This document discusses the benefits of implementing dynamic sales and operations planning (S&OP). Dynamic S&OP leverages data analysis and collaboration to improve forecasting accuracy and supply chain visibility. It helps companies respond better to volatile market conditions. Key benefits of dynamic S&OP include improved product availability, higher supplier fill rates, reduced inventory obsolescence, increased sales and profits, and enhanced collaboration across the supply chain. The document advocates using data mining of point of sale and other data to analyze customer buying patterns and integrate these insights into the S&OP process for more accurate demand forecasting.

1. Leveraging Supply Chain Productivity with Dynamic S&OPProf. John PaulManaging DirectoriCognitiveManufacturing Supply Chain Officer Summit 2011 - Shanghai

2. AgendaWhy Dynamic S&OP?Benefits of Dynamic S&OPDynamic S&OP for Manufacturing2

3. Why Dynamic S&OP? 3

4. Why dynamic S&OP?Dynamic S&OP – The response to several business challengesVolatile business environment calls for more excellent operational efficiency and effectiveness.Internal collaboration is often not sufficient to face today’s highly competitive market place.Companies’ data containing valuable information are often not analyzed. Companies able to identify these information have firsthand opportunities.4

5. Why dynamic S&OP?Sub-optimized inventory management results in reduced profitabilityPoor supplier fill rate

6. Stock-outs

7. Stock obsolescence

8. Excess inventory5Loss of SalesHigh Working Capital

9. Implementing Dynamic S&OP 6

10. Implementing dynamic S&OPDynamic S&OP - A combination of processes, technologies and data7

11. Forecast GenerationImplementing dynamic S&OP Forecast - Projecting achievable sales revenue8

12. Implementing dynamic S&OPDynamic S&OP - A combination of processes, technologies and data9

13. Implementing dynamic S&OPS&OP - One Goal, One Plan, One Company10

14. Implementing dynamic S&OP S&OP - A Succession of interlinked processes11

15. Implementing dynamic S&OP S&OP - A Wheel inside the Wheel12

16. 13Implementing dynamic S&OPDynamic S&OP - A combination of processes, technologies and data

17. Data mining is the process of discovering meaningful new correlations, patterns and trends by sifting through large amounts of data stored in repositories, using pattern recognition technologies as well as statistical and mathematical techniques.14

18. Implementing Dynamic S&OPForecast Accuracy through Data MiningPoint of Sales DataData Analysis (by region, product category, sub-category, time slot…)Identification of correlations, patterns, trendsAnalysis of consumer buying behaviors to make operational decisions15

19. Implementing Dynamic S&OPData Mining integration into the S&OP process Analysis of consumer buying behaviors to make operational decisions16

20. Implementing dynamic S&OPDynamic S&OP - A combination of processes, technologies and data17

21. Implementing dynamic S&OPKey Factors for Successful Dynamic S&OP ImplementationClear ExpectationsTop Management SupportEffective CollaborationCollaboration ToolsCadencePerformance MeasurementAnalysis18

22. Benefits of Dynamic S&OP19

23. Improved product availabilityHigher supplier fill rateReduced obsolescenceIncrease forecast accuracy and sales360° Supply chain Visibility End to EndEnhanced collaboration and better teamwork20Dynamic S&OP BenefitsHigher customer service, profits and growth

24. Dynamic S&OP provides deep analysis and forecast to respond to a volatile environment and leverage supply chain productivity21