The importance of S&OP, collaboration and process discipline in a complex business environment: A case study from the canned seafood industry

Abstract

Supply chains are usually faced with a considerable number of external and internal drivers of complexity. They can originate from diverse sources such as a big product variety to produce, difficulties in raw material sourcing, a vertically disintegrated production network, ever-changing customer needs, or strong regulatory requirements. Those drivers typically correlate to each other and are mutually dependent. For example, a widespread production network makes raw material sourcing a complex task. In reverse, varying raw material availability across regions determines the design of a production network that is then not necessarily trimmed on leanness. Some industry supply chains are more complex than others, meaning they are exposed to more complexity drivers than supply chains in other industries. Thai Union Europe (TUE) predominantly operates in the canned seafood industry, and the related supply chain with its multitude of complexity drivers can be considered very complex. The way TUE manages sales and operations planning (S&OP) in this environment is key to its market success. The company’s execution of S&OP is inevitably linked to its corporate culture of collaboration and process discipline. Focus is not only on an S&OP programme with best practice processes but also on achieving the necessary cultural change. The way TUE plans and manages its complex supply chain is the subject of this case study.