I have built S&OP and IBP six times. Here is what almost nobody tells you about starting the process.
Introduction
Most companies think they need a perfect template or a big digital tool before beginning. It never works like that. The real work is much simpler and much more human.
My first S&OP implementation was in 2009 at Danone. It was a very basic process, but over time it grew into a full IBP with finance scenarios and impact on P&L.
Then Carlsberg - two times for different markets. First for Belarus, then S&OP and S&OE for Russia and Eastern Europe. After that a global dairy and snacking company with CPFR as part of the model. Then a mega project in the MENA region. And now S&OP in my current role in retail.
After all these cycles I can confirm that the hardest part is not the process itself. The hardest part is starting it in a way that people accept, follow, and trust.
Here are my five recommendations for anyone who is at the beginning of the journey.
My first S&OP implementation was in 2009 at Danone. It was a very basic process, but over time it grew into a full IBP with finance scenarios and impact on P&L.
Then Carlsberg - two times for different markets. First for Belarus, then S&OP and S&OE for Russia and Eastern Europe. After that a global dairy and snacking company with CPFR as part of the model. Then a mega project in the MENA region. And now S&OP in my current role in retail.
After all these cycles I can confirm that the hardest part is not the process itself. The hardest part is starting it in a way that people accept, follow, and trust.
Here are my five recommendations for anyone who is at the beginning of the journey.
1. Make CEO your sponsor
The CEO is the person who must approve final S&OP decisions. If the CEO is in the room, everyone else shows up. Without this sponsorship the process becomes a routine meeting with no power.
2. Build support from key process owners from day one
Sales, finance, marketing, supply chain, NPD. If they do not trust the process, it will not work. Once I had to meet a sales director four times for coffee until she finally agreed to try. After the first cycle she became one of the biggest supporters.
3. Start simple
Do not jump into a 12 to 24 month horizon on day one. Start with six months and focus the conversation on the first three. Keep the meeting tight. No business review. No brainstorming. All of that happens before. S&OP is only for decisions.
4. Show them that S&OP reduces meetings, not adds more
This part is critical. People already live in a back to back reality. A well structured S&OP reduces chaos. It creates a clear cadence and eliminates dozens of ad-hoc conversations.
5. Fix the cadence and never break it
Send a calendar for the next 12 months. Confirm who must join. Follow the agenda. Send minutes and decisions every time. Everyone should work with the same information and the same numbers.
Summary
Nothing here is complicated. You just need to start and continue. At some point you will feel that not everything is working. That is normal. just keep going.
And one day you will hear your colleagues say that S&OP is the backbone of the business.
And one day you will hear your colleagues say that S&OP is the backbone of the business.