Early in 2008, Newell Rubbermaid found that inventory growth was outpacing sales, inventory turns were declining, forecast accuracy was well below best-in-class levels, and working capital as a percentage of sales needed to improve. It was clear there was potential for improvement. The company saw S&OP as a great way to address all of these different areas of opportunity at a root cause level.
Newell Rubbermaid's S&OP process has been the subject of an intensive improvement effort over the past two years. Since then the initiative has generated 30 percent more cash for a total of $603m in 2009 despite one of the most challenging business environments in a generation.
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