The document outlines the S&OP/IBP process, focusing on best practices, the advantages of Avata's IBP Express solution, and the importance of executive ownership and integration for successful implementations. It highlights key characteristics of best-in-class S&OP processes, the role of financial forecasting, and emphasizes the need for a consensus plan to achieve business excellence. Additionally, it offers insights into improving various metrics such as revenue growth and demand plan accuracy through effective S&OP/IBP practices.

1. Presents
S&OP / IBP Express
Specialized by Oracle Preferred by CustomersRecognized by Industry

2. Welcome
• Presenters
› Jim Heatherington, Vice President of Sales
› Ferguson Neale, Principal Consultant

3. The AVATA Difference
Su p p ly Ch ain Practition ers
Coupled with Deep VCP Expertise
Gartner Recognized as Industry Experts
Oracle Demantra Specialized
Fusion Co-Development Partner
#1 Oracle VCP Cloud/BPS Partner
Partner Award for Excellence in VCP
Specialized by Oracle Preferred by CustomersRecognized by Industry

4. Agenda
• What is the Process (S&OP/IBP)
• S&OP/IBP Best Practices
• IBP express & Benefits
• AVATA’s Roadmap
• Online IBP Assessment

5. IBP Survey: You see the future through what lens?
Financial forecasting is derived from the following:
20 %
10 %
10 %
60 %

6. Advancing the S&OP Process
S&OP Mid-Term Planning
 Horizon (1 to 24 Months)
 Annual & Business Plan
 Aggregate Plan, RRP
Frequency: Monthly
Buckets: Monthly
Level: Family / Sub-Family
S&OP/IBP Long-Term
Planning
 Horizon 3-5+ years
 Business & Strategic
 Aggregate Plan, RRP
Frequency: Yearly (quarterly)
Buckets: Years (quarters)
Level: Total S/BU or family
Short-Term Planning
 Horizon (1-3 Months)
 Detailed Planning
 MPR / RCCP
Frequency: Weekly
Buckets: Weeks
Level: Item / SKU
Detail Planning
 Horizon (1-8 Weeks)
 Finite Scheduling
 CRP / FCS
Frequency: Daily
Buckets: Days or Less
Level: Item / SKU
AGGREGATE
VS.
DETAIL
PLANNING

7. S&OP: Focusing on the Gaps
CURRENT VIEW WITH:
• Operational Performance Changes
• Significant Financial Impact
• Assumptions
• Risk and Opportunities
Who takes responsibility?
When do you take action?
Now 12 24
Project Performance
Current S&OP Business Plan
Gap

8. Most companies have elements of S&OP in place..
.. but are not truly doing S&OP.
of companies surveyed do not
do S&OP at the executive level
(No Executive Business Review
and little executive involvement.)
of companies stated that their
S&OP process is in a lower
maturity stage
70-80%
over
50%

9. S&OP Defined: Characteristics
Characteristic Best in Class Disadvantaged
Cycle Monthly Weekly or quarterly
Planning Horizon 24+ months rolling 3 to 12 months or less as year progresses
Time Focus Month 4 and beyond Next few months
Language
Segments (product and market)
Families
SKU and detail
Who Participates Executive and middle management Middle management, Planners
Outcome Gap-closing strategies Production output
Level of Decision Making Tactical and strategic Tactical and short term
Level of
Integration/Process
Connects to business plan and
strategy as well as master plan
Meeting to review numbers

10. IBP Survey: How do your predict your future?
(Many inputs are required to project the future)
Financial “build-up” is based on:

11. Why the Gap in S&OP Maturity?
Missing Elements for Success:
• Holistic Organizational Understanding
• Integrated Process Design
• Tools for Standing –Up the Process

12. Advancing the S&OP Process
Step 1 Step 2 Step 3 Step 4
Value of S&OP Process
Improved
Communications
Problem
Solving
Problem
Prevention
Strategic
Decision Making
Commitment to the S&OP Process
Management
Advisors
Executives
Support Services
Advanced S&OP (IBP) environments are automated

13. Demand Review: Unconstrained volume forecast in monthly
family aggregation typically with a 24 months horizons.
Supply & Inventory Review: Rough-cut plans
with costs and capacity constraints to fulfill
demand request.
Financial Review: Assessment of the financial
implications and reconciliation.
Executive Review: Executive S&OP of current and
future state of the entire organization.
IBP express is a 4-step process
Built on OBIEE - Extension to APCC Developed by AVATA and Endorsed by Oracle​

14. Advantages of IBP express
• Business Process Driven Solution
• Built in Oracle’s Supply Chain Tools
• Preconfigured S&OP/IBP Reports & Dashboards
• Roadmap to 90 day first S&OP/IBP Cycle
• What-If Scenarios
• No Prerequisite of Planning Maturity or Planning Software
• Independent or Integrated to Oracle Planning Tools

15. IBP express Dashboards

16. IBP express Dashboards: Supply Review
Supply Review Includes:
• Inventory Plan
• Supply Plan
• IBP Plan
• Budget
Project effects on
Inventory plans
RCCP Illustrate Gaps
between Supply & Demand

17. IBP express Dashboards: Financial Review
Financial Review Includes:
• IBP Plan
• Annual Budget
• Margins
• Year/Year
• Month/Month
Review Gaps in
Budget vs Plan
Review Month over
Month IBP Plan

18. IBP express Dashboards: Scenario Review
Executive Scenario Views:
• “What If” Questions
• Alternative Assumptions
• Risk/Reward Plans
Impact of
Demand Sliding
Aggregate View of
Different IBP Plans

19. IBP Survey: How do you view your Business, Current & Future

20. IBP express Dashboards: Demand Review
IBP Demand Review:
• Current IBP Plan
• Waterfall View of Last 6
Months

21. Documented Range of Improvements
Source: AMR, Aberdeen, Ventana, and Avata
IMPROVEMENT % IMPROVEMENT %
Revenue Growth 10-31% Inventory Value 33-37%
Gross Margin 25-29% Inventory Reduction 18-46%
Demand Plan Accuracy 18-43% Safety Stock Reduction 11-45%
On-Time Delivery In Full 10-50% Working Capital 25-30%
Order Fill Rate 29-34% Asset Utilization 32-49%
Perfect Order 22-30% Increased Productivity 30-45%
Customer Satisfaction 29-39% Return on Assets 24-30%
Inventory Turns 24-28%

22. Keys to Success
Characteristics of Best in Class S&OP/IBP implementations
Companies at a high level of S&OP/IBP maturity all share these qualities:
• Executive Ownership: not just support, but understanding and ownership of the process
• Integration: Cross functional engagement, Integration of all planning systems
• Aggregate vs Detail: An aggregate planning tool
• Long term planning: vs short term planning
• Scenario Planning: The use of multiple plans with document assumptions
• Assumptions: Validated and documented
• Keep it Simple: “Roughly Right” measure what’s import and publish it

23. AVATA’s Roadmap to Successful S&OP Implementations

24. S&OP can be Automated and left to Run on “Auto Pilot”
You can utilize new technology to
run S&OP, just configure it
correctly and run it in the
background. Executives have
more important things to do.
Successful S&OP/IBP processes have
a combination of People, Process &
Tools! A key attribute of S&OP/IBP is
coming to a consensus plan and one
set of numbers to run the business.
Best Practice S&OP/IBP processes are
designed to synchronize a company’s
objectives, financial goals and
operational plans in order to achieve
business excellence.Myths & Truths

25. Frequently Asked Questions
How do we know where we stand?
• Start with an online S&OP/IBP Health Check
(We will send you an exclusive link to the AVATA online S&OP/IBP Health Check)
• Call for a S&OP/IBP On-Site Assessment
• Conduct an AVATA “Supply Chain
Benchmarking”

26. Looking for More?
Webinar Download
Client Demos
Brochure
• Salesforce CRM Oracle 10-7
• Upgrading ASCP 11-11
• S&OP in Cloud for JDE 12-10
• Statistical Engine Tuning 1-19
• Health Checks 2-23
• Trade Promotion Mgt 3-15
• Optimizing your Supply Chain 4-19
Website
Upcoming Webinars
S&OP / IBP
SURVEY EVALUATION

27. Contact Information
We’d love to hear from you.
Jim Heatherington
Phone
www.avata.com
www.LinkedIn.com/company/Avata
www.twitter.com/ValueChainGuru
www.facebook.com/avatainc
www.youtube.com/avatasupplychainmanagement
(C) +1 412-337-4642
jim.heatherington@avata.com
(303) 205-8461
Email
sales@avata.com

28. Thank You!