Article

S&OP in retail

TOP-TOY

Defining and implementing a new sales and operations planning process to fit the challenges of the retail business.

Author

Nicolai Steen Worziger

Challenge

TOP-TOY was in the process of building a new operating model in order to meet the company’s strategic goals and transform the organisation from being supplier-driven to being customer-centric. Furthermore, TOP-TOY was in the process of implementing a new SAP platform; A change which included a transition towards Integrated Business Planning (IBP) which had a direct influence on the planning processes that needed to be redesigned.

Approach

The purpose of the project was to design a new S&OP process that was redesigned to fit the challenges of the retail business, which involved:

  • Creating tools, KPIs and reports to support the different decision horizons in a retail business with both very short and very long lead times
  • Defining and describing the future roles and responsibilities (RACI) in the planning landscape

The work was conducted in close collaboration with the client and linked to the SAP workstream. The new retail S&OP process was designed and approved, including:

  • Assortment and demand planning
  • Capacity and supply planning
  • S&OP decision-making
  • Roles and responsibilities described (RACI)
  • Meeting and planning structure defined
  • New retail S&OP tools, reporting and S&OP handbook developed

Impact

The impact created increased co-ordination and alignment with:

  • A clear path forward in future planning setup
  • Clear ownership of the S&OP process in the top management team
  • Clearly defined planning processes and derived requirements to the future SAP system
  • A fact-based planning process with product and capacity optimisation leading to improved inventory turns, improved category sourcing and purchasing, optimised capacity utilisation and providing for the complexity involved in omni-commerce execution