Is your S&OP fit for a global raw material shortage?

23. March 2021

Yesterday 12 S&OP experts from different industries discussed how to address a global RM shortage. Instead of jumping directly onto solutions, we first identified underlying changes in fixed, governing and enabling constraints.

The excellent EU field guide “managing complexity (and chaos) in times of crisis” (Dave Snowden and Alessandro Rancati) was the basis.

-structure the situation (narratives, constraints, issues, roles, processes, resources)
-monitor customer impact and communicate consistently
-context is dynamic, activities need to be adjusted accordingly (e.g. demand shifts to alternative products)
-there is a natural progression of the actions e.g. short term “reallocation”, mid term “rework”, long term “redesign”
-Parallel low-risk experiments to encourage “out of the box” solutions (e.g. R&D alternatives)
-Over time some activities move from chaotic to complex to ordered
-The more mature the S&OP, the easier to identify responses.

Thanks to Edgar Peet for the excellent preparation and to the participants for the valuable contribution.


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