Case study

Design and Implementation of S&OP System and Process for a global HVAC player

Sector
Industrial Goods
Service
S&OP Design & Implementation

Operations

Case Studies

Artyom Pugachev

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Executive summary

We optimized operations of a global HVAC provider with an S&OP process, improving forecast accuracy >50% via increased transparency through BI, supply planning process with digital tools, and ML-based demand forecasting algorithms. The clients eliminated stockouts and hit inventory targets.

Unique challenge & solution

Artyom Pugachev

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Initially, only symptoms were evident; we identified root causes and defined the problem during the engagement. Embedded operationally within the client’s company, our goal was to design, implement, and ultimately transfer ownership of the process to an organization which was still to be established.

March 5, 2025

Context

Artyom Pugachev

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A global industrial company providing HVAC solutions faced a dual challenge: stockouts and excess inventory across categories. Operating under a sales-first model, the company pushed forecasts into the supply chain, resulting in low demand accuracy and frequent short-notice changes. With lead times exceeding two months—and up to six for some products—a decision was made to introduce Sales & Operations Planning (S&OP) to restore balance.

March 5, 2025

Approach

Artyom Pugachev

ALL ARTICLES

Our team tackled this multifaceted challenge through three integrated workstreams—supply planning, demand forecasting, and business intelligence—employing a rigorous diagnose, prototype, pilot, and integrate framework:

Supply Planning Workstream

  • Diagnosed misalignments between sales, production, and procurement, revealing a lack of coordinated planning across global operations.
  • Prototyped a streamlined supply planning process at a single high-volume site, designing tools to identify production bottlenecks from sales forecasts within minutes.
  • Piloted successfully, then scaled the process to all six production plants worldwide.
  • Incorporated raw material bottleneck analysis, upgraded tools and integrated both production and procurement into the S&OP cycle, ultimately transitioning ownership to a new client team.

Additional Projects and Implementations

  • Conceptual development and creation of new Power BI reports for SCM reporting, along with conducting employee training sessions on their usage.
  • Development of a strategy for leveraging Artificial Intelligence in SCM reporting, including the execution of a pilot project.
  • Project management for an Inventory Data Migration Project and setup of the new inventory reporting.
Impact

Our collaboration delivered a >50% improvement in forecast accuracy, eliminated stockouts, and reduced inventory to target levels. The client gained a robust and scalable S&OP process, empowering efficient operations at scale.

March 5, 2025

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