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Steelwedge Agility Webinar Series Presenter: Peter Bolstorff, author of Supply Chain Excellence Successful supply chain planning is not just a function of ‘doing more’ leading practices. The best supply chain planning organizations have picked appropriate leading practices as dictated by the markets they serve and integrated them together with their chosen technology platform to achieve competitive advantage. Sales and operations planning (S&OP) is a foundational leading practice that cuts across all industries, according to Peter Bolstorff, an internationally recognized supply chain practitioner, speaker, educator, consultant and author. Actionable research from Mr. Bolstorff’s project experience suggests that in addition to S&OP, the best supply chain planning organizations have adopted seven principles: 1. Systematic management of ‘master data’ 2. Synchronized S&OP, tactical planning, and execution processes and horizons 3. Mature collaborative processes for both key customers and suppliers reconciling forecast, orders, and yearly volume 4. Data oriented understanding of the inputs to the forecast 5. Intense focus on ‘point-of-sale’ or ‘sell through’ data (versus sales orders and ‘sell in’) 6. Disciplined product life cycle management process 7. A continuous improvement approach to understanding consumer or user behavior Join Peter and Steelwedge for an interactive webinar featuring examples of these principles from some of the best demand-driven organizations.
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© 2012 Steelwedge Software, Inc. Confidential. 1
7 PrinciplesOf Highly Effective Sales & Operations Planning
August, 21 2012
Single Line of Sight: Plan, Perform, Profit
© 2012 Steelwedge Software, Inc. Confidential. 2
Agenda
• Global Business Requires Agility• S&OP: Where to Start• Powering Agility: Examples
© 2012 Steelwedge Software, Inc. Confidential. 3
Interdependent: Business Reality Agility Required
© 2012 Steelwedge Software, Inc. Confidential. 4
The Agility GapHow good are you at responding to rapid change?
Agility is crucial to business
Are good at agility
*May 15 S&OP Agility Research, Supply Chain Insights
90%
27%
© 2012 Steelwedge Software, Inc. Confidential. 5
Benefits of S&OP
© 2012 Steelwedge Software, Inc. Confidential. 6
Agenda
• Global Business Requires Agility• S&OP: Where to Start• Powering Agility: Examples
© 2012 Steelwedge Software, Inc. Confidential. 7
Continuous Improvement Approach
© 2012 Steelwedge Software, Inc. Confidential. 8
Continuous Improvement Example
Process Design & Change Management
Compass Express Process Pilot
Process Adoption Refinement1. S&OP Sales (Demand and Revenue)
2. S&OP Advanced Fin/Inventory
3. Executive S&OP/Full IBP
© 2012 Steelwedge Software, Inc. Confidential. 9
1. Connect the Right People and Right Process
SupplyPlans
FinancePlans
Demand Plan (Unconstrained)
Supply Plan(Constrained)
Finance Plans
Pre-meeting
Executive S&OP
Steelwedge Inputs and Outputs
Supply & Demand
Balancing
Inputs
Business Unit Supply Plans
Sales, Backlog, Opportunities, Inv.,
POs, Budget & Master Data
Business Unit Finance Plans
Balancing & Scenario Planning
Scenario Review & Issue
Resolution
Planning Processes
Consensus Demand Forecasts
Nightly Transaction
Files
Executive S&OP
AnalyticsOpen Apps
Solver
Steelwedge S&OP
© 2012 Steelwedge Software, Inc. Confidential. 10
Consensus Demand Planning
MarketingForecast
AccountForecast
Sales ManagerForecast
DemandForecast
Inputs
Forecast, NPI & EOL,
Product Volume
Baseline Forecast
Sales, Orders, Opportunities,
Budget &Master Data
Account Level Forecast
Sales Region Forecast
Demand Review and Geo Forecast
Consensus Forecast
Planning Processes
Nightly Transaction
Files
Statistical Forecast
Marketing
Account Management
Sales Management
Demand Planning
Consensus Team
Steelwedge Inputs and Outputs
ConsensusForecast
AnalyticsOpen Apps
Solver
Steelwedge S&OP
© 2012 Steelwedge Software, Inc. Confidential. 11
Constrained Supply Planning
Source Plan
Inventory Plan
Unconstrained Forecast
Sourcing
Inventory
Procurement
Production
Steelwedge Inputs and Outputs
Procurement Plan
Rough Cut Capacity
Plan
Inputs
Source Allocations
Inventory, Purchase Orders
& Master Data
Inventory Targets &
Projections
Procurement Forecast
Rough Cut Capacity Planning
Planning Processes
Consensus Demand Forecast
Nightly Transaction
Files
AnalyticsOpen Apps
Solver
Supplier Plan
Steelwedge S&OP
© 2012 Steelwedge Software, Inc. Confidential. 12
2. Map Software to Your Planning Process..
© 2012 Steelwedge Software, Inc. Confidential. 13
3. …Make it as Unique as Your Business with Apps
Open Architecture Apps
Demand Policy
Inventory Segmentation
Stocking Strategy
© 2012 Steelwedge Software, Inc. Confidential. 14
4. Leverage and Connect Your ERP Investment
Forecasting, Demand Plan, ERP, CRM
Demand
Demand Products & Customers
SCM, ERP
Supply
Supply Products & Suppliers
Consensus Demand Constrained Supply Executive Review
S&OP Process
ERP BackboneTechnology
Data
Accelerated Time To Value
Business Intelligence, Data Warehouse
Executive
Revenue, Units
S&OP Technology
Integrated Business PlanningDemand, Supply & Financial
Demand, Supply & Finance Data
© 2012 Steelwedge Software, Inc. Confidential. 15
5. Ensure Quick Time to Value through the Cloud
Reduce support costsDeploy 45% faster
Increase user adoption Increase flexibility
© 2012 Steelwedge Software, Inc. Confidential. 16
Agenda
• Global Business Requires Agility• S&OP: Where to Start• Powering Agility: Examples
© 2012 Steelwedge Software, Inc. Confidential. 17
Industrial Products: Going Lean to Lead
Volatility Challenge• 100 year old, complex
company vs. nimbler, smaller competitors
• More Global, Less predictable demand
• Transitioning to lean manufacturing
© 2012 Steelwedge Software, Inc. Confidential. 18
Industrial Products: Product Level Approach
Complexity
Impa
ct
Statistical Forecast
Collab & Exception
Stocking Strategy: Min/Max, Safety Stock, etc
© 2012 Steelwedge Software, Inc. Confidential. 19
Industrial Products: Going Lean to Lead
Blueprinted IBP process design: week 1
Full plan from demand, supply to exec. IBP: week 10. Sequenced by product line; done internally “What if” tool key to regular management strategy
$30M savings in working capital; improved customer levels 10%; grew market share
© 2012 Steelwedge Software, Inc. Confidential. 20
Consumer Electronics: Taming Complexity
Volatility Issue: • Commoditizing market• Competitive leverage:
bundling strategy-- but complex to manage
• Equally complex ERP infrastructure
•
© 2012 Steelwedge Software, Inc. Confidential. 21
Synching a Single Plan
• Single plan for globe• Managed complex
configurations with statistical bill of materials (sBOM)
• Synched 75 demand planners, 150 sales managers, 50 supply planners
© 2012 Steelwedge Software, Inc. Confidential. 22
Consumer Electronics: Taming Complexity
Test drive with company data proved case for solution
United data for better collaboration and consensus: internally and with suppliers Executive review monthly vs. bi-annually
3X faster response, 10% better fulfillment, 35% less inventory excess, 5% margin improvement
© 2012 Steelwedge Software, Inc. Confidential. 23
Steelwedge Test DriveWhy Test Drive
Live System = Real User Input = Real Proof Point
Validate Requirements Assumptions (Customer & SW)
Validate Data Health and Availability (Customer & SW)
What is a Test DriveCompass Express “Best Practices” platform hosted by SW
One time data load
8 hours of Hands-on Training
Optional: Integrated Planning Assessment / Design workshop
© 2012 Steelwedge Software, Inc. Confidential. 24
Thank you!
