Global S&OP, Processes, Organization, and IT
Client:
Semiconductors
Sales & Operations Planning and improvements in underlying processes, organization, and enabling technology help a global semiconductor company scale to reach the next level.
Business Challenges:
- Effectively scale to meet a step change in technology and market demand
- Serve customers effectively in a severely constrained environment
- Manage the long lead times and dependencies on foundries that are inherent to the industry
- Maximize product portfolio opportunities, sometimes managing high-mix, low volume trade-offs
Project Challenge
Our client is a $1B+ global supplier of advanced technology semiconductors to the automotive and industrial markets. The company continues to grow rapidly and required an upgrade of process and infrastructure to meet growing demands in a challenging, supply-constrained environment.
Solution
Our client knew they had gaps in S&OP and underlying infrastructure. Nexview was engaged to generate momentum and jumpstart an improvement effort that would align with best practices. We conducted a thorough assessment of not only the S&OP layer, but also of the supporting processes, organization, and supporting information technology. While the assessment substantiated the view of some leaders, it told a story that could be communicated to align the organization around next steps amidst differing experiences across the leadership. The assessment also quantified and calendarized a benefit opportunity of several million dollars that could be achieved through focused tactical efforts in combination with S&OP and infrastructure improvements.
Our design effort began with best practice training as S&OP was new to several team members and the environment brought about by the constrained environment had made it difficult to focus on anything but fire-fighting. We engaged a global team across 4 business units and 3 continents to produce a complex S&OP design (meetings, schedule, report formats, data flows, KPIs, roles & responsibilities, and decision rights) on a very compressed schedule. We also worked in the underlying processes, especially on the demand side including the introduction of new products into the supply chain.
Outcomes
The company received a best practice design and structure for a comprehensive global change program. With a newly hired S&OP Leader, the team continues to make progress on the implementation of the processes, IT tools, and organizational roles & responsibilities.