Kinaxis continuous sop - breaking the mold

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www.kinaxis.com - How business and technology has changed tremendously in the thirty years since S&OP was first defined, enabling much more proficient and integrated S&OP processes? Trevor Miles' highlights how companies are breaking the traditional S&OP mold from both a process and technology perspective.

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Kinaxis continuous sop - breaking the mold

  1. 1. Copyright © 2014 Kinaxis All Rights Reserved.Copyright © 2014 Kinaxis All Rights Reserved. Continuous S&OP – Breaking the Mold Trevor Miles | e: tmiles@kinaxis.com | m: +1.647.248.6269 | t: @milesahead
  2. 2. 3 Copyright © 2014 Kinaxis All Rights Reserved. Where did this all start?
  3. 3. 4 Copyright © 2014 Kinaxis All Rights Reserved. What have we been working toward? The 5 step ES&OP Process - Tom Wallace, Executive S&OP: The Executive's Guide Issues - Sequential - One Directional - High Level - Manual - Slow - Ignores margin
  4. 4. 5 Copyright © 2014 Kinaxis All Rights Reserved. What else has been happening? Oliver Wight: Transitioning from S&OP to IBP DOS VisiCalc Windows 95 SAP APO Google GSM Mobile Excel SAP iPad dotCom
  5. 5. 6 Copyright © 2014 Kinaxis All Rights Reserved. Is there a common understanding? • Analyst Insight: – S&OP can provide a powerful way to drive better functional coordination and synchronization, particularly in the current uncertain business climate. – Yet, it is a process that has had a hard time withstanding the test of time and is subject to repeated re-designs and re- imagining. • Simon Ellis – Practice Dir., Supply Chain Strategies – IDC Manufacturing Insights • March 04, 2010
  6. 6. 7 Copyright © 2014 Kinaxis All Rights Reserved. A lot has changed in 25 years Unprecedented time of global expansion
  7. 7. 8 Copyright © 2014 Kinaxis All Rights Reserved. A lot has changed in 25 years Cloud, Social, Mobile, Internet-of-Things, … http://www.holyrood.com/2012/12/briefing-11/
  8. 8. 9 Copyright © 2014 Kinaxis All Rights Reserved. But our mental model is stuck in 1990s ideas The traditional “plan then execute” model is the product both of historical thinking about supply chain processes and the state of available supporting technology. Next Generation Supply Chain Management - The Integration of Planning and Execution, CSCO Insights Thought Leadership Series, Supply Chain Digest, 2009
  9. 9. 10 Copyright © 2014 Kinaxis All Rights Reserved.
  10. 10. 11 Copyright © 2014 Kinaxis All Rights Reserved. People, Process, Technology • Technology choice means – Different skills/people – Different processes – Different results
  11. 11. 12 Copyright © 2014 Kinaxis All Rights Reserved. What does “good” look like?
  12. 12. 13 Copyright © 2014 Kinaxis All Rights Reserved. StrataBridge, Evolution of Sales & Operations Planning, Andy Coldrick, Dick Ling & Chris Turner Risk Adjusted Long Term Plan One number plan wrong approach
  13. 13. 14 Copyright © 2014 Kinaxis All Rights Reserved. Outside-In approach critical Source: Gartner, Elevate Your S&OP Process From Traditional to Demand-Driven, Todd Applebaum and Jan Kohler, Jul 2, 2012
  14. 14. 15 Copyright © 2014 Kinaxis All Rights Reserved. Outside-In approach critical Supply Network Innovation Network Distribution Network Source: Gartner, Elevate Your S&OP Process From Traditional to Demand-Driven, Todd Applebaum and Jan Kohler, Jul 2, 2012 Finance
  15. 15. 16 Copyright © 2014 Kinaxis All Rights Reserved. Continuous S&OP – Breaking the mold AND, not OR Concurrent, not just sequential Event-driven, not just calendar-driven Effective, and efficient
  16. 16. 17 Copyright © 2014 Kinaxis All Rights Reserved. Continuous demand, supply, and market input Continuous S&OP – Breaking the Mold OperationalPlanning&Execution Financial Performance Finance Consensus Finance Scenarios Statistical Forecast Demand Consensus Demand Scenarios Sales&Marketing New Product Gates New Product Consensus New Product Scenarios Engineering/R&D Supply Performance Supply Consensus Supply Scenarios OperationsFinance Continuous S&OP • Generate plan • Sense when plan will not be met • Identify future risk • Mid-cycle adjustments • Know sooner, act faster Key Capabilities • Range planning • Decision orchestration • Business trade-off analysis • Scenario planning • Assumption capture • Concurrent planning – Time – Function – Hierarchy MonitorPerformanceContinuously Future Risk ExecutiveS&OPMeeting
  17. 17. 18 Copyright © 2014 Kinaxis All Rights Reserved. It is a journey Supply Chain Insights LLC Copyright © 2013, p. 18
  18. 18. 19 Copyright © 2014 Kinaxis All Rights Reserved. It is a journey Supply Chain Insights LLC Copyright © 2013, p. 19
  19. 19. 20 Copyright © 2014 Kinaxis All Rights Reserved. What does ‘good’ look like? Qualitative Improvements
  20. 20. 21 Copyright © 2014 Kinaxis All Rights Reserved. What does ‘good’ look like? Quantitative Improvements
  21. 21. Copyright © 2014 Kinaxis All Rights Reserved.Copyright © 2014 Kinaxis All Rights Reserved. Continuous S&OP – Breaking the Mold Trevor Miles | e: tmiles@kinaxis.com | m: +1.647.248.6269 | t: @milesahead

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