Sales and Operations Planning
Orchestrating Success with Increasing Profits and Superior Cash
Generation
Sales and Operations Planning
Orchestrating Success with Increasing Profits and Superior Cash
Generation
byAndy Coldrick , Dick Lingand Alain Perrot
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Ling Coldrick-A History of Innovation
1980s Dick Ling and Andy Coldrick started collaborating on S&OP when they were in the Oliver Wight organization. Dick is the creator of S&OP
1990s Andy was President of Oliver Wight for Europe, Africa and the Middle East, then Co-President of Oliver Wight International. Dick left Oliver Wight to become independent but the two continued to collaborate and developed the popular class ‘Beyond S&OP’ . They pioneered the integration of New Activities and Portfolio Management, and created the term ‘Integrated Reconciliation’ to describe the cross-functional, collaborative process at the heart of successful S&OP.
2000s They developed a powerful integrated implementation methodology for S&OP in global, regional and local environments. Most recently, they have evolved S&OP from demand/supply balancing to a process which is aligned to the strategic intent and the shape of the future product portfolio, and is used to execute strategy
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Ling Coldrick Europe DirectorAlain Perrot is a food engineer graduated from ENSIA (National French School for Food Industries) and has a MBA from ESSEC. He has started his career in 1984 in the Mars Group (Unisabi) where he created the Industrial Engineer function in the Strasbourg plant. Then, he is successively appointed Shift Manager in Strasbourg plant, Financial Planning Manager, Resourcing Manager and Business Planning Manager of Unisabi. In 1992, he is appointed Supply Chain Project Manager Mars Petcare Europe. From 1992 to 1994, he reconfigures the Supply Chain to bring it to «Class A» level, and pionneers the implementation of SAP R3 for the whole Supply Chain (Planning, Logistics, R&D, Manufacturing, Purchasing). Concurrently he leads the implementation of S&OP in Europe, where he first meets Andy.
In 1995, he joins Bestfoods France as Logistics & Planning Director, to lead the Supply Chain Project. From 1995 to 1996, he divides Inventories by 2, and improves the Order Filling Rate by 30%.
In 1997, he is appointed Plant Manager of the Dressings Factory in Dunkerque, which he transforms in 2 years into the most agile plant of Bestfoods Europe (Agility multiplied by 2).
In 1999, he joins Air Liquide Welding, to create the Supply Chain function, as Vice President Supply Chain & Purchasing.
From 1999 to 2003, he creates the Supply Chain & Purchasing Organization of the 20 autonomous companies of Air Liquide Welding, improves the order filling rate by 30%, decreases inventories by 20%, and improves purchasing productivity by 4%/year. He also is the driving force in a successful S&OP process,again working with Andy. In 4 years, he moves the Supply Chain of Air Liquide Welding from a buzz word to the Transformation Engine of the Company. A key driver of this journey was the implementation of a Regional IBM he developed with the support of Andy.
In 2003 he becomes associate of Big Fish, a service company dedicated to People development in Operations.
From 2003 to 2006, he was Associate Professor at Strasbourg Business School, where he taught Supply Chain Strategy, Multicultural Management, and ERP implementation.
He is a worldwide leading authority in breakthrough S&OP (GPS) and has implemented IBM in several FMCG’s, but also in other industrial sectors like automotive and welding.
Since 2008, he is the leading consultant of group Danone for IBM (branded GPS in Danone). So far, he has implemented GPS in 38 Danone Companies, representing a coverage of 75% Danone Turnover. GPS is now recognized as THE deployer of Danone new operating culture. He is also currently supporting Mars Chocolate Europe in the upgrade of their S&OP. .
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Our Mission
We Build & Transform
Operations Teams Worldwide
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Our vision : We make your end-to-end Value Chain ‘Real Life’ with our S&OP way
Mechanical Management Biological Leadership
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Ling Coldrick client list
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Our Assessment of Current Business challenges
1. Pressure on Results
2. Complexity / Uncertainty
3. Time / Accelerating Speed
Bad Stress + Frenetic Individualism
Q3 Q1 2013Q1 Q2Q2 Q4Q4
Foundational :The 7 keys of S&OP
Renovation & PromotionTarget
A Common Problem ...
Next Year isAnother Year
Q3 Q1 2013Q1 Q2Q2 Q4Q4
Innovation
Breakthrough
Foundational :The 7 keys of S&OP
Renovation & PromotionTarget
Retain faith that you will prevail in the end, regardless of the difficulties
Confront the most brutal facts of your current reality, whatever they might be
LingColdrick S&OP model works like a SatNav
Ling Coldrick © Dick Ling and Andy Coldrick 2011
How We Work
Thought leaders in aligning S&OP with
business and strategic agendas, and in
working with companies to catalyze them to
maximize the benefits of S&OP through
education, workshops and coaching
Ling Coldrick
Ling Coldrick © Dick Ling and Andy Coldrick 2011
S&OP can become your CompanyTransformation Engine
Time
Fire FightingCulture
VelocityCulture
Effo
rt
Existing Portfolio
Time Time
People & Behaviours
Processes
Tools
Vision
TransversalLeadership
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Our proven way : a focus on the Teams ‘Line of One’ construction
Ambition
Assessment
Co-Design
Roadmap
Walk theTalk
Teams : Focus on How & W
hen
Team-Building
with Meaning
Coach : Focus on W
hy, Who & W
hat
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Our Meaningful Team-Buildings
1. The art of Questioning : – Investigation Games
2. The art of Exploring :– Treasure Hunts
3. The art of Emotional Communication:– Theatre, Movies,…
4. The art of Execution :– Intelligent Outdoors
5. The art of Cooperation :– Collaborative Business Games
Ling Coldrick © Dick Ling and Andy Coldrick 2011
S&OP People focused approach Reconciles Universalism & Particularism
Apply rules and proceduresuniversally to ensure
equity and consistency, although…
We do not want to degenerate into rigidity andbureaucracy, so we must…
We do not want to drown into chaos or lose our sense of
central direction so we must…
Encourage flexibility byadapting to particular situations, however…
UNIVERSALISM
Source: Trompenaars, F, Riding the Waves of Culture PARTICULARISM
Ling Coldrick © Dick Ling and Andy Coldrick 2011
• Choices and Tradeoffs
• Making the Right Choices
• Unique Sustainability
• Choosing the Right Things to Do
• Doing Things Right
S&OP-Two Sides of the Same Coin
Making the Right Choices and Doing Things Right
• Doing Things Right
• Operational Excellence
• Flawless Execution
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Original Version of S&OP
PAST MONTHS FUTURE MONTHS
SALES -3 -2 -1 1 2 3 4 5 6 7 8 9 ANN
PLANNED 120012001200 120012001200120012001200120012001200 14400
PREVIOUS 121111971200 120012001200120012001200120012001200 14408
ACT/PROJ 121111971257 122512501250125012501250125012501250 14890
DIFF 11 -3 57 25 50 50 50 50 50 50 50 50 490
CUM DIFF 11 8 65
PRODUCTION
PLANNED 120012001200 120012001200120012001200120012001200 14400
PREVIOUS 119512021200 120012001200120012001200120012001200 14397
ACT/PROJ 119512021197 120012001400125012501250125012501250 14894
DIFF -5 2 -3 0 0 200 50 50 50 50 50 50 494
CUM DIFF -5 -3 -6
INVENTORY
PLANNED 600 600 600 600 600 600 600 600 600 600 600 600 600
PREVIOUS 584 589 589 589 589 589 589 589 589 589 589 589 589
ACT/PROJ 584 589 529 504 454 604 604 604 604 604 604 604 604
DIFF -16 -11 -71 -96 -146 4 4 4 4 4 4 4 4
COVER (WKS) 2.06 2.07 1.83 1.75 1.56 2.08 2.08 2.08 2.08 2.08 2.08 2.08 2.08
S&OP MEETING
PRE S&OP MEETING SUPPLY
PLANNING
DEMAND PLANNING
Typical S&OP Agenda
•Sales Review•Inventory / Order Book•Supply Plan•New Products•Financials
Product Family – Dining Tables
Ling Coldrick © Dick Ling and Andy Coldrick 2011
S&OPmeeting Pre-S&OP
SUPPLY MEETING
DEMAND MEETING
Big Fish is the european partner of Ling-Coldrick
S&OP Creation
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Sales and Operations PlanningLing/Coldrick Model
SENIOR BUSINESS
MANAGEMENT REVIEW
INTEGRATED RECONCILIATION
MANAGING THE
PORTFOLIO & NEW ACTIVITIES
MANAGING SUPPLY
MANAGING DEMAND
Right to Left Driving
Ling Coldrick © Dick Ling and Andy Coldrick 2011
S&OP is a unique People centric Methodology which helps Companies to Navigate in turbulent Times
Welcome Change
Co-Build Growth
What If Attitude
SeniorManagement
Review
CROSS-FUNCTIONALCOLLABORATION
MANAGINGSUPPLY
MANAGINGDEMAND
MANAGING THEPORTFOLIO &
NEW ACTIVITIES
We are what we repeatedly do. Excellence, then, is not an act, but a habit.Aristotle
Ling Coldrick © Dick Ling and Andy Coldrick 2011
S&OP is a unique People centric Methodology which helps Companies to Navigate in turbulent Times
Vision &Ambition
Regulation& Synergy
COMPLEMENTARYTEAM MEMBERS
DEMANDING
LEADER
RENEWAL
We are what we repeatedly do. Excellence, then, is not an act, but a habit.Aristotle
Ling Coldrick © Dick Ling and Andy Coldrick 2011
What If Attitude
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Breakthrough Implementation Issues
‘Right to Left’or
‘Top/Down’
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Strategic Agenda andFuture Portfolio
Development Of S&OP
Single Set of NumbersS&OP “The Unifier”
Implementation Sequence – ‘Left to Right’
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Breakthrough S&OP Right to Left
Implementation – ‘Right To Left’
Reconcile and Integrate
Ling Coldrick © Dick Ling and Andy Coldrick 2011
Orchestrate your Company Journeyfrom Good to Greatwith S&OP+
Orchestrate your Company Journeyfrom Good to Greatwith S&OP+
Alain Perrot & Frans van den BoomenAlain Perrot & Frans van den Boomen
March, 12th 2012