La situation des affaires aujourd’hui est marquée par des défis et des opportunités liés à la volatilité de la demande, à la transformation numérique, ainsi qu’aux préoccupations sociales et environnementales croissantes.
Dans ce contexte, comment le Sales & Operations Planning (S&OP), concept connu de longue date, peut-il servir d’outil stratégique pour piloter efficacement votre entreprise ? Quelles sont les bonnes pratiques à instaurer pour que ce processus soit durablement efficace ?
Olivier Gautier, Directeur chez DIAGMA, propose de partager avec vous la vision originale de DIAGMA en matière de S&OP / IBP à travers 6 articles dont voici le premier volet sur la “Stratégie Business”.
S&OP to accelerate the growth and profitability of your business
Diagma’s vision is that the S&OP (Sales & Operations Planning) process – or IBP (Integrated Business Planning), its advanced and enhanced version – is a process for accelerating your company’s growth and profitability.
Through S&OP, General Management and its teams evaluate demand forecasts in terms of quantity and value, in relation to the company’s objectives. And they close any gaps by taking corrective action or seizing opportunities.
They then aim to ensure that the company’s resources, often with a focus on the Supply Chain, are mobilized and synchronized to meet forecast demand.
Translated with DeepL.com (free version)
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DIAGMA’s original S&OP offer
Based on this vision, Diagma has developed an original and customizable S&OP/IBP process definition and implementation offer. It is built around 5 pillars:
- Align your S&OP objectives with your business strategy
- Rely on efficient business processes (demand / supply), well integrated into an adapted S&OP process
- Equip your processes with digital solutions tailored to your company’s challenges and capabilities
- Build a high-performance organization to execute your S&OP, taking into account your company’s culture and CSR challenges.
- Implement an initial solution quickly and build on it with experience
In the following, we’ll be taking a closer look at the Business and Supply Chain Strategies pillar.
Develop a relevant supply chain strategy
In our opinion, a relevant supply chain strategy is based on several elements:
- The company’s overall strategy and objectives
Understanding a company’s strategy is vital to building its supply chain. Is the company seeking growth through entry into new geographical markets? Implementing innovative technologies to produce more efficient products with a lower CO2 footprint than the competition? Reducing costs?
Financial objectives and priorities in terms of sales, EBITDA and cash flow (or WCR) are also part of the context to be taken into account.
- Analysis of product/customer value chains and product/service offerings
In addition, products and customers need to be segmented according to their nature and strategic importance. This makes it possible to map each value chain (from suppliers to customer reception points). It also makes it easier to define the type of service – and associated KPIs – to be delivered by the Supply Chain. Finally, segmentation helps to concentrate resources where they have the greatest impact on achieving the company’s objectives.
Supply Chain objectives must be aligned with the company’s overall strategies and objectives. Let’s take an example. Let’s imagine a company whose strategy is to provide higher-performance, high-end products. In this case, its Supply Chain must select suppliers capable of supporting innovation and guaranteeing flawless quality. Likewise, the Supply Chain must be built to deliver a superior level of service: a perfect order, i.e. complete, on time, without breakage and invoiced without error. And it must handle every “contact” with the customer impeccably.
Align your S&OP objectives with your business and supply chain strategies
The coherent combination of the company’s business objectives and its Supply Chain objectives becomes the “target” to be achieved through the S&OP process.
The “target” must be communicated at least to the S&OP players, and ideally to all staff.
In the next section, we’ll look at the importance of adapting the S&OP process to your company.
How do you link your company’s strategies to your business management? Your S&OP process?
I’d be delighted to talk to you about it!
CONTACT ME
Olivier Gautier
Directeur chez DIAGMA
