SIOP & S&OE Solution Design

$450M Chemical Manufacturer

Background

  • The company is a custom manufacturer of chemical products for a variety of industries: building, automotive, packaging, pharmaceutical, medical, food industry, personal care, agriculture, and bio-diesel
  • The company consists of multiple acquisitions globally but never integrated them dealing with multiple ERP systems which are not being fully utilized by any of the sites
  • Historically faced a culture of opting out and not working as a team, which the newly appointed CEO is working to improve

Contributions

  • Combined S&OE and S&OP assessment across 6 countries (US, EU, India) to understand their business model and develop a roadmap to correct major planning issues both short and long term
  • Analyzed data from the disparate ERP systems to understand the business hierarchy, customer diversity, major profitability drivers, low margin performers, and E&O opportunities
  • Completed interviews in each facility (9 total) to develop a comprehensive assessment of their processes and identified qualitative and quantitative benefits

Results

  • Developed a 90-point action plan as part of the roadmap to address planning issues for the S&OE time frame (1–13-week period) and the S&OP time frame (3–18-month period)
  • Identified a thorough list of KPI’s to address pain points and provide actionable intelligence to help improve the business
  • Identified platforms to serve as an automated performance measurement system that could be integrated to systematically maintain records from the multitude of ERP systems and serve as a single source of truth
  • Identified potential to decrease inventory by $10M, reduction in E&O by $700K, OTIF improvement of > 10%, efficiency gains in planning > 20%