How to Break Through S&OP Struggles and Drive Collaboration Across Operations

What’s the best way to break through the gray of S&OP collaboration and foster conversations across the entire supply chain that identify what’s possible and solidify better planning, growth, and results? TUNE IN HERE for the monthly Supply Chain Automation LinkedIn Group Roundtable featuring special guest speaker, Nathan Bell, VP Sales, and Operations Planning, SharkNinja. Our supply chain experts dive in on how to set up a productive environment for nimble solutions and how to create buy-in across operations. Hear from panel members Bruce Richardson, Chief Enterprise Strategist at Salesforce, Mike Landry, SVP Supply Chain Service Line Global Leader at Genpact, and Cy Smith, CEO at ketteQ.

One of the most important things to remember is that S&OP is a journey and not a destination, says Nathan Bell, who leads the S&OP process for SharkNinja, maker of class-leading Shark vacuums and the innovative line of Ninja kitchen appliances. The 28-year-old, highly successful global company has evolved significantly over the years. Key to that growth and success is the ability to create an environment for a collaborative response to the toughest supply chain challenges, Bell believes.

It’s important to create space where you can put the clay on the table, so to speak, and say let’s figure out what’s possible and let’s go after it, he says. Every company is on a journey with S&OP.

Overcoming Uncomfortable Conversations

One of the main values of S&OP conversations that engage various departments, and all areas of operation, is the identification of issues that are getting in the way of optimal supply chain efficiency and customer service. Another key value is the identification of solutions that aren’t working.

Productive conversations around how best to hit targets and dodge disruptions involve making sure department members and leaders feel safe enough to expose what isn’t working. To truly optimize, plans within each operational division must be openly examined and team members need to feel like they can risk criticism or admit that plans aren’t working to change course effectively.

Getting sales and marketing to the table, for example, can sometimes prove challenging, but engaging them in supply chain conversations can be vital, Bell notes. Having supply chain at that same table becomes not just about driving down costs, but about how to make decisions that can support growth.

The pandemic only increased the need for multi-level collaboration. Throughout 2020 and 2021, CFOs often felt a lack of control over key decisions. Should they pay a $25K spot rate on a container to avoid stifling shipping speeds, or hold to pricing thresholds, for example. Global supply chain disruptions have continued and now, more than ever, CFOs are at the table helping to make supply chain decisions that drive larger goals.

Avoid Overwhelming, Create Greater Visibility

It can take time to put a good S&OP process into place, notes Bell. In the late 90s, Collaborative Planning, Forecasting & Replenishment (CPFR) was the popular method, but as seen in articles from 15+ years ago, the concept lost momentum. Sticking with a process is critical.

Once teams are comfortable having their plans questioned, it’s important to look for specific areas or targets where goals are not being met and choose together what to go after.  

Most organizations approach S&OP thinking they need exhaustive marketing and portfolio plans and large data sets. It can be a daunting task to sort through all the data. If you can show a consistent data set that shows where targets are misaligned, or find a single cost that can be reduced, for example, then the conversation can quickly go to solutions.

Sleuthing out where problems exist or might be buried beneath data requires greater end-to-end visibility across the entire supply chain. A platform like ketteQ offers the kind of resource to empower S&OP processes and propel solutions forward faster.

As you approach a problem, you have to create a framework that allows for visibility into critical areas. Once you get visibility into your problem areas and then where you need to go, you can begin to break apart these issues and ask more evolved questions that create better solutions, says Bell.

Another great asset is a digital twin. Again, as you hone S&OP, you can begin to identify the questions you most need to ask and use a digital twin to run scenarios and models based on more informed insights.

Ultimately, collaboration and visibility are the combined key ingredients that help companies best navigate chronic supply chain challenges.

Ready to create more supply chain visibility within your company? Give ketteQ a call so we can show you easy next steps.