Bossenbroek - Mercury Marine s Global SIOP Journey

8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey

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2010 Supply Chain Council. ALL RIGHTS RESERVED. | < filename > | Slide 1 | 18 May 2011

Sales, Inventory, & OperationsPlanning

Mercury Marines Global SIOP Journey


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2011 by Mercury Marine. ALL RIGHTS RESERVED.

Barb Bossenbroek

Director Supply Chain Process Performance


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Agenda

About Mercury Marine SIOP Journey Origins Global Supply Chain Assessment Global SIOP Expansion SIOP Journey Development


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Mercury Brands and Products


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Agenda

About Mercury Marine

SIOP Journey Origins Global Supply Chain Assessment Global SIOP Expansion SIOP Journey Development


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SIOP Journey Origins circa 2006

Outboard Product Line

Limited global statistical forecasts and marketing intelligence Lack of process transparency Functional silos that limited execution to a shared plan Demand Planner role existed only in the US Poor customer fill rates, low inventory turns

The SIOP Journey Begins The Supply Chain Management Team

- Coach Bob Seidel VP Global Supply Chain- Professor Ranga Katti Director SC Intelligence

- Conductor Barb Bossenbroek Director SC Process Performance The Executive Sponsor

- Chief Mark Schwabero - President


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SIOP Journey Origins Building the Foundation

SKU Rationalization

SKU Classification

Demand Planning Process

Product Family Rationalization

Volume Scheduling Guidelines

Supply Planning Process

Process Transparency

Guiding Principles

KPIs

US Outboard Results after 1st year: - Forecast Accuracy up 20 points - Fill Rate up 25 points - Inventory down 40%

Continuous Improvement


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Agenda




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Forecast To Plan Assessment

People Process

Technology


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Future State Demand Planning ProcessBy Region by Product Line

Top-down Plan

(Macro-economic info)

UnconstrainedConsensusDemand Plan

Statistical Forecasting

Financial Plan

Historical Sales,Historical Events

MarketIntelligence

SKU Classification

CustomerCollaboration

SKU Rationalization

Guiding Principle: Utilize multiple, independent views of demand in the development of unconstrained demand plans

Bottom Up, Rearview Planning

Top Down, Forward Looking Planning

Sales & MarketingPlans and Input

Horizon Based Business Planning Gap Analysis


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Future State Supply Planning Process

Global Netting (DRP)

DeploymentPlanning

SKU MixPlanning

RCCP / Supply Planning

Operational Netting(DRP)

Global UnconstrainedDemand Plans

Monthly Processacross Product Lines

Daily / Weekly Processby Product Line

Incorporates OneHolistic Model that

Considers All DemandStreams and Supply

Resources

Future State leverages an integrated solution to optimize across global demand and supply capabilities


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Future State Global SIOP Process

SupplyPlanning

Across all Plants& Product Lines

GlobalDemandPlanning

by Product Line

BME

US

BAPG

LA

CAN

BME

US

BAPG

LA

CAN

Demand Planning

Demand Planning

Demand Planning

Demand Planning

Demand Planning

Consensus

Exec SIOP

Forecasting COE

Regional Mkt Intelligence

Weeks-3 -1 +1

Finance, New Products

Month End

Synchronized Demand / Supply planning drives focused execution


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FTP Assessment

People Process

Technology


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Organizational Effort Shift for Demand Planning

Illustrates the shift that needs to occur by proactively managing the Demand Plan rather than reacting to backorder and inventory needs

Reactive Proactive

Percent of Time Spent

25

5520

4060

5

Today Future

Manual ReplenishmentOrdering

Develop StatisticalForecast

Regional MarketIntelligence


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Establishing key roles and integrated linkages was a critical success factor

Demand Planners(Regional by Product Line)

Supply Chain Planners

(Hybrid)

Statistical Forecast COE(Central)

Global SIOP Leaders(Central by Product Line)

Key SIOP Organizational Integration


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Agenda




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Global SIOP Process Steps

DemandPlanning

Demand PlanFinalization

Supply Plan

By Source

Pre-SIOP

Consensus

Exec SIOP

Review

Weeks-3 -1 +1Month End

FinalForecast

Submission

BME

Weeks

BAPG

Canada

LA

US

DemandPlanning


DemandPlanning

Demand Plan

Finalization

DemandPlanning


DemandPlanning Demand PlanFinalization

C on s ol i d a t i on

Each Region is a Key Participant in Global Planning

FORECA

ST

CO

E


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Global SIOP Alignment

Outboard - 2006

BAPG - 2007

BMEMEA - 2008 MerCruiser - 2008

P&A - 2009

Latin America - 2010

Canada - 2010

Executive Leadership, Global Calendar of Events,Regional Demand Planners, Common Language, Metrics


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Agenda




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SIOP Journey Development

Our SIOP Journey Continues!

Process Enhancement FocusCustomer and supplier collaborationDemand sensingSynchronized opportunity development

Organizational Enhancement Focus

Expanded oversight teamEnhanced education programsExpanded global demand planner networking


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T hank You!

www.mercurymarine.com

Documents

Bossenbroek - Mercury Marine s Global SIOP Journey