S&OP Winning them Over

1. Fostering Demand Planning, Forecasting, S&OP for 30+ Years!
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Sales & Marketing
Winning them over
Krishna Menon
S&OP Leader
Sullair Australia

2. Fostering Demand Planning, Forecasting, S&OP for 30+ Years!
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Agenda
• Who gets excited about S&OP
• Why this excitement
• Reluctance to participate
• Personality differences
• Age old conflict
• What is in it for Sales & Mktg
• Four pillars
• Winning them over
• Make the Horse drink water
• Come to the party
• Win !! Win !!

3. Fostering Demand Planning, Forecasting, S&OP for 30+ Years!
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• Since 1965 – Celebrating 50 years
• Leading developer and manufacturer of compressed air solutions
• Manufacturing facilities on 3 continents and a worldwide distribution network

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Horse Story

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Who gets excited about S&OP
• S&OP usually initiated from an operational
perspective
• Process owners
• S&OP process focus points
• S&OP meetings content

6. Fostering Demand Planning, Forecasting, S&OP for 30+ Years!
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Why this Excitement
• Centre stage
• Protect “Operations” from the variability
• Chance to prove why they got it wrong
• Showcase their systems and processes
• Opportunity to tame the wild horse

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Operations Management
• The design, operation, and control of the
transformation process that converts
resources, labour and raw materials into
finished goods and services that are sold to
customers.
• Three KPI’s
– Time: Reduce delays and cycle times
– Quality: Improve quality and customer
satisfaction
– Cost: Reduce waste and costs

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Sales
• Primary measure
– Amount of sales made
– Customer service levels
– Profit margins
• Focus customer & customer service
• Recognition
• Perform or perish
• Ongoing pressure - targets

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Personality Differences
• Sales
– Optimistic
– Outgoing
– Emotional
• Operations
– Realistic, data driven
– Process driven
– Disciplined

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• Differing & conflicting metrics
• Unclear expectations
• Lack of Information sharing
• Same goal - different perspective
Age old conflict

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You never
seem to have
on hand what
customer
wants
Why do we
have such
long lead
times?
You Just cannot
forecast right
We Cannot deliver
to a Post Box
Why can’t you
deliver what
we are
selling?
Using a Dart
Board to forecast
will do a better job
The Supply
Team never
delivers on
time.
Why can’t you sell
what we have in
stock?
Age old conflict

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Reluctance to Participation
• Time is money
• Lack of trust
• Reluctance to share information / control
• Public display – poor performance /
forecast errors
• Aversion to change

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Barriers to Sales Forecast
• “I want them out with customers, not
sitting in the office doing a forecast”
• I’m not qualified to forecast
• I don’t know statistics / past sales
• That is not my number
• You are not using my inputs anyway

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Inaccurate Forecast
• Sales forecast & sales plan – confusion
• Over and under forecast
• Asking for too much
• Not including sales input
• Lack of feedback communication

15. Fostering Demand Planning, Forecasting, S&OP for 30+ Years!
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What’s in it for Sales & Mktg. ?
• Impact on customer service
• Support on winning an order
• Inventory – the right one
• Good communication
• Common ground

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Customer Service
Quality
Lead time
Costs
Value Add
Inventory
DIFOT
Freight Cost
Communication
Customer
Customer Service
Margins
Production Supply Chain
Sales

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Four Pillars
• Top management support
– Visible leadership
• Discipline
– Consistency in meetings
– Fixed agendas
• Transparency in DATA sharing
– Feedback loop
– Follow-up actions are documented and
communicated
• TRUST
– Restoring trust

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S&OP Process leader
• Unbiased process champion
• Unbiased
– Measurement
– Evaluation
– Credibility
– Authority
• The ideal leader should be a process
facilitator

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Winning them over
• Focus on what we got right
• Educate sales on impact of forecasting
• Develop a simple sales-input process
• Supporting sales in winning the sale
• Feedback on the final forecast

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Make the Horse drink water

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Come to the Party !!
• Motivated to succeed
• Better sales
• Improved forecast
• Happier customers
• Fewer conflicts
• Enjoy the participation

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Win !! Win !!
• Realistic Forecast
• Right Inventory
• Lower cost of goods
• Higher Margins
• Less conflict
• True north

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Q&A