Re-engineering Sales, Inventory, and Operations Planning
A US-based steel manufacturer had significant gaps between sales and operations caused by decentralized functions and underdeveloped capabilities. They leveraged ROIG’s expertise in Retail Planning to redesign its Integrated Business Planning process and overhaul the SIOP process, resulting in significant operational improvements.
Manufacturing Success Story
THE CLIENT: Fortune 100 Steel Manufacturer
THE CHALLENGE: Close the gaps between its sales and operations functions due to decentralized operations, ad hoc processes, and underdeveloped capabilities
THE GOAL: Improve inventory turnover, enhance in-stock performance, and create a more efficient operational network
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THE ROIG SOLUTION: Utilize ROIG’s expertise in Retail Planning to redesign the Sales and Operations Planning (S&OP) process, aligning on key planning elements and critical metrics
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.
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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.
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RESULTS AT A GLANCE
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Improved inventory turnover
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Better in-stock performance
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A more efficient operational network
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.
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