Page1S&OP LEADERSHIP EXCHANGE:GLOBAL ROLLOUTS –BALANCING STANDARDIZATION & LOCALIZATION                  The Web Event wil...
Page 2            Understanding the impact and reasons why companies are more interested             in a Global view of ...
Page 3            Why? What reasons do we have to drive towards a global view?                Leverage best practices   ...
Page 4              Whether Operate Globally                                                                   How Operate...
Page 5            Today’s realities                Company’s have multiple S&OP processes                Supply Chain v...
Page 6         Infrastructure    Global Supply          Culture/Politics     Governance &                          Chain C...
• Product Roadmap •   Transparency                                                                  Decisions – Global Lev...
Page 8            Where are the following key decisions made in your organization?                                  Selec...
Page 9            Global Roles – Leveraging Span & “The Helicopter” view of the business                Need to provide ...
Page 10             Top Down - Global Template, Local Customization                 Creation of a Global Process Templat...
Page 11             Hybrid - Global Center of Excellence                 Help provide structure to either the Top Down o...
Page 12             Global Consumer Goods Company:                 OTC Products still requiring a high degree of validat...
Page 13         Global Center of Excellence – “Chicken or the Egg?”             Needed to redefine the S&OP process mode...
Page 14             Strategy – needs to be well understood from a global and local level in order to make              go...
Page 15            September 12th                               October 3rd   S&OP Technology: A tool, or a strategy?   S&...
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S&OP Leadership Exchange: Global Rollouts- Balancing Standardization and Localization

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866.P4D.INFO | Plan4Demand.com | Info@plan4demand.com
As a global economy continues to grow and evolve, more and more companies are faced with extending the reach of planning to include their entire operating footprint across markets and time zones. On this global scale, what we are faced with are systems and processes implemented on a project-by-project basis, or adopted regional processes already in existence tweaked to fit a global mold, both culminating in isolated functional silos. Alternatively, many companies create a rigid global template that doesn’t adapt well to local operating requirements or decision making processes. In fact, a recent survey revealed that 63% of companies have multiple (5 on average) S&OP processes.
Global impacts create a number of challenges for organizations at both the global and local levels. It’s no wonder that 80% of supply chain executives believe that their S&OP processes are out of balance. How do we drive consistent processes, methods and a degree of standardization across a wide span of operation companies and market strategies, while at the same time recognizing the differences and nuances that global operations require? To do this, we have to assess and balance the needs of both levels, and work out a model that creates a decision making model that fits the needs to each region, while developing metrics, roll up reporting, and common approaches that prevents each region from “re-inventing the wheel”. Join us for a discussion of how to create this balance, critical design considerations, as well as some key obstacles to avoid.
A few key takeaways from this session include:
Insights into a balanced model
Some implementation ideas
Lessons learned from building a Center of Excellence approach

Check out this webinar on-demand at http://plan4demand.com/Video-Global-Rollouts-Balancing-Standardization-and-Localization

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S&OP Leadership Exchange: Global Rollouts- Balancing Standardization and Localization

  1. 1. Page1S&OP LEADERSHIP EXCHANGE:GLOBAL ROLLOUTS –BALANCING STANDARDIZATION & LOCALIZATION The Web Event will begin momentarily with your host: Andrew McCall June 27th, 2012 plan4demand
  2. 2. Page 2  Understanding the impact and reasons why companies are more interested in a Global view of Sales & Operations planning – Does this fit your organization?  Gain some insight into the obstacles and roadblocks that a global rollout of S&OP faces :  where are the complexities?  which ones are important?  which ones are just “noise”?  Review some of the implementation strategies than can offset the obstacles, and establish a global process, without losing the local decision making and action orientation that is so critical to a high performance S&OP process.
  3. 3. Page 3  Why? What reasons do we have to drive towards a global view?  Leverage best practices  Common Process model allows for us to aggregate and disaggregate our views of data, business conditions, reporting, etc.  Common Metrics and KPI’s for measuring success  Labor, Market Conditions, Tax, Cost to Produce arbitrage & flexibility is desirable in a global economy  Global growth diversifies risk in our organizations  Sounds great – but are we making any progress?
  4. 4. Page 4 Whether Operate Globally How Operate Globally Global Regional (regions roll up (regional No into global operations 23% team; plan supported by globally to act locally) 19% regional supply chains) 38% Yes 32% Multi- national 77% Multi- (countries roll national 11% up into regional operations; (countries roll up into regional regional operation; planning) global planning) 43% Multi-nationalSOURCE: Supply Chain Insights, VOICE 2012Base: Total Sample (61)Q12. Does your company operate “globally?”Base: Operate Globally (47)Q13, Which of the following best describes how your company operates “globally?” Please select the one that fits best.
  5. 5. Page 5  Today’s realities  Company’s have multiple S&OP processes  Supply Chain vision is diluted or poorly understood globally  Unit performance metrics and global trade offs can easily be misaligned  Results are still regional, so decision making processes are too  Global governance has no real teeth
  6. 6. Page 6 Infrastructure Global Supply Culture/Politics Governance & Chain Consistency Funding Model• Data • Vision • Transparency • Common• Reporting • Metrics/KPI’s • Goals Oversight• Systems • Process • Communications • Suggested vs. Footprint Consistency • Decision Making Required • Business Model • Local Requirements
  7. 7. • Product Roadmap • Transparency Decisions – Global Level? • Gaps Local Market Driven? • Risks & Opportunities Both? • Financial Trade Offs • Pricing Strategy? Brand between regions Drive? Market?• Global Manufacturing Footprint? • Top Down Revenue• Bias towards “Regional” Planning? service? • Local Market/Region• Global Balance Decisions Bottoms up Forecast? vs. 4 walls of the local ops • Do we share GAPS with “Global Process”, of • Executive Regional Targets vs. Global Goals keep in house? • Review & Action Surrounding: • Gaps & Decision Making • R&O • Communicating the Plan/Decision Buy In
  8. 8. Page 8  Where are the following key decisions made in your organization? Select your answers on the left side of your screen  Portfolio Management (New Products, Markets, SKU Rationalization, Pricing?)  Regionally  Global  Demand Management (Volume projections, Demand Forecast, R&O?)  Regionally  Global  Supply Management (Where made, Capacity, Sourcing Changes, Network, Inventory)  Regionally  Global  Pre-S&OP/IBR (R&O, Gap Closers, Scenario Recommendations/Decisions)  Regionally  Global
  9. 9. Page 9  Global Roles – Leveraging Span & “The Helicopter” view of the business  Need to provide overall supply chain strategy, and how it supports with and works with individual markets  Establish Common Practices for key planning processes so that a base layer of consistency exists to leverage when viewing the business as a whole, setting targets and making decisions  Common KPI platform (methodologies and calculations, not necessarily targets)  Outline where sourcing, distribution and production footprints server more than one region  Local Roles – What needs to stay close to markets & operations to drive solid decision making and action?  Market Intel & Demand Signal Management  Channel & Business Model differentiation within regions or local markets  Target and Threshold setting  Local Assumptions based on Demonstrated Performance  Achieving Balance? What brings these two vantage points together and synchronizes them, instead of putting them at odds?  Transparency  Understanding the role that each “view” plays in the overall Decision Making process surrounding mid and long range planning
  10. 10. Page 10  Top Down - Global Template, Local Customization  Creation of a Global Process Template  Global Reporting Package  Local changes to the sub processes to help support decision making, but still rolling to a top line package that is standard world wide  Actions and Decision making at both the Global and Local level  BEST FIT?: Global Operating Footprint, Similar Channels to Market World Wide – StratPlan managed globally with local performance inputs  Bottom Up - Local Template, Global Rollup Requirements  Local Templates by Region – minimum standards outlined globally  Financial Projection, R&O and KPI’s roll up based on common methodology for consolidation  Global Rollup is largely a reporting & monitoring view – actions and decision making are managed locally against local targets & goals  BEST FIT?: Regional/Local Operating Footprint, Dissimilar Channels to Market across different regions and localities – StratPlan managed locally in market with global inputs or assumptions
  11. 11. Page 11  Hybrid - Global Center of Excellence  Help provide structure to either the Top Down or Bottom Up Model  Create an overall Governance and Process Model “review board” for localizations, or entire local processes to be vetted, “certified” and monitored for performance  Establishes a top down view that can be used to highlight misalignments in goals, objectives, or gaps in strategy that result in growth, changes in market conditions or portfolio shifts in the categories (ours or our competitors)  Allows local markets or regions to pull on “expertise” and experience from other markets facing similar challenges without having to “re-invent the wheel”  Allows for Global adjustments to the model or strategy by incorporating changes in the strategic plan into the CoE charter and definition and be rolled out consistently  Manage the Roadmap & Priority of initiatives and the rate of change
  12. 12. Page 12  Global Consumer Goods Company:  OTC Products still requiring a high degree of validation and FDA type compliance  4 primary markets (EMEA, NAFTA, South America, AsiaPAC – with an emerging BRIC strategy  2 production facilities supporting global supply  4 In Market Packaging and Distribution facilities supporting Global Demand, and Local Postponement strategy  Challenges:  5 different S&OP Processes  Supply viewed and planned through a site specific Supply Review process – disconnected from the global view, silos between Base Production & Packaing  Manufacturing Flexibility Strategy not well understood at the facility level  Demand driven by market specific financial targets  Impacts  Customer Service Levels falling while Inventory was growing – mix was wrong based on fractured planning & strategy  No visibility across the globe into operating capacity and market demands that could be used to balance supply & demand fluctuations. Idle capacity in one market, customer service issues in another market that could be resolved by pulling that capacity into the plan.
  13. 13. Page 13  Global Center of Excellence – “Chicken or the Egg?”  Needed to redefine the S&OP process model for the entire business – Top Down, Bottom Up?  Several Key decisions that needed to be reached:  Global Supply Footprint Trade Offs – Cost Per Unit - Flexibility  Demand Consensus at a market level – how do we consistently arrive at a number that is locally viable, and not linked to a “site view” of packaging capacity  Common Metrics & KPI’s that align with the overall Strategic Plan  Governance Model to support local demand decisions being fulfilled by a global network  Establish priorities in terms of overall business strategy, not local cost per unit  Create internal service level requirements and metrics  Define Roles in terms of the planning process – R.A.C.I model for units, global team and decision making domain  Roadmap  Built S&OP Teams  Steering Committees (Local & Global) – evolved into Governance Team  Global Project Team (included Local Champions)  Local Champions & Project Team  Outlined Global Standard Maturity Model – Stages of Evolution  Local Level Diagnostic – How far off are we, target stage of evolution by region or site  Establish Rollout Sequence  Create Playbook for Rollout  Used Continuous Measurement to manage progress and Governance reporting
  14. 14. Page 14  Strategy – needs to be well understood from a global and local level in order to make good decisions on the right model to use – top down or bottom up  Develop Balance – the design needs to be considered from both the global view and local decision making. If we are out of balance – it becomes a “read out” and not actionable  Implementing the model – you don’t have to start with a “CoE” – but you CAN leverage the principles and rollout strategy even if you don’t establish the global layer in a very formal fashion. Take a “best of the best” approach and use the components that fit your organization best.  This Summer – Look for:  A summary of this years survey data across all 6 sessions to date  A schedule of the fall webinar topics  A few other surprises in the group – have a good summer!
  15. 15. Page 15 September 12th October 3rd S&OP Technology: A tool, or a strategy? S&OP Jump Start: Starting or Re-Starting your process in less than 90 days
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