SCOR Project Workshop - Sales & Operations Planning (S&OP) Health Check - How is Your Pulse

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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/

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SCOR Project Workshop - Sales & Operations Planning (S&OP) Health Check - How is Your Pulse

  1. 1. 1© 2013 Steelwedge Software, Inc. Confidential. October 22, 2013 With Peter Bolstorff and Nari Viswanathan S&OP Health Check: How is Your Pulse?
  2. 2. S&OP Health Check How is Your Pulse?
  3. 3. Webinar Objective 1. Discuss the concept of S&OP sustainability 2. Introduce a simple S&OP Health Check assessment 3. Score your company Copyright SCE Limited 20133
  4. 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. 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 Copyright SCE Limited 20135
  6. 6. Sustainability – Company X 0% 20% 40% 60% 80% 100% 2007 2008 2009 2010 2011 2012 2013 2014 Company X S&OP Maturity Copyright SCE Limited 20136
  7. 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 Copyright SCE Limited 20137
  8. 8. Timeline  2007 – pre-implementation baseline  2008 – implementation (design, pilot, rollout)  2009 – formal continuous improvement Copyright SCE Limited 20138 0% 20% 40% 60% 80% 100% 2007 2008 2009
  9. 9. Timeline  2010 – alignment issues with plant, sourcing, and planning  2011 – Turnover in demand, supply, and finance  2012 – President and supply chain leadership change  2013 – Re-engagement based on quick maturity assessment Copyright SCE Limited 20139 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2010 2011 2012 2013 2014
  10. 10. Copyright SCE Limited 201310 S&OP Maturity
  11. 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 Copyright SCE Limited 201311
  12. 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 Copyright SCE Limited 201312
  13. 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 Copyright SCE Limited 201313
  14. 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 Copyright SCE Limited 201314
  15. 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 Copyright SCE Limited 201315
  16. 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 Copyright SCE Limited 201316
  17. 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 Copyright SCE Limited 201317
  18. 18. Technology Poll Question #1 _ Do you have appropriate technology (data, functionality and reporting) that supports the SOP supply chain process blue print? Copyright SCE Limited 201318
  19. 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? Copyright SCE Limited 201319
  20. 20. Technology Poll Question #3 _ Have appropriate technology performance measures been identified? Copyright SCE Limited 201320
  21. 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% Copyright SCE Limited 201321
  22. 22. Detailed Assessment Copyright SCE Limited 201322
  23. 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 Copyright SCE Limited 201323
  24. 24. 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
  25. 25. Copyright SCE Limited 201326 Thank You!  Scelimited.com  Using SCOR® Series  Supply Chain Excellence: The Blog  Linked in - http://www.linkedin.com/in/peterbolstorff  facebook - http://www.facebook.com/pages/Supply-Chain- Excellence/257802574290912  Twitter - https://twitter.com/#!/SCEsupplychain  Email: peterbolstorff@scelimited.com  +1 651 439 3422
  26. 26. 27© 2013 Steelwedge Software, Inc. Confidential.October 22, 2013 Technology: Making S&OP Feel Even Better
  27. 27. 28© 2013 Steelwedge Software, Inc. Confidential. Role of S&OP Technology Technology Trading Partner Collaboration Organization Physical Flow People Process Technology has a role to play in every dimension.
  28. 28. 29© 2013 Steelwedge Software, Inc. Confidential. Trading Partner Collaboration Technology Trading Partner Collaboration Organization Physical Flow People Process
  29. 29. 30© 2013 Steelwedge Software, Inc. Confidential. Demand Collaboration: Everyone on the Same Page Marketing Forecast Account Forecast Sales Manager Forecast Demand Forecast Inputs Forecast, NPI & EOL, Product Volume Sales, Orders, Opportunities, Budget & Master Data Account Level Forecast Sales Region Forecast Demand Review and Geo Forecast Consensus Forecast Planning Processes Nightly Transaction Files Demand Analyst Marketing Account Management Sales Management Demand Planning Consensus Team Compass Inputs and Outputs Consensus Forecast Insight S&OP Apps Customer Collaboration NPI/EOL Modeling Promotion Modeling Historical Demand Analysis Statistical BOM Inverse SBOM Supersession S&OP Sales S&OP Ops Executive S&OP Collaboration Performance Current Plan Finance Waterfall KPI Dashboard Collaboration • Demand Collaboration • Classic example of multi- functional collaborative process • Critical to engage Sales and Marketing • Majority of S&OP implementations fail due to lack of sales or management executive participation
  30. 30. 31© 2013 Steelwedge Software, Inc. Confidential. 2.53 Cust VMI Laptops Max Stores-M Products by Customer Customer replenishment forecast Delta between customer and AM forecast (supplier)
  31. 31. 32© 2013 Steelwedge Software, Inc. Confidential. Organization Technology Trading Partner Collaboration Organization Physical Flow People Process
  32. 32. 33© 2013 Steelwedge Software, Inc. Confidential. Orchestration of Global S&OP Revenue, Margin, and Volume Scenario Planning Management and Reporting Corporate Executive S&OP Resource Planning - Key Material Planning - Strategic Business Planning (Divest/ Acquire) Optimization & External Collaboration Integrated Inventory and Network Optimization – Strategic Partner Collaboration BU2 BU3 BU1 Revenue, Margin and Volume Scenario Planning Management and Reporting
  33. 33. 34© 2013 Steelwedge Software, Inc. Confidential. Physical Flow Technology Trading Partner Collaboration Organization Physical Flow People Process
  34. 34. 35© 2013 Steelwedge Software, Inc. Confidential. Physical Flow Determines Approach Volatility Impact Statistical Forecast Collab & Exception Stocking Strategy: Min/Max, Safety Stock, etc
  35. 35. 36© 2013 Steelwedge Software, Inc. Confidential. Modeler Update the marketing forecast in units and revenue Add Macro Economic Data to influence the forecast Product View for all customers Add Market Size to determine the market share percentage Outlook Metrics
  36. 36. 37© 2013 Steelwedge Software, Inc. Confidential.
  37. 37. 38© 2013 Steelwedge Software, Inc. Confidential. Accelerate S&OP Adoption and Business Value Time L1 L2 L3 L4 Q1 Q2 Q3 Q4 Value Accelerated Time to Value Step Change Maturity & Performance Avoid Process Failure
  38. 38. 39© 2013 Steelwedge Software, Inc. Confidential. • Technology is a key enabler across --and between-- all 6 dimensions of S&OP maturity • Three examples: • Trading Partner collaboration – Technology enables Agility and Scale • Organization – Technology enables Consolidation and Reconciliation • Physical flow – technology enables complex demand-supply Network Modeling Summary
  39. 39. 40© 2013 Steelwedge Software, Inc. Confidential.

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