Single Line of Sight: Plan, Perform, Profit

Building S&OP Shock Absorbers for Your Business with Lisa Aleman of Radisys and Dan Gilmore of Supply Chain Digest

Supply Chain Videocast

Building S&OP Shock Absorbers for your Business Increasing S&OP Speed, Visibility and Control for Improved Decision-Making

Broadcast Made Possible by:

4 Radisys Corporation Confidential

About Radisys

Leader in Wireless

Infrastructure

Solutions

Celebrating 25th

Anniversary in 2013

Markets

• Telecom

• Aerospace and Defense

• Healthcare

Very Dynamic

Markets

5 Radisys Corporation Confidential

How Outsourcing Impacted Radisys Planning

We lost the ability to plan demand and supply • Radisys planned the demand, but did not know the supply details

• EMS partner planned the supply, but did not know the demand

details

• There is no single plan that has both demand and supply details

Planning cycles are much longer and require

formal processes

Typical Outsourced Demand and Supply Planning

Supply

Planning

EMS

Demand

Planning

OEM Response

Request

Suppliers Customers

~12+ weeks

2-3 months out of synch at any given time

6 Radisys Corporation Confidential

Other Challenges

Antiquated, spreadsheet-based demand planning tool

significantly constrained process

• Timing was also out of sync

• Different planning timing and cadence

• Couldn’t effectively execute a Lean program with customer

7 Radisys Corporation Confidential

Supply chain automation • Acceleration of the information network speeds solutions

–Commitments

–Demand changes

–PO releases acknowledgements, consignment

– Inventory position

–B2B relationships – EMS partners/customers

Steelwedge and icon-scm Enable Accelerated Responses to Customers

Synchronized and Automated

SC Execution Network

Customer 1

Customer 2

Supplier 1

Supplier 2

Customer n Supplier n

EDI HTML

XML XML

RosettaNet

Logistics

Supplier: VMI HUB

EDI

EDI

Logistics

Supplier: Transportation

EDI

Financial

Forecast

Demand

Planning

EMS

Planning

& Scheduling

Feasible demand Performance to Plan

8 Radisys Corporation Confidential

People/Process Impact

Tried first to replicate To Be process manually

Found plans for weekly updates not sufficient,

moved to daily updates

Was able to keep headcount flat through all of this

change

Now operate on “management by exception” basis

Eliminated multiple plans that existed within the

company to operate on a single plan

9 Radisys Corporation Confidential

A Collaborative Solution for Success

Gather cross-functional

Plans

Create a company-wide

Consensus Forecast

Create Multi-Site

Build Plan

Optimize Build Plan

- Order Prioritization

- Sourcing Strategies

Match Demand & Supply

(mid- / long- term)

10 Radisys Corporation Confidential

A Unified, Singular Company Plan

Short-term planning: Focus on ~3 months (one quarter)

Maintain and continue to enhance high service level

3-month capacity focus

OTD/Delinquency

Allocation management

Revenue management

Long-term planning: Focus on months 4 through 18

Focus beyond 3-month horizon

Obsolescence

Strategic planning process

Demand planning

Master data development

11 Radisys Corporation Confidential

Automating the S&OP Process

Must really understand what problems you are trying to solve with automation

We required a lot of flexibility for demand planning (Steelwedge)

Needed robust prioritization and demand pegging tool (icon-scm)

12 Radisys Corporation Confidential

Adding Shock Absorbers to the Supply Chain

Ability to easily disconnects between contract manufacturer plans and our plans

Increased forward visibility

Dramatic reduction in total demand planning cycles

Single demand and supply plan, one set of financial goals, etc.

Merger that brings some manufacturing back in house easily accommodated

Integration of financial, demand and supply planning

13 Radisys Corporation Confidential

Lessons Learned

Link automation capabilities to problems to be solved in very detailed way

Set realistic expectations about what technology can achieve

Don’t overestimate how good/clean your data is

Steelwedge and icon-scm have detailed error checking

Keep on top of what contract manufacturer is really doing

Give team enough runway to absorb process change before automation is deployed

Copyright SCDigest

Resources

• Lisa Aleman, Radisys

– www.radisys.com

• Steelwedge

– www.steelwedge.com

• icon-scm

– www.icon-scm.com

© 2012 Steelwedge Software, Inc. Confidential. 15 Plan. Perform. Profit.

More Webinars

Upcoming Webinar

August 2013 Bob Ferrari, Ferrari Consulting Your S&OP Analytics: Crystal Ball or Ball and Chain?

On-Demand Webinars

July 16, 2013 Lisa Aleman, Radisys

Building S&OP Shock Absorbers for

Your Business

June 21, 2013 Tim Payne, Gartner

Selecting the Right Planning

Technology: Time to Revisit Priorities

May 29, 2013 Tom Wallace, S&OP Author, Educator

Optimizing Global Planning

www.steelwedge.com/resources

© 2012 Steelwedge Software, Inc. Confidential. 16 Plan. Perform. Profit.