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Page1        Strategies for making the most of                 SAP technology                  that supports         Sales...
   Introduction   Goals For This Session   S&OP – An Evolving Process Model   Bringing the Maturity Model & Technology...
   Provide an overview of the evolving and changing S&OP maturity        model for todays supply chain, and understand ho...
A Look at History
6
7
8
9
Process Evolution          &Enabling Technologies
11                                            Continuous     Align      Building Horizontal                    Connector  ...
12
13
14     Stage 1: Characteristics        Discussion: What is the most feasible plan?        Technologies: Constraint-based...
15                                         Goal:                                                                          ...
16     Stage 2 Characteristics:        Discussion: What is the right trade-off between go-to-market         strategies an...
17What benefits have you received from your work with S&OP processes?
18                                      Goal:                                                                             ...
19Inventory Definitions:      Form                              Function      Raw Material                      Cycle Stoc...
20     Sell          Deliver         Make            Source         Service     Network Design: What is the role of invent...
21     Stage 3 Characteristics:         Discussion: What is the right trade-off between          go-to-market strategies ...
22      Increasing need for     value network strategy           alignment        Increasing levels of            granular...
23
24     Letter   Stage 1-2                      Stage 3-5                                             Focus on market drive...
25                                  Goal:                                                                                 ...
26     Stage 4 Characteristics:      Discussion: How do we shorten the time to           sense market changes to make the...
27       To Sense and Shape Demand to       Drive a Profitable Response     Demand Shaping includes:      •   New product ...
29                                     Goal:                                                                              ...
30                                              Goal:                                                                     ...
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32        An adaptive network focused on driving value-based         outcomes by sensing and translating market changes  ...
34                                     Goal:                                                                              ...
35                                       Goal:                                                                            ...
 Where are you on your journey?                                                 Buy technology with the Goal in mind     ...
Strategies for making the most of SAP technology that supports Sales and Operations Planning (S&OP)
Strategies for making the most of SAP technology that supports Sales and Operations Planning (S&OP)
Strategies for making the most of SAP technology that supports Sales and Operations Planning (S&OP)
Strategies for making the most of SAP technology that supports Sales and Operations Planning (S&OP)
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Strategies for making the most of SAP technology that supports Sales and Operations Planning (S&OP)

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Presentation from SAP Insider SCM 2012 Conference, March 19TH Orlando, Florida.

The session, titled “Strategies for making the most of SAP technology that supports sales and operations planning (S&OP),” offers attendees expert advice, strategies, and technology guidance to increase efficiency in the S&OP process. McCall and Cecere provide a critical overview of the evolving and changing S&OP maturity model for today's supply chain, examine a realistic approach to evaluate an organizations’ S&OP maturity level, and reveal tips for overcoming obstacles and achieving positive results.

“We feel privileged to be recognized by the SAP conference planning committee as an expert in the field of business forecasting and planning. Collaborating with Lora Cecere is a great opportunity and our presentation is packed with analysis of current S&OP models, as well as advice on how to improve upon those models and increase a business’s S&OP process efficiency,” stated McCall.

“It seems that 95% of companies are unclear how to use their SAP solutions for S&OP,” said Cecere. “It starts with answering three basic questions and then applying the answers to these questions to a roadmap. Andrew, and I are partnering together to unveil these insights at SAP Insider.”

Published in: Technology, Business

Strategies for making the most of SAP technology that supports Sales and Operations Planning (S&OP)

  1. 1. Page1 Strategies for making the most of SAP technology that supports Sales and Operations Planning (S&OP) March 19th, 2012
  2. 2.  Introduction Goals For This Session S&OP – An Evolving Process Model Bringing the Maturity Model & Technology Together The Bottom Line Questions & Comments
  3. 3.  Provide an overview of the evolving and changing S&OP maturity model for todays supply chain, and understand how it differs from general models of the past.  Examine an evaluation of your organizations S&OP maturity level. See which elements of SAP match specific levels of maturity of your S&OP process – allowing you to develop the technology portion of your S&OP roadmap Gain insights that will help you determine if additional SAP technology investments are in order
  4. 4. A Look at History
  5. 5. 6
  6. 6. 7
  7. 7. 8
  8. 8. 9
  9. 9. Process Evolution &Enabling Technologies
  10. 10. 11 Continuous Align Building Horizontal Connector Testing Learning Orchestrate Improving Adapt Resilient Reliable Right Product Efficient Sense Demand Demand Volatility and Supply Right Place Cost Shape Right Time Procure to Demand and Supply pay/order to Supply based Volatility cash on Market Right Cost
  11. 11. 12
  12. 12. 13
  13. 13. 14 Stage 1: Characteristics  Discussion: What is the most feasible plan?  Technologies: Constraint-based planning with a focus on volume.  Decision: Trade-offs between deliver and make to meet a fixed sales plan.
  14. 14. 15 Goal: • Model the network A feasible plan • Recognize and respect constraints • Gain plan visibility Key: Demand Planning Supply Planning Key Technology Points Processes Enabled Enabling Technology • Statistical Demand Forecasting • SCM: Demand Planning • Supply Planning • SCM: Basic Supply Network Planning • Production Planning & Scheduling • ECC: Production Planning • BO: Reporting & Analytics to Support KPI’s
  15. 15. 16 Stage 2 Characteristics:  Discussion: What is the right trade-off between go-to-market strategies and supply chain capabilities (usually make and deliver)?  Technologies: Advanced planning solutions with a focus on volume. Increased needs for what-if analysis for both demand and supply.  Decision: Trade-offs between go to market plans and supply chain design.
  16. 16. 17What benefits have you received from your work with S&OP processes?
  17. 17. 18 Goal: • Model the network A Feasible plan • Recognize and respect constraints • Gain plan visibility • What-if analysis Match Demand with Supply • Multi-tier inventory analysis • Network design Key: Demand Planning Supply Planning Inventory Planning Demand Translation Platform Key Technology Points Processes Enabled Enabling Technology • Statistical Demand Forecasting • SCM: Demand Planning • Supply Planning • SCM: Advanced Supply Network Planning • Inventory Planning • SCM: PP/DS • Production Planning & Scheduling • Smart Ops: Multi Echelon Inventory Planning • Network Validation & Rationalization • SCM: Supply Chain Analytics • Scenario Management • SCM: Strategic Supply Chain Design
  18. 18. 19Inventory Definitions: Form Function Raw Material Cycle Stock Semi-finished Product Forward coverage of Events: Promotions, New Product Launch, etc. Finished Product Safety Stock Finished Product in the Channel Seasonal Stock SLOB: Slow and Obsolete Level Form & Function  How much?  What is the right form?  Where?  What is the right function for inventory to play in the supply chain?
  19. 19. 20 Sell Deliver Make Source Service Network Design: What is the role of inventory in our network design? Inventory Configuration: What is the right Form & Function of Inventory? Inventory Policy: What is the Right Level of inventory?
  20. 20. 21 Stage 3 Characteristics:  Discussion: What is the right trade-off between go-to-market strategies and supply chain capabilities to improve profitability? Mitigate risk?  Technologies: Advanced planning solutions combined with financial modeling and inventory optimization with a focus on profitability. Need for a demand translation platform.  Decision: Trade-offs between go to market plans and supply chain design to maximize profitability.
  21. 21. 22 Increasing need for value network strategy alignment Increasing levels of granularity
  22. 22. 23
  23. 23. 24 Letter Stage 1-2 Stage 3-5 Focus on market drivers: S Ask sales How do we best shape demand? Design of the value chain to optimize trade-offs, minimize risk, & Direct integration to supply balance cycles, and orchestrate demand Trade-offs between make, source OP Manufacturing plan and deliver
  24. 24. 25 Goal: • Model the network A Feasible plan • Recognize and respect constraints • Gain plan visibility • What-if analysis Match Demand with Supply • Multi-tier inventory analysis • Network design Deliver the most • Demand translation • Supply orchestration Profitable Plan • Optimize financial drivers Key: Demand Planning Supply Planning Inventory Planning Financial Planning Demand Translation PlatformKey Technology Points Processes Enabled Enabling Technology • Financial Impact Analysis • SAP BO: S&OP Tools • Business Planning & Consolidation • SAP BO: Financial Analytics & Scenarios • Consensus Demand Planning • Business Analytics: Asset Analytics • Capacity Planning
  25. 25. 26 Stage 4 Characteristics:  Discussion: How do we shorten the time to sense market changes to make the right trade-off between go-to-market strategies and supply chain capabilities to improve profitability and mitigate risk?  Technologies: Advanced planning solutions combined with financial modeling and inventory optimization, plus demand sensing with a focus on profitability. Need for a demand translation platform and S&OP execution capabilities.  Decision: Trade-offs between go-to-market plans and supply chain design to maximize profitability.
  26. 26. 27 To Sense and Shape Demand to Drive a Profitable Response Demand Shaping includes: • New product launch • Price management • Trade promotion • Sales incentives • Marketing programs
  27. 27. 29 Goal: • Model the network A Feasible plan • Recognize and respect constraints • Gain plan visibility • What-if analysis Match Demand with Supply • Multi-tier inventory analysis • Network design Deliver the most Profitable • Demand translation • Supply orchestration Plan • Optimize financial drivers • Sense channel demand • Shape demand Demand Driven • Drive the most profitable response Key: Demand Planning Supply Planning Inventory Planning Financial Planning Demand Translation Platform Market Sensing
  28. 28. 30 Goal: • Sense channel demand • Shape demand Demand Driven • Drive the most profitable response Key: Demand Planning Supply Planning Inventory Planning Financial Planning Demand Translation Platform Market Sensing Key Technology Points Processes Enabled Enabling Technology • Demand Sensing • Demand Sensing • Demand Shaping • Trade & Promotion Management • Profitability Management • Business Analytics: Asset Analytics • Business Objects: Dashboards
  29. 29. 31
  30. 30. 32  An adaptive network focused on driving value-based outcomes by sensing and translating market changes (buy and sell-side markets) bi-directionally with near-real time data latency to align, sell, deliver, make, and sourcing operations.  A horizontal process to sense and optimize from market to market.
  31. 31. 34 Goal: • Model the network A Feasible plan • Recognize and respect constraints • Gain plan visibility • What-if analysis Match Demand with Supply • Multi-tier inventory analysis • Network design Deliver the most Profitable • Demand translation • Supply orchestration Plan • Optimize financial drivers • Sense channel demand • Shape demand Demand Driven • Drive the most profitable response • Sense buy and sell-side market Market-driven conditions • Bi-directionally orchestrate demand Key: Demand Planning Supply Planning Inventory Planning Financial Planning Demand Translation Platform Market Sensing
  32. 32. 35 Goal: • Sense buy and sell-side market conditions Market-driven • Bi-directionally orchestrate demand Key: Demand Planning Supply Planning Inventory Planning Financial Planning Demand Translation Platform Market SensingKey Technology PointsProcesses Enabled Enabling Technology• Supply and Demand Collaboration • SCM: Distribution & Supply Network Collaboration• Variability Management • Business Analytics: Supplier InfoNet• End to End Planning
  33. 33.  Where are you on your journey? Buy technology with the Goal in mind  S&OP process definition is changing. Are your technologies aligned to support the change?  To meet Today’s needs, we need to change Supply Chain Paradigms.… Are You Up to the Challenge??http://www.presscluboftibet.org/UserFiles/Mount_Everest.jpg

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