S&OP Is The Defining Element Of A Company’s Success

We talk to Orhan Bazna, Senior Director of the Global Supply Chain, Gum & Candy Category at Mondelez International


Orhan is the Senior Director of the Global Supply Chain, Gum & Candy Category at Mondelez International. Prior to his roles at Mondelez, Orhan worked at Nestle for 6 years. His skills include supply chain management, supply chain strategy, manufacturing management, lean manufacturing, project management and engineering focused within the food industry.

We sat down with him ahead of the S&OP Innovation Summit, which takes place in Boston this September 22–23.

How did you get started in your career? 

I had a great passion for engineering and I had the chance to get an engineering degree. I started my career as a design engineer in a plastic molding machinery company, which was a start-up led by me and a friend from college. We managed to get two investors financing the start-up.

S&OP has undergone something of a resurgence in recent years, what do you think has been behind it? 

With fast changing data management systems, S&OP as a discipline transformed a lot. It was converted from being historical data analysis to a prediction on profiling of customers/consumer needs.

Is IBP a progression of S&OP, or is it just an issue of semantics? 

It took a long time for companies to discover that supply chain is an important part of their businesses and many times this is reflected in that it accounts for 60-70% of their cost base. It was surprising to me to observe that supply chain has been seen as a servicing constraint rather than an enabling business partner. I assume IBP is a process developed after a long suffering period by many companies while they were understanding the importance of supply chain having a seat on the Company Board and integration of the function with the business.

What do you think are the main benefits of S&OP? Where do think some companies fall down?

S&OP is the defining element of a company’s success. A well-managed S&OP process can make a company cash rich or make it a firefighting company. Firefighting in the sense of dealing with stock issues causes revenue losses or carrying excess stock.

What do you consider the most important aspects of an effective S&OP strategy?

The most important aspect of an effective S&OP process starts with designing what is the right supply chain for your business. What supply chain best fits to your business? Is it cost and scale, it is response time, it is customization? S&OP will be integrated with the business and supply chain strategy that is well designed for the purpose.

Which technologies do you see as having a major impact on S&OP in the future?

I believe data management and data synthesizing will play a major role. A lot more data is gathered in today’s world. Whoever can master synthesizing that data will manage to get better predictions. They will, therefore, capture bigger revenues than others, and adapt quicker to changing customer/consumer needs.

What will you be discussing in your presentation? 

In my presentation, I will talk about designing the right supply chain for your innovation. Pressure is getting higher in terms of getting bigger and better ideas faster to the marketplace. These dynamics require a totally integrated approach with innovation management, and supply chain plays a critical role on that.

Being the most expensive and constrained function the answer we will be seeking is 'What is the right supply chain for your innovation?'

You can hear more from Orhan, along with other industry-leading executives, at the S&OP Innovation Summit. To register your interest, click here.

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