1© 2013 Steelwedge Software, Inc. Confidential.
The ROI of S&OP Maturity
2© 2013 Steelwedge Software, Inc. Confidential.
“Sales & Operations Planning has evolved,
and is maturing into the de-fact...
3© 2013 Steelwedge Software, Inc. Confidential.
S&OP Maturity: Which Level Are You?
4© 2013 Steelwedge Software, Inc. Confidential.
Can You Afford Not to…?
• LEVERAGE: All your data: ERP, CRM, Finance,
BI a...
5© 2013 Steelwedge Software, Inc. Confidential.
Take a Look at Where You Are
6© 2013 Steelwedge Software, Inc. Confidential.
S&OP Level 1: Reacting
• No formal process
• No clear owners of S&OP
• Mul...
7© 2013 Steelwedge Software, Inc. Confidential.
Level 1 Cost Example: Disparate Spreadsheets
Complex
Manual
Not Scalable
?...
8© 2013 Steelwedge Software, Inc. Confidential.
S&OP Level 2: Anticipating
• Some data in synch
• One department owns
stan...
9© 2013 Steelwedge Software, Inc. Confidential.
Level 2 Challenge: Buy-in for Balance
• Most S&OP loses impact
and engagem...
10© 2013 Steelwedge Software, Inc. Confidential.
• Internal and external collaboration
• Integrated demand-supply view
• “...
11© 2013 Steelwedge Software, Inc. Confidential.
“ You can’t achieve Level 3 planning maturity without
supporting technolo...
12© 2013 Steelwedge Software, Inc. Confidential.
S&OP Level 4: Orchestrating
• Integrated demand
sensing, response
• Integ...
13© 2013 Steelwedge Software, Inc. Confidential.
Technology Accelerates S&OP Value
Time
L1
L2
L3
L4
“Companies can have a ...
14© 2013 Steelwedge Software, Inc. Confidential.
Break Through to S&OP Maturity Value
15© 2013 Steelwedge Software, Inc. Confidential.
S&OP with Steelwedge: Save
$5M-$10M per $1B in Revenue
**Forecast mix imp...
16© 2013 Steelwedge Software, Inc. Confidential.
Maturity Payoff: ROI Example
Revenue: $500,000,000
COGS: $190,000,000
Inv...
17© 2013 Steelwedge Software, Inc. Confidential.
Chart Your Journey
• People
• Ensure Executive Sponsorship
• Recruit the ...
18© 2013 Steelwedge Software, Inc. Confidential.
Start Your Journey: Next Steps
Contact Us
3825 Hopyard Road, Suite 150
Pl...
19© 2013 Steelwedge Software, Inc. Confidential.
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The ROI of Sales and Operations Planning (S&OP) Maturity

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How far is your company on its Sales and Operations Planning maturity journey? Have you hit a brick wall? According to Gartner, nearly 70% of manufacturers are getting "stuck" at Stage 2 maturity: balancing supply and demand.

The vast majority of companies use Excel to power their S&OP. While no one ever abandons Excel, those who try to power through maturity with only Excel or a collection of disparate, unconnected solutions, usually hit a brick wall when it comes time to driving collaboration and scale in their plans.

Download the ROI of S&OP Maturity presentation to see how well your company is performing and learn how you can break through to S&OP maturity value.

For even more information, or to contact us, please visit http://www.steelwedge.com/

Published in: Technology, Business

The ROI of Sales and Operations Planning (S&OP) Maturity

  1. 1. 1© 2013 Steelwedge Software, Inc. Confidential. The ROI of S&OP Maturity
  2. 2. 2© 2013 Steelwedge Software, Inc. Confidential. “Sales & Operations Planning has evolved, and is maturing into the de-facto platform for strategic business decision making.” Gartner Managing VP, Mike Uskert
  3. 3. 3© 2013 Steelwedge Software, Inc. Confidential. S&OP Maturity: Which Level Are You?
  4. 4. 4© 2013 Steelwedge Software, Inc. Confidential. Can You Afford Not to…? • LEVERAGE: All your data: ERP, CRM, Finance, BI and SCM • PREDICT: Scenario what-if analysis for best response to market events • MODEL: Supply constraints • SENSE: Customer demand • COLLABORATE: Internally and externally • RECONCILE: Operational volumes and financial views • REACT: In real time vs. scheduled planning • INFORM: Executives with an S&OP dashboard
  5. 5. 5© 2013 Steelwedge Software, Inc. Confidential. Take a Look at Where You Are
  6. 6. 6© 2013 Steelwedge Software, Inc. Confidential. S&OP Level 1: Reacting • No formal process • No clear owners of S&OP • Multiple, disparate spreadsheets
  7. 7. 7© 2013 Steelwedge Software, Inc. Confidential. Level 1 Cost Example: Disparate Spreadsheets Complex Manual Not Scalable ??? ??? ??? ??? ??? ??? Guesswork Email Spreadsheet s Forecast Security Risk Category Metric Functional Support Teams 8 Estimated FTEs 3.5 Hours per Month 580 Est. Annual Support Cost $348,000 23 tabs, 48 worksheets, 18 folders, 40 update files…
  8. 8. 8© 2013 Steelwedge Software, Inc. Confidential. S&OP Level 2: Anticipating • Some data in synch • One department owns standardized process • Unconnected demand and supply modules
  9. 9. 9© 2013 Steelwedge Software, Inc. Confidential. Level 2 Challenge: Buy-in for Balance • Most S&OP loses impact and engagement through • meaningless meetings • weak preparation • lack of synchrony • lack of reliable data • lack of decision making
  10. 10. 10© 2013 Steelwedge Software, Inc. Confidential. • Internal and external collaboration • Integrated demand-supply view • “What-if " scenario analysis S&OP Level 3: Collaborating
  11. 11. 11© 2013 Steelwedge Software, Inc. Confidential. “ You can’t achieve Level 3 planning maturity without supporting technology for company wide process.” Gartner S&OP Marketscope • Most large, multi-national organizations therefore require a purpose- built S&OP technology to replace a disparate collection of: • Spreadsheets • Business Intelligence • Traditional Supply Chain Planning software reporting Level 3 Challenge: Technology Synch
  12. 12. 12© 2013 Steelwedge Software, Inc. Confidential. S&OP Level 4: Orchestrating • Integrated demand sensing, response • Integrated supply-demand trade-offs with metrics across finance and operations
  13. 13. 13© 2013 Steelwedge Software, Inc. Confidential. Technology Accelerates S&OP Value Time L1 L2 L3 L4 “Companies can have a hard time getting past basic levels of S&OP without technologies like Steelwedge to support the process” - Tim Payne, Gartner VP of Supply Chain Analysis Q1 Q2 Q3 SW Powered S&OP Q4 Value Accelerated Time to Value Step Change Maturity & Performance Avoid Process Failure
  14. 14. 14© 2013 Steelwedge Software, Inc. Confidential. Break Through to S&OP Maturity Value
  15. 15. 15© 2013 Steelwedge Software, Inc. Confidential. S&OP with Steelwedge: Save $5M-$10M per $1B in Revenue **Forecast mix improvement 16%-30%
  16. 16. 16© 2013 Steelwedge Software, Inc. Confidential. Maturity Payoff: ROI Example Revenue: $500,000,000 COGS: $190,000,000 Inventory: $31,666,667 Revenue +5%: $25,000,000 COGS - 12%: ($22,800,000) Inventory -17% ($5,383,833) Level 4 Maturity: Potential Impact
  17. 17. 17© 2013 Steelwedge Software, Inc. Confidential. Chart Your Journey • People • Ensure Executive Sponsorship • Recruit the Inter-Departmental Team • Process • Review Current Planning Process • Determine Long-Term Goals, Near-Term Objectives, Metrics • Create the Monthly Planning Process • Set S&OP Monthly Meeting Agenda • Manage and Measure to the Metrics • Technology • Get Process-Enabling Technology
  18. 18. 18© 2013 Steelwedge Software, Inc. Confidential. Start Your Journey: Next Steps Contact Us 3825 Hopyard Road, Suite 150 Pleasanton, CA 94588 info@steelwedge.com 1 (855) 980-8800 Resources Gartner Webinar Recording Selecting the Right Planning Technology: Time to Revisit Priorities http://bit.ly/11Yaiyd IBP Journey Whitepaper http://bit.ly/17DnLoc Process-Enabled Technology Whitepaper http://bit.ly/19DgHFs Enterasys Case Study http://bit.ly/121ndPS www.steelwedge.com/resources
  19. 19. 19© 2013 Steelwedge Software, Inc. Confidential.

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