too late.
We embarked on the exciting journey to discover and deliver a digital tactical demand planning framework covering holistically all sales channels - Wholesales, Franchise, Retail and eCommerce.
Our approach put the focus in the beginning on discovery and rapid prototyping to ensure fast and cheap learning for all parties. Following this approach, we delivered soon a pilot solution for the biggest sales channel in the EMEA market. Subsequent roll-outs happened to different organizational entities worldwide.
Adoption of the new solution happened naturally and predominantly driven by the planning community, simply because the solution was fundamentally better than the existing ones.
Digital Solution Highlights:
Monthly executed rolling forecast with a mid-term planning horizon.
Dedicated alignment step to bring together Sales and Marketing perspectives.
Demand Planner role was introduced to govern the planning process and execution across Markets.
Escalation process to top management as part of the planning cycle.
Fully-automatized integration of actuals data with complex business versions as a base for planning (e.g. Projected Sales, Calculated Forecasts).
KPIs – Gross Sales, Sales Discounts, Net Sales, Net Quantity, ASP, Cost of Sales, Gross Profit, Gross Margin
Automated consolidation of markets and HQ planning versions
Role-based workflow of planning steps, including a dedicated alignment.
Business-driven authorizations with zero IT maintenance
HQ driven minimum granularity requirement and additional flexible granularity.
Planning of flexible granularity with data allocation.
On the fly cascading KPIs recalculation.
Multi-currency scenarios excluding local currency volatility.
Benefits and Outcome:
With the new digital planning solution we managed to drive real business outcomes with the creation of a holistic omni-channel perspective focused on the consumer.
Planning in sync between global headquarter functions and local markets
One version of the truth in planning
Establishing of a new business function that leads the process - Demand Planner
Market level consolidation
Accurately communicated demand signals
Clear understanding of real demand
Better inventory management and purchasing
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