Case Study - Global S&OP
- Fonterra Co-operative Group Limited is a New Zealand multinational dairy co-operative owned by New Zealand farmers. The company is responsible for approximately 30% of the world’s dairy exports, with revenue exceeding NZ$20 billion
- In 2011 Fonterra had a very segmented supply chain with separate demand signals from 151 countries. The planning processes where not well integrated and over and above Fonterra had to manage a very seasonal supply push (milk curve)
- Fonterra embarked a $110 million dollar “value Stream Optimisation” project in which Supply Chain Cover lead the S&OP workstream
Supply Chain Cover led the design and implementation of Fonterra’s global S&OP process as part of their value stream optimisation (SAP) program. The nine months implementation program included, among other things: a detailed design of S&OP; three trial cycles; training of over 200 team members; behavioral and change, management; maturity profiling, and; post implementation review.
- Since beginning of 2013 Fonterra has been running an effective Global S&OP process which has resulted in an effective integrated planning process all the way from strategic 10 year planning to day-to-day execution.