June 2016, Robert Kepczynski

Global Supply Chain Strategy & Design, Global Supply CoE

“How & What” value Syngenta extracts from

Integrated Business Planning powered by SAP IBP

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“How & What” value, Syngenta extracts from Integrated Business Planning powered by SAP IBP

1. Business drivers for transformation

2. How Syngenta understands Integrated Business Planning

3. “How & What“ value Syngenta extracts from IBP powered by SAP

4. Syngenta considerations for next steps with SAP IBP

Classification: PUBLIC

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1. Business drivers for transformation enabled by Integrated Business Planning

In-Territory challenges Opportunities

Improve visibility and data

clarity to inform profitable

decisions on all S&OP levels

Improve process efficiency,

increase selling time and

remove excess data

consolidation effort

$$$$ Reduce lost sales and inventory

Equip Sales Reps with clear and

timely product availability dataHuge efforts to reconcile multiple sources

of S&OP data

Improve customer experience

Classification: PUBLIC

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1. Next step in S&OP maturity, tighter x-functional integration and embed IBP as

strategic business managment process

2. Revenue, profit projections coupled with volumetric planning

3. Management of business trade offs, demand and supply risks/opportunities

4. Inclusion of strategic plans long term plans and marketing Drivers N Assumptions

5. Assumptions captured give meaning to the figures

6. Budget gap identification/management

7. Top down/Bottom up ways of working, level aligned to best insights

8. One set of figures and not one figure driving business

9. Effecient and effective process leveraging diferrentiated forecasting

2. How Syngenta understands Integrated Business PlanningStrong alignment to Oliver Wight concept

Classification: PUBLIC

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3.“What“ value Syngenta extracts from IBP powered by SAPProcesses

Classification: PUBLIC

PHASED UNCONSTRAINED PHASED CONSTRAINED

«NET» VOLUME & REVENUE, PROFIT, BUDGET GAPS

DEMAND MANAGER LED

«GROSS» VOLUME & REVENUE

DEMAND PLANNER LED

* No of levels aligned to local organizational structures

Monthly

CU/Territory

Various ways of selling products are reflected in various ways we capture demand signal

Sales Input*

Customer

Marketing

Input

Product

Marketing

Input

Demand

Planning

Input

Demand

ReviewPre-SOP

Allocation

PlanningSOP

Scenario

PlanningScenario

Planning

Scenario

Planning

Supply

Response

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3.“What“ value Syngenta extracts from IBP powered by SAPOrganization & Capabilities

Demand Planner facilitates/ensures IBP

process is followed, focused on delivery the

most realistic unconstrained forecast. Acts as process, system & data expert.

Marketing-led process to ensure alignment to strategic plans, focus on right products and

customers strategy/tactics.

Finance Business Partner & Pricing Manager focused to manage price elasticity, projected

margins, validate profit and revenue projections, validate & ensure integration with Fin System.

S&OP numbers are assumptions driven,

followed trough market drivers and assumptions framework

Demand Manager focus is on

delivery of the most profitable constrained plans e.g. allocation plan, volume & value base scenario planning, demand shaping.

Sales qualitative inputs reflected in

process steps are adapted to local organization structure and / got to market strategies

Classification: PUBLIC

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3.“What“ value Syngenta extracts from IBP powered by SAPProcesses

We use IBP for consignment sales according to Supply

consignment fill-up , revenue recognitionaccording to finance phasing

IBP covers standard salesaccording to when we expect to sell/ship products to the 3rd party customers

We forecast Standard Products, Combi-packs, ICS ensuring E2E integration & profit / COGS assignment.

Classification: PUBLIC

We capture demand signal for B2B, Distributors, Smallholders(small farmers), Associations …

We incorporate Royalties/License fees to ensure a complete Sales Revenue projection

We capture and manage in IBP

Samples / Free of Charge to “net out” the Sales Revenue forecast and inform Supply Plans.

In IBP financial commitment we incorporate

volumetric Commercial Returns and

financial Accruals for it

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We define and integrate with ERP

Allocation plans to achieve most profitable outcome and integration with Order-to-Cash process

3.“What“ value Syngenta extracts from IBP powered by SAPProcesses

Classification: PUBLIC

In IBP we capture

uncertainty (events) e.g. to enable supply planning of long lead-time formulations and AIs related to registration or any other event which requires non-demand driven production .

We use product categorization , process measurement and plan to use statistical forecasting to embed

differentiated forecasting in IBP. It helps us to achieve step change in process efficiency & effectiveness

We manage in IBP business trade offs, risks & opportunities with Scenario Planning,linked to assumptions captured in volume, value, price, margin

We equip IBP&SOP management

with simulations on budget gap exposure / closuree.g. Demand Shaping, Sell-to-availability.

For seeds business with short season (sometimes. 6 weeks window) we incorporate

weekly operational “S&OP” meeting aligned to monthly IBP SOP. It may

leverage deployed data

model and SAP IBP SOP tool capabilities.

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We enable integrated & flexible data model (structures) across all business lines and all geographies to execute process steps and all

integration requirements. (Planned size 11TB)

Forecast Value-add Analysis, 6 Sigma READY. Protecting inputs in role based templates to achieve

Top down / bottom up, Aggregate / detail working level aligned to best insights. Effective disaggregation/aggregation supporting changes of level.

Hana Cloud Integrationplatform used to integrate ca. 20 data sources:

VENDAVO – pricing,

SALESFORCE – account plans,

QUANTUM – ex-Rates,

BI, APO, 3 x ECC,

local CRMs ….

Data load and work levels can be different

Cross process steps

controlled data flows

3.“What“ value Syngenta extracts from IBP powered by SAPSystem & Technology

Classification: PUBLIC

10 CLASSIFICAITON: Confidential

INTEGRATED DESIGN & ROLL-OUT

• Integrated designs with other areas will

amplify benefits e.g. Pricing, Order

Management , Credit Management,

Supply Response

1

ITERATIVE DESIGN & BUILD

FOR A COMMON GLOBAL

FRAMEWORK

3.“How“Syngenta extracts value from IBPApproach

Classification: PUBLIC

IBP GLOBAL TEAM, DESIGNS HOW IT WORKS IN BUSINESS:

- overlap of capabilites (business, best practices, systems) with clear responsibilites

- operating model design: processes, organization and capabilites, systems

- operating model transfromation (from as is to to-be, including forming IBP Center of Expertise)

- configuration and build standards,

- required technical and business support,

- documentation standards,

- knowledge transfer to business, build, support, rollout teams

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3.“How“ Syngenta extracts value from IBPApproach

Best practices in global

design v 1.0

Technical and Business Go-Live,

Clustered Design, Build & Transfromation

Co-innovation enables Win-Win

Classification: PUBLIC

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● Functional perspective

● Technology

Sales & Operations

SAP HANA Platform

Supply Chain Control Tower

DemandResponse &

SupplyInventory

IMPLEMENTED

• Major upgrade to 6.1

• Fiori UI

• Web UI & Dashboards

• JAM Collaboration

4. Syngenta considerations for next steps with SAP IBP

Classification: PUBLIC

PLANNED 2017

IMPLEMENTED

IMPLEMENTED

PLANNED 2016/2017

PLANNED 2016/2017

PLANNED 2016/2017

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● Geographical perspective

● Process perspective

Annual AIMonthly

CU/Territory

Annual

Variety &

Formulation

• Midium size territory

• 2 largest territories rollout

• Globally accelerated deployment

4. Syngenta considerations for next steps with SAP IBP

Budgeting

process

Classification: PUBLIC

IMPLEMENTED

PLANNED 2017/18

IN PROGRESS

IMPLEMENTED IN PROGRESS PLANNED 2017/18 UNDER REVIEW

Weekly in-

season

“SOP”

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Questions ?

Today, I will be available at booth.

Classification: PUBLIC

What are the IBP modules maturity and where they fit?

How to manage roadmap and value realization?

Do you need PoC and Prototypes for tool which still matures?

How to approach IBP business cases?

What opportunities SAP IBP S&OP creates?

How important data model and data integration is ?

What challenges IBP creates compared to S&OP?

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BACK UP SLIDES

Classification: PUBLIC

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Annual AIMonthly

CU/Territory

Annual Variety &

Formulation

CY and CY+1

S&OP SKU / month

(*Control Tower SKU / week)

CY to CY+5

Active Ingredient

Month & Year

CY+2 and CY+3

Formulation & Variety

Year

S&OP Processes

S&OP Levels

2. How Syngenta understands Integrated Business PlanningS&OP levels, processes, degree of harmonization

As-Is degree of harmonization

H

M

L

L

HML/M

L

Classification: PUBLIC

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SAP IBP overview, IBP 6.2, mid 2016 status

Classification: INTERNAL USE ONLY

Sales & Operations Planning

SAP HANA Platform

Supply Chain Control Tower

DemandResponse &

SupplyInventory

E2E exception based

alerts, workflow,

collaboration ,

reporting & analytics

Supply planning and

demand response

module which may

work on order level,

optimizes your supply

plans and responseInventory optimisation

tool with proven

“Smartops” algorithms

behind

Statistical forecasting,

portfolio segmentation,

short term demand

sensing algorithms

Supports S&OP and processes which require collaboration, simulations e.g. budgeting, financial planning, long term strategic planning

21 3Immature to realize benefits Gradually approach

realization of benefits

Ready for realization of

benefits

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3

2

3

2

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What SAP IBP S&OP can be used for

Any «Planning» processes financial, budgeting, supply,sales, marketing and x-

functional which requires:

• Consilidation of manual inputs

• Automatic calculation (as well integrated)

• Reconciliations

• Collaboration

• Scenario planning, simulations & comparisons

• Working level aligned to insights

• Own calculation and data flows

• Integration of various of data sources

• Data load level different or eaqual working levels

• Posibility to design own disaggregation and aggregation rules

Classification: PUBLIC

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User Interfaces (UI) to access IBP

Excel UI through IBP

Add-in:

• Review and modify

planning data

• Run Simulations

WEB UI:

• Process

completeness*

• Dashboards*

• Administrative

functions

* Functionality will be evaluated in 2016

IBP

S&OP

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Planning with Excel UI Planning View Template

• System representation of business process step

• Stored planning view with predefined layout (formatting, charts) and settings (time horizon, key figures, planning levels).

• End users create their own favourite planning view specific to portfolio, geography, planning level specific to WoW etc.

Favourite Planning View

• End user-defined or key user-defined (and shared) view that allows to execute process step in customized way, specific WoW.

Planning Multi-View

• Excel Workbook normally contains more than one Planning View.

• Workbooks are designed to support variants of the process like consignment or supporting with extra information like Analytical view.

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Planning View

Info section

Header section

Planning Data section

Multi-View tabs

IBP Toolbar tab

Planning Level / Data Dimensions

End User’s main functions

Time Horizon

Chart area

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Favourite Planning View

From Global Planning View

Template…

…to user specific Planning View linked to

best insights

Time Period (year,

quarter, month)

Time Horizon

Rolling

Master Data Type

ATTRIBUTES

(from 1 to 15)*

Key Figures

Currency

Unit of Measure

(UoM)

Rows and Axis

disposition

Master Data Type

ATTRIBUTES

constraining

displayed data

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IBP S&OP Integration

● SAP HANA Cloud Integration (HCI) is used to move data into and out of SAP Integrated Business

Planning:

- Import: HCI directly connects to On-Premise systems to extract and securely pipe data from

source systems to IBP target tables via secure HTTP (HTTPS).

- Export: For each planning area in IBP, there is an IBP calculation scenario that allows the

extraction of all IBP key figures on any aggregate level. In addition, the extraction of master data

via HCI is also supported. IBP master data tables are exposed as read-only.

● Agent provides access to HCI from Syngenta.

IBP S&OP

SAP Cloud Environment

HC

IH

an

a C

lou

d In

teg

ration

Firewall

Syngenta Environment

On-Premise Systems

https

OA

SIS

(PI)MDM

ERP

APO

FI

EBI

AGENT

SFTP

RFC

26 Classification: PUBLIC