Ontex Integrated S&OP Process for Inventory Optimization

This case study outlines Ontex's development of an integrated Sales and Operations Planning (S&OP) process aimed at achieving inventory optimization. Ontex, a personal hygiene group based in Belgium, has faced significant supply chain challenges, particularly during the COVID-19 pandemic. The company has established strategic priorities focused on simplifying its product portfolio, enhancing customer relations, driving product innovation, and achieving operational excellence. These priorities are designed to improve service levels while managing cash flow and costs. The case study details Ontex's efforts to enhance forecasting accuracy and reduce inventory complexity by reviewing its product concepts and streamlining offerings. A significant aspect of this initiative includes the implementation of a Rough Cut Capacity Planning (RCCP) tool to improve demand planning and decision-making. The case study emphasizes the importance of customer collaboration and the need for a clear understanding of profitability for each customer segment as part of Ontex's supply chain management strategy.