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A Practitioner’s Guide to Successful S&OP and Demand Management

Many companies that have become “best-in-class” at S&OP have something in common: they have implemented successful strategies and tactics for building and securing approval for their S&OP technology business case. Learn firsthand from leading experts how to take you and your company to S&OP and integrated business planning (IBP) success.

Register today and hear experienced practitioners who will share with you:

- Why so many S&OP initiatives fail?
- How to get started with S&OP and how to sustain success?
- What’s the power of proven S&OP processes and technology?
- How to remove barriers to S&OP success?
- What works and what doesn’t

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A Practitioner’s Guide to Successful S&OP and Demand Management

  1. 1. 1© 2014 Steelwedge Software, Inc. Confidential. Single Line of Sight: Plan, Perform, Profit A Practitioner’s Guide to Successful S&OP and Demand Management Seema Phull, NorthFind Partners Karon Evanoff
  2. 2. 2© 2014 Steelwedge Software, Inc. Confidential. • Global partnership of practitioners • Passion for turning insights into action. • Enabling value-chain transparency, synchronicity and goal alignment. Today’s Presenter Seema Phull, Partner
  3. 3. 3© 2014 Steelwedge Software, Inc. Confidential. Today’s Presenter • With over 20 years in Supply Chain, she has extensive knowledge and experience working within the S&OP process. • Early in her career, she cut her teeth as a buyer. As she rose through the ranks on a fast track she always found herself at the forefront of change. • She has been responsible for building a Supply Chain teams and processes from ground zero in startup VC funded environments as well as revamping existing teams and processes within the supply chain discipline. Karon Evanoff
  4. 4. 4© 2014 Steelwedge Software, Inc. Confidential. Why Do Most S&OP Initiatives Fail? How to get started with S&OP and how to sustain success? What’s the power of proven S&OP processes and technology? What works and What doesn’t Questions for Practitioners
  5. 5. 5© 2014 Steelwedge Software, Inc. Confidential. Why do most S&OP initiatives fail?
  6. 6. 6© 2014 Steelwedge Software, Inc. Confidential. • Project vs. Journey • Functional vs. Enterprise • Sound bites vs. Data and actions Why do most S&OP initiatives fail?
  7. 7. 7© 2014 Steelwedge Software, Inc. Confidential. Journey “… a traveling from one place to another, usually taking a rather long time; passage or progress from one stage to another” 2 Quantified Mission Project “… a temporary endeavor with a defined beginning and end… typically constrained by dates or funding” 1 1. Chatfield, Carl. "A short course in project management". 2. Dictionary.com Unabridged, Based on the Random House Dictionary, © Random House, Inc. 2009. Effective approach to S&OP… • A comprehensive, multi-year endeavor • A permanent change to how we do business planning • An enabler to long-range strategic planning initiatives Manage S&OP as a Journey
  8. 8. 8© 2014 Steelwedge Software, Inc. Confidential. • Define the goals – year-by-year, quarter-by-quarter • Understand the risk areas – people, processes, data • Links to other initiatives – is S&OP a driver or enabler? • Track progress diligently – make sure we cover the hard and soft sides Constructing the Roadmap… Long Range Multi-Year Medium Range This Year! Monthly & Quarterly Tracking to Goals Clearly Chart the Journey Connect the process to the desk level in order to get the results
  9. 9. 9© 2014 Steelwedge Software, Inc. Confidential. Ideal State Succeeding Improving Beginning • Demonstrate Success every 30 days • Make it a Standard • Establish Point of Diminishing Returns • Non-statistical forecast • Low S&OP knowledge • Disconnected plans • Formal process in place • Demand-supply alignment • Organization roles clear • Customer & market data • Finance involvement • Standard work, clear R&R’s • Product lifecycle planning • Constraint Planning • Optimization Scenarios • Disparate data sources • Non-standard reporting • Fewer data sources • Stabilized month-to-month • Standard reporting • Alignment alerts, control limits • Forecasting software • Receipts-to-cash data linkage • One S&OP Reporting Tool • Scenario comparisons • ‘Real-Time’ reporting Ideal StateSucceedingImprovingBeginning Process Maturity Sys & Data Maturity Strong relationship between Process and Data maturity 2013 Call To Action: Do S&OP! 2014 Expand & Standardize Q4 20142014 Set Policy & Deliver Tools A Framework for Success Q1 2015 Enables Executive Mgmt Sponsorship
  10. 10. 10© 2014 Steelwedge Software, Inc. Confidential. • 3 easy steps Turn Data into Action Put all your SKUs on the table Isolate SKUs that matter Create plan for every SKU
  11. 11. 11© 2014 Steelwedge Software, Inc. Confidential. • Key Components • People, Process, and Technology • Vision: connect manufacturing floor to CEO • Tactical results every 30 days! • Transparency • The right context from your data • A Common vocabulary • Deal with the demons • Air them quickly • Implement reactive and proactive solutions Transparency…Translation…Trust…Transformation Data Brings Transformative Change
  12. 12. 12© 2014 Steelwedge Software, Inc. Confidential. How to get started with S&OP and how to sustain success?
  13. 13. 13© 2014 Steelwedge Software, Inc. Confidential. • Large manufacturing companies with revenues between $500M up to $10B, Simple to complex supply chain • Global Manufacturing, Distribution, Supply Networks covering the globe • Consumer, Services, Industrial, and Commercial products • Problem: S&OP “Food Fight” • Missing delivery + growing inventory • 2 to 3 turns against industry average of >5 and 7 • Manufacturing costs exceeding budgets • Sporadic S&OP Case Studies
  14. 14. 14© 2014 Steelwedge Software, Inc. Confidential. • Step 1: Data Driven Diagnostic • Demand, Supply, Operations, and Mgmt. team • Process, Technology, and Organizational talent • Findings: • Bad demand forecast driving unchecked manufacturing • Safety stock built without understanding uncertainty risk • No formal metrics. • Blind adherence to a ‘system’ no one owned • Lack of formal training on planning • Procurement completely out of the loop Methodology for Resolution
  15. 15. 15© 2014 Steelwedge Software, Inc. Confidential. • Step 2: Data Driven Action Plan • Part Segmentation defines plan for every part • Isolate root cause… – 5K of 25K parts drove company’s profitability – 1/3 of active parts had no activity in 12 months – Customer signal 30% more inaccurate than statistical forecast – Top 25% suppliers impacted majority of revenue – Safety stock not needed on 20% of the part numbers – Some parts have excess of 6 mos of supply on hand Methodology for Resolution
  16. 16. 16© 2014 Steelwedge Software, Inc. Confidential. • Step 3: Get Off the Bench • Started with one product family • 3 month pilot: connected whole organization • Exposed root causes and implemented corrective actions • Focused the organization on data driven metrics • Put in place 30 day ‘true S&OP process’ • MADE DECISIONS; Delivered RESULTS Methodology for Resolution
  17. 17. 17© 2014 Steelwedge Software, Inc. Confidential. Ready to launch to entire business!!! • 20% less safety stock • $13 million less inventory • Monthly executive S&OP meeting driving decisions • Right forecasting methodology • Right purchasing plan • Right constraints evaluation • Right supply plan constraints • Working capital driven customer-driven products 3 to 5 cycles later… All was not perfect but it was proactive!
  18. 18. 18© 2014 Steelwedge Software, Inc. Confidential. • Conduct a diagnostic that is built real business practices • Focus on Change Management aspects • Develop a Plan for Every Part • Model impact on key metrics such as customer service and inventory • Create one ‘well of truth’ • Centralized analytics with context and consensus • Establish a culture of accountability • By enabling effective metrics and performance mgmt. Summary of what enables success
  19. 19. 19© 2014 Steelwedge Software, Inc. Confidential. What’s the power of proven S&OP processes and technology?
  20. 20. 20© 2014 Steelwedge Software, Inc. Confidential. • Technology helps to mature and sustain a good S&OP process • Technology replaces spreadsheet ‘islands’ with integrated planning platform • Demand, supply, inventory plan transparency enables better financial alignment • Connect to all execution processes including customers and suppliers so that organization is able see leading indicators that could negatively impact performance • Enables internal collaboration and escalation of issues in real time Power of proven S&OP processes and technology
  21. 21. 21© 2014 Steelwedge Software, Inc. Confidential. What works and What doesn’t
  22. 22. 22© 2014 Steelwedge Software, Inc. Confidential. Keys to S&OP Planning Success Effective Metrics and Performance Management Executive Involvement and Leadership Dedicated S&OP Manager Monthly Process Cadence Both Tactical and Strategic Collaboration Common Language and Data Financial Integration Fast and Accurate Demand Plan
  23. 23. 23© 2014 Steelwedge Software, Inc. Confidential. • 60% effort should be in changing the culture • What changes the culture? • Making the change personal… make the mission THEIR mission not yours • Establish beach heads and connect shop floor to CEO • Use technology for insights and robust diagnostics • Expose ‘ugly babies’ to leadership • Conduct Root Cause Corrective Action immediately • Create 2 parallel paths: • Execution action to drive benefits • Process development and maturation journey • Deliver RESULTS every 30 to 60 days What works and What doesn’t Get the change in the DNA of the organization
  24. 24. 24© 2014 Steelwedge Software, Inc. Confidential. • Beware of executive ‘lip service’ • Endless process mapping • Lack of thought leadership on process or change mgmt. • Lack of technology and process integration • Careful with technology • Transactional systems vs. Best of Breed? • Does it enable true collaboration • Does it enable proactive perspective What doesn’t work
  25. 25. 25© 2014 Steelwedge Software, Inc. Confidential. “ Steelwedge has grown into the market's leading S&OP solution in the cloud. ” Rating: Positive  Global market share leader  Offices: USA, Europe, Japan & India  Founded in 2000, 50%+ year over year growth  Global organization focused on global delivery  Cloud Based Integrated Business planning platform  100% cloud-based for rapid deployment & value realization Steelwedge: The S&OP Company
  26. 26. 26© 2014 Steelwedge Software, Inc. Confidential. • Steelwedge drives organization alignment Visibility across systems landscape Make better decisions, quickly • Flexible, Scalable and Easy to Use • Accelerated Time to Value • Leverages Existing Systems Investment Steelwedge S&OP Platform
  27. 27. 27© 2014 Steelwedge Software, Inc. Confidential. Q&A Contact Us Email: hsookias@steelwedge.com Telephone: North America +1 (855) 980.8800 United Kingdom +44 (0)121.232.4668 Netherlands +31 (0)70.7999.288 Japan +813-6277-8521
  28. 28. 28© 2014 Steelwedge Software, Inc. Confidential.

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