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.

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. S&OP Health Check
How is Your Pulse?

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
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
Copyright SCE Limited 20135

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. 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. 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. 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. Copyright SCE Limited 201310
S&OP Maturity

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. 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. 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. 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. 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. 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. 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. 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. 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. Technology
Poll Question #3
_ Have appropriate technology performance measures been
identified?
Copyright SCE Limited 201320

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. Detailed Assessment
Copyright SCE Limited 201322

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

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

26. 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

27. 27© 2013 Steelwedge Software, Inc. Confidential.October 22, 2013
Technology: Making S&OP Feel Even Better

28. 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.

29. 29© 2013 Steelwedge Software, Inc. Confidential.
Trading Partner Collaboration
Technology
Trading
Partner
Collaboration
Organization
Physical
Flow
People
Process

30. 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

31. 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)

32. 32© 2013 Steelwedge Software, Inc. Confidential.
Organization
Technology
Trading
Partner
Collaboration
Organization
Physical
Flow
People
Process

33. 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

34. 34© 2013 Steelwedge Software, Inc. Confidential.
Physical Flow
Technology
Trading
Partner
Collaboration
Organization
Physical
Flow
People
Process

35. 35© 2013 Steelwedge Software, Inc. Confidential.
Physical Flow Determines Approach
Volatility
Impact
Statistical
Forecast
Collab &
Exception
Stocking Strategy: Min/Max,
Safety Stock, etc

36. 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

37. 37© 2013 Steelwedge Software, Inc. Confidential.

38. 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

39. 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

40. 40© 2013 Steelwedge Software, Inc. Confidential.