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    Case Study

    UrbanLuxe Cosmetics: Embracing S&OP/IBP

    By Ralf W. Seifert and Richard Markoff
    2 pages
    June 2024
    Order this case study
    Reference: IMD-7-2572

    The case is seen through the eyes of the newly appointed supply chain director at a cosmetics company based in Berlin. The general manager has tasked the new supply chain director to provide bold process recommendations to improve the poor service, high inventory and rampant use of overtime. To understand the issues at play, the supply chain director meets with the CFO, the factory manager, the chief procurement officer and chief revenue officer and their feedback constitutes the body of the case. Each individual offers a different perspective, though none take any responsibility. The CFO is unhappy with the high inventory levels. The factory manager feels helpless in the situation. The chief procurement officer is proud of the savings he has generated by shifting to Asia. The chief revenue officer appears altogether disinterested and not concerned by the problem. The supply chain director must integrate this feedback and propose a new process that will address the performance shortcomings, define the roles and responsibilities of each, along with KPIs to monitor progress.

    Learning Objective
    • The elements of a robust S&OP process
    • The challenges involved when defining an end-to-end planning governance structure
    • The roles each actor in a company may play and their related responsibilities
    • The ways in which different steps in planning impact performance
    • The KPIs that can capture performance and progress
    Keywords
    Operations, Strategy, Supply Chain Management, Sales and Operations Planning, Integrated Business Planning
    Settings
    UrbanLuxe Cosmetics (Invented name)
    Type
    Generalized Experience
    Copyright
    © 2024
    Available Languages
    English
    Related material
    Teaching note
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    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

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    Case reference: IMD-7-2618, © 2024
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    in I by IMD 9 December 2024
    Summary
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