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Are you also tired of stand-alone spreadsheets in your S&OP process?


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Are you also tired of stand-alone spreadsheets in your S&OP process? …

Are you also tired of stand-alone spreadsheets in your S&OP process?

by Jan Heerema, EMEA SCM

Presented at the SAP Procurement & Logistics Day 2012.

Published in: Technology, Business

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  • 1. SAP Procurement & Logistics Day 201230 augustus
  • 2. Are you also tired of stand-alone spreadsheets in yourS&OP process? Jan Heerema, EMEA SCM Center of Excellence
  • 3. What is S&OP?Tom Wallace DefinitionSales & Operations Planning (S&OP) is a set of decision-making processes to: Balance demand and supply Integrate financial planning and operational planning Link high-level strategic plans with day-to-day operations© 2012 SAP AG. All rights reserved. 3
  • 4. A Typical S&OP Process  Consensus Demand Planning and New Products Demand  Input from Sales, Marketing, Finance and Operations, including quantity, price, revenue and margin  Based on updated demand plan, understand capacity and Supply material impacts, including contract manufacturing.  Understand long-term gaps in supply and demand  Review and resolve outstanding supply issues Balance  Compare constrained plan with finance plan  Define and compare scenarios Executive  Escalate resolution plans with scenarios, if applicable Review  Review key changes since last meeting Repeats Monthly© 2012 SAP AG. All rights reserved. 4
  • 5. S&OP Pain Points collected from the field….  Too many spreadsheets and systems involved in the S&OP process  Cannot get users to provide input, especially sales, marketing and executives  Spend more time assembling data than planning  Outdated demand-, supply- and finance- plans  Working at aggregates only and can’t connect to detailed SKU level  Cannot change demand and view impact on supply and financials right away  Too hard to simulate and compare planning scenarios  Planning decisions made without considering supply chain constraints and profitability  Executive S&OP views lack latest information  Executive S&OP meeting information is hard to share and is disconnected from planning tools© 2012 SAP AG. All rights reserved. 5
  • 6. S&OP Maturity according to Gartner© 2012 SAP AG. All rights reserved. 6
  • 7. Gartner Stage 3 S&OP Reference ArchitectureSeven key functional requirements are required to support an S&OPprocess in Stage 3 of the Gartner maturity matrix:1. Hierarchy Management2. Collaboration3. Performance Management4. Financial Reconciliation5. Supply Chain Modeling6. Scenario Planning7. Workflow / Business Process Management© 2012 SAP AG. All rights reserved. 7
  • 8. S&OP Reference Architecture According to Gartner ‘Executive’ S&OP Operational S&OP© 2012 SAP AG. All rights reserved. 8
  • 9. How can SAP help to get to Stage 3 (and 4)© 2012 SAP AG. All rights reserved. 9
  • 10. SAP Sales & Operations PlanningPowered by SAP HANA Unified Data Model Simulations and Rich, Contextual Real-time Planning Scenarios – Instantly Social Collaboration Planning and real-time Rapid, interactive Embedded, context-aware analysis with a unified simulation and scenario social collaboration enables model of demand, supply analysis, using the full rapid planning and chain, and financial data at S&OP data model to decision-making across the any level of granularity and support demand-supply organization dimension balancing decisions© 2012 SAP AG. All rights reserved. 10
  • 11. Plan in Real-time With a Unified Data Model Capabilities:  Plan in real-time, using a unified model of your demand, supply chain and financial data within a single, purpose-built S&OP solution  Analyze massive volumes of complex data instantly at any level of granularity, aggregation, and dimension  Import massive amounts of detailed data directly from SAP and non-SAP sources Benefits:  Optimize product/customer profitability and product mix, considering supply and financial constraints  Adjust inventory levels to reduce cost, while meeting target customer service levels  Manage capacity utilization to avoid capacity and material shortages© 2012 SAP AG. All rights reserved. 11
  • 12. Run Simulations and Scenarios InstantlyCapabilities: Rapidly run simulations of demand, supply and financial changes using your full S&OP data model to support what-if analysis Compare planning scenarios and their impact on key performance indicators in real-time Drill down into simulated data to perform detailed analysis without the need for manual disaggregationBenefits: Identify optimal set of tactics to drive revenue growth and increase market share Uncover opportunities to reduce supply chain cost Prepare for potential changes in demand and supply before they happen© 2012 SAP AG. All rights reserved. 12
  • 13. Enable Rich, Contextual Social CollaborationCapabilities: Track progress of the S&OP process, including assignment and monitoring of action items and the stakeholders responsible Collaborate quickly and easily using embedded role and context-aware social tools Plan using user-friendly web and Microsoft Excel interfacesBenefits: Increase speed and agility of planning Drive greater engagement and improve input from users across your organization Improve precision of demand and supply balancing© 2012 SAP AG. All rights reserved. 13
  • 14. S&OP „Myth Busting‟Myth: “We don‟t need S&OP in our department; that‟s a „supply chain thing.”Myth: “S&OP is really simple. We‟re just going to get the S&OP systemimplemented and then we‟ll have S&OP.”© 2012 SAP AG. All rights reserved. 14
  • 15. SummarySAP Sales & Operations Planning powered by SAP HANA is aninnovative, promising and game-changing solution that can help you toget to stage 3 by supporting the key functional requirements of a S&OPprocess in Stage 3 of the Gartner maturity matrix: Hierarchy Management Collaboration Performance Management Financial Reconciliation Supply Chain Modeling Scenario Planning Workflow / Business Process Management© 2012 SAP AG. All rights reserved. 15
  • 16. Q & A……when time permits© 2012 SAP AG. All rights reserved. 16
  • 17. Thank You!Contact information:Jan HeeremaBusiness Development Manager SCM, EMEAAmerikastraat 105232 BE `s-Hertogenbosch, The NetherlandsT +31 73 645 7848E