While sales and operations planning (S&OP) has been around for 30 years, there remains significant opportunity for companies to fully benefit from it. Many manufacturers “get stuck” at the supply/demand balancing level and never progress into Integrated Business Planning (IBP). Why? It’s because the vast majority of companies still use Excel and manual efforts to drive their S&OP processes. While no company will ever completely abandon spreadsheets, those who attempt to achieve S&OP maturity with only disconnected processes and solutions will never drive truly collaborative, scalable planning. The alternative lies in selecting the right technology to power S&OP to the next level. In this webinar, Lora Cecere, founder of Supply Chain Insights, will provide direction on: How the right S&OP technology can render big business benefits How S&OP technologies have changed over time How to select the S&OP solution that best fits your requirements How to avoid the pitfalls of implementation Join this session to understand how technologies have changed and how you can select the solution that best fits your requirements. Who should attend: S&OP and Supply Chain Leadership Demand/Forecast Planners Business Planners Heads of IT Anyone involved in or leading an S&OP RFP project

1. 1© 2014 Steelwedge Software, Inc. Confidential.
Single Line of Sight: Plan, Perform, Profit
Steelwedge Introduction
The How and the Why of
Making a Smart S&OP Technology Selection

2. How to Select S&OP Technology

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Supply Chain Insights

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Unprecedented Commodity Volatility

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Mature Sales and Operations Planning

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Benefits Received
Source: Supply Chain Insights, 2012
What benefits have you received from your work with S&OP processes?
59%
57%
50%
42%
38%
36%
34%
32%
32%
30%
Increasing revenue
Improving forecast accuracy
Reduction of inventory
Improving asset utilization
Determining outsourced manufacturing
Determining procurement requirements
Improving new product launch
Transportation and warehouse management
Capital planning and asset management
Improvements in the perfect order
▲ 2%
▲ 5-7%
▲ 3-7%
▲ 3-6%
▲ 3-6%
▼ 10-15%
▼ 2-8%

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Case Study

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Inventory Turns vs.
Operating Margin (2000-2012)

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Why it Matters
Company Average Operating
Margin
Average Inventory
Turns
Resiliency Ranking
BASF .10 5.3 .55
DuPont .10 4.0 .67
Company Average Operating
Margin
Average Inventory
Turns
Resiliency Ranking
Samsung .11 8.3 .59
LG Electronics .04 6.7 3.47
Company Average Operating
Margin
Average Inventory
Turns
Resiliency Ranking
Procter & Gamble .18 5.7 .52
Unilever .13 5.6 .74

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Supply Chain Insights

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Heterogeneous Environment

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Large Gaps in Current Technologies

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Growing use of Cloud and BPO

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Supply Chain Insights

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• What are the best S&OP technologies?
• What is the best duration for S&OP?
• What is the right frequency for the S&OP process?
Questions Asked

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Supply Chain Insights

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What are the best S&OP technologies?
• Start with a technology that can deliver a “feasible plan”.
Model constraints.
• Test scenarios and ensure that the software can model
your environment.
• Ensure that you have sufficient what-if analysis.
Questions Asked

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Gap in What-if Architectures

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• What are the best S&OP technologies?
• What is the best duration for S&OP?
• What makes the most sense for your business? S&OP is
a tactical process. Usually, it is the time horizon for
making asset decisions.
• What is the right frequency for the S&OP process?
Questions Asked

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A Part of a Planning Architecture
Tactical
Planning
Operational
Planning
Executional
Planning

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• What are the best S&OP technologies?
• What is the best duration for S&OP?
• What is the right frequency for the S&OP process?
• S&OP is a tactical process that is monthly for 90% of
companies. Many confuse S&OP planning with S&OP
execution.
Questions Asked

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S&OP Process
Plan Execution

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Collect sales and market
Managing Cycles
Week 1
Develop a demand plan
Demand consensus refinement
Constrained pan by supply
What if by supply for trade-offs
Develop a demand plan
Demand consensus refinement
What if for demand
Constrained plan by supply
What if by supply for trade-offs
Executive plan review
Publish the constrained plan
Measure and communicate
the plan
Week 2 Week 3 Week 4 Week A Week B Week C
Operational Review 1
Operational Review 2
Operational Review 3
Operational Review 4
Collect sales and market
What if for demand
Executive plan review
Publish the constrained plan
Measure and communicate
the plan
Week D

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Start with the questions of:
1. What is the goal?
2. What should we measure?
3. What defines success?
Evolution

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S&OP Process Evolution
Manufacturing-
Driven
Deliver a Feasible
Plan for Operations
Match Demand
with Supply
Sales Driven
Match Demand
with Supply
Business-
planning Driven
Maximize
Profitability
Demand Driven
Maximize
Opportunity
Sense and
Shape
Demand
Market Driven
Maximize
Opportunity and
Mitigate Risk.
Orchestrate
Demand
Market to Market
Greater Benefit
• Growth
• Resilience
• Efficiency

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Technology Evolution

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Supply Chain Insights

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• Assess where you are and define the requirements
• When you engage with vendors be clear on how you will make a decision.
Role of:
• IT Policy
• Post-purchase Service and Support
• Scalability
• Cost
• Functionality
• Take your time. The best implementations are not the fastest. It is a journey
not a sprint.
Summary

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Questions?

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SCI Global Summit - September 2014

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Lora Cecere’s New Book – Fall 2014 Publication

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Agenda
• Steelwedge Introduction
• S&OP Technology Requirements
• Functional
• Planning Processes
• Solution Profile
• The S&OP Journey
• Information Request

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“ 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

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S&OP Success with Steelwedge
Demand
Planning,
SCM/APS
Systems
ERP, Financial,
& Transactional
Systems
SAP, Oracle, etc.
Industry
Data
Single Cross-Functional
Planning Environment
Interactive planning for:
• All S&OP Stakeholders
• Plan Review
• Overrides
• Assumptions
• Scenarios
• Consensus Process
• Pre-S&OP
• Executive S&OP
• Audit Trail
Systems Landscape
Product / Sub-Family
Customer
Revenue
Product / Family
Territory / Region
Revenue
Product / Family
Promotions
Revenue
Product / Family
Region
Units & Revenue
Product
Stock Locations
Units and Inventory
Family / Series
Territory / Region
Revenue, Margin & Cash
Family / Series / BU
Geo
Revenue, Margin & Cash
Product
Production Site
Units and Capacity
Family / Series / BU
Geo
Revenue, Margin & Cash
Family / Series / BU
Geo
Revenue, Margin & Cash
Planning TermsStakeholders
Account Managers
Sales Managers
Marketing
Demand Planners
Supply Planners
Production Planners
Finance
Executives
Customers
Suppliers
Cross-functional
Planning
Environment

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Managing the Translation between Functions
Sales, Marketing,
Product Management,
Demand Planning
Demand
Inventory, Production,
Procurement and
Allocations
Supply
Profit & Loss,
Balance Sheet
Finance
Executive
Dashboards
Executive

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Planning
Dashboard
Steelwedge Enterprise
Enabled Excel
Slice of view
(hierarchy)
Time series of
key figures
Planning data
for review and
updates
Planning Views Combine Planning, Analytics in Familiar UI
Capture institutional
knowledge /
assumptions

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ERP, Financial,
& Transactional
Systems
SAP, Oracle, etc.
Industry
Data
Systems Landscape
Cross-functional
Planning
Environment
S&OP
Technology
Stakeholders
Account Managers
Sales Managers
Marketing
Demand Planners
Supply Planners
Production Planners
Finance
Executives
Customers
Suppliers
Demand
Planning,
SCM/APS
Systems
Key Selection Criteria: Planning Processes
Planning Processes
Sales Revenue Planning
Statistical Forecasting
Consensus Demand
Management
Source, Inventory and
Master Planning
Rough Cut Capacity
Product Allocation
Key Material Planning
Procurement Planning
Rough Cut Financials
Executive S&OP
Trading Partner
Collaboration
Product / Sub-Family
Customer
Revenue
Product / Family
Territory / Region
Revenue
Product / Family
Promotions
Revenue
Product / Family
Region
Units & Revenue
Product
Stock Locations
Units and Inventory
Family / Series
Territory / Region
Revenue, Margin & Cash
Family / Series / BU
Geo
Revenue, Margin & Cash
Product
Production Site
Units and Capacity
Family / Series / BU
Geo
Revenue, Margin & Cash
Family / Series / BU
Geo
Revenue, Margin & Cash
Planning Terms

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ERP, Financial,
& Transactional
Systems
SAP, Oracle, etc.
Industry
Data
Systems Landscape
Cross-functional
Planning
Environment
S&OP
Technology
Stakeholders
Account Managers
Sales Managers
Marketing
Demand Planners
Supply Planners
Production Planners
Finance
Executives
Customers
Suppliers
Demand
Planning,
SCM/APS
Systems
Key Selection Criteria: Solution Profile
S&OP Solution Profile
Systems Required
Ease of Use
Time to Value
Flexibility
Proven Solution
Architecture
S&OP Experience
S&OP Focus
Product / Sub-Family
Customer
Revenue
Product / Family
Territory / Region
Revenue
Product / Family
Promotions
Revenue
Product / Family
Region
Units & Revenue
Product
Stock Locations
Units and Inventory
Family / Series
Territory / Region
Revenue, Margin & Cash
Family / Series / BU
Geo
Revenue, Margin & Cash
Product
Production Site
Units and Capacity
Family / Series / BU
Geo
Revenue, Margin & Cash
Family / Series / BU
Geo
Revenue, Margin & Cash
Planning Terms

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Steelwedge RFI Template

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Crawl – Walk – Run Approach
• Key to success is incremental value
• Crawl: plan ahead with end in site
• Walk: implement single solution
• Run: measure, improve, expand
• Sprint: align, integrate, monitor
• Start with quick win as phase 1 & foundation
• Expand the roll-out adding value as you go

42. 42© 2014 Steelwedge Software, Inc. Confidential.
Kaushal Dave
Product Marketing Manager
kdave@steelwedge.com
(213) 422-4341
Ed Lewis
VP, Product Marketing
elewis@steelwedge.com
(949) 588-1495