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Jane Barrett, GVP Supply Chain at Gartner - S&OP/IBP Panel
 

Jane Barrett, GVP Supply Chain at Gartner - S&OP/IBP Panel

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Jane Barrett, GVP Supply Chain at Gartner spoke on a panel at the SCL Event July 2013

Jane Barrett, GVP Supply Chain at Gartner spoke on a panel at the SCL Event July 2013

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    Jane Barrett, GVP Supply Chain at Gartner - S&OP/IBP Panel Jane Barrett, GVP Supply Chain at Gartner - S&OP/IBP Panel Presentation Transcript

    • This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Jane Barrett Jane.barrett@gartner.com Gartner Supply Chain Research S&OP/IBP Panel
    • Our Panel 1 Name Company Dave Powell Clarks Shoes Gerard de Bruijn D.E. Master Blenders Alex Elberg Mondelez International Jeremy Baskin Unilever
    • S&OP/IBP Key Questions • How do you define S&OP versus IBP? • What is your S&OP maturity level and what was the biggest challenge to overcome to get there? • What benefit is a more mature S&OP/IBP giving your organization? • What is your biggest learning; what would you do differently? 2 Review the Gartner S&OP/IBP 5-stage Maturity Model
    • The Supply Chain Planning Maturity Journey ... Cost TARGET Revenue FOCUS Inside-out Outside-in Stage 1 Fragmented, local, unconstrained Stage 2 Functional scale, local optimization, cost focus Stage 3 Horizontal integration, linked optimization Stage 4 Extended view, profit-oriented optimization Stage 5 Network view, multi-enterprise, plan/execution convergence
    • The S&OP Maturity Journey Cost TARGET Revenue FOCUS Inside-Out Outside-In No shared goals Stage 1 Stage 5 Creating An Operational Volume Plan Stage 2 Stage 3 Stage 4 Create a demand driven profitable supply response Coordinated enterprise and network decision- making to create value Balancing Supply & Demand in end to end supply chain
    • The Demand-Driven S&OP/IBP Journey Cost TARGET Service MINDSET Inside-Out Outside-In S&OP – Operational volume plan IBP – Multi-horizon scenario planning S&OP – Demand / Supply balance for end- to-end supply chain IBP – Selectively include network partners in process Defining S&OP for cross-BU standardization
    • Governance Changes as S&OP Matures Level of S&OP Maturity VP Supply Chain Owner Coordinator VP Supply Chain Sponsor How to establish a supply chain planning process? How to get people to participate? Demand/Supply Matching Develop Operational Plan None None Supply ChainSupply Chain Who to drive growth in the network? How to make the right P&L decision? Business Orchestration Supply Chain C-LevelP&L Owner P&L Owner P&L Owner Supply Chain/Finance Business Outcomes 6 How to account for end to end SC impact? Supply Chain Integrated SC Decision Making VP Supply Chain VP Supply Chain
    • S&OP/IBP Key Questions • What is your S&OP maturity level and what was the biggest challenge to overcome to get there? • What benefit is a more mature S&OP/IBP giving your organization? • What is your biggest learning; what would you do differently? 7 Name Company Dave Powell Clarks Shoes Gerard de Bruijn D.E. Master Blenders Alex Elberg Mondelez International Jeremy Baskin Unilever
    • S&OP Maturity Model - Six Dimensions Outcome The “Outcome” dimension provides a score for company’s plan that results from its S&OP process based on its scope and depth, and cross-functional alignment 8 Process Focus The “Process Focus” scores the S&OP process itself, considering the structure, cadence, participating functions and what types of decisions result from the process Organization The “Organization” dimension is scored based on company’s S&OP process sponsorship, ownership and coordination Metrics The “Metrics” dimension explores the level and scope of metrics used in company’s S&OP process and decision making. Time Horizon The “Time Horizon” scoring is determined by the planning and decision making horizon company uses in its S&OP process. Technology “Technology” dimension measures the maturity in terms of business-wide availability, use and integration of supply chain planning systems.
    • 9 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Process Focus •No alignment between commercial and supply chain •Poor/inconsistent functional performance across the supply chain •Performance improvement in demand and supply planning •Weak cost-based alignment between financial and supply chain plans •Stronger cost-based financial alignment between business and supply chain •Functional excellence •internal integration in the supply chain (P-S- M-D) •Ad hoc disconnected supplier, customer collaboration •Financial and SC alignment to profitably meet revenue projections •Profitability-based customer and supplier collaboration •Operationalizing tactical plan •Considering e2e sc tradeoffs •Profitability based on sc response •Many2many collaboration to create network value •Network demand shaping •Profitability based on overall business response Metrics • Variable scope of metrics • Ex: Fill rates, inventory cost • Variable scope of metrics, functional focus • Ex: On time ship, inventory days / turns, misc functional costs, forecast error •Variable scope of metrics, internal E2E sc metrics, some E2E connections emerge • Ex: On time delivery, forecast error / bias, supplier lead time & order cycle time • Scope is consistent by metric, E2E SC tradeoffs recognized • Ex: perfect order, E2E inventory, costs & lead times, fcst variability, agility/resiliency • Scope is consistent by metric, value network tradeoffs recognized • Ex: availability (at pt of use), value network inventory / cost / lead time, demand signal transparency Technology •Disparate systems of record (SOR) for demand and supply data •Inconsistent use of excel and in house systems •Unifying a few systems of record •Use of SCM solutions, augmented by Excel •Silo’ed BI platform to support functional metrics •Unifying standard SOR •Unifying a few SODs to create planning platforms to balance s &d across e2e sc process •Improved use of SOD point solutions •BI apps to support cross functional planning •SC MDM •SOR as a foundation with unified SOD platform to improve internal e2e process and external trading partner collaboration •BI to support root cause and what if analysis •Link w/ trading partners •Enterprise MDM •Multi-enterprise SOR & SOD w/ deployed systems of innovation •Scenario modeling across time horizons and across network •Strong network integration/collaboration • BI to support network performance