Employees from across the business spent a year taking a very close look at work processes. Their aim was to set up Sales & Operation Planning (S&OP) in such a way as to raise the value added with the milk price, and increase customer satisfaction. Their work created a precise S&OP process that became part of everyday work on 1 July. The S&OP process is a monthly cycle that is made up of four phases.
Milk supply is higher than customer demand
Setting up Demand Planning. This is where product management, sales and marketing describe the needs of all the business units’ customers as clearly as possible in order to effectively manage the following processes.
The customer’s milk needs cannot be met
The Demand plan is translated to the different facilities and raw materials, capacity and the supply situation are reviewed and any gaps in the plan are identified. Milk input planning is also carried out as it has a decisive impact on the processes that follow.
Supply and demand balance out
This is where everything is balanced out, making it a central part of the whole process. Any gaps in the plan are analysed to support the risk assessment of the plan as a whole. Issues that arise are discussed at the balancing meeting with management representatives, and decisions are made.
Value added raises the milk price
This is where everything is balanced out, making it a central part of the whole process. Any gaps in the plan are analysed to support the risk assessment of the plan as a whole. Issues that arise are discussed at the balancing meeting with management representatives, and decisions are made.
Balancing.
To balance processes
Demand Planning.
To plan sales
Milk Planning.
To plan the amounts of milk
PMO.
Project Management Office – the central point in the company that steers project management and maintains the project management system
Supply Chain Management (SCM).
The business unit oordinates the overarching supply chain from raw material through to delivery to the customer
Supply Planning.
The situation for raw materials, capacity and inventory are reviewed and any gaps are identified in the plan
Value Chain.
The process or activities by which companies add value to an article