The document discusses financial planning and analysis (FP&A) for sales and operations planning. It outlines the objective of sales and operations planning as developing demand sensing and trade-off decisions to achieve optimized demand response and profitability. The problem is a lack of strategic orchestration between sales, operations, and financial plans. The solution is implementing a sales and operations planning process that integrates operations, finance, and sales plans. Key success factors include data-focused decision making, quality data management, and agile budgeting/forecasting.
Sales & Operations Planning is popularly known as S&OP and is a process which has evolved from SCM. It looks at balancing demand with supply and can be applied in most of the industries. The phase- wise process is depicted in the presentation
Sales & Operations Planning is popularly known as S&OP and is a process which has evolved from SCM. It looks at balancing demand with supply and can be applied in most of the industries. The phase- wise process is depicted in the presentation
Sales & Operations Planning (S&OP): An IntroductionSteelwedge
Do you know the secret to a successful Sales and Operations Planning process?
Your ability to troubleshoot issues, plan for unexpected events, and maintain a reliable, single set of planning numbers is drastically affected by people, process and technology.
Educate your colleagues or refresh your own skills with the new introduction to S&OP presentation.
For more information about S&OP and how Steelwedge can help your business, please visit: http://www.steelwedge.com/resources/sales-and-operations-planning-intro/
S&OP Leadership Exchange: Tailoring S&OP to Fit your BusinessPlan4Demand
866.P4D.INFO | Plan4Demand.com | Info@plan4demand.com
Andrew McCall, S&OP Solutions Lead at Plan4Demand Discusses how tailoring your S&OP process to fit your business is critical to achieving bottom line success.
A simple, straight forward set of 25 slides which provides the basics of S&OP (Sales & Operations Planning) from concept to implementation. (Used to introduce and discuss S&OP concepts with clients and prospective clients.) S&OP is also know as IBF or IBP (IBF = Integrated Business Forecasting; IBP = Integrated Business Planning)
Enabling Best-Practice Demand Management and S&OP with Advanced Technology
Featured Presenter:
Doug Dedman, Vice President, Global Services, Steelwedge Software
Are you taking full advantage of all your demand signals? The sheer velocity of change – in business complexity, global volatility and available data – makes the prospect of managing regional and global planning a more elusive mission. Powerful demand planning can take you from a reactive to a proactive mode and turbo-charge your S&OP process.
In this webinar, you will learn how next-generation technology has enabled companies to more accurately forecast what their businesses will require.
Join us to learn more about how the right demand management approach and platform can enable you to:
Understand and grasp each demand type
Ensure accountability to the demand plan
Benefit from statistical forecasting where it makes sense while maintaining flexibility to use other forecasting methods
Collaborate internally and with customers when it makes sense
Achieve real-time visibility and synergy across all channels
To learn more about Steelwedge's Advanced S&OP Technology please visit: http://www.steelwedge.com/solutions/
A simple chart which outlines the S&OP (Sales & Operations Planning) business process flow, including the core outcomes of the regular monthly S&OP Meeting.
S&OP: The power of an organisation that beats with one heart Tristan Wiggill
S&OP: The power of an organisation that beats with one heart by Monika Wates.
Presented during the 37th annual SAPICS conference and exhibition for supply chain professionals at Sun City from 31 May to 2 June
AVATA is adding to their express solutions suite with “IBP express”, a hosted service offering that provides the framework for conducting the S&OP/IBP process with supported dashboard reports and KPI’s. IBP express will allow for a rapid deployment enabling your first S&OP/IBP cycle within 90-days.
IBP express is both a technology tool and service offering that supports advancing your current S&OP process or implementing S&OP/IBP for the first time. IBP express includes the required Education, Workshops, Coaching & Technology that will deliver a rapid ROI.
Tips on selecting metrics for sales incentive plan design purposes.
Use of quantitative and qualitative measures.
Impact of pay communication on sales employee engagement, and use of performance management and employee appraisal as a channel for these conversations.
What Great Sales & Operations Planning (S&OP) Feels Like!Steelwedge
Featured Presenter - Tom Wallace, S&OP Author and Educator
Like most manufacturing organizations, you likely have some quantitative measurement goals for your Sales & Operations Planning initiative. But, like the saying goes, it’s not just how it looks (metrics) but importantly, how it feels (organizational impact).
Join Steelwedge and industry educator, author and reknowned S&OP practice leader, Tom Wallace, for a live webinar to test your S&OP “feel factor”. In this interactive session, you will learn examples and ideas for your people, process and technologies to achieve some great feeling S&OP, including:
• Fewer surprises, resolved quickly
• 18+ months of forward visibility
• Enthusiastic engagement of top management and
• Delivering on strategic goals with S&OP
Sales & Operations Planning (S&OP): An IntroductionSteelwedge
Do you know the secret to a successful Sales and Operations Planning process?
Your ability to troubleshoot issues, plan for unexpected events, and maintain a reliable, single set of planning numbers is drastically affected by people, process and technology.
Educate your colleagues or refresh your own skills with the new introduction to S&OP presentation.
For more information about S&OP and how Steelwedge can help your business, please visit: http://www.steelwedge.com/resources/sales-and-operations-planning-intro/
S&OP Leadership Exchange: Tailoring S&OP to Fit your BusinessPlan4Demand
866.P4D.INFO | Plan4Demand.com | Info@plan4demand.com
Andrew McCall, S&OP Solutions Lead at Plan4Demand Discusses how tailoring your S&OP process to fit your business is critical to achieving bottom line success.
A simple, straight forward set of 25 slides which provides the basics of S&OP (Sales & Operations Planning) from concept to implementation. (Used to introduce and discuss S&OP concepts with clients and prospective clients.) S&OP is also know as IBF or IBP (IBF = Integrated Business Forecasting; IBP = Integrated Business Planning)
Enabling Best-Practice Demand Management and S&OP with Advanced Technology
Featured Presenter:
Doug Dedman, Vice President, Global Services, Steelwedge Software
Are you taking full advantage of all your demand signals? The sheer velocity of change – in business complexity, global volatility and available data – makes the prospect of managing regional and global planning a more elusive mission. Powerful demand planning can take you from a reactive to a proactive mode and turbo-charge your S&OP process.
In this webinar, you will learn how next-generation technology has enabled companies to more accurately forecast what their businesses will require.
Join us to learn more about how the right demand management approach and platform can enable you to:
Understand and grasp each demand type
Ensure accountability to the demand plan
Benefit from statistical forecasting where it makes sense while maintaining flexibility to use other forecasting methods
Collaborate internally and with customers when it makes sense
Achieve real-time visibility and synergy across all channels
To learn more about Steelwedge's Advanced S&OP Technology please visit: http://www.steelwedge.com/solutions/
A simple chart which outlines the S&OP (Sales & Operations Planning) business process flow, including the core outcomes of the regular monthly S&OP Meeting.
S&OP: The power of an organisation that beats with one heart Tristan Wiggill
S&OP: The power of an organisation that beats with one heart by Monika Wates.
Presented during the 37th annual SAPICS conference and exhibition for supply chain professionals at Sun City from 31 May to 2 June
AVATA is adding to their express solutions suite with “IBP express”, a hosted service offering that provides the framework for conducting the S&OP/IBP process with supported dashboard reports and KPI’s. IBP express will allow for a rapid deployment enabling your first S&OP/IBP cycle within 90-days.
IBP express is both a technology tool and service offering that supports advancing your current S&OP process or implementing S&OP/IBP for the first time. IBP express includes the required Education, Workshops, Coaching & Technology that will deliver a rapid ROI.
Tips on selecting metrics for sales incentive plan design purposes.
Use of quantitative and qualitative measures.
Impact of pay communication on sales employee engagement, and use of performance management and employee appraisal as a channel for these conversations.
What Great Sales & Operations Planning (S&OP) Feels Like!Steelwedge
Featured Presenter - Tom Wallace, S&OP Author and Educator
Like most manufacturing organizations, you likely have some quantitative measurement goals for your Sales & Operations Planning initiative. But, like the saying goes, it’s not just how it looks (metrics) but importantly, how it feels (organizational impact).
Join Steelwedge and industry educator, author and reknowned S&OP practice leader, Tom Wallace, for a live webinar to test your S&OP “feel factor”. In this interactive session, you will learn examples and ideas for your people, process and technologies to achieve some great feeling S&OP, including:
• Fewer surprises, resolved quickly
• 18+ months of forward visibility
• Enthusiastic engagement of top management and
• Delivering on strategic goals with S&OP
Sales and Operations Planning Worst PracticesPamela Stroud
Best practices in S&OP and demand planning are well known and well documented. Maybe less well documented but more widely known are the worst practices. During this session we’ll discuss a few of the more interesting of these worst practices and explore ways to avoid them.
The ROI of Sales and Operations Planning (S&OP) MaturitySteelwedge
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/
7 Principles of Highly Effective Sales & Operations PlanningSteelwedge
Steelwedge Agility Webinar Series
Presenter: Peter Bolstorff, author of Supply Chain Excellence
Successful supply chain planning is not just a function of ‘doing more’ leading practices. The best supply chain planning organizations have picked appropriate leading practices as dictated by the markets they serve and integrated them together with their chosen technology platform to achieve competitive advantage.
Sales and operations planning (S&OP) is a foundational leading practice that cuts across all industries, according to Peter Bolstorff, an internationally recognized supply chain practitioner, speaker, educator, consultant and author. Actionable research from Mr. Bolstorff’s project experience suggests that in addition to S&OP, the best supply chain planning organizations have adopted seven principles:
1. Systematic management of ‘master data’
2. Synchronized S&OP, tactical planning, and execution processes and horizons
3. Mature collaborative processes for both key customers and suppliers reconciling forecast, orders, and yearly volume
4. Data oriented understanding of the inputs to the forecast
5. Intense focus on ‘point-of-sale’ or ‘sell through’ data (versus sales orders and ‘sell in’)
6. Disciplined product life cycle management process
7. A continuous improvement approach to understanding consumer or user behavior
Join Peter and Steelwedge for an interactive webinar featuring examples of these principles from some of the best demand-driven organizations.
Oracle & USJade Power Breakfast Presentations: Sales & Operations PlanningJade Global
In a live event hosted by Oracle and USJade, these presentations were provided by special guest speakers and subject matter experts Mel Nelson of APICS, and Stephen Zadig from the ClariPhy Advisory Board. In an interactive meeting with manufacturing professionals they explored the benefits, challenges, tips and best practices of next generation Sales & Operations Planning.
Featured Presenter - Peter Bolstorff, Author and Process Expert
Is your journey to Sales & Operations Planning maturity a bumpy road? You’re not alone.
This unique interactive diagnostic webinar will explore what causes S&OP to perform better in some years than in others. Join Steelwedge and Peter Bolstorff, author and process expert, for a moderated real-time assessment to take your business’ pulse across the key factors that can get –and keep—your plans on track:
• Trading Partners
• Organization
• Physical Flow
• Process Flow
• Technology
• People
For more information about S&OP please visit: http://www.steelwedge.com/solutions/whats-new/
What Is the Value Proposition of Sales and Operations Planning? Summary ChartsLora Cecere
Survey Details: The research for this report was conducted online from January 6 - September 14, 2015 by Supply Chain Insights. Surveys were conducted among Manufacturers and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who have at least one S&OP process (n=73). For the purpose of analysis, respondents were split between those with a self-reported "effective" S&OP (n=31) and those without (n=42).
Objective: To understand the value proposition of an effective S&OP (Sales and Operations Planning) process. NOTE: An S&OP process was defined as a "tactical planning process to forecast sales and plan operations."
Highlight: Companies with a more effective S&OP process are more aligned, agile and balanced, which leads to greater control and improved response.
What Is the Value Proposition of Sales and Operations Planning?Lora Cecere
Survey Details: The research for this report was conducted online from January 6 - September 14, 2015 by Supply Chain Insights. Surveys were conducted among Manufacturers and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who have at least one S&OP process (n=73). For the purpose of analysis, respondents were split between those with a self-reported "effective" S&OP (n=31) and those without (n=42).
Objective: To understand the value proposition of an effective S&OP (Sales and Operations Planning) process. NOTE: An S&OP process was defined as a "tactical planning process to forecast sales and plan operations."
Highlight: Companies with a more effective S&OP process are more aligned, agile and balanced, which leads to greater control and improved response.
Achieving Sales Performance Optimization Through Automated Incentive Compensa...Callidus Software
presented at TrueConnection: Sales Performance Management Conference 2007 by Jeff Staley, CRM Center of Excellence at SAP, and Jim Thomas, Senior Sales Engineer at Callidus Software
Food manufacturers are not unique in the problems they have in evolving and becoming more competitive in their market place. This is a short presentation that talks to the main reasons manufacturers find it so hard t adapt and change and improve their performance.
Spectrum ERP is designed to Derive Profitable Growth, Maximize Efficiency and Transform Business with a complete, robust and cost-effective solution for SME. Our business solution is well known for its quality and will help you manage every aspect of your company- from sales to Operations and financials.
With Spectrum ERP you would be able to achieve:
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VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
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A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
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1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
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1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
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Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Putting the SPARK into Virtual Training.pptxCynthia Clay
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Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
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Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
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FP&A For Sales And Operations For Sales And Operations Planning Icpas June 302011 20110623
1. Financial Planning & Analysis[FP&A] for Sales and Operations Planning Fox River trail chapter Illinois c.p.a. society June 30, 2011 Barrett Peterson, C.P.A. Manager, Accounting Standards, Procedures, & Analysis TTX 1
2. The need and success requirements FP&A for Sales & Operations Planning 2
3. FP&A for Sales and Operations Planning The Objective of Sales & Operations Planning: Develop demand sensing capability with conscious trade-off decisions for demand shaping while achieving optimized demand response to achieve planned market position and profitability. 3
4. FP&A for Sales and Operations Planning The problem – lack of strategic orchestration Sales Plan Operations Plan Financial Plan 4
5. FP&A for Sales and Operations Planning Problem indicators: Excess inventory levels Unsatisfactory order fill rates and delivery delays Frequent order/production expediting Unsatisfactory profitability Customer retention failures Unplanned downtime Schedule errors Materials not available Serious bottlenecks High logistics costs [expedited or small load releases] Quality problems Single point forecasting Forecasting inaccuracy Difficult product launches 5
6. FP& A for Sales and Operations Planning The solution – sales and operations planning process Operations Plan Finance Plan Sales Plan Sales & Operations Planning 6
7. FP&A for Sales and Operations Planning Techniques & Tools To Enable Success Foresight/ Statistical Tools Hindsight/KPI Insight/BI ERP/Transaction Systems Warehouse/Marts/ Performance Indicators Master Data Management Data Quality 7
8. FP&A for Sales & Operations Planning Critical Success Factors Statistically Oriented & Skilled Data Focused Decision Making High Quality Data Management Lean Operation Capable Direct Costing Focused with “Flex” Budgets – ABC, GPK Multiple Margin Analyses – Units, Product Groups, Channels – Direct product margin; margin after semi-variable indirect cost [driver driven]; pre-tax Agile Budgeting and Business Forecasting – Rolling Sales Forecasts and “Flexible” Budgets 8
9. FP&A for Sales and Operations Planning Some Crucial Foundation Tools: Data definitions, consistency, and quality Sales prediction capability, including statistical skills; business analytics Incentives alignment – sales, manufacturing, supply chain, finance – financial; performance appraisal; focus Manufacturing management – lean 6 sigma helpful, not required Operations financial management – good historical data Good historical sales reporting – units and dollars Cost accounting Product and product group margins with GPK type structure [volume variable] preferred Direct Sales Margin focused – “bridge” to classical financials, units driven Minimal allocations, and to sub-totals in the aggregate when used Minimal or no emphasis on production variance analysis – process flow [lean] direct contribution margin focused Return on capital employed oriented Supply chain management – effective design and operation “Business process’ view of the business 9
10. FP&A for Sales & Operations Planning Major Components of an Effective Process New Products Need to be Planned From Conception Design for produceability Ensure capacity adequacy Improve return on capital employed Rolling Forecasting – Sales Units and Direct Margins Semi-Variable costs - driver focused Fixed Cost management “Flexible” Budgeting – Production, Sales, Marketing Direct costs per sales unit “Step” costs based on driver unit variations – average per unit or unit group Fixed costs – essentially unchanged dollars Tying Product Units to Cost Driver Units – the “missing link” Driver unit relationship to product units, e.g. unites per machine hour average Revising the “flex” budget with re-estimated driver units, or product unit proxies for driver units 10
11. FP&A for Sales & Operations Planning Typical Important Entity Requirements Change management capabilities Process orientation and understanding Financial measurement systems, particularly cost accounting and production management metrics; acceptability of “approximates” Develop integrated sales and operations metrics Master data management – common terms, definitions, measures Incentive systems – bonus, performance appraisal Process alignment/Organizational Design Production plan to demand plan Supply chain to production plan Plan review, modification, and corrective adjustments Technology Enablers Data marts and warehouses Business analytics Statistical Analysis Applications Reliable and consistent historical data Sales – units and dollars Direct costs – units and dollars Resource/driver consumption – hours, e.g. - data 11
12. The sales and operating planning process FP&A for Sales & Operations Planning 12
16. FP&A for Sales & Operations Planning The Supply Planning Component Capacity Planning Owned Manufacturing/Operating Capacity Contracted [Out-Sourced] Manufacturing Product Purchases From 3rd Parties Inventory Planning Quantity and Replenishment Location Procurement Planning Vendor Sourcing Quality and Other Requirements Logistics Purchased Services Company Owned 16
17. FP&A for Sales & Operations Planning The Supply/Demand Balancing Component Product Mix/Merchandising Constraint Management Financial Capacity Covenants and Other Contractual Requirements Supply Chain Capability, Including Logistics What-if Analysis Allocation of Demand to Supply Consensus 17
18. FP&A for Sales & Operations Planning The Management Evaluation & Analysis Component KPI Measurement Customer Order Delivery Performance Order Fulfillment Lead Time Inventory Turns, Days of Supply, Other and Relationship to Sales Plan vs. Actual Units, Average Prices, and Direct Margin Indirect Costs Fixed Costs, Including Costs of Capital Forecast Error Measurement Root Cause Analysis 18
19. FP&A for Sales and Operations Planning The Demand Driven Sales and Operations Process Collect competitor, key customer purchasing, pricing, and other sales and marketing input. Build a multi-period statistically derived market demand forecast, including forecast risk. I suggest an 18 to 24 month horizon Compare statistical forecast with sales function forecast and develop consensus. Analyze demand shaping options based on scenario alternatives Agree on key sales, production, customer service, and supply chain metrics Develop a “Monetized” constrained supply plan, considering supply capacity, return requirements, revenue objectives, customer service targets, market penetration objectives, supply chain capabilities, etc. Evaluate alternatives for trade-offs on supply options and demand shaping opportunities. Finalize plan in a consensus meeting. Publish the constrained plan Communicate plan and review monthly compared to planned metrics. Repeat, including rolling forecasts 19
20. FP&A for Sales and Operations Planning The role of finance: metrics and analysis for Sales Plan Development and Execution – history, statistics, analytics Production Planning and Operations – history of cost management separated between direct and indirect reflecting key drivers for each production process Supply Chain Effectiveness – cost more than price, delivery schedule met, production disruption avoided Integrated Financial Overview - Profitability Constraints Analyses Production Resource Limits Supply lead-times, quantity requirements, logistics limits Management of Data as a Critical Corporate Asset Focus 20
21. FP&A for Sales and Operations Planning Constraints – Examples: Capacity – throughput per unit of time by process; storage space; dock space; required process flow Production output to input “yield” Sales Force Expertise Organizational Structure Multi-stage Manufacturing Cycle Time – “Rhythm”/Cycle Time Run Size Economics Purchasing/Supply Chain Management Disturbance/disruption risks Purchasing power Expertise Covenant Restriction on Debt, Equity, Leases, Certain Contracts Labor Agreements Incentive Structures Licensing and Other Contractual Agreements 21
22. FP&A for Sales and Operations Planning Major Metrics: Revenue realization [average price] by SKU and SKU group, compared to plan Direct margins by product, product group, customer, process, compared to plan Perfect order achievement – percentage of orders completed in full on time Customer Order Fulfillment Lead Time Inventory turns and days of supply Working capital management – DSO, AP Production and logistics throughput requirements expressed in units of major drivers required Profitability and return on capital employed Forecast accuracy Sales unit volume and average pricing realized Production operations Supply chain 22
23. FP&A for Sales and Operations Planning Sales Plan Development and Execution: Demand measurement Wanted demand met – market share Wanted demand unable to acquire or supply Unwanted demand Demand shaping analyses and metrics development Pricing decisions Promotion planning and execution Product launch or formulation development Price and margin realization metrics and analyses Sales Unit(s) realized, including multiple units of measure Planned average realized prices Planned direct contribution margins – relationships of pricing and direct cost element cost movements Production and supply resource driver units consumed vs. plan Information collection and management Data definition and consistency – master data management Data marts/warehouse reports design and development Dashboards and drill-down reporting 23
24. FP&A for Sales and Operations Planning Demand Shaping Mechanisms 24
25. FP&A for Sales and Operations Planning Production Planning and Operations Management: Production resource requirement estimation Production resource units [hours] by process Production resource drivers consumed Production scheduling/capacity assessment Resource cost accounting – direct costing/direct margins GPK costing concepts – product unit volume variable Direct driver identification and units of measure metrics Direct driver costing – machine process hours, e.g. Quality and output yield compared to input resources consumed and waste/non-conformance minimization Asset utilization Constraint identification and management Margin plan attainment Capital investment “Fixed” Resource requirements/constraints Process maximum throughput requirements Facility space for production , storage, and inbound or outbound shipment handling, including dock use planning 25
26. FP&A for Sales and Operations Planning Supply Chain Effectiveness: Make vs. buy decisions Contracted/out-sourced supply performance Purchased product quality and timeliness Supply chain performance metrics Cost for required quality Delivery performance – timeliness, quality, quantity accuracy Logistics costs and management – cube, distance, and weight Warehouse optimization and management Space cube utilization Flow and operating process 26
27. FP&A for Sales and Operations Planning Integrated Financial Analyses and Reporting: Profitability measurement Actual vs. plan margin realization Margin to invested capital – actual vs. plan Sales/margins per square foot [capacity required], e.g. [retail, restaurants] Indirect and fixed cost management Executive benchmark reporting with drill-down ability Inventory measurement Working capital management Capital expenditure follow on analysis 27
28. FP&A for Sales and Operations Planning Remember the objective: Profitability improvement Increased measured direct and indirect margin Increased returns on capital employed Cost management on indirect and fixed costs Improved utilization of resource cost drivers Waste elimination Customer satisfaction measures Perfect order improvement Reduced warranty/”make up” costs Market position achievement Market Share Market price realization 28
29. FP&A for Sales and Operations Planning An economics reminder: resource acquisition price is not cost Acquisition price is an input based measure Poor quality a serious offset to the “savings” and impairs other improvement goals Unfocused use is not compensated for by price savings Cost is an output based measure Waste minimization by acquiring the right quality the first time Utilize resources effectively Consider resource “yields” – useable portion [capacity] of units acquired Personnel – time paid not worked Facilities – space built/rented not useable/restricted Cost management/reduction is driven by: Waste/inefficiency elimination – consider lean 6 sigma Resource utilization rates for essential resources Focused use of resources on key objectives 29
30. FP&A for Sales and Operations Planning What do these have in common? – close is sufficient Precision Level of tie-outs in Plan 30
31. Illustration of a contract manufacturer of liquid health and beauty products FP&A for Sales & Operations Planning 31
32. FP&A for Sales and Operations Overview for Contract Mix and Fill Manufacturer 32
33. FP& A for Sales & Operations Planning Sales Estimating and Planning Sold to order, but with regular customers and regular order flows for many products Analyzed continuously updated rolling history of sales by formulation, case pack, bottle size, cap [closure], and label [SKU]. 146 SKUs for 54 formulations. Cases required, for finished goods inventory Bottles required, for the SKU case pack for bottle, cap, label requirements as well as process time estimating Certain specialty products made to order only Planned timing dependent on order flow rate, other products, and capacity constraints 33
34. FP&A for Sales & Operations Planning Primary Production Process Flow Raw Materials to Production Chemicals Bottles Caps Labels Corrugated Cases Batch mixing, up to 2,000 gallons/batch Filling [bottle sizes from 2 ounces to 64 ounces] Gallons from mixing tanks filled into bottles Each bottle capped and labeled inline Case packed on pallet at the end of the line Warehouse Storage - pallets Shipping – pallets Cases and standard pallet load/weight per SKU Distance/destination variable 34
35. FP&A for Sales & Operations Planning Contract Mix and fill Products Contract Manufacturer 35
36. FP&A for Sales & Operations Planning Contract Mix and Fill Products Contract Manufacturer 36
38. FP&A for Sales & Operations Planning Information Set Resulting Sales plans by SKU [formulation/case/bottle/label] for units and margin dollars Additional sales units by formulation and gallons for mixing planning Production plans and schedule – mixing and filling Purchasing requirements for short-term and contract negotiations for long-term Components – bottles, closures, labels, corrugated cases Certain major chemicals Overall average waste on product components and estimates of inventory on hand Equipment upgrades justification to improve throughput or reduce waste – capping equipment, water quality control, additional mixing tank capacity, increased power supply for mixing 38
39. Illustration of a personalized direct mail commercial printer FP&A for Sales & Operations Planning 39
40. FP&A for Sales and Operations Personalized Mail Commercial Printer 40
41. FP&A for Sales & Operations Planning Primary Production Process Flow Raw Materials and Supplies to Printing Line Paper rolls Inks, varnish or other finishing materials, and solvents Printing plates Print Impressions – generally roll-to-roll Personalize Direct Mail Products – roll-to-roll Cut and Fold – impressions, then into “pieces” Mail Insertion for Direct Mail Products 41
42. FP&A for Sales & Operations Planning Production Resource Requirements Plate Making Plate materials Hours Chemicals Printing Paper Required cylinders of cut-off size Inks and finishing chemicals like varnish or lacquer Hours Personalization Data file cleansing– customer name, address, and individualizable message(s) text Hours on commercial ink jet type printing equipment Cutting & Folding – hours, including set-up Sorting/Mail Insertion Hours 3rd party components required, if any 42
50. FP&A for Sales and Operations Planning How to proceed: Extend or develop fundamentals Master data management – definition, consistency, quality Collection of “outside-in” market and competitor data Process orientation - cross functional teams - and organization in your firm Collect sales, driver and direct material by a regular process Align performance assessment and bonus/compensation incentives Extend what you have or get started Start with a project and end with a process Data management is initially a “project” type activity The “end” isn’t – Sales & Operations Planning must become a process with rolling forecasts incorporated Develop in stages – avoid a “global” leap from ground zero Production facility wide initial application, or An initial product of product group IT Sophistication – develop upgrade plan Persist – improve over time 50
51. FP&A for Sales and Operations Planning IT Tools and Techniques: Master Data Management – minimize the “tower of Babel” effect Data Warehouse – develop the single “source of truth” Business Analytics Develop business analytics [BI] for historical data Develop an appreciation for statistical analysis/modeling and its limits Microsoft Excel spreadsheets – a nice tool but use sparingly More effective for smaller, less complex scale Difficult to control, and easy to introduce undetected error Consider more elaborate application tools I2 Technologies Oracle Demantra Demand Solutions Infor Logility SAP APO IBM (Cognos) 51
52. FP&A for Sales & Operations Planning Production Management Improvements Consider lean Six Sigma or other operating procedure and flow improvements Cost accounting - develop direct costing data and focus, including drivers for indirect data. Minimize or avoid allocations by analyzing margins. Need good direct materials and indirect process drivers unit data Evaluate production scheduling with emphasis on constraints Focus on throughput per unit of time measures in units and dollars Develop production plan based on agreed sales plan 52
53. FP&A for Sales & Operations Planning Supply Chain Improvements Evaluate opportunities for improved, consolidated sourcing, while avoiding single source risks Align purchasing incentives to avoid sole focus on invoice price Strive to minimize inbound logistics costs Require supply of the production plan – now aligned with the sales plan – plus any buffer accumulation required 53