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Transformation Program: SI&OP Transformation for Global Specialty Chemicals Company to Address Supply Chain Issues

Read Time
2 minute read


  • Following the merger of two global specialty chemical companies, the integrated business was facing significant supply chain challenges (e.g., backlogs, declining OTIF rates, service level issues)
  • The objective was to facilitate the design and pilot of a leading practice SI&OP process
  • Some elements of the process had been tried with limited scope (two sites, 100 SKUs). In addition, the review meetings and the supporting information had been unstructured and lacking the necessary depth


  • Conducted ABC-XYZ analysis (value to the business & ease of forecasting) to segment the complete SKU portfolio to provide focus in demand and supply phase
  • Agreed on product and system hierarchy to aggregate up demand and supply for demand analysis, capacity analysis and inventory projections
  • Developed templates and metrics to structure the necessary meetings, and built model for capacity analysis and inventory projections


  • Focused the organization on key business decisions to be taken (explaining demand over/underage, creating capacity visibility, and providing inventory projections)
  • Expanded the time horizon of decision-making from reactive fire fighting to pro-active decision-making