Our offering for S&OPin a
SAAS Environment
SBI ConsultingWho are we?
• SBI Consulting is a dynamic, close-knit team of SAS® Business Intelligence experts.
• We offer our customers :
• Solutions,• forecast, demand planning and Sales & Operations planning
using SAS Software such as: Enterprise guide and Forecast Studio
• Customer Intelligence using Data Mining, Marketing Automation and Optimization
• High-quality services in Business Intelligence
• SBI Consulting is part of the Cronos Groep 15/04/20232
Silver Partner
SBI ConsultingWhat makes us Different
• SBI = Commitment
• If you engage with SBI, you get a team, not individuals
• We get things done no matter what.
• We offer Solutions.
• We work together with the customer and are proactively looking to add value.
• Our are above market standard
15/04/20233
Competences
Price
Forecasting and S&OP planning in a SAAS -
Environmentfor mid-sized companies
Pre-S&OP
S&OP is about the processS&OP Process Management
S&OP Preparation
Executive S&OP meeting
Plan communication
& execution
• To stakeholders
• To operational planning systems
• Demand
• Supply chain
• Finance
• R&D
• What-if scenarios
• Value-driven
• Integrated
• Decision-making
• One number plan
• Align with strategy
SBI - Values
Pragmatic approach Investment must be reasonable for the
customer Short time pay-back Easy Small Stepped approach Scalable solutions Flexible solutions Professional support
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The Resource Planning Model
Strategic and Business Planning used as drivers of the process. Sales and Operations Planning acts as an essential linkage, tying the Strategic and Business Plans together with the Master Scheduling function.
In companies without S&OP, there is frequently disconnect between the Business Plan and the Master Schedule.
Strategic Planning
Business Planning
VOLUMESALES &
OPERATIONS PLANNING
Operations Plan
Sales Plan
MIXMASTER
SCHEDULING
Detailed Planning and Execution
Systems
FOR
EC
ASTIN
G A
ND
DEM
AN
D
MA
NA
GEM
EN
T
CA
PAC
ITY P
LAN
NIN
G
Source: T.F. Wallace
Monthly Sales & Operations Planning Process
Step 1Run
Forecast Reports
Step 2Demand Planning
Phase
Step 3Supply
Planning Phase
Step 4Pre-SOP Meeting
Step 5Exec SOP Meeting
End of Month
Statistical Forecasts
Management Forecasts
Capacity Constraints
Recommendations and agendafor Executive SOP
DecisionsAuthorized GamePlan
Source: T.F. Wallace
The role of Demand Planning
Better processes yield better results and forecasting is no exception; better forecasting processes will yield better forecasts.
Forecasting: Inputs, Process, Outputs
Current Customers
New CustomersCompetition
EconomyNew Products
PricingPromotions
Management DirectiveHistoryOther
INPUTS
FORECASTS THAT:
Are Reasoned
Are Realistic
Are Reviewed Frequently
Represent the Total Demand
OUTPUTS
PROCESS
Source: T.F. Wallace
Class ‘A’ S&OP Cross-Functional Integration
The Business Entity
Integrated Business Management
Marketing
Sales
Demand
Source: Oliver Wight
Mfg.
Materials
Logistics
Purchasing
Distribution
SupplyProduct
Development
Portfolio Manageme
nt
Promotional Activity
Value Engineerin
g
Product Managemen
t
Financial Planning
Accounting
Finance
Quality
HR
Administration
Customer Service
Support
SupplyData
CustomerData
MarketData
Effective S&OP MUST have all components linked.
FinancialPlanning
MS
ResourceCapacityPlanning
OperationsMeeting
BusinessStrategy
DRP
StatisticalForecast
MarketData
ConsensusProcessField
SalesFcst
MarketingForecast
BusinessPlanning
SupplyChain
OneNumberForecast
History
Overall Reasons Executive Buy-in Any Time, Anywhere Access S&OP Ecosystem Connectivity Predictive Analytics
For Small & Midsized companies No hardware investment No IT Technical issues Quick deployment
Why SAAS
Key pressures to improve sales and operations planning
Improve top line revenue
Reduce supply chain operating costs
Management of increasing demand volatility
Customer mandates for faster, accurate and unique fulfillment
Need to utilize manufacturing assets with maximum efficiency
0 10 20 30 40 50 60
45
56
45
31
35
59
53
49
40
26
20102009
Source : Aberdeen Group, July 2010
Strategic actions taken by Best In Class Companies
Source : Aberdeen Group, July 2010
Manage demand forecasts within the S&OP plan
Integrating the financial planning and budgeting process with the S&OP process
Manage supply constraints with S&OP plan
Trying to reduce inventory to free up working capital
Provide executive visibility to the S&OP process
0 10 20 30 40 50 60 70 80
77
54
47
19
39
67
55
46
29
28
68
53
40
38
33
BICAverageLaggard
Technology adoption with respect to S&OP related areas
Executive reporting/dashboards
Inventory planning
Demand Planning
Supply Planning
0 10 20 30 40 50 60
19
26
30
26
24
32
33
28
33
51
53
58
Best in ClassAveragelaggard
Source : Aberdeen Group, July 2010
S&OP technology adoption in Mid-size and Large respondents
Executive reporting/dashboards
Inventory planning
Supply Planning
Demand Planning
0 5 10 15 20 25 30 35 40 45 50
22
29
30
32
32
45
47
49
Large repondentsMid-size Respondents
Source : Aberdeen Group, July 2010
Improved statistical forecast accuracy at all levels in the business hierarchy (e.g., Geo, Market, Channel, Brand, SKU, Customer)
Demand Sensing, Shaping and Translation capabilities (short-, medium-, and long-range)
Enterprise Executive Supply Chain Intelligence portal/dashboard view of business to monitor, track, and report with alerts for KPI’s
Advanced Demand Planning Workbench for collaborative/consensus forecasting
Data integration capabilities to access all the necessary data
Forecasting Advantages
18
S&OP Results AchievedImprovements can be achieved in each of the following key metrics
Forecast Performance (WMAPE) Forecast Bias Service Levels Average Inventory Material Losses Revenue Drains
Roadmap To World Class Forecasting Accuracy, Januray 25, 2009Stephen Crane, Page 19
WHY FORECAST?
The forecast drives supply planning, production planning, inventory planning, raw material planning, and financial forecasting
Companies that are best at demand forecasting average;
– 15% less inventory
– 17% higher perfect order fulfillment
– 35% shorter cash-to-cash cycle times
– 1/10 the stockouts of their peers
1% improvement in forecast accuracy can yield 2% improvement in perfect order fulfillment
3% increase in forecast accuracy increases profit margin 2%Source: AMR Research 2008
Advantages
FORECAST ACCURACY IMPROVEMENT
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
40
50
60
70
80
90
100
% F
ore
cast
Acc
ura
cy
Process, People,Statistical Forecasting
Exception AnalysisForecast Adjustments
Forecast SegmentationData Aggregation
World Class
+ 6%
+ 15%
+ 7%
INVENTORY LEVEL VS. FORECAST ACCURACY
Source: Aberdeen Group 2008
20% 30% 40% 50% 60% 70% 80% 90% 100%0
20
40
60
80
100
120
Forecast Accuracy at SKU Location
Inv
en
tory
Da
ys
of
Sa
le
55
60
65
70
75
80
85
Oct
-04
Nov
-04
Dec
-04
Jan-
05
Feb-
05
Mar
-05
Apr
-05
May
-05
Jun-
05
Jul-0
5
Aug
-05
Sep-
05
Oct
-05
27
30
33
36
39
42
45
Demand Forecast Accuracy (%)
Inventory Days of Supply
Target
Target
Forecast Accuracy vs Inventory DOS
20% Improvement
50
60
70
80
90
100
Pro
duct
ion P
lan A
dher
ence
(%)
38% Improvement
2009 2012
PRODUCTION PLAN ADHERENCE BY SUPPLY PLANNING ACCURACY
30
40
50
60
70
80
90
100
Direct
Pro
fit Acc
ura
cy
(%)
21% Improvement
2009 2012
FINANCIAL FORECAST ACCURACY
Statistical Modeling & Forecasting
Events
SAS® Demand-Driven Forecasting
Large scale automatic hierarchical modeling & forecasting
Flexible hierarchy across hundreds of thousands of data series
Ability to assign multiple models across hierarchy
Unlimited model repository
Including time series, ARIMA, Dynamic Regression, ARIMAX, UCM & customer algorithm
Statistically model events
Determine sales lifts associated with promotions, special marketing events, and other irregular activities
Consensus Forecasting Templates/Reports
w/workflow
SAS® Demand-Driven Forecasting
Demand Planning Workbench
Import & consolidate internal/external customer forecasts to determine gaps to gain consensus for S&OP Planning
Centralized, collaborative templates that simplify the enterprise-wide forecasting process
SAS® Demand-Driven Forecasting
Data Integration Flexible and reliable solution for meeting their basic data integration needs Import & consolidate
internal/external demand history, customer information, and external causal factors, like economic data using built in ETL capabilities.
Synchronize data, correct it for outliers automatically, and send results back to original data repositories for downstream planning purposes.
SAS can address all product segments
Value to
Company
High valueLow
Forecastability
High valueHigh Forecastability
Low valueLow Forecastability
Low valueHigh Forecastability
Evolutionary: Product line extensions or Short Life Cycle Productso Some surrogate or like
product history available
Revolutionaryo No available
surrogates or like product history available
High priority products
o Strong trend o Seasonal
fluctuations o Possible cycles o Sales promotions o National marketing
eventso Advertising driven
o Highly competitive
Low priority - regional specialty products
o Some trend o Seasonal
fluctuations o Irregular demando Local targeted
marketing events
Low priority products
o Strong trend o Highly seasonal o Possibly cycles
o Minor sales
promotions
Growth brands
New Products
Niche brands
Harvest brands
Demand
Shaping
Exponential
Smoothing
Intermitte
nt
Demand
Data Mining
Key Differentiators Supply Chain Intelligence Dashboard Award winning analytical forecasting engine “What If” simulation capabilities Consensus Forecasting Workflow Statistical generated “weighted” consensus Sophisticated event modeling (e.g., a sales promotion or policy
change) using multiple methods: ramp up, ramp down, pulse, and level shift)
Highly scalable Add Ins:
Financial Budgeting & Planning Inventory Optimization New Product Forecasting Microsoft Office integration
Integration with SAP APO
SAS® Demand-Driven Forecasting
SAS is THE Industry Leader in ForecastingMore than 34 years and more than 6500 SAS® Forecasting customers
Minimal Cost for Maximal Functionality Always Available from Everywhere Scalable as you grow No Investment in Hard & Software No maintenance anymore
SAAS EnvironmentOur Hosting Partner
Some Referencesof ARXUS
SAS Software No installation needed No continuous updates No backup needed No problems with security No technical personnel needed
Consulting No additional planners needed Quality of our forecasting team
SAAS EnvironmentOur Services
All this at a fairly low priceWhat are you waiting for ?