A US-based steel manufacturer utilized ROIG’s expertise in Retail Planning to completely redesign its Sales and Operations Planning (S&OP) process. The client faced significant gaps between its sales and operations functions due to decentralized operations and underdeveloped capabilities. ROIG's approach aimed to bridge these gaps by:
1. Aligning on key planning elements, such as made-to-stock vs. made-to-order and service levels.
2. Identifying and defining critical metrics, along with developing supporting reports and tools.
3. Redesigning the S&OP process and business rhythms (weekly, monthly, quarterly, and annually).
These initiatives led to improved inventory turnover, enhanced in-stock performance, and a more efficient operational network.
The ROIG Group determined that the manufacturer was in an OPTIMIZE state and needed to significantly mature its Sales, Inventory, and Operations Planning (SIOP) capability as well as Commercial Excellence. During the analysis process, ROIG identified substantial gaps between sales and operations, with the SIOP organization unable to bridge this divide due to decentralized operations and processes. The existing "adhocracy" structure, while flexible, was too informal and lacked standard policies and procedures, resulting in significant deviations from best practices in both the SIOP and Sales organizations.
ROIG collaborated closely with the client to establish, launch, and execute a clear transformation plan consisting of four key accomplishments:
Created a common planning platform and reporting suite that leveraged operational ERP data, integrated into weekly, monthly, quarterly, and annual planning rhythms.
Optimized the network by aligning physical and logical manufacturing with customer production planning.
Leveraged customer data and Voice of the Customer (VOC) insights to meaningfully incorporate customer input into the commercialization process.
Established a new organizational structure to support the strategy, transitioning from decentralized generalists to centralized specialists, complete with new roles, responsibilities, and enhanced demand planning capabilities.
As a result, in-stock levels significantly improved, and a customer confidence measurement system was implemented. The organization evolved into a more aligned and informed structure, leading to substantial reductions in logistics and conversion costs.