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1© 2013 Steelwedge Software, Inc. Confidential.
November 19, 2013
With Lora Cecere and Ed Lewis
Does Your S&OP Deliver Agi...
Improving Agility through S&OP
Process
Supply Chain Insights LLC Copyright © 2013, p. 3
Supply Chain Insights LLC Copyright © 2013, p. 4
• Revenue Management
• Sales and Operations Planning
• Supplier Managemen...
Supply Chain Insights LLC Copyright © 2013, p. 5
Supply Chain Insights
Supply Chain Insights LLC Copyright © 2013, p. 6
Definition of “Agility”
Supply Chain Insights LLC Copyright © 2013, p. 7
Agility
Supply Chain Insights LLC Copyright © 2013, p. 8
Those with More Mature S&OP Goals Report
Greater Supply Chain Agility
Supply Chain Insights LLC Copyright © 2013, p. 9
 Extremely agile
 Agile
 Neutral
 Not agile
 Not very/at all agile
Q...
Supply Chain Insights LLC Copyright © 2013, p. 10
Agility
Supply Chain Insights LLC Copyright © 2013, p. 11
Supply Chain Insights
Supply Chain Insights LLC Copyright © 2013, p. 12
At each stage of S&OP Maturity, ask the question:
1. What is the goal?
2...
Supply Chain Insights LLC Copyright © 2013, p. 13
S&OP Process
Existence, Goals & Processes
Supply Chain Insights LLC Copyright © 2013, p. 14
Common Practice Market-driven Focus
S Ask sales
Focus on market drivers:...
Supply Chain Insights LLC Copyright © 2013, p. 15
S&OP Evolution
Manufacturing-
Driven
Deliver a Feasible
Plan for Operati...
Supply Chain Insights LLC Copyright © 2013, p. 16
Technology Evolution
Supply Chain Insights LLC Copyright © 2013, p. 17
Supply Chain Insights LLC Copyright © 2013, p. 18
Supply Chain Insights
Supply Chain Insights LLC Copyright © 2013, p. 19
S&OP Balance
Supply Chain Insights LLC Copyright © 2013, p. 21
Form of Inventory Function of Inventory
Raw Cycle Stock
Semi-finished Go...
Supply Chain Insights LLC Copyright © 2013, p. 22
Ease of Getting Total Supply Chain
Costs
_______________________________...
Supply Chain Insights LLC Copyright © 2013, p. 23
Quick Poll: How easy is it for your
company to get total supply chain co...
Supply Chain Insights LLC Copyright © 2013, p. 24
Supply Chain Insights
Supply Chain Insights LLC Copyright © 2013, p. 25
Mature Sales and Operations Planning
Supply Chain Insights LLC Copyright © 2013, p. 26
CostVolumeGrowth
CEO
Chief Customer
Officer
Chief Marketing
Officer
Sale...
Supply Chain Insights LLC Copyright © 2013, p. 27
Alignment
Supply Chain Insights LLC Copyright © 2013, p. 28
Finance
Supply Chain Insights LLC Copyright © 2013, p. 29
Information Technology
Supply Chain Insights LLC Copyright © 2013, p. 30
S&OP Maturity Improves Alignment
Supply Chain Insights LLC Copyright © 2013, p. 31
S&OP Process
Plan Execution
Supply Chain Insights LLC Copyright © 2013, p. 32
Supply Chain Insights
Supply Chain Insights LLC Copyright © 2013, p. 33
Current Focus
Supply Chain Insights LLC Copyright © 2013, p. 34
• “I wish that we could talk about forecast error without
having to feel...
Supply Chain Insights LLC Copyright © 2013, p. 35
• Revenue
• Profitability
• Inventory (DOI or Inventory turns)
• Custome...
Supply Chain Insights LLC Copyright © 2013, p. 36
Benefits Received
Source: Supply Chain Insights, 2012
What benefits have...
Supply Chain Insights LLC Copyright © 2013, p. 37
Supply Chain Insights
Supply Chain Insights LLC Copyright © 2013, p. 39
Functions of Center of Excellence
Supply Chain Insights LLC Copyright © 2013, p. 40
Center of Excellence
Supply Chain Insights LLC Copyright © 2013, p. 41
Value Network Strategy
Supply chain strategy
Business Strategy
What are ...
Supply Chain Insights LLC Copyright © 2013, p. 42
• S&OP has grown in importance.
• The trade-offs of the supply chain can...
Supply Chain Insights LLC Copyright © 2013, p. 43
Save the Date!
Supply Chain Insights Global Summit 2014
September 10-11,...
Supply Chain Insights LLC Copyright © 2013, p. 44
Who is Lora?
• Founder of Supply Chain Insights
• Partner at Altimeter G...
Supply Chain Insights LLC Copyright © 2013, p. 45
Where Do You Find Lora?
Contact Information:
lora.cecere@supplychaininsi...
© 2013 Steelwedge Software, Inc. Confidential. 46Outline
Single Line of Sight: Plan, Perform, Profit
Steelwedge Agility We...
Outline
Steelwedge Drives Agility
Alignment - Cross functional planning between
Sales, Marketing, Operations and Finance
A...
Outline
Cross-functional Collaboration
From a single cloud based solution.
Account and
Sales
Managers
Supply
Planning
Prod...
© 2013 Steelwedge Software, Inc. Confidential. 49Outline
S&OP Sales
Statistical Forecast
Demand Planning
Revenue Planning
...
Outline
Planning data from
across the systems landscape
Business
Intelligence
SCP
ERP
Financial
Systems
CRM
Data
Warehouse
Outline
Customer Improvements
Planning Cycle Time - 50-70% reduction in
via integration and process automation
Forecast Ac...
Outline
The sales force knows customer demand - what and
when they will buy.
But often, the opportunity pipeline is not co...
Outline
Sales Pipeline Bridge
Demand Visibility and the Sales Pipeline
Dynamic, competitive markets have changed the game
...
Outline
Insert SPB screenshots here
Link to
ESOP
Opportunity Pipeline
via Sales Pipeline Bridge
on
Opportunity Pipeline fo...
Outline
Confirmed S&OP Sales Plan
Outline
Steelwedge Sales Pipeline Bridge enables you to extract, understand and
operationally act on the critical informat...
© 2013 Steelwedge Software, Inc. Confidential. 57Outline
Executive S&OP
Supply
Plans
Finance
Plans
Demand Plan
(Unconstrai...
© 2013 Steelwedge Software, Inc. Confidential. 58Outline
4.90 Exec S&OP - S
© 2013 Steelwedge Software, Inc. Confidential. 59Outline
Dashboard
© 2013 Steelwedge Software, Inc. Confidential. 60Outline
Does Your S&OP Deliver Agility?
Does Your S&OP Deliver Agility?
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Does Your S&OP Deliver Agility?

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Featured Presenter - Lora Cecere, Founder and CEO, Supply Chain Insights

In today’s increasingly complex and dynamic business environment, companies must have the agility to make fast, intelligent, and profitable decision. Sales and operations planning (S&OP) is a major pathway forward to make that happen. Recent research shows that companies that are more mature on S&OP have twice the levels of alignment and agility than their counterparts who are lower on the maturity scale.

Join us for a webinar with noted supply chain thought leader and author Lora Cecere to understand the steps to take and the pitfalls to avoid along the road to S&OP agility.

On November 19 at 9am PST/12pm EST/5pm GMT, Lora will address:

- The evolution of S&OP processes and how to build demand and supply processes that align with top-line business goals.
- The steps necessary to achieve the right balance between commercial and operations teams—the key to execution and achieving results.
- Which metrics drive alignment and how the metrics change as S&OP processes mature.
- How supply chain centers of excellence effectively manage regional and global governance to balance rising complexity and volatility with the execution of the plan.

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Transcript of "Does Your S&OP Deliver Agility?"

  1. 1. 1© 2013 Steelwedge Software, Inc. Confidential. November 19, 2013 With Lora Cecere and Ed Lewis Does Your S&OP Deliver Agility?
  2. 2. Improving Agility through S&OP Process
  3. 3. Supply Chain Insights LLC Copyright © 2013, p. 3
  4. 4. Supply Chain Insights LLC Copyright © 2013, p. 4 • Revenue Management • Sales and Operations Planning • Supplier Management • Corporate Social Responsibility Agility and Alignment Improvement through Horizontal Processes
  5. 5. Supply Chain Insights LLC Copyright © 2013, p. 5 Supply Chain Insights
  6. 6. Supply Chain Insights LLC Copyright © 2013, p. 6 Definition of “Agility”
  7. 7. Supply Chain Insights LLC Copyright © 2013, p. 7 Agility
  8. 8. Supply Chain Insights LLC Copyright © 2013, p. 8 Those with More Mature S&OP Goals Report Greater Supply Chain Agility
  9. 9. Supply Chain Insights LLC Copyright © 2013, p. 9  Extremely agile  Agile  Neutral  Not agile  Not very/at all agile Quick Poll: How Agile Is Your Supply Chain?
  10. 10. Supply Chain Insights LLC Copyright © 2013, p. 10 Agility
  11. 11. Supply Chain Insights LLC Copyright © 2013, p. 11 Supply Chain Insights
  12. 12. Supply Chain Insights LLC Copyright © 2013, p. 12 At each stage of S&OP Maturity, ask the question: 1. What is the goal? 2. What should we measure? 3. What defines success? Evolution
  13. 13. Supply Chain Insights LLC Copyright © 2013, p. 13 S&OP Process Existence, Goals & Processes
  14. 14. Supply Chain Insights LLC Copyright © 2013, p. 14 Common Practice Market-driven Focus S Ask sales Focus on market drivers: How do we best shape demand? & Direct integration to supply Design of the value chain to optimize trade-offs, minimize risk, balance cycles, and orchestrate demand OP Manufacturing plan Trade-offs between make, source and deliver Getting to Letter Perfect 14
  15. 15. Supply Chain Insights LLC Copyright © 2013, p. 15 S&OP 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
  16. 16. Supply Chain Insights LLC Copyright © 2013, p. 16 Technology Evolution
  17. 17. Supply Chain Insights LLC Copyright © 2013, p. 17
  18. 18. Supply Chain Insights LLC Copyright © 2013, p. 18 Supply Chain Insights
  19. 19. Supply Chain Insights LLC Copyright © 2013, p. 19 S&OP Balance
  20. 20. Supply Chain Insights LLC Copyright © 2013, p. 21 Form of Inventory Function of Inventory Raw Cycle Stock Semi-finished Goods Safety Stock Finished Goods In-transit Inventories Returned Inventories Seasonal Builds Slow and obsolete Promotional Inventories Risk Hedging New Product Launch Builds Form & Function of Inventory
  21. 21. Supply Chain Insights LLC Copyright © 2013, p. 22 Ease of Getting Total Supply Chain Costs ___________________________________________________________ Source: Supply Chain Insights LLC, Transportation (Aug-Oct 2012) Base: Transportation Users (Manufacturers, Retailers and Distributors) (n=34) Q18. How easy is it for your company to get total supply chain costs for your operations? 12% 12% 24% 24% 29%Users USERS: Ease of Getting Total Supply Chain Costs Extremely/very easy 5 Neutral 3 Extremely/very difficult 24% EASY 53% DIFFICULT
  22. 22. Supply Chain Insights LLC Copyright © 2013, p. 23 Quick Poll: How easy is it for your company to get total supply chain costs?  Extremely/very easy  Easy  Neutral  Difficult  Extremely/very difficult
  23. 23. Supply Chain Insights LLC Copyright © 2013, p. 24 Supply Chain Insights
  24. 24. Supply Chain Insights LLC Copyright © 2013, p. 25 Mature Sales and Operations Planning
  25. 25. Supply Chain Insights LLC Copyright © 2013, p. 26 CostVolumeGrowth CEO Chief Customer Officer Chief Marketing Officer Sales Account Teams COO VP of Supply Chain Customer Service Procurement Logistics CFO CIO VP of Manufacturing Quality Typical Organization
  26. 26. Supply Chain Insights LLC Copyright © 2013, p. 27 Alignment
  27. 27. Supply Chain Insights LLC Copyright © 2013, p. 28 Finance
  28. 28. Supply Chain Insights LLC Copyright © 2013, p. 29 Information Technology
  29. 29. Supply Chain Insights LLC Copyright © 2013, p. 30 S&OP Maturity Improves Alignment
  30. 30. Supply Chain Insights LLC Copyright © 2013, p. 31 S&OP Process Plan Execution
  31. 31. Supply Chain Insights LLC Copyright © 2013, p. 32 Supply Chain Insights
  32. 32. Supply Chain Insights LLC Copyright © 2013, p. 33 Current Focus
  33. 33. Supply Chain Insights LLC Copyright © 2013, p. 34 • “I wish that we could talk about forecast error without having to feel like we need an apology…” • “We need a balanced scorecard not an encyclopedia of metrics…” • “The metrics need to align around value…like I was trained in my Bonsai class, let the tree show you the way…” • “Every industry has their own iron triangle that defines supply chain potential. Customer service is always in the middle…” Quotes from Recent Interviews
  34. 34. Supply Chain Insights LLC Copyright © 2013, p. 35 • Revenue • Profitability • Inventory (DOI or Inventory turns) • Customer Service (case fill or perfect order) • Forecast Accuracy Metrics: Focus on Balance
  35. 35. Supply Chain Insights LLC Copyright © 2013, p. 36 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%
  36. 36. Supply Chain Insights LLC Copyright © 2013, p. 37 Supply Chain Insights
  37. 37. Supply Chain Insights LLC Copyright © 2013, p. 39 Functions of Center of Excellence
  38. 38. Supply Chain Insights LLC Copyright © 2013, p. 40 Center of Excellence
  39. 39. Supply Chain Insights LLC Copyright © 2013, p. 41 Value Network Strategy Supply chain strategy Business Strategy What are the right things to do to increase company value? Value-network Supply Chain Strategy What are the right ways to support the business strategy? What are the right trade-offs between value drivers for each value network? Right product platforms Design the supply response Build organizational systems and manage talent Align supply relationships Align demand relationships Effective Supply Networks Execution of buy- side strategies Continuous Improvement Capabilities Required Supply Chain Network Design Design Networks Innovation Methodologies Demand Networks Joint Value Creation Strategies Business Process How do I do the right things right? Source: Supply Chain Insights, LLC
  40. 40. Supply Chain Insights LLC Copyright © 2013, p. 42 • S&OP has grown in importance. • The trade-offs of the supply chain cannot be effectively modeled using a spreadsheet. • Each stage must be built with the goal in mind. • Focus on continuous improvement and serving the business. Wrap-up
  41. 41. Supply Chain Insights LLC Copyright © 2013, p. 43 Save the Date! Supply Chain Insights Global Summit 2014 September 10-11, 2014 The Phoenician – Scottsdale, AZ USA
  42. 42. Supply Chain Insights LLC Copyright © 2013, p. 44 Who is Lora? • Founder of Supply Chain Insights • Partner at Altimeter Group (leader in open research) • 7 years of Management Experience leading Analyst Teams at Gartner and AMR Research • 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA) • 15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.
  43. 43. Supply Chain Insights LLC Copyright © 2013, p. 45 Where Do You Find Lora? Contact Information: lora.cecere@supplychaininsights.com Blog: www.supplychainshaman.com (4000 pageviews/month) Twitter: lcecere 4640 followers. LinkedIn: linkedin.com/pub/lora- cecere/0/196/573 (5600 in the network)
  44. 44. © 2013 Steelwedge Software, Inc. Confidential. 46Outline Single Line of Sight: Plan, Perform, Profit Steelwedge Agility Webinar Series Lora Cecere - Does your S&OP Drive Agility? November 20, 2013
  45. 45. Outline Steelwedge Drives Agility Alignment - Cross functional planning between Sales, Marketing, Operations and Finance Action Readiness - Low planning latency due to data collection or application silos Alternatives - Scenario analysis and margin optimization Assessment - Balancing supply and demand. Assessing trade-offs.
  46. 46. Outline Cross-functional Collaboration From a single cloud based solution. Account and Sales Managers Supply Planning Production Planning Finance Executive Sales and Marketing Executive Supply Chain Executive Product Managers Demand PlanningMarketing
  47. 47. © 2013 Steelwedge Software, Inc. Confidential. 49Outline S&OP Sales Statistical Forecast Demand Planning Revenue Planning PipelineManagement Sales Collaboration Attach Rate Planning LifecycleManagement Consensus Demand S&OP Operations Demand Sourcing Supply Plan Procurement Plan Rough Cut Capacity Inventory Planning Master Planning Inventory Investment Allocations S&OP Collaborate Customer Collaboration Supplier Collaboration Executive S&OP Strategic Planning Integrated Business Planning Profit & Loss Risk Management S&OP Insight Mobile Excel Pivots S&OP Apps App Library Customer Developed Steelwedge NAPA Cloud Studio Cloud Integration Portal Cloud Services Portal Planning Engine Analytics Engine S&OP Platform
  48. 48. Outline Planning data from across the systems landscape Business Intelligence SCP ERP Financial Systems CRM Data Warehouse
  49. 49. Outline Customer Improvements Planning Cycle Time - 50-70% reduction in via integration and process automation Forecast Accuracy - 15-30% improvement in forecast accuracy through collaboration and advanced statistical forecasting Excess Inventory - 10-20% reduction in excess inventory via improved forecast accuracy Stock-outs - 25% reduction, raising customer service Revenue and margin - 5% lift through reduced stock-outs and better cost management
  50. 50. Outline The sales force knows customer demand - what and when they will buy. But often, the opportunity pipeline is not considered in demand planning. Valuable capital gets tied up in excess inventory when forecasts are too high. Inaccurate forecasts result in shortages, expediting, and lost sales when the forecast is too low. Is Your Sales Pipeline Connected to Your Demand Plan?
  51. 51. Outline Sales Pipeline Bridge Demand Visibility and the Sales Pipeline Dynamic, competitive markets have changed the game • Statistical projections alone are insufficient. • CRM sales opportunities: Best reflection of customer demand. • Opportunities + Stat Forecast = Forecast Accuracy improvement. Steelwedge Sales Pipeline Bridge • Intelligent opportunity filtering and translation • Recognizes and transforms CRM and SFA data • Correlates to ERP and SCM data •Dramatic forecast improvement and enterprise alignment. Steelwedge Bridges the Planning Gap between CRM & ERP ERP
  52. 52. Outline Insert SPB screenshots here Link to ESOP Opportunity Pipeline via Sales Pipeline Bridge on Opportunity Pipeline for S&OP Planning
  53. 53. Outline Confirmed S&OP Sales Plan
  54. 54. Outline Steelwedge Sales Pipeline Bridge enables you to extract, understand and operationally act on the critical information in your sales funnel Connect Your Sales Pipeline to Your Demand Plan With Sales Pipeline Bridge
  55. 55. © 2013 Steelwedge Software, Inc. Confidential. 57Outline Executive S&OP Supply Plans Finance Plans Demand Plan (Unconstrained) Supply Plan (Constrained) Finance Plans Pre-meeting Executive S&OP Compass Inputs and Outputs Supply & Demand Scenarios Inputs Business Unit Supply Plans Sales, Backlog, Opportunities, Inv., POs, Budget & Master Data Business Unit Finance Plans Balancing & Scenario Planning Scenario Review & Issue Resolution Planning Processes Consensus Demand Forecasts Executive S&OP Nightly Transaction Files Insight S&OP Apps Performance Current Plan Finance Waterfall KPI Dashboard Collaboration
  56. 56. © 2013 Steelwedge Software, Inc. Confidential. 58Outline 4.90 Exec S&OP - S
  57. 57. © 2013 Steelwedge Software, Inc. Confidential. 59Outline Dashboard
  58. 58. © 2013 Steelwedge Software, Inc. Confidential. 60Outline
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