Our client is an international FMCG manufacturer. The demand for the company’s products is seasonal, and during peak periods, the factories operate at full capacity. Therefore, it is crucial to plan both the factory load and the quantities and locations of finished products.
Before the season begins, the warehouses are maximally loaded, and their throughput needs to be balanced with production. Moreover, on each international market, marketing departments manage operations: they release promotional products and offers, which also affect demand.
In the Sales and Operations Planning (S&OP) process, many departments are involved: logistics, marketing, procurement, sales, production, etc. Their actions must be coordinated throughout the entire chain, from raw material procurement to sales to the end consumer. A breakdown at any stage leads to losses—either due to lost profits from insufficient product supply or direct costs related to storage and transportation.
The core of the S&OP process is the discussion and approval of plans by the departments at special meetings. Simply sending plans to another department is not feasible due to the numerous details that need to be considered and discussed. “Project Management Bureau” became involved when there was a need to optimize the format of these meetings and make them more efficient.
We conducted an audit of the entire logistics chain, identifying what information is necessary at each point to make the right decisions.
We developed a new meeting system. Now they are held at different intervals: every 18 months, 3 months, and 1 month, taking product seasonality into account.
We reviewed the areas of responsibility to eliminate situations where production creates excess products, procurement does not order new raw materials on time, and logistics cannot manage deliveries.
The department plans have become aligned. A situation where a promotional campaign is planned but there is insufficient product is now impossible.
Planning has become more accurate. The interests of all participants in the chain are aligned and focused on maximizing the company’s profit. Each department is responsible for the accuracy of its information during meetings.
Logistics has been optimized. Pre-placed orders help secure better conditions with contractors, and warehouses maintain optimal levels of raw materials and finished products.
