The document discusses the tailoring of Sales and Operations Planning (S&OP) processes to better fit individual business needs, emphasizing the importance of customization to reduce change management challenges. It outlines the evolutionary stages of S&OP maturity, highlighting key components such as inventory management, demand forecasting, and organizational structure. The goal is to create a roadmap that aligns with the specific requirements of the business while improving performance and accountability.

1. S&OP Leadership Exchange:
Tailoring S&OP to Fit Your Business
With Andrew McCall

2.  Quick Introduction
 Key differences between Classic S&OP & a “Tailored” S&OP Process
 What choices do we face in Tailoring our process?
 How do we begin planning the evolution
 The Bottom Line
 Discussion & Closing

3.  Develop and Understanding of why tailoring S&OP can not only help
create business benefit, but also create a process that fits better with
your specific needs so that the change management hurdles are
reduced
 Outline some of the key customizations or “tailoring” points that most
business’s face – and how to navigate them
 Explain the road-mapping process so you can begin this journey in
your organization

4. • Brand Management
• Profitability Levers
Structure
• Financial Calendar
• Strategic Plan Linkage &
• Risk Profile
Inputs
• Supply Model • Demand Ownership
• Supply Network • BU/OPCO Structure
• Constraints • Chanel Demand
• Inventory Optimization • Consumer Insights
• Fill Rate Commitments • Demand Sensing
A little tailoring for the
right fit…

5. At its most basic level
S&OP in your organization is geared towards
answering 3 questions:
 What are our Goals/Targeted Performance Levels?
 What do we need to measure to monitor performance?
 How do we make decisions?
- Lora Cecere, Supply Chain Insights

6. Initial Design & Implementation (early maturity stages)
 Business Specific Calendars
 Business Unit/OPCO Roll Ups
 Supply Network Modeling
 KPI’s to that reflect Goals/Targeted Performance
 Our Decision Making process & Framework
Process Evolution & Maturity (later maturity stages)
 Multi Echelon Inventory Modeling
 Network Rationalization
 Multi Tiered Supply & Demand Orchestration

7. Item Best in Class Your Current Potential
Results* State
Inventory Reduction 15% - 25%
Service Level Improvement 3% - 5%
Excess & Obsolete Reduction 25%
Forecast Accuracy (product family level) 82%
 Soft Benefits:
o Improvement of Accountability & Control
o Detailed Assumptions Supporting Plan from Marketing and Sales, through the Planning and
Operations organizations and ultimately integrated with finance.
o Earlier visibility into issues
o Embedded Communication & Complex Project Management Capability
o Action Orientation
o Exception and KPI focused
* Aberdeen Group 7/2009
* Tom Wallace - S&OP Cost & Benefits 2009

8. Maturity Model
 Early Maturity Stages: Manufacturing Driven, Sales Driven, & Business Planning
Driven
Manufacturing Business Demand
Driven Sales Driven Planning Driven Market Driven
Driven
1
 Later Maturity Stages: Demand Driven, Market Driven
 Key Activity: Adopt or Develop a Maturity Model, then create an evaluation
framework to establish where you are and what you need to work on.
1 Supply Chain Insights Maturity Model

9. Selection: Which elements or
Prioritize: As you
characteristics best match
develop your tailored
Selection your specific business
roadmap – which gaps
requirements – what is your
are business critical,
view of “what good looks like”
which are secondary.
Prioritize Define
Define: Develop a phased
Situational Analysis:
definition of each element or
Measure each element to see
how far off your are, and the Situational characteristic to measure
“size of the prize” for closing Analysis maturity
the gap

10. Key Impacts
Area Early Stages of Maturity Late Stages of Maturity
Portfolio Brand Management Structure Strategic Planning Integration
Stage & Gate Process Portfolio Strategy
NPI Consumer Insights
Pricing Co-Man/Co-Pack Decisions
Demand Demand Planning & Forecasting Demand Sensing & Shaping
Statistical Modeling Market & Chanel Inputs
Sales Collaboration Profitable Response
Supply Specific Constraint Modeling Extended Supply Chain
Multi Tiered Inventory Orchestration
Management Strategic Commodity Linkage
Network Modeled Network Optimization
Pre-S&OP Optimizing Financial Drivers Profitability Management
Risk & Opportunity Drivers Sense inbound & outbound
market drivers

11. Maturity Model
 Selecting the criteria that best reflect your business – there are over 120
dimensions to select from – your model could have as many as 60 – 70 elements to
measure

12. The Value of an S&OP Roadmap
 Level set expectations on what S&OP is and is not
 Establishing where your organization is in the Maturity
Curve
 Understand which elements of S&OP will be the key
focus for your organization
 Establishing awareness of what should happen next

13. Gap Analysis
Key Strengths
• Most Process Elements exist
• Technical Infrastructure is implemented, Data
access remains a struggle
• Several Key Integration Points are in place and
only required some structure/Maturity
• Executive & Financial processes exist and need to
be leveraged and re-sequenced
Key Gaps
• Communication surrounding Forecast changes
• Understanding of the different elements across
Bottom Line the organization (UOM )
• Post Analysis Processes
• Many Process Elements currently in place provide a foundation for future state • Cross Functional understanding or process
design steps
• Key Elements of the Org structure exist to support the process, change • Accountability & Ownership of the forecast
management will be largest challenge • Depth of Horizon
• Comprehensive Design Required to Orchestrate all Pieces

14. Prioritizing
 Critical Business Requirements
 Quick Wins – Results Fund Patience
 Align with Technology Strategy
 External (Demand & Market Driven) touch points or exposure last
where possible

15. Managing Your Roadmap: Results from the Journey
Design & Implementation
Develop/Adopt Maturity
Mature
Model
Change Management
Optimize
Tailor Elements to Fit Business
Situational Analysis Progress through Business
Planning Stage Tailor Demand and Market
Develop Roadmap Driven Elements of the
Technology Matching for Process
Initial Design & Modifications each of the early maturity
phases Deploy advanced technology
Tailoring for Optimize Phase
of the Roadmap Establish Extended Metrics
required for Supply &
Demand Orchestration

16.  Tailoring S&OP requires work at both the design/implement
phase, as well as while you measure your progress against a
maturity model.
 The Maturity Model you develop should be your ultimate vision
of where you are going, and reflect both your business
requirements, and your specific definitions of Goals, Key
Performance Indicators, and the decision making framework
and process that your organization requires to drive results.
 Your roadmap should outline which “customizations” you
need early, and your planned evolution – regardless of how far
off in the future you expect to reach your end state maturity.