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Key area Key Sub-set Key Question Reacting Anticipating Collaborating Orchestrating

1.1 Process GoalWhat istheGoal ofthe processand howarethe

rolesdivided? (RACI)

The processgoal isto developan operationalplanto cover supply to

fulfillcustomer ordersand forecast, whiltsminimizing supply

disruptionsandoptimizing (finishedgoods)inventory levels.

Rolesand responsibilities(RAC)in the !"#$ processare unclear and

there islimitedalignment

The goalof the processis tobalance !upply and%emand basedon

the best volume forecast (isovalue).#ptimizing both component

and(semi&) finishedinventory levels.

Rolesand Responsibilitiesofthe involvedfunctionsare clear and

eachfunction ownstheir part ofthe process.

The goalis toalign cross&functionalprocessesin support ofthe

operating strategy to ma'imize opportunity, customer satisfaction

whilst mitigating costs, by identifying rissandopportunities, value

andprofitabilty.

Rolesand responsibilitiesare clear at alllevelsof the organizationand

there isseamless collaborationacrossthe functionsandteams.

The goalisto have the commercialplan built onnd&to&nd(and

cross&functionally aligned)insight ofrissand opportunties.The

businessanticipateson andplans for *ser and!hopper demand.

Capacity isbased onthese insightsandare adaptedaspart ofa

continuousprocessof maing trade&offsbetween profitable growth

and utilization

1.2 Rewar Organi!ationHowis thenecessarybehavior beeninfluenced by 

measures

+oclear measuresof successare in place neither individually nor as

ateam

ndividualmeasuresare inplace andpeople-sperformance is

measuredagainst these

!haredmeasures and$s are alignedwith the !"#$ process,

however the individualperformance system ($$/) ismeasured

against individualtargets.

!haredtargets, basedon the businessmodel, are inplace whichare

part ofour annualappraisal. These are continuously reviewedas

part ofthe !"#$ process

1." S#OP$etricsWhat arethe !I"sdefined and tar#et beenset for 

thethe $%&!process? 

very functionand organizationwithinthe !"#$ processhasuni0ue

$-swhich are be alignedwith eachother.+o common!"#$ metrics

are inplace.

&see 0uestionnaire for e'amples

Ancommonset of$-sfor the !"#$ processhasbeenagreedwith

allparticipating functions These are focusedon (finishedgoods)

inventory management !ales#rganization!ervice leveland (!*)

1orecast accuracy

$sand targetsare cross&functionally aligned, aswell asthe bonusses

that are connectedto these targets.Thisaligment drivesa

collaborative approachtowardsshared goals.

The targetsare differentiatedbased onthe businessmodel

specificsand ranedaccording importance.Alignment, ownership

andreward against these targetsis basedon 2nd&to&nd2 defined

businessprocesses

1.% S#OPResults'hereis clearand wideunderstandin# ofthe $%&! 

 process valueadd and results

t isunclear tothe organizationwhat the resultsof the !"#$ process

are

Resultsof the !"#$ processare visible tothe ('&functional)

organiationas3 4etter 1orecast, 5ower inventories, higher customer

The resultsofthe !"#$ processcontribute toimproveed new product

introduction(+$), higher revenue andincreased profitability.

Alignment ofthe organizationand supply chainthroughimporved

!"#$ helpsthe businessto leverage the opportunities

2.1 S#OP$eetings

What content isdiscussed inthe $%&!meetin#s

whoare theparticipantsand howare decisions

beenmade

5ong andlaboriousmeetingswhere ey decisionmaers are often

absent andthe focusis onvolume for the ne't month

!hort term (upto ne't 6 months)focussed meetingsgeared at

ensuring assetsare alignedto meet the (ordered)volume and

value.

!hort, crispand focussedmeetings withclear agenda-sin which

volume andvalue upto 78 monthsout are assessedtogether withthe

rissand opportunities, basedon maret andcustomer insights.

!trategic decisionsare made andparticipationof the re0uiredlevelis

high.

The !"#$ meetingsreview the fullprofitability implicationsfrom

the value andvolume demandplannd&to&ne, basedon upto 79

monthshorizonand mae conscioustrade offsfrom commercial

organizationstosupply centers.

* !rocessAli#nment 'owhat e+tend arethe involved functionsali#ned

inthe decision,ma-in#? 

!"#$ ise'ecutedon factory and:or commercial(country) level.

%ecisionsare alsomade onthislevel.

!"#$ isdone across the entire supply chain3 from commercial

organisationsto!upply (;4*:R4*)units witha dominant focuson

achieving budget:A#$ for eachorganization individually

!"#$ ise'ecuted onthe levelthat isoptimal (regionalor global)for

the businessacrossc ommercialorganisationsand supply unitswith

clear focusonintegralprofitability andcutomer service.Trade&offs are

made suchthat the resultsfor total company are optimized.

!"#$ isoptimizedacrossnd&to&nd value chains.%ifferentation

taesplace according tobusiness&:operating model.1ocus on

creating value andprofit inentire chain

.inancial Ali#nment/Howare theoperational viewand financial viewbe

ali#ned? 

!"#$&planand Rolling 1orecats(R#1#) are separate plansand

processesto establishthese not aligned

!"#$ isthe basis for the rolling forecast (R#1#), however

ad6 :> ? C on si st en t 7 8 m on th s ro ll in g f or ec as t

*1 2 e ci si on 3 a- in # H ow a re d ec is io ns b ee n ma de i n th e $% &! p ro ce ss ?  

%ecisionsin meetingsare made inan unbalancedway3 2The most

vocalperson inthe room2.The !upply team decideson the supply

volume per !* toenter inthe system andthe decisionmaing

dependson2how we are performing2

The commercialorganization2owns2 the forecast:demandplan in

volume andvalue the operating unitsdecide uponthe production

andinforms the commercialorganisation

4asedon the demandplan, across&functionalteam maesthe

decisionto correct the businessplanwith clear corrective actions

towardsthe $s.

Allfunctions are e0ualpartnersin reaching consensusaround

actionsto improve salesandprofit performance basedon the latest

!"#$ forecast, over aminimum of78 months out ,including if 

necessary capacity aduality

/easure of the 0uality ofthe Commercial!toc on

handin the $hilipswarehouses.This toindicate the

0uality ofthe inventory and highlight potential

obsolescence ris ('cess"Aging stoc)

JG 6G to JG *nder 6G 7G

nventory %1!

Tocompare Total!toc withfuture %emand(on

Co!)and translate it into%ays. Tobe comparedwith

capability of!upply Chainon4;:Category 5evel.

T4A &/E;

nventory Turns Bow often the inventory is sold:used. T4A & /E; toK

5ead&time @e want to measure our turnaround speed

Consistency @e a chi eve th i s l evel o fp erforman ce HIG o ft h e t i me @e a chi eve th i s l evel o fp erforman ce HIG o ft h e t i me @e a chi eve th i s l evel o fp erforman ce HIG o ft h e t i me @e achieve thislevel ofperformance HIG of the time

$etrics

/easure of the store:product availability against an

agreedlisting

A$R&Gartner$aturity Gri

1.Goal

$aturity 4e*els

Peror+ance le*els that lea to e)cellence 0ote5 nee to be custo+ise per business3

6or'ingCapital

$anage+ent

*.unctional

ali#nment 

".Process

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