Higher margins from improved S&OP tastes so good

In sales & operations planning (S&OP), one of the primary goals is to align different departments—like Sales, Finance, and Supply Chain—so they work together to efficiently deliver products to the market and effectively meet demand.  

However, if financial and supply chain planning is done manually by consolidating Excel files from different departments, several issues can arise. In particular, Ajinomoto faced challenges due to its reliance on manual data consolidation across multiple departments. This approach was time-consuming, labor-intensive, and prone to human error, which led to outdated information, fragmented data, and difficulty in achieving a single source of truth.  

These issues hindered efficient decision-making, interdepartmental collaboration, and the ability to quickly respond to market changes.

Ajinomoto implemented the Jedox planning and performance management platform to optimize its S&OP and supply chain processes. The organization worked with Keansa, a local Jedox implementation partner, to define the scope and desired outcomes for its transformation program.

The initiative began with a Keansa-led Supply Chain Process Assessment to identify areas for improvement. Once the team agreed upon a phased approach, the work began to configure the Jedox platform to support demand, inventory, and production planning.

Additionally, these processes were enhanced using Jedox AIssisted™ planning wizards, which enabled Finance-led predictive AI forecasting techniques for dynamic safety stock calculations and detailed production scenarios. The AI model facilitates a collaborative demand planning approach that incorporates inputs from various stakeholders to continuously refine the forecast.

The first two phases of the digital transformation project—process assessment and technical configuration—delivered a roadmap and workforce enablement training. With these resources, the Ajinomoto team established demand, inventory, production, and material planning in a single source of truth. This included:

• Monthly sales demand translated to the weekly supply requirement plan
• Consensus demand planning supported by predictive AI baseline forecast
• Dynamic safety stock calculation based on changing demand and supply parameters
• Detailed production planning scenarios
• BOM level material requirement planning that feeds the procurement plan
• Vendor pricing and contract management via an upload to the Jedox database

The S&OP transformation delivered substantial benefits for Ajinomoto, including:

• Higher margins
• Improved decision-making from reliable data
• Increased productivity through automation
• Reduced planning cycle time and costs

“Our previous challenge was how to centralize our supply chain planning, as the APC team usually uses different manual interventions of Excel files for sales and procurement planning. This process is labor intensive and prone to human error. However, the solution built by Keansa helped us centralize our demand planning. With Jedox, we get the advantage of more demand planning visibility—including inventory level, warehouse capacity, trucking requirements, and other parameters. Going forward, we’ll work with Keansa to continuously enhance our Jedox experience.”

Majeed L. Santiago
Production and Materials Planning Section
Supply Chain Management Department
AJINOMOTO PHILIPPINES CORPORATION

The Jedox S&OP solution also enabled centralized planning and automation, reducing the need for manual data handling. Additionally, it enabled streamlined processes that align operations with strategic goals—resulting in enhanced oversight and coordination across departments. This holistic approach allowed Ajinomoto to achieve higher margins by optimizing demand, inventory, and production planning.

As Ajinomoto looks to the future, the next phase of transformation will focus on dispatch, warehouse, and fleet planning to maximize efficiency in distribution and warehousing.