Jaguar-APS completed implementation of S&OP process across all branches of Walmark enabling Walmark’s ability to develop demand-driven sales forecasts, significantly improving the supply planning by providing centralized source of demand plan and its integration in SAP APO Supply Network Planning and logistics planning tools.
Jaguar-APS conducted Strategic Value Assessment (SVA) in 2015 and 2016 to assess current state of process, methods, performance and systems and to develop the road map for implementation of S&OP process that would provide Walmark with best possible return on investment during and post the implementation project.
Since the start of the implementation of S&OP process, Walmark group has significantly improved forecast accuracy. Subsequent expected benefits are overall lower inventory, higher customer service, improved go-to market strategy and tactics which will help to lower overall costs of operations and in increasing customer satisfaction.
Scope of the project:
1. Systems and data integration and reporting
2. Design and implementation of structured consensus forecasting process
3. Improvement of forecasting sophistication
4. Development of standardized KPIs and supply chain dashboard
5. Change management including development and delivery of training materials to all process stakeholders
6. Final audit in format of initial SVA
Systems and data integration and reporting
Jaguar-APS conducted a thorough analysis of all reports and data sources used across all Walmark branches and developed integration plan of data critical to the process into a centralized database and format.
Jaguar-APS developed Item Master Policy, developed safety stock calculations that consider demand, lead-time and supply variability along with service factor based on ABC classification.
Jaguar-APS provided guidance to local and external IT resources to enable imports and synchronization of data from six different ERP systems and numerous excel spreadsheets.
Jaguar-APS led the development of centralized S&OP reports supporting the entire process including lagging and leading KPIs.
Jaguar-APS assisted in evaluation of SAP APO SNP and R/3 fit for master scheduling along with other master scheduling tools available in the market and provided input in the reconfiguration of SAP APO SNP to better support new S&OP planning process.
Design and implementation of structured consensus forecasting process
Jaguar-APS developed Sales and Operations Planning process policy which has been signed by all key process stakeholders and project owner and sponsors as a precursor of successful project and top-down support.
The process steps were built based on standard S&OP workflow and adjusted to fit company’s culture, human resources and available data. A centralized S&OP calendar for all branches including HQ was developed and published for rolling 12 months.
Jaguar-APS also assisted in with hiring Global Demand Planner who acts as an S&OP champion and demand planners and with hiring global master scheduler.
Improvement of forecasting sophistication
Jaguar-APS sourced and implemented demand forecast software that fits the company needs and budget. Additional work has been done on data segmentation for forecastability, ‘what-if’ tools and deployment of dynamic regression models utilizing distributors’ data as a predicting variable for ex-factory sales forecast.
Development of standardized KPIs and supply chain dashboard
Jaguar-APS provided developed the lagging KPIs for forecast error tracking, customer service monitoring and implemented Inventory Quality Ratio methodology. We have also validated current KPIs utilized in supply chain and provided input in design of workflow based on balanced scorecard that captures all critical KPIs within the supply chain / operations.
Additional KPIs developed and deployed are leading indicators monitoring each step in the S&OP process including Executive S&OP at the global level.
Change management including development and delivery of training materials to all process stakeholders
To support adoption of the new process, Jaguar-APS developed series of training sessions tailored to all individual groups of process stakeholders at all levels of management across all seven branches and HQ. Special training needs for the demand planning team were addressed through several boot camps and individualized training sessions for individual demand planners.
Final audit in format of initial SVA
As a final step in the implementation of S&OP at Walmark, final audit in format of original SVA was completed in collaboration with S&OP champion and project sponsor. This audit resulted in validation of significant improvement in all areas as compared to the 2016 audit and a new road map for next six, twelve and eighteen months to solidify new process and deploy continuous improvement methodology.
Results of the S&OP implementation as compared to 2016 SVA:
Overall results at the end of implementation project delivered significant improvement of forecast accuracy, process integration in all markets, integration of statistical baseline forecast generation, integration of multiple ERPs and data warehousing. These improvements will continuously help to lower the operating costs across the supply chain and production due to long term forecast visibility and higher accuracy resulting in higher customer service.
Integration of KPIs and alignment of reporting allows for comparison of individual markets’ performance which fosters Walmark’s continuous improvement process.
About Jaguar-Advanced Planning Services
Established in 1998 in Toronto, building its service on extensive corporate experience and over the years also consulting and training experience. Jaguar – APS has trained 1000+ professionals in US/Canada, EU, Middle East and in Asia Pacific and China. The European presence of Jaguar – APS is established through Jaguar – Advanced Planning Services EU, s.r.o. located in Czech Republic.
About Walmark a.s.
Walmark was founded in 1990 in Trinec by the Walach brothers. The initial objective of their business was in fact very different from the enterprise that Walmark is today (agricultural division and production of non-alcoholic beverages). The key milestone was the year 1993, when the company began to focus on producing food supplements. That same year, customers had the opportunity to try Walmark’s first food supplements such as Coenzyme Q10 and Multivitamin; just one year later, in 1994, the portfolio welcomed the Martian brand and even more products in our Walmark Line.
Already in 1993, Walmark was beginning to establish foreign branches. Today there are 9 locations – the Czech Republic (1990), Slovakia (1993), Romania (1997), Poland (1999), Hungary (2003), Lithuania (2005), Bulgaria (2006), Latvia (2007), and Estonia (2014). Walmark’s reputation as one of Central Europe’s most advanced manufacturing facilities with strict standards of quality soon spread abroad.
In a short time, Walmark began to collaborate with companies all over the world thanks through its own export department, which is one of the main growth factors of the company. Today, Walmark products can be bought on 3 continents – Europe (non EU: Ukraine, Belarus, Albania, etc.), Asia (Myanmar, Iran, Vietman, Qatar, SAE, etc.) and Africa (Marocco, Ivory Coast, etc.).
Amongst the well-known brands are Proenzi, Walmark Line, Martians, Beliema, Urinal, Sinulan, Prostenal, Biopron and many more.
About SVA
Implementing a structured demand-driven forecasting process requires significant process redesign, not to mention the challenges and complexities from business, architectural, cultural, and political perspectives. The purpose of an SVA is to review a company’s current demand forecasting process and integration with existing enabling systems to recommend process improvement opportunities. The main deliverable includes a list of preliminary recommendations and a technology proposal that outlines recommended improvements and supporting solution technology. The result is a detailed business case and recommended road map that will lead to an improved demand forecasting process design supported by existing (or minimally increased) resources and enabling demand forecasting technology.
Integration areas SVA is evaluating:
1 Process integration
Measure the overall degree of interdepartmental cooperation alignment of the demand and supply process, including integration with company’s S&OP process
2 Methods integration
Measure the degree of statistical rigor and collaboration within the current demand forecasting process, including statistical forecast training and understanding of basic forecasting methodology and its links to supply planning systems
3 Systems integration
Measure the ability of the current legacy technology infrastructure to support the demand forecasting and supply planning processes
4 Performance integration
Measure the extent to which calculations of forecast accuracy are aligned with key performance indicators on an enterprise level.
As company strategy governs the mid- to long-term planning processes, its integration and understanding in the above four key areas of SVA are evaluated as well.
Each of these four integration areas is assessed to determine the appropriate development “stage” within the context of the progression shown next. The sole purpose of these classifications is to provide sustainable recommendations regarding areas that are receptive to improvement and the functions that could provide the greatest return. It is not meant to convey a judgment of any sort.
