The document discusses how technology can support sustainability in Sales and Operations Planning (S&OP). It introduces an S&OP health check assessment and provides examples of how technology enables collaboration with trading partners, supports organizational structure in S&OP, and allows for modeling of physical flows. Technology is presented as a key enabler across the six dimensions of S&OP maturity by facilitating trading partner collaboration at scale, consolidating planning across organizations, and enabling complex demand-supply network modeling.
3. Webinar Objective
1. Discuss the concept of S&OP sustainability
2. Introduce a simple S&OP Health Check assessment
3. Score your company
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4. 4
Peter Bolstorff
20+ years of experience in operations management, consulting, and executive
leadership (3M and Imation)
Experience: Manufacturing, Planning
Survived and prospered with S&OP, DRP, MPS, MRP, ERP – and many other 3
letter acronyms
Co-authored Supply Chain Excellence: A
Handbook for Dramatic Improvement Using
the SCOR model, 3rd Edition,
AMACOM Publishing 2011
2 Terms of service on the Supply-Chain
Council Board of Directors; past Plan Process
Technical Chair
Over 150 projects Supply Chain Excellence (SCOR)
50 S&OP Implementations
5. S&OP Sustainability
Principles
There are 18 factors that affect
S&OP maturity
Maturity can be calculated by
basic competency – yes, no, or
partial
Sustainability is defined by
maturity over time
Common Traps
Leadership turnover and the
‘boiled frog’ syndrome
Process ownership and the
‘rudderless ship’ syndrome
Goal setting and ‘functional
silos’ syndrome
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6. Sustainability – Company X
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011 2012 2013 2014
Company X S&OP Maturity
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7. Company X Facts
Consumer Products
Retail
Private Label and Branded
Segmented Customers
Collaborative with Key Accounts
Fortune 500
North America
ERP and Advanced Planning
Systems
Optimized Network
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11. Quick Maturity Assessment
0 – No, my company does not perform this activity
1 – My company performs this activity on special occasions
based on business events
2 – Yes, my company performs this activity as a normal
business practice
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12. Trading Partners
_ Does your SOP strategy define the relationship between
collaboration with customers and demand planning? and with
suppliers and supply planning?
_ Are collaborative processes integrated with your SOP process
cycle?
_ Does your SOP process incorporate review of key performance
indicators from collaborative activity?
_ Trading Partner Total
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13. Organization
_ Is your SOP top down, driven by the leader of the business unit
or enterprise?
_ Does your formal supply chain organization reflect an effective
SOP structure? Globally?
_ As part of SOP, do you review a scorecard that balances
internal versus external measures?
_ Organization Total
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14. Physical Flow
_ Have you defined rough cut operational capacity goals that are
they mutually agreed to by manufacturing, sourcing, and
planning?
_ Is your chosen operational strategy reflected in the item
configuration?
_ Are your cost, inventory, and service level metrics and targets
aligned and managed effectively?
_ Physical Flow Total
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15. Process
_ Have you defined SOP process requirements based on best
practice?
_ Do you have documented Demand, Supply, Reconciliation, and
Leadership Review processes in the form of a blue print?
_ Do you have an SOP policy reflecting meeting dates,
participants, and agenda?
_ Process Total
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16. People – Jobs
_ Is there a human resource strategy that supports the sustainment
of SOP?
_ Are all the supply chain job classifications aligned? Globally?
_ Do the performers understand the job goals (outputs they are
expected to produce and standards they are expected to meet?)
_ People – Jobs Total
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17. Technology
_ Do you have appropriate technology (data, functionality and
reporting) that supports the SOP supply chain process blue
print?
_ Did you configure your system and master data based on the
business requirements defined in a TO BE process Blue Print?
_ Have appropriate technology performance measures been
identified?
_ Technology Total
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18. Technology
Poll Question #1
_ Do you have appropriate technology (data, functionality and
reporting) that supports the SOP supply chain process blue
print?
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19. Technology
Poll Question #2
_ Did you configure your system and master data based on the
business requirements defined in a TO BE process Blue Print?
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20. Technology
Poll Question #3
_ Have appropriate technology performance measures been
identified?
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21. Score
Add your ‘layer scores together
and divide by 36
Resulting competency or
maturity score can be viewed in
quartiles, pure percentage, or
using a grading scale
A > 90%
B > 80%
C > 70%
D > 60%
F < 60%
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23. Summary
The business environment is getting more complex
S&OP maturity can fluctuate based on a number of factors
A good S&OP assessment as part of continuous
improvement can mitigate maturity variation
The quick assessment can define improvement opportunities
as well as act as an education event for new team members
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24.
25. Copyright SCE Limited 201325
S1.1
Schedule
Product
Deliveries
S1.2
Receive
Product
S1.3
Verify Product
S1.4
Transfer
Product
M1.1
Schedule
Production
Activities
M1.2
Issue Product
D1.3
Reserve
Inventory and
Determine
Delivery Date
D1.8
Receive
Product from
Source or Make
P1.2
Identify,
Prioritize and
Aggregate
Supply Chain
Resources
P2
Plan Source
P3
Plan Make
P4
Plan Deliver
Rough Cut
Capacity Plan
8 Week Master
Schedule
Replenishment STO
Material Requirements
Released Production Orders
Kanban Signal
Tactical Planning
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