What Great Sales & Operations Planning (S&OP) Feels Like!

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Featured Presenter - Tom Wallace, S&OP Author and Educator

Like most manufacturing organizations, you likely have some quantitative measurement goals for your Sales & Operations Planning initiative. But, like the saying goes, it’s not just how it looks (metrics) but importantly, how it feels (organizational impact).

Join Steelwedge and industry educator, author and reknowned S&OP practice leader, Tom Wallace, for a live webinar to test your S&OP “feel factor”. In this interactive session, you will learn examples and ideas for your people, process and technologies to achieve some great feeling S&OP, including:

• Fewer surprises, resolved quickly
• 18+ months of forward visibility
• Enthusiastic engagement of top management and
• Delivering on strategic goals with S&OP

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What Great Sales & Operations Planning (S&OP) Feels Like!

  1. 1. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM Tom Wallace/Agility Series Webinar September 17, 2013 What Great S&OP Feels Like
  2. 2. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM What Great S&OP Feels Like Two Ways to Measure: • Quantitative - Checklists - Maturity Stages • Qualitative- How Does It Feel?
  3. 3. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM 1. A Visible Increase in Teamwork Successful S&OP = Better Teamwork • When Teamwork does not improve, S&OP wasn’t implemented properly • Improved Teamwork is a given, if . . . you do it right. “This process enables my staff (the vice presidents) to view the business through my glasses.” Division President
  4. 4. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM Check Up Question: has teamwork in your company visibly improved from before S&OP?
  5. 5. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM 2. Demand and Supply Normally in Balance This is S&OP’s most fundamental task. If it can’t do this, you can forget about the rest “Tom, I used to spend most of my day out on the plant floor expediting and putting out fires. Now, I have to remind myself to get out of my office and make an appearance in the plant.” Plant Manager
  6. 6. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM Check Up and Poll Question Question: has “fire fighting” decreased from before S&OP??” A. We do very little fire fighting anymore B. It’s about the same as before S&OP C. It’s worse than before S&OP
  7. 7. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM 3. Communications Clearer and More Certain “We need better communications around here.” The Executive S&OP process is “communication rich” and “collaboration driven” • open and complete communications • cross-functional collaboration for resolution of issues and problems
  8. 8. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM Check Up Question: are fewer things “falling through the cracks?”
  9. 9. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM 4. Fewer Surprises - Resolved Quickly “Window Into The Future” • Keep potential problems from becoming real problems • Resolve real problems quickly “With S&OP and one set of numbers, we can now resolve problems in less time than we needed to decide whose numbers to use.” VP Product Supply
  10. 10. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM Check Up and Poll Question Question: when “surprises” occur, such as demand spikes or supply crashes, does your S&OP process allow for mid-period adjustments to be made quickly? A. Yes, we are much more agile than before B. We’ve improved but need to do better C. No change from before S&OP
  11. 11. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM 5. Eighteen Months or More Forward Visibility Q. Why 18 months? A. 18 months “wraps around” the fiscal year Example: • Fiscal Year Ends 12/31 • Start working on next year’s plan in August of the current year • 18 months covers all of next Fiscal Year • Demand Plans, Supply Plans, Finished Goods Inv Plans + Others already exist
  12. 12. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM Check Up Question: does your annual financial planning process use demand plans and supply plans from Executive S&OP or does all of the data it uses come from other sources?
  13. 13. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM 6. One Set of Numbers Internally Multiple Display Formats/Multiple Units of Measure - Sales - Marketing - Finance - Operations - Supply Chain . . . . . . all coming from one set of data Underpromise & Overdeliver S&OP doesn’t care what you tell Wall Street or Corporate. Tom Wallace
  14. 14. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM Check Up and Poll Question Question: is everyone singing off the same sheet of music . . . or not? A. Absolutely. We run with 1 set of numbers B. Some departments are still not on board C. It’s the same as before S&OP
  15. 15. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM 7. Top Management engaged and enthusiastic “Tom, when I think back to last year, before we had S&OP, I can’t imagine how we were able to run this business.” CEO Attendance at monthly Exec S&OP Meeting? - Good News - Bad News
  16. 16. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM Check Up and Poll Question Question: does your executive team, up to and including the leader of the business, participate hands-on in the Exec S&OP meeting each month? A. Absolutely. B. It’s spotty. C. It’s the same as before S&OP
  17. 17. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM 8. Executive S&OP helping to achieve strategic goals From S&OP: Beyond The Basics: 1. BASF – Strategic Goal: become #1 in the world “While BASF does many things well, S&OP has contributed significantly to helping us achieve our present #1 position in the industry.” Business Process Education Manager
  18. 18. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM 8. Executive S&OP helping to achieve strategic goals – cont’d 2. Cisco Systems – Strategic Goal: create a new business far different from its traditional products “We at Cisco consider the Telepresence story a great example of how S&OP can make major contributions to the company’s strategy. Being an early mover into a new market requires a different approach than when we take on more mature markets, regardless of our market position.” Director, Sales & Operations Planning
  19. 19. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM 8. Executive S&OP helping to achieve strategic goals – cont’d 3. Dow Chemical – Strategic Goal: integrate the Rohm and Haas acquisition into Dow Implementation of Executive S&OP within our combined businesses played a significant role in helping to integrate the two companies. This was a driving force for enabling cost and growth synergies.” VP Supply Chain
  20. 20. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM Check Up Question: is your company’s use of S&OP confined to balancing demand and supply, integrating financial and operational plans – the basics – or is it also being used in a major way to support strategic initiatives?
  21. 21. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM Recap – What Great S&OP Feels Like 1. A Visible Increase in Teamwork 2. Demand and Supply Normally in Balance 3. Communications: Clearer and More Certain 4. Fewer Surprises - Resolved Quickly 5. Eighteen Months or More Forward Visibility 6. One Set of Numbers Internally 7. Top Management Engaged and Enthusiastic 8. Executive S&OP Helping to Achieve Strategic Goals
  22. 22. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM News Flash #1 New on LinkedIn: Tom Wallace’s S&OP/Q&A Group Mission: for people working with S&OP, to help them get clear, easy to understand answers to their questions Fair Warning: I don’t have all the answers. Sometimes I may be asking you for answers So don’t be bashful; asking questions is easy and quite painless
  23. 23. EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM News Flash #2 My latest book: Sales & Operations Planning: Beyond the Basics, is available to participants in this webinar for a 25% discount. To order, go to www.tfwallace.com. In the Bookstore, as you purchase the book, use discount code STEELWEDGE 9-17. That will get you the friendly price for that book plus other items.
  24. 24. 24© 2013 Steelwedge Software, Inc. Confidential. Nari Viswanathan/Agility Webinar September 17,2013 Technology: Making S&OP Feel Even Better
  25. 25. 25© 2013 Steelwedge Software, Inc. Confidential. • How Does Technology Help S&OP Feel Better? • Gets Everyone on the Same Page • Collaborative planning: aggregates team, data • Gets Supply, Demand and Finance in Balance • From Fire Fighting to Integrated Reconciliation Agenda
  26. 26. 26© 2013 Steelwedge Software, Inc. Confidential. Demand Collaboration: Everyone on the Same Page Marketing Forecast Account Forecast Sales Manager Forecast Demand Forecast Inputs Forecast, NPI & EOL, Product Volume Sales, Orders, Opportunities, Budget & Master Data Account Level Forecast Sales Region Forecast Demand Review and Geo Forecast Consensus Forecast Planning Processes Nightly Transaction Files Demand Analyst Marketing Account Management Sales Management Demand Planning Consensus Team Compass Inputs and Outputs Consensus Forecast Insight S&OP Apps Customer Collaboration NPI/EOL Modeling Promotion Modeling Historical Demand Analysis Statistical BOM Inverse SBOM Supersession S&OP Sales S&OP Ops Executive S&OP Collaboration Performance Current Plan Finance Waterfall KPI Dashboard Collaboration • Demand Collaboration • Classic example of multi- functional collaborative process • Critical to engage Sales and Marketing • Majority of S&OP implementations fail due to lack of sales or management executive participation
  27. 27. 27© 2013 Steelwedge Software, Inc. Confidential. Modeler Update the marketing forecast in units and revenue Add Macro Economic Data to influence the forecast Product View for all customers Add Market Size to determine the market share percentage Outlook Metrics • VP of Marketing • Key participant missing in many S&OP Processes
  28. 28. 28© 2013 Steelwedge Software, Inc. Confidential. Products by Customer Rapid entry of Update Unit and ASP Forecast • Sales Personnel • 1000’s of users • Remote regions • Have inhibition using supply chain tools
  29. 29. 29© 2013 Steelwedge Software, Inc. Confidential. Performance report SalesSales analysis • Metrics drive behavior • Key to be flexible and agile in terms of metrics • Cross-functional as well as functional metrics are required
  30. 30. 30© 2013 Steelwedge Software, Inc. Confidential. • How Does Technology Help S&OP Feel Better? • Gets Everyone on the Same Page • Gets Supply, Demand and Finance in Balance: Scenario Modeling for Tradeoff Visibility • From Fire Fighting to Integrated Reconciliation Agenda
  31. 31. 31© 2013 Steelwedge Software, Inc. Confidential. 2.90 Consensus plan • Finance Plan is a key input to S&OP as well as output
  32. 32. 32© 2013 Steelwedge Software, Inc. Confidential. Agenda • How Does Technology Help S&OP Feel Better? • Gets Everyone on the Same Page • Gets Supply, Demand and Finance in Balance • From Fire Fighting to Integrated Reconciliation: • Real Time Exception Handling
  33. 33. 33© 2013 Steelwedge Software, Inc. Confidential. Exception Handling: Sales Beyond the S&OP Cycle VP of Sales • Gets Real-time Updates on Sales Performance • Can Trigger ad-hoc S&OP Cycles
  34. 34. 34© 2013 Steelwedge Software, Inc. Confidential. Exception Handling: Supply Beyond the S&OP Cycle • VP of Supply • Integrated Scenario Management • Drives Reconciliation and Tradeoffs
  35. 35. 35© 2013 Steelwedge Software, Inc. Confidential. ROI of Steelwedge S&OP Solution • Average savings $5-$10M per $1B in revenue • Better scale • Master data management • Collaborative planning • Scenario modeling • Single view of your business
  36. 36. 36© 2013 Steelwedge Software, Inc. Confidential.

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