Integrated Business Planning overtakes S&OP at RBS Williams F1
9th November 2006
A record number of delegates attended this year's Oliver Wight international conference on Sales and Operations Planning (S&OP), held last week at RBS Williams F1 Conference Centre.
An invited audience of more than 100 senior managers and directors from
62 organisations (including Rolls Royce, Capital One, BAE, the RAF and
Glaxo Smith Kline) heard from keynote speakers on how in recent years,
S&OP has extended beyond 'operations' to encompass all key
functions within the organisation - from new product development to
finance and forecasting to strategic alignment. This model, which
Oliver Wight call Integrated Business Management, is bringing dramatic
benefits to major organisations around the world.
Liam Harrington, partner, Oliver Wight EAME: "Independent research shows that those companies which successfully implement Integrated Business Management, (regardless of size, or the industry they're in) will routinely outperform their competitors by a factor of 20 percent or more*."
Andrew Purton, president, Oliver Wight EAME: "Many companies have some
form of S&OP but it varies greatly from one organisation to
another. S&OP started back in the 1980s to provide aggregate
control over the operational demand and supply planning process but not
every organisation took on board its financial consequences or tied
S&OP back to the business plan, as was the original intent. Oliver
Wight were the originators of S&OP and we remain the thought
leaders; these days we refer to it as Integrated Business Management to
reflect its impact and influence throughout the organisation and on
into the supply chain.
The conference's headline presentation was from Alan Ayres, European vice president of logistics, for ACCO Brands, the world's largest supplier of office products. Alan explained how the company, which owns such iconic brands as Rexel and Nobo, is using Oliver Wight's Integrated Business Management model to integrate its business processes across Europe, following ACCO's merger with General Binding Corporation (GBC) in 2005.
ACCO, which employs 8,000 people worldwide and has revenues of $1.9
billion, adopted Integrated Business Management as its global business
process model in July this year and Alan says progress since then has
been rapid: "We will have adapted the model to meet the specific needs
of all our individual business units by the end of November. We expect
to complete our first operational cycle for Europe, with full product,
demand and supply, reconciliation and management business reviews, in
January 2007 (just four months after the start of the programme) and to
have reached 95% capability and attain the Oliver Wight Class A
milestone by December next year." He is expecting the programme to
deliver major efficiencies in the business through the delivery of one
set of numbers and a rolling planning process with a 24 month horizon.
"There's no doubt we're in the middle of an exciting cultural
revolution - the executive team will be freed up to manage strategy,
whilst middle management is empowered to work in process teams to
deliver solutions which achieve business objectives; and we're learning
that it's OK to have a problem - if there's a gap we first have to
acknowledge it and then look at the options for closing it, with
complete transparency of the risks and opportunities."
* Source: Aberdeen Group
Related Pages:
About Oliver Wight
Oliver Wight are leading business improvement specialists who educate, coach and mentor people to lead and sustain change on the journey to business excellence and outstanding business performance. The largest world-wide consultancy of our type, we have offices throughout Europe, in North and South America and the Asia/Pacific Region.
Oliver Wight have a history of working with 'blue chip' organisations and medium-sized businesses going back over three decades. Through a process of knowledge transfer, facilitated workshops and ongoing coaching and support, we help organisations adopt the correct sequence of business improvement techniques; recognise the linkages and transitions required on the journey to business excellence; and undertake the necessary repositioning of performance measures and organisational structure.
The Oliver Wight Checklist is the longest standing and most successful business assessment tool. The latest, Sixth Edition sets ever more exciting and challenging standards for companies on their journey to business excellence.
Oliver Wight are the originators of and thought leaders in:
- MRP II - the planning principles that today underpin ERP and supply chain planning
- S&OP - sales and operations planning
- Integrated Business Management - enhanced sales and operations planning, including application to matrix environments
Carol Collins
Oliver Wight EAME
+44 (0) 1452 397207
carol.collins@oliverwight-eame.com
www.oliverwight.com
Steve Lipscombe
RONIN Marketing Limited
+44 (0) 20 8249 6023
stevel@roninmarketing.co.uk
www.roninmarketing.co.uk
Download Proven Path - S&OP 9th November 2006 (DOC, 105k)
