Webinar: The Three Cornerstones for Effective …Webinar: The Three Cornerstones for Effective Supply and Demand Planning with Richard Sharpe Lecturer, Georgia Tech Supply Chain &

Webinar: The Three Cornerstones for Effective Supply and Demand Planning

withRichard SharpeLecturer, Georgia Tech Supply Chain & Logistics InstituteCEO, Competitive Insights

andBryan GarlandConsultant, OM Partners

http://www.scl.gatech.edu/wcsop

http://www.scl.gatech.edu/ibp

http://www.scl.gatech.edu/scrm

Georgia Tech Supply Chain & Logistics InstituteThe World Leader in Education, Innovation and Leadership

Education

Research

Industry Collaboration

Global Outreach

www.scl.gatech.edu

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Warehousing& Distribution

Global Transportation

China LogisticsPredictive Analytics and Real Time Optimization

ResourceScheduling

Supply ChainStrategy

Health and HumanitarianLogistics

Trade & Logistics Innovation Centers

Supply ChainTechnology

Singapore Panama Atlanta Mexico Costa Rica

ManufacturingLogisticsIntegrated Food Chains

Savannah

Georgia Tech Supply Chain & Logistics InstituteResearch & Innovation Centers

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Health and Humanitarian Logistics Series

Supply Chain Management Series

Distribution Operations Analysis and Design Series

Strategic Sourcing and Supply Management Series

Supply and Demand Planning Series

Lean Supply Chain Professional Series

Georgia Tech Supply Chain & Logistics InstituteProfessional Education

Cold Chain Management Series

Supply Chain Project Management

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Georgia Tech Supply Chain & Logistics InstituteSupply & Demand Planning (SDP) Series

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S&OP, Demand Mgmt. and CollaborationHow companies optimize the cycle

Bryan GarlandConsultant, OM Partners

Company perspective

Demand Management, Forecasting and S&OP project orientationAvoid those planning functions as islandsProject perspective from projects such as :

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How important is integration of DP – S&OP

Demand ManagementDemand PlanningCollaborationOrder Allocation & Promising

This results in ‘unconstrained’ demandUnconstrained demand is bound to be constrained by factorsConstraining process is S&OP throughOperations shapingDemand shaping

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Results of many studies …

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stage 2 anticipate

One number plan - sales and supply

Common data model

Central database

Analytics

Dashboards

Reality based capability planning

Native integration with operational planning

Response planning

Real-time ERP/SAP integration

5 Stage Gartner Model for S&OPf

stage 1 react stage 3 integrate

stage 5 orchestrate

End-to-end Supply chain modeling

Swaps

Financials

Promo planning

Cost based Optimization

KPI framework

Workflow management

Interaction & socialization

Network design

Demand sensing

What-if scenarios

Integration with CRM, CPM, BI, …

Mobile devices

Cloud solutions

stage 4 collaborate

Multi-enterprise visibility/collab.

Demand revenue planning

Profit driven optimization

Demand allocation

New Product introductions

Collaborative demand and supply planning

Gartner’s 5 stages of maturity

OMP Plus – on the 5 stages fast track

Demand Planning

IBP Balance between a Full Cycle & Agile Responses

S&OP Short term response

Fast Response Dashboards to verify

alternatives

Holistic SC visibilityShort Term

Holistic SC visibilityMid to Long Term

Flexibility in granularity

Heuristic based

Full optimization Partial Optimization

Scenario Comparison

Supply Planning

Production and Transport Scheduling

Heuristic based

Scenario Comparison

Daily or sub daily level

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Cases which will be explained during full session

Eastman Chemical CompanyS&OP integration with operational planning and reality based value

optimizationNovartis GSK S&OP cycle optimizationWhat-if simulations instantly available for comparison and KPI

maximizationFriesland Campina Dairy S&OP – Network Design cycleEnd-to-End visibility in a very volatile industry with push-pull optimization

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Hands-on during the sessions

After processes, influencers, team members are defined and assessed to be ready for the next stage

How technology can enable the growth to Stage 5Optimize your workflowRun what-ifs with demand and supply shapingFollow up on your financialsShare with the team, community, executive level

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Integrated Business PlanningGeneration and Protection of Profits

Richard SharpeInstructor, Georgia Tech Supply Chain & Logistics InstituteCEO, Competitive Insights, LLC

Atlanta – Chicago – Carson City

Integrated Business Planning

search multiple data sources to find what you need?

have occasional disagreements regarding specific operational facts?

question the validity of the data being used?

have operating strategies without specific actionable steps?

have different performance objectives used across the organization?

find it difficult to precisely measure the results of specific actions?

struggle to quickly measure operational results in order to adjust strategies?

Do you …

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Having to make timely decisions … from silos of different data

… that may be unverified

… from multiple sources

that can create more questions than actionable steps from fragmented and unconnected data

Suppliers Transportation Products Customers

ERPEnterpriseResourcePlanningSystem

TMSTransportationManagement

System

WMSWarehouse

ManagementSystem

POSPoint of

Sale System

Sales Operations Finance Marketing

Data continues to be disconnected due to: Acquisitions Adoptions of new technologies Legacy systems difficult to

replace

Today’s Realities:

Data Silos

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• Data driven decision support

• End to end visibility

• Integration of data

• Specific performance insights

• Actionable profit details

• Insights to reduce complexity

• Intelligent Customer and Product Segmentation

• Management of rapidly changing Customer needs

Based on arecent survey of

Top 50 GlobalSupply Chain

executives(January 2015)

Today’s Needs:

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Off Shore Manufacturing

Off Shore Manufacturing Warehouse

Customer D.C.s

International Suppliers

Domestic Supplier

Port

DomesticManufacturing

Customers

e-commerce

retail-stores

Inbound Inter-Facility Outbound


Strategic

Operational

Accurate and precise performance insights

increasing profit performance

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Integrated Business Planning (IBP) empowers cross-functional alignment that drives significant financial improvements.

IBP solutions accurately represent a holistic model of the operation

to link strategic and operational planning with financial planning.

IBP is focused on creating actionable strategies that

maximize the generation and protection of profits.

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End to end: all costs to serve

Integrated: profit is inclusive of all revenue and cost elements

Minimally Allocated: built from the bottom up from transactional data

Sustainable

Cross-functional

Tailored to each operation

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Why is it important? One size does not fit all

• Precise insight into the profit contribution

• Highlight the importance of each customer and product and identify specific opportunities

• Create actionable and targeted strategies

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IBP doesn’t replace S&OPbut is very complementary

S&OP focuses on executionIBP focuses on profit performance

IntegratedBusinessPlanning

Sales & Operations

Planning(S&OP)

PerformanceSummaries

& Alerts

Third Parties

Manufacturing

Suppliers

Customers

Channels

Products

Supply Chain

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Generation of Profits

Protectionof Profits

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Integrated Business Planning – Profit Generation

Identify Opportunities Monitor ResultsBaseline Performance

Establish a unified understanding of the key drivers of profit performance

through precise and specific performance insights

Developing cross-functional strategies to increase profit contributions using multiple

forms of IBP analytics

Measuring over time to identify new opportunities as well as performance

exceptions

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Richard SharpeInstructor, Georgia Tech Supply Chain & Logistics InstituteCEO, Competitive Insights, LLC

Supply Chain Risk ManagementProtection of Profits

Supply Chain Risk Management


Generation of Profits

Protectionof Profits

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Supply Chain Operations Are Being Extended By Changes In Manufacturing FootprintsWhile Companies Are Aggressively Positioning To Enter New Markets and Gain Market Share

Supply Chains Are Being Pulled At Both Ends


Replenishment

Customers

Off Shore Manufacturing

Market D.C.s

Customer D.C.s

Inbound Inter-Facility Outbound

International Suppliers

Domestic Suppliers

Ports

DomesticManufacturing I need . . .

I need . . .

I need . . .

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A study that examined over 800 instances of supply chain disruptions determined a significant impact on Customer and Shareholder Value:

It’s all about minimizing the negative impact of jeopardizing the ability to service Customer Orders

* Professors Vinod Singhal, Georgia Tech, and Kevin Hendricks, University of Western Ontario

Supply Chain Disruption Facts

Revenue ( 7%)

Cost of Goods ( 11%)

Inventory ( 14%)

Impact (3 years)

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Information Technology (IT)

Planning & Execution

General Financial


Core Operational Capability Planning & Execution

General Security Planning & Execution

Every Company Has Its Approach To This

Structure

Overall Business Continuity and Risk Planning

Sales & Marketing Planning & Execution

Supply Chain (Source-Make-Store-Deliver)


Operational Support (legal,

gov’t compliance, internal support) Risk


Extended Timeframe

ImpactShort Timeframe

Impact


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Identify Mitigate Measure

Identifying supply chain risksand prioritize byfinancial impact

Developing strategies to mitigate

supply chain risks andconduct cost-benefit analysis

Measuring the performance of

each strategy foreach targeted risk

Integrated Business Planning – Profit Protection

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Questions?

Richard Sharpe Bryan GarlandInstructor, Georgia Tech Supply Chain & Logistics Institute Consultant, OM PartnersCEO, Competitive Insights, LLC

To learn more about our offerings, pleasevisit www.scl.gatech.edu

GeorgiaTechSCL

Georgia Tech Supply Chain & Logistics Institute

@GTSCL

http://www.youtube.com/gtscl

http://www.scl.gatech.edu/wcsop

http://www.scl.gatech.edu/ibp

http://www.scl.gatech.edu/scrm

Documents

Webinar: The Three Cornerstones for Effective …Webinar: The Three Cornerstones for Effective Supply and Demand Planning with Richard Sharpe Lecturer, Georgia Tech Supply Chain &