S&OP: A key lever for an agile and resilient supply chain

In this video montage produced with S&OP experts from the 5 partner companies of the Chair, we explore the strategies and practices put in place to transform S&OP into a sustainable performance lever. This video follows on from the Chair's first seminar on S&OP, held in January 2024.
In a VUCA (Volatile, Uncertain, Complex and Ambiguous) world, Sales & Operations Planning (S&OP) goes beyond simply synchronising supply and demand. It is a strategic process that enables companies to align all their players on common assumptions, to make more effective decisions and better anticipate risks. 

S&OP: what's at stake? 
Companies face a few challenges if they are to succeed with S&OP:

•  Anticipating market fluctuations while controlling costs, 
• Optimising stocks to avoid excess costs or stock-outs, 
• Improving collaboration between sales, manufacturing and finance teams, 
• Exploit new technologies (AI, automation) to make forecasts more reliable, 
• Ensure that the process is action-oriented and integrated at all levels of the organisation. 

Companies Committed to Continuous S&OP Optimization 
The partners of the Future Supply Chain Chair at the École nationale des Ponts et Chaussées share their experiences, following the Chair's first sharing seminar dedicated to S&OP: 

• Decathlon: An S&OP governance integrated into the entire value chain With over 300 industrial processes to manage, Decathlon structures its S&OP by establishing new collaborative routines, involving all actors, from the capacity manager to the COMEX. Strengthening S&OE (Sales & Operations Execution) allows for better global coordination between demand and supply. 
• Louis Vuitton: An agile approach to S&OP S&OP is at the heart of operations at Louis Vuitton. The process, led monthly by supply and validated by the CEO, allows for rapid and strategic decision-making. In case of trend changes, new scenarios are immediately submitted to top management, without waiting for the next cycle. 
• Renault Group: A technological transformation of S&OP Facing changes in the automotive industry, Renault Group is restructuring its S&OP by integrating innovations: 
  • AI and scenario simulations to stabilize forecasts,
  • Optimization of inventory and industrial flows for better resilience,
  • End-to-end approach for a more comprehensive view of strategic decisions.
• Michelin: Continuous improvement through the "Forecast Driving License" Michelin has implemented a Forecast Driving License to improve forecast quality and decision reactivity. This KPI, monitored by the Group Executive Committee, allows for better evaluation of forecasting performance and its impact on operations.