Changing Market Demands Innovation in S&OP
In a world where markets are rapidly changing, it is essential for companies to adapt their Sales & Operations Planning (S&OP). The recent event, S&OP Flavour Day, made it clear that organizations such as Merck, Bonduelle, and Ricoh are continuously adjusting to new circumstances and challenges.
Summary
- Companies like Ricoh and Bonduelle are adjusting their S&OP processes to operate more effectively within a changing market.
- Collaboration between different departments is crucial to enhance the efficiency of the S&OP process.
- The ownership of the IBP process is shifting in some companies from supply chain to finance to reduce silo thinking.
S&OP and Market Changes
The necessity to adapt S&OP was strongly highlighted during the S&OP Flavour Day. Merck, Trust, Bonduelle, and Ricoh are examples of companies that, driven by developments in their sector, continue to optimize their processes. Ricoh has adjusted its S&OP due to the transition from products to services, while Bonduelle has placed the responsibility for S&OP with finance to reduce silo thinking and accelerate growth.
Personality and S&OP
Martijn Lofvers highlights in his opening speech the different ways departments process information, based on the colors from the Myers-Briggs personality test. Sales, supply chain, R&D, and finance each have their own approach, which can lead to challenges in the S&OP process. The goal is to better understand these differences so that departments can collaborate more effectively.
Effective Communication Between Sales and Supply Chain
Bram Desmet explains that the often difficult discussions between sales and supply chain require a different approach. Sales aims for higher sales figures, while supply chain focuses on achievable numbers. This contradiction often leads to suboptimal decisions. It is crucial for the company as a whole to answer these questions, with decision-making dependent on market situations and the product life cycle.
Complexity in Forecasting
Christopher Schmidt from Merck points out the complexity of forecasting within an organization that serves many different products and markets. Although his division is at level 2 of Gartner’s maturity model, he expects that level 3 would already be sufficient for functional processes.
S&OP in Medium-Sized Companies
Rutger van Baalen from Trust emphasizes the importance of S&OP for medium-sized companies. By gaining insight into inventory and demand management, they can create a unified truth. It is vital for these companies to promote transparency and collaboration so that everyone in the organization can contribute.
Ownership and Forecast Processes
The role of finance in the IBP process is clearly highlighted in Bonduelle’s strategy. By designating finance as the owner of the process, the company hopes to reduce silo thinking. This also applies to improving the forecasting process, where each step must be critically evaluated for its value to the organization.
From Product to Service
Ricoh faces the challenge of offering not only products but also services. This requires significant adjustments in their S&OP process, particularly regarding supplier involvement. The integration of artificial intelligence in their forecasting offers hope for improvement.
The S&OP Flavour Day has demonstrated that the dynamics of the market compel companies to continuously evaluate and adjust their processes. By bringing departments together and shifting ownership, companies can achieve greater transparency and effectiveness in their S&OP processes.
Source: Henrieke Wagenvoort, Tue, 25 Nov 2025, https://www.supplychainmagazine.nl/sop-flavour-day-andere-tijden-vragen-om-aanpassingen-in-sop/
