• Like

The How and the Why of Making a Smart S&OP Technology Solution

  • 774 views
Uploaded on

While sales and operations planning (S&OP) has been around for 30 years, there remains significant opportunity for companies to fully benefit from it. Many manufacturers “get stuck” at the …

While sales and operations planning (S&OP) has been around for 30 years, there remains significant opportunity for companies to fully benefit from it. Many manufacturers “get stuck” at the supply/demand balancing level and never progress into Integrated Business Planning (IBP). Why? It’s because the vast majority of companies still use Excel and manual efforts to drive their S&OP processes.

While no company will ever completely abandon spreadsheets, those who attempt to achieve S&OP maturity with only disconnected processes and solutions will never drive truly collaborative, scalable planning. The alternative lies in selecting the right technology to power S&OP to the next level.

In this webinar, Lora Cecere, founder of Supply Chain Insights, will provide direction on:

How the right S&OP technology can render big business benefits
How S&OP technologies have changed over time
How to select the S&OP solution that best fits your requirements
How to avoid the pitfalls of implementation

Join this session to understand how technologies have changed and how you can select the solution that best fits your requirements.

Who should attend:

S&OP and Supply Chain Leadership
Demand/Forecast Planners
Business Planners
Heads of IT
Anyone involved in or leading an S&OP RFP project

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
774
On Slideshare
0
From Embeds
0
Number of Embeds
4

Actions

Shares
Downloads
38
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. 1© 2014 Steelwedge Software, Inc. Confidential. Single Line of Sight: Plan, Perform, Profit Steelwedge Introduction The How and the Why of Making a Smart S&OP Technology Selection
  • 2. How to Select S&OP Technology
  • 3. 3© 2014 Steelwedge Software, Inc. Confidential. Supply Chain Insights
  • 4. 4© 2014 Steelwedge Software, Inc. Confidential.
  • 5. 5© 2014 Steelwedge Software, Inc. Confidential. Unprecedented Commodity Volatility
  • 6. 6© 2014 Steelwedge Software, Inc. Confidential. Mature Sales and Operations Planning
  • 7. 7© 2014 Steelwedge Software, Inc. Confidential. Benefits Received Source: Supply Chain Insights, 2012 What benefits have you received from your work with S&OP processes? 59% 57% 50% 42% 38% 36% 34% 32% 32% 30% Increasing revenue Improving forecast accuracy Reduction of inventory Improving asset utilization Determining outsourced manufacturing Determining procurement requirements Improving new product launch Transportation and warehouse management Capital planning and asset management Improvements in the perfect order ▲ 2% ▲ 5-7% ▲ 3-7% ▲ 3-6% ▲ 3-6% ▼ 10-15% ▼ 2-8%
  • 8. 8© 2014 Steelwedge Software, Inc. Confidential. Case Study
  • 9. 9© 2014 Steelwedge Software, Inc. Confidential. Inventory Turns vs. Operating Margin (2000-2012)
  • 10. 10© 2014 Steelwedge Software, Inc. Confidential. Why it Matters Company Average Operating Margin Average Inventory Turns Resiliency Ranking BASF .10 5.3 .55 DuPont .10 4.0 .67 Company Average Operating Margin Average Inventory Turns Resiliency Ranking Samsung .11 8.3 .59 LG Electronics .04 6.7 3.47 Company Average Operating Margin Average Inventory Turns Resiliency Ranking Procter & Gamble .18 5.7 .52 Unilever .13 5.6 .74
  • 11. 11© 2014 Steelwedge Software, Inc. Confidential. Supply Chain Insights
  • 12. 12© 2014 Steelwedge Software, Inc. Confidential. Heterogeneous Environment
  • 13. 13© 2014 Steelwedge Software, Inc. Confidential. Large Gaps in Current Technologies
  • 14. 14© 2014 Steelwedge Software, Inc. Confidential. Growing use of Cloud and BPO
  • 15. 15© 2014 Steelwedge Software, Inc. Confidential. Supply Chain Insights
  • 16. 16© 2014 Steelwedge Software, Inc. Confidential. • What are the best S&OP technologies? • What is the best duration for S&OP? • What is the right frequency for the S&OP process? Questions Asked
  • 17. 17© 2014 Steelwedge Software, Inc. Confidential. Supply Chain Insights
  • 18. 18© 2014 Steelwedge Software, Inc. Confidential. What are the best S&OP technologies? • Start with a technology that can deliver a “feasible plan”. Model constraints. • Test scenarios and ensure that the software can model your environment. • Ensure that you have sufficient what-if analysis. Questions Asked
  • 19. 19© 2014 Steelwedge Software, Inc. Confidential. Gap in What-if Architectures
  • 20. 20© 2014 Steelwedge Software, Inc. Confidential. • What are the best S&OP technologies? • What is the best duration for S&OP? • What makes the most sense for your business? S&OP is a tactical process. Usually, it is the time horizon for making asset decisions. • What is the right frequency for the S&OP process? Questions Asked
  • 21. 21© 2014 Steelwedge Software, Inc. Confidential. A Part of a Planning Architecture Tactical Planning Operational Planning Executional Planning
  • 22. 22© 2014 Steelwedge Software, Inc. Confidential. • What are the best S&OP technologies? • What is the best duration for S&OP? • What is the right frequency for the S&OP process? • S&OP is a tactical process that is monthly for 90% of companies. Many confuse S&OP planning with S&OP execution. Questions Asked
  • 23. 23© 2014 Steelwedge Software, Inc. Confidential. S&OP Process Plan Execution
  • 24. 24© 2014 Steelwedge Software, Inc. Confidential. Collect sales and market Managing Cycles Week 1 Develop a demand plan Demand consensus refinement Constrained pan by supply What if by supply for trade-offs Develop a demand plan Demand consensus refinement What if for demand Constrained plan by supply What if by supply for trade-offs Executive plan review Publish the constrained plan Measure and communicate the plan Week 2 Week 3 Week 4 Week A Week B Week C Operational Review 1 Operational Review 2 Operational Review 3 Operational Review 4 Collect sales and market What if for demand Executive plan review Publish the constrained plan Measure and communicate the plan Week D
  • 25. 25© 2014 Steelwedge Software, Inc. Confidential. Start with the questions of: 1. What is the goal? 2. What should we measure? 3. What defines success? Evolution
  • 26. 26© 2014 Steelwedge Software, Inc. Confidential. S&OP Process Evolution Manufacturing- Driven Deliver a Feasible Plan for Operations Match Demand with Supply Sales Driven Match Demand with Supply Business- planning Driven Maximize Profitability Demand Driven Maximize Opportunity Sense and Shape Demand Market Driven Maximize Opportunity and Mitigate Risk. Orchestrate Demand Market to Market Greater Benefit • Growth • Resilience • Efficiency
  • 27. 27© 2014 Steelwedge Software, Inc. Confidential. Technology Evolution
  • 28. 28© 2014 Steelwedge Software, Inc. Confidential. Supply Chain Insights
  • 29. 29© 2014 Steelwedge Software, Inc. Confidential. • Assess where you are and define the requirements • When you engage with vendors be clear on how you will make a decision. Role of: • IT Policy • Post-purchase Service and Support • Scalability • Cost • Functionality • Take your time. The best implementations are not the fastest. It is a journey not a sprint. Summary
  • 30. 30© 2014 Steelwedge Software, Inc. Confidential. Questions?
  • 31. 31© 2014 Steelwedge Software, Inc. Confidential. SCI Global Summit - September 2014
  • 32. 32© 2014 Steelwedge Software, Inc. Confidential. Lora Cecere’s New Book – Fall 2014 Publication
  • 33. 33© 2014 Steelwedge Software, Inc. Confidential. Agenda • Steelwedge Introduction • S&OP Technology Requirements • Functional • Planning Processes • Solution Profile • The S&OP Journey • Information Request
  • 34. 34© 2014 Steelwedge Software, Inc. Confidential. “ Steelwedge has grown into the market's leading S&OP solution in the cloud. ” Rating: Positive  Global market share leader  Offices: USA, Europe, Japan & India  Founded in 2000, 50%+ year over year growth  Global organization focused on global delivery  Cloud Based Integrated Business planning platform  100% cloud-based for rapid deployment & value realization Steelwedge: The S&OP Company
  • 35. 35© 2014 Steelwedge Software, Inc. Confidential. S&OP Success with Steelwedge Demand Planning, SCM/APS Systems ERP, Financial, & Transactional Systems SAP, Oracle, etc. Industry Data Single Cross-Functional Planning Environment Interactive planning for: • All S&OP Stakeholders • Plan Review • Overrides • Assumptions • Scenarios • Consensus Process • Pre-S&OP • Executive S&OP • Audit Trail Systems Landscape Product / Sub-Family Customer Revenue Product / Family Territory / Region Revenue Product / Family Promotions Revenue Product / Family Region Units & Revenue Product Stock Locations Units and Inventory Family / Series Territory / Region Revenue, Margin & Cash Family / Series / BU Geo Revenue, Margin & Cash Product Production Site Units and Capacity Family / Series / BU Geo Revenue, Margin & Cash Family / Series / BU Geo Revenue, Margin & Cash Planning TermsStakeholders Account Managers Sales Managers Marketing Demand Planners Supply Planners Production Planners Finance Executives Customers Suppliers Cross-functional Planning Environment
  • 36. 36© 2014 Steelwedge Software, Inc. Confidential. Managing the Translation between Functions Sales, Marketing, Product Management, Demand Planning Demand Inventory, Production, Procurement and Allocations Supply Profit & Loss, Balance Sheet Finance Executive Dashboards Executive
  • 37. 37© 2014 Steelwedge Software, Inc. Confidential. Planning Dashboard Steelwedge Enterprise Enabled Excel Slice of view (hierarchy) Time series of key figures Planning data for review and updates Planning Views Combine Planning, Analytics in Familiar UI Capture institutional knowledge / assumptions
  • 38. 38© 2014 Steelwedge Software, Inc. Confidential. ERP, Financial, & Transactional Systems SAP, Oracle, etc. Industry Data Systems Landscape Cross-functional Planning Environment S&OP Technology Stakeholders Account Managers Sales Managers Marketing Demand Planners Supply Planners Production Planners Finance Executives Customers Suppliers Demand Planning, SCM/APS Systems Key Selection Criteria: Planning Processes Planning Processes Sales Revenue Planning Statistical Forecasting Consensus Demand Management Source, Inventory and Master Planning Rough Cut Capacity Product Allocation Key Material Planning Procurement Planning Rough Cut Financials Executive S&OP Trading Partner Collaboration Product / Sub-Family Customer Revenue Product / Family Territory / Region Revenue Product / Family Promotions Revenue Product / Family Region Units & Revenue Product Stock Locations Units and Inventory Family / Series Territory / Region Revenue, Margin & Cash Family / Series / BU Geo Revenue, Margin & Cash Product Production Site Units and Capacity Family / Series / BU Geo Revenue, Margin & Cash Family / Series / BU Geo Revenue, Margin & Cash Planning Terms
  • 39. 39© 2014 Steelwedge Software, Inc. Confidential. ERP, Financial, & Transactional Systems SAP, Oracle, etc. Industry Data Systems Landscape Cross-functional Planning Environment S&OP Technology Stakeholders Account Managers Sales Managers Marketing Demand Planners Supply Planners Production Planners Finance Executives Customers Suppliers Demand Planning, SCM/APS Systems Key Selection Criteria: Solution Profile S&OP Solution Profile Systems Required Ease of Use Time to Value Flexibility Proven Solution Architecture S&OP Experience S&OP Focus Product / Sub-Family Customer Revenue Product / Family Territory / Region Revenue Product / Family Promotions Revenue Product / Family Region Units & Revenue Product Stock Locations Units and Inventory Family / Series Territory / Region Revenue, Margin & Cash Family / Series / BU Geo Revenue, Margin & Cash Product Production Site Units and Capacity Family / Series / BU Geo Revenue, Margin & Cash Family / Series / BU Geo Revenue, Margin & Cash Planning Terms
  • 40. 40© 2014 Steelwedge Software, Inc. Confidential. Steelwedge RFI Template
  • 41. 41© 2014 Steelwedge Software, Inc. Confidential. Crawl – Walk – Run Approach • Key to success is incremental value • Crawl: plan ahead with end in site • Walk: implement single solution • Run: measure, improve, expand • Sprint: align, integrate, monitor • Start with quick win as phase 1 & foundation • Expand the roll-out adding value as you go
  • 42. 42© 2014 Steelwedge Software, Inc. Confidential. Kaushal Dave Product Marketing Manager kdave@steelwedge.com (213) 422-4341 Ed Lewis VP, Product Marketing elewis@steelwedge.com (949) 588-1495