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A single tool? An enterprise strategy?
Eager to reap the tangible benefits of S&OP, many are turning to S&OP technologies to bridge the planning to execution gap & enable automation. However, 87% are struggling with integrating business planning with supply chain technologies.
During the session we will be discussing:
• How to define your IT needs to support your S&OP Process for success
• Technology Characteristics & Requirements needed to support each maturity phase
• Building a coherent roadmap & IT strategy to support this change
• A holistic view of implementation challenges, change management & achieving results along the way
Is buying & implementing a tool the answer?
Join us for this S&OP Leadership Exchange for a discussion of technology strategies to support each step along the maturity journey
Check out this webinar on-demand at http://www.plan4demand.com/Video-SOP-Technology-A-Tool-or-a-Strategy
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S&OP Leadership Exchange: S&OP Technology - A tool? or a Strategy?
1. Page1
S&OP LEADERSHIP EXCHANGE PRESENTS:
The web event will begin momentarily
with your host:
September 12th, 2012 plan4demand
2. Page 2
Goals for the session
S&OP Maturity Evolution
The Role of enabling technology in supporting a robust S&OP process
Technology Strategy required to support a maturing business model
Case Study: Building a Roadmap
The Bottom Line
Q&A/Closing
3. Page 3
Understanding the role that Enabling technology plays in supporting and
driving the evolution of your Sales & Operations Planning Process.
Gain some insight into how what technology characteristics and capabilities
you may need at different points along your maturity journey
Outline what is required to develop a coherent roadmap that brings
together the changing goals and focus of your S&OP process, with your IT
strategy.
A holistic view of implementation challenges, change management and
achieving results at each step in the process
4. Page 4
Recent Supply Chain Insight Research indicates:
90% of supply chains are grappling with rising costs and supply volatility
87% of companies are finding it difficult to bring together business planning and
supply chain planning technologies
Meanwhile:
The top 4 Supply Chain Planning Technology companies have introduced, or re-
introduced S&OP Toolsets & Capabilities in the past 18 months in an attempt to close
this gap
Few companies have embraced these technology enhancements as a way to move
their S&OP process forward.
Why?
5. 5
Used with Permission – Supply Chain Insights LLC
6. Page 6
Get the process right before investing in technology
Vanilla – don’t change the technology, change the business
Detail, Detail, Detail – The more granular the plan, the better.
“Best in class” – Driven by the Vanilla assumption above.
7. 7
APS Scenario Demand Translation
modeling tools – Supply Trade Offs
Inventory Models Financial Modeling
Sense & Shape Demand
Constraint Based Volume Channel & Market and Supply Side Market
Planning Data Modeling conditions/opportunities
Demand Shaping
Used with Permission – Supply Chain Insights LLC
8. Page 8
Select your answers on the right side of your screen
Which Stage is your Organization at?
Stage 1: Manufacturing Driven
Stage 2: Sales Driven
Stage 3: Business Planning Driven
Stage 4: Demand Driven
Stage 5: Market Driven
Which Level of Technology are you at?
Stage 1: Constraint Based Volume Planning
Stage 2: APS Tools & Inventory Modeling
Stage 3: Demand Translation, Supply Trade Off’s, & Financial Modeling
Stage 4: Demand Driven Channel & Market Data Modeling, Demand Shaping
Stage 5: Sense & Shape Demand and Supply Side models based on conditions & opportunities
9. Page 9
Understand your maturity stages and the stage gates involved in moving
from one to the next
The S&OP Plan characteristics are critical, but you can not leave out some
of the more basic building blocks:
Communicating the Plan
Data Quality & Availability
Making Decisions: Understanding the barriers that exist from a decision making and
data perspective between different functions and domains in the business
Marketing makes decisions based on Brand/Dollars
Sales trade offs and investments driven by Customer/Dollars
Supply can only make or provide Units at a Location
Finance must bring all of these together to express Risks & Opportunities in Dollars
Action & Accountability: How do we manage one of the most critical elements of a
high performance S&OP process?
A complete Technology Strategy focuses not only on the Plan and Plan
Transport – but includes a vision for how these different “solves” and data
views of the world come together.
10. Page 10
Sales & Market Driven Food & Beverage Company that distributes its
products (exclusive sourcing private label) to wholesalers.
Wholesalers provide retailers with product.
Consumers buy product exclusively from retailers of all types;
Grocers, C-Store, Club, & Food Service/On Premise
ERP System in place
Multiple BI/Reporting tools
Limited APS tools (Demand & Fulfillment only)
11. 11
Manufacturing Driven Sales Driven Business Demand Driven Market Driven
Planning Driven
Phasing Phase One Phase Two Phase Three TBD
Year One Year Two Year Two
Key Demand & Supply Balancing Financially Demand Sensing Supply Side
Objectives Inventory Visibility (Supplier, DoH, Optimized Plan & Shaping Innovation
Wholesaler DoH Visibility, Retailer) Inventory Integration of Cost to Produce
Basic Risk & Opportunity Management Optimized Portfolio Visibility
NPI Alignment Changes Cost to Serve
Visibility
Technology ERP Data for Sales History Additional Workflow Enhanced
Planning Syndicated Data for Wholesaler Syndicated Demand Sensing Financial
Information Data for Retail Tools Analysis
BI for Metrics & Financial Tie in Information External Collab External
Demand& Fulfillment Planning for forecast Inventory – Demand Side Collaboration –
& safety stock alignment Optimization Trade & Supply Side
Demand Collaboration Tools Financial Promotion
Email & Share Drives for process Modeling Management
management/action register SharePoint PLM Tools
Success Feasible Plan Optimized Plan NPI Launch Reduced Cost to
Criteria Improved Customer Service, Improved FCF, Efficiency Produce/Cost to
Reduced DoH Reduced System Reduced Trade Serve
Actionable Gap Closing Scenarios Wide DoH Spend
12. Page 12
Developing the Vision – Creating alignment on what our version of good looks like in
terms of each of these stages of maturity.
Create a Roadmap – What are the specific needs we have as an organization at each
steps along the way. What characteristics or Stage/Gate criteria do we have at each
step to measure success ?
Align Technology Needs – Each of these phases should have specific enabling
technology needs, does your roadmap have a technology layer to support each step
along the way?
Set Expectations – This roadmap should have alignment up and down the organization,
too many companies focus on the S&OP process, without outlining the overall technology
and capital investment implications to get there in the long run. This should dovetail with
your overall IT roadmap or capabilities strategy
13. Page 13
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