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APICS October 2017 PDM: S&OP Integration

APICS Professional Development Night, Oct 2017: Sales & Operations Planning Integration

APICS Princeton South Jersey Chapter had its October PDM at Rowan University in Glassboro, NJ

 Rowan

The chapter was delighted to have Ian Manly, Director Supply & Demand Management, GlaxoSmithKline, who provided solid perspectives on merging of two large consumer organizations and the consolidation of Sales & Operations Planning (S&OP) processes to ensure continuity of supply and alignment of decision making.

Ian shared unique insights about GSK’s Consumer Health business, and provided historical context behind the 2014 agreement between GSK & Novartis. In a 3 part inter conditional deal, GSK agreed to sell its oncology business to Novartis in exchange for the Novartis vaccines business (minus influenza products) and enter into a new joint venture OTC and consumer business together.  The ensuring merger instantly elevated GSK Consumer Healthcare into one of the largest consumer health businesses in the world.

Beyond the financial merger, the real work came after the deal was closed which involved a massive integration of facilities, business, supply sites and ultimately people. In all of this, the day to day business had to be sustained while ensuring the new joint venture operates seamlessly as a singular entity.

A key priority for GSK Consumer was to have an effective S&OP process, and a special effort & focus was put in to reestablish S&OP fundamentals and develop a multi-organizational plan with effective governance to ensure the process was operating to standards.

The implementation approach followed was:

  • Business Engagement: Obtain commitment on importance of good S&OP process
  • Diagnostic & Design: Identify gaps in current process. Develop, present & agree proposed solutions with stakeholders. Establish deployment timelines.
  • Approval: Obtain alignment from key stakeholders. Ensure clarity on what benefits will be delivered, including agreement on what will change and when
  • Deployment: Implement the plan, publish S&OP template, hold template instruction sessions, deliver hub surgeries & use new template for S&OP meeting
  • Capability Building: Perform quarterly audits to improve process maturity

 

At every stage, success factors were identified to ensure the implementation plans were meeting their desired targets and were on track.

The entire journey from start of plan to achieving Level 2 Maturity Certification took 21 months, no small feat considering the size & scale of the merger.

A key takeaway from the session was “An effective S&OP process is one that anticipates needs of the business, effectively assesses risk, rapidly forms consensus across key stakeholders and is able to take action”

Engaged Audience!

The event had an enthusiastic turnout from the Rowan University Student Chapter. Q&A discussion points centered on leadership skills essential toward realizing these goals.

Ian emphasized that traits of flexibility & agility, ability to learn quickly, anticipate and adapt to needs of the workplace are fundamental.

In addition, he provided invaluable advice for young Supply Chain Professionals: “Be flexible, learn to adapt and maintain a broader, end to end view.” Ian related back to the Change Management experience that involved influencing multiple stakeholders within the organization. The critical change management task was understanding how multiple objectives & plans are inter-related, how changing one factor influences the rest which can have a dynamic impact on timelines and priorities.

In closing, we truly appreciate Ian for sharing his valuable insights, and making this a memorable evening!

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