Steelwedge Agility Webinar Series Presenter: Peter Bolstorff, author of Supply Chain Excellence Successful supply chain planning is not just a function of ‘doing more’ leading practices. The best supply chain planning organizations have picked appropriate leading practices as dictated by the markets they serve and integrated them together with their chosen technology platform to achieve competitive advantage. Sales and operations planning (S&OP) is a foundational leading practice that cuts across all industries, according to Peter Bolstorff, an internationally recognized supply chain practitioner, speaker, educator, consultant and author. Actionable research from Mr. Bolstorff’s project experience suggests that in addition to S&OP, the best supply chain planning organizations have adopted seven principles: 1. Systematic management of ‘master data’ 2. Synchronized S&OP, tactical planning, and execution processes and horizons 3. Mature collaborative processes for both key customers and suppliers reconciling forecast, orders, and yearly volume 4. Data oriented understanding of the inputs to the forecast 5. Intense focus on ‘point-of-sale’ or ‘sell through’ data (versus sales orders and ‘sell in’) 6. Disciplined product life cycle management process 7. A continuous improvement approach to understanding consumer or user behavior Join Peter and Steelwedge for an interactive webinar featuring examples of these principles from some of the best demand-driven organizations.

1. Single Line of Sight: Plan, Perform, Profit
7 Principles
Of Highly Effective Sales & Operations Planning
August, 21 2012
© 2012 Steelwedge Software, Inc. Confidential. 1

2. Agenda
• Global Business Requires Agility
• S&OP: Where to Start
• Powering Agility: Examples
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3. Interdependent: Business Reality
Agility Required
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4. The Agility Gap
How good are you at responding to rapid change?
90%
Agility is
crucial to
business
27%
Are good
at agility
*May 15 S&OP Agility Research, Supply Chain Insights
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5. Benefits of S&OP
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6. Agenda
• Global Business Requires Agility
• S&OP: Where to Start
• Powering Agility: Examples
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7. Continuous Improvement Approach
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8. Continuous Improvement Example
Process Design & Change Management
Compass Express Process
Pilot
1. S&OP Sales (Demand and Process Adoption Refinement
Revenue)
2. S&OP Advanced Fin/Inventory
3. Executive S&OP/Full IBP
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9. 1. Connect the Right People and Right Process
Steelwedge S&OP
Consensus
Demand Plan Demand
(Unconstrained)
Forecasts
Supply Plan Supply
(Constrained) Plans Analytics
Open Apps
Solver
Finance Plans Finance
Plans
Supply &
Pre-meeting Demand
Balancing
Nightly
Executive
Executive S&OP Transaction
S&OP
Files
Inputs Planning Processes
Steelwedge Sales, Backlog, O
Inputs and Balancing & Scenario
pportunities, Inv., Business Unit Business Unit
Scenario Review & Issue
Outputs POs, Budget Supply Plans Finance Plans
& Master Data Planning Resolution
© 2012 Steelwedge Software, Inc. Confidential. 9

10. Consensus Demand Planning
Steelwedge S&OP
Statistical Baseline
Forecast Forecast
Marketing Marketing
Forecast Analytics
Open Apps
Solver
Account Account
Management Forecast
Sales Sales
Management Manager
Forecast
Demand Demand
Planning Forecast
Nightly
Consensus Transaction Consensus
Team Files Forecast
Inputs Planning Processes
Steelwedge Forecast,
Sales, Orders,
Inputs and Demand
Opportunities, NPI & EOL, Account Level Sales Region Consensus
Outputs Budget & Review and
Product Forecast Forecast Forecast
Master Data Geo Forecast
Volume
© 2012 Steelwedge Software, Inc. Confidential. 10

11. Constrained Supply Planning
Steelwedge S&OP
Consensus
Unconstrained
Demand
Forecast Forecast
Sourcing Source
Plan Analytics
Open Apps
Solver
Inventory Inventory
Plan
Procurement Procurement Supplier
Plan Plan
Rough Cut
Production Capacity
Plan
Nightly
Transaction
Files
Inputs Planning Processes
Steelwedge
Inputs and Inventory, Inventory Rough Cut
Source Procurement
Purchase Orders Targets & Capacity
Outputs & Master Data Allocations Forecast
Projections Planning
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12. 2. Map Software to Your Planning Process..
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13. 3. …Make it as Unique as Your Business with Apps
Open Architecture
Apps
Demand Policy
Inventory
Segmentation
Stocking
Strategy
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14. 4. Leverage and Connect Your ERP Investment
Demand Supply Executive
S&OP Process Consensus
Constrained Supply Executive Review
Demand
Integrated Business Planning
Demand, Supply & Financial
S&OP
Technology
Demand, Supply &
Finance Data
ERP Backbone Forecasting, Demand
SCM, ERP
Business Intelligence,
Plan, ERP, CRM Data Warehouse
Technology
Demand Products Supply Products & Revenue, Units
Data & Customers Suppliers
Accelerated Time To Value
© 2012 Steelwedge Software, Inc. Confidential. 14

15. 5. Ensure Quick Time to Value through the Cloud
 Reduce support costs  Increase user adoption
 Deploy 45% faster  Increase flexibility
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16. Agenda
• Global Business Requires Agility
• S&OP: Where to Start
• Powering Agility: Examples
© 2012 Steelwedge Software, Inc. Confidential. 16

17. Industrial Products: Going Lean to Lead
Volatility Challenge
• 100 year old, complex
company vs. nimbler, smaller
competitors
• More Global, Less
predictable demand
• Transitioning to lean
manufacturing
© 2012 Steelwedge Software, Inc. Confidential. 17

18. Industrial Products:
Product Level Approach
Statistical Collab &
Forecast Exception
Impact
Stocking Strategy: Min/Max,
Safety Stock, etc
Complexity
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19. Industrial Products:
Going Lean to Lead
Blueprinted IBP process design: week 1
Full plan from demand, supply to exec. IBP: week 10.
Sequenced by product line; done internally
“What if” tool key to regular management strategy
$30M savings in working capital; improved customer levels
10%; grew market share
© 2012 Steelwedge Software, Inc. Confidential. 19

20. Consumer Electronics: Taming Complexity
Volatility Issue:
• Commoditizing market
• Competitive leverage:
bundling strategy-- but
complex to manage
• Equally complex ERP
infrastructure
•
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21. Synching a Single Plan
• Single plan for globe
• Managed complex
configurations with statistical
bill of materials (sBOM)
• Synched 75 demand
planners, 150 sales
managers, 50 supply
planners
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22. Consumer Electronics:
Taming Complexity
Test drive with company data proved case for solution
United data for better collaboration and consensus:
internally and with suppliers
Executive review monthly vs. bi-annually
3X faster response, 10% better fulfillment, 35% less inventory
excess, 5% margin improvement
© 2012 Steelwedge Software, Inc. Confidential. 22

23. Steelwedge Test Drive
Why Test Drive
Live System = Real User Input = Real Proof Point
Validate Requirements Assumptions (Customer & SW)
Validate Data Health and Availability (Customer & SW)
What is a Test Drive
Compass Express “Best Practices” platform hosted by SW
One time data load
8 hours of Hands-on Training
Optional: Integrated Planning Assessment / Design workshop
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24. Thank you!
© 2012 Steelwedge Software, Inc. Confidential. 24