Split Keynote A
From S&OP and IBP to Strategy-Driven S&OP
Prof. dr. Bram Desmet, Assistant Professor Operations and Supply Chain Management – Vlerick Business School
To overcome the traditional struggles in implementing Sales & Operations Planning (S&OP) and in moving from S&OP to Integrated Business Planning (IBP), we need to fundamentally rethink how planning is done in companies. Therefore, we created a new concept called ‘Strategy-Driven S&OP’. It starts from setting clever financial targets per customer-product segment, accounting for the chosen strategy. It integrates strategic planning, financial planning and S&OP into one integrated planning process, driven by the Chief Supply Chain Officer or CSCO. By taking S&OP and IBP to Strategy-Driven S&OP, we create balance in the supply chain triangle of service, cost and cash, and create more value for the shareholder, as measured by ROCE, the Return on Capital Employed.
Implementing Strategy-Driven S&OP requires reshuffling the power balance in the executive committee. It requires a shift from the traditional ‘conflict driven’ structure towards a ‘value driven’ or ‘strategy-driven’ model. To enable the shift, we need to address the competence gap with the current VP SC, his peers in the Executive Committee, the CFO, the CEO, the board of directors, the shareholders and investors.
We’ve invited four additional speakers to share their S&OP journey and elaborate on how the Supply Chain Triangle has enabled them to grow in S&OP maturity.