The How and the Why of Making a Smart S&OP Technology Solution

1 © 2014 Steelwedge Software, Inc. Confidential.

Single Line of Sight: Plan, Perform, Profit

Steelwedge Introduction

The How and the Why of

Making a Smart S&OP Technology Selection

How to Select S&OP Technology


Supply Chain Insights



Unprecedented Commodity Volatility


Mature Sales and Operations Planning


Benefits Received

Source: Supply Chain Insights, 2012

What benefits have you received from your work with S&OP processes?

59%

57%

50%

42%

38%

36%

34%

32%

32%

30%

Increasing revenue

Improving forecast accuracy

Reduction of inventory

Improving asset utilization

Determining outsourced manufacturing

Determining procurement requirements

Improving new product launch

Transportation and warehouse management

Capital planning and asset management

Improvements in the perfect order

▲ 2%

▲ 5-7%

▲ 3-7%

▲ 3-6%

▲ 3-6%

▼ 10-15%

▼ 2-8%


Case Study


Inventory Turns vs.

Operating Margin (2000-2012)


Why it Matters

Company Average Operating

Margin

Average Inventory

Turns

Resiliency Ranking

BASF .10 5.3 .55

DuPont .10 4.0 .67


Margin

Average Inventory

Turns

Resiliency Ranking

Samsung .11 8.3 .59

LG Electronics .04 6.7 3.47


Margin

Average Inventory

Turns

Resiliency Ranking

Procter & Gamble .18 5.7 .52

Unilever .13 5.6 .74




Heterogeneous Environment


Large Gaps in Current Technologies


Growing use of Cloud and BPO




• What are the best S&OP technologies?

• What is the best duration for S&OP?

• What is the right frequency for the S&OP process?

Questions Asked




What are the best S&OP technologies?

• Start with a technology that can deliver a “feasible plan”.

Model constraints.

• Test scenarios and ensure that the software can model

your environment.

• Ensure that you have sufficient what-if analysis.

Questions Asked


Gap in What-if Architectures




• What makes the most sense for your business? S&OP is

a tactical process. Usually, it is the time horizon for

making asset decisions.


Questions Asked


A Part of a Planning Architecture

Tactical

Planning

Operational

Planning

Executional

Planning





• S&OP is a tactical process that is monthly for 90% of

companies. Many confuse S&OP planning with S&OP

execution.

Questions Asked


S&OP Process Plan Execution


Collect sales and market

Managing Cycles

Week 1

Develop a demand plan

Demand consensus refinement

Constrained pan by supply

What if by supply for trade-offs

Develop a demand plan

Demand consensus refinement

What if for demand

Constrained plan by supply

What if by supply for trade-offs

Executive plan review

Publish the constrained plan

Measure and communicate

the plan

Week 2 Week 3 Week 4 Week A Week B Week C

Operational Review 1




Collect sales and market

What if for demand

Executive plan review

Publish the constrained plan

Measure and communicate

the plan

Week D


Start with the questions of:

1. What is the goal?

2. What should we measure?

3. What defines success?

Evolution


S&OP Process Evolution

Manufacturing- Driven

Deliver a Feasible Plan for Operations

Match Demand with Supply

Sales Driven

Match Demand with Supply

Business- planning Driven

Maximize Profitability

Demand Driven

Maximize Opportunity Sense and

Shape Demand

Market Driven

Maximize Opportunity and

Mitigate Risk. Orchestrate

Demand Market to Market

Greater Benefit

• Growth

• Resilience

• Efficiency


Technology Evolution




• Assess where you are and define the requirements

• When you engage with vendors be clear on how you will make a decision.

Role of:

• IT Policy

• Post-purchase Service and Support

• Scalability

• Cost

• Functionality

• Take your time. The best implementations are not the fastest. It is a journey

not a sprint.

Summary


Questions?


SCI Global Summit - September 2014


Lora Cecere’s New Book – Fall 2014 Publication


Agenda

• Steelwedge Introduction

• S&OP Technology Requirements

• Functional

• Planning Processes

• Solution Profile

• The S&OP Journey

• Information Request


“ Steelwedge has grown into

the market's leading S&OP

solution in the cloud. ”

Rating: Positive

Global market share leader

Offices: USA, Europe, Japan & India

Founded in 2000, 50%+ year over year growth

Global organization focused on global delivery

Cloud Based Integrated Business planning platform

100% cloud-based for rapid deployment & value realization

Steelwedge: The S&OP Company


S&OP Success with Steelwedge

Demand Planning, SCM/APS Systems

ERP, Financial, & Transactional

Systems SAP, Oracle, etc.

Industry

Data

Single Cross-Functional

Planning Environment

Interactive planning for:

• All S&OP Stakeholders

• Plan Review

• Overrides

• Assumptions

• Scenarios

• Consensus Process

• Pre-S&OP

• Executive S&OP

• Audit Trail

Systems Landscape Product / Sub-Family Customer Revenue

Product / Family Territory / Region Revenue

Product / Family Promotions Revenue

Product / Family Region Units & Revenue

Product Stock Locations Units and Inventory

Family / Series Territory / Region Revenue, Margin & Cash

Family / Series / BU Geo Revenue, Margin & Cash

Product Production Site Units and Capacity



Planning Terms Stakeholders

Account Managers

Sales Managers

Marketing

Demand Planners

Supply Planners

Production Planners

Finance

Executives

Customers

Suppliers

Cross-functional Planning

Environment


Managing the Translation between Functions

Sales, Marketing, Product Management,

Demand Planning

Demand

Inventory, Production, Procurement and

Allocations

Supply

Profit & Loss,

Balance Sheet

Finance

Executive

Dashboards

Executive


Planning Dashboard

Steelwedge Enterprise Enabled Excel

Slice of view (hierarchy)

Time series of key figures

Planning data for review and updates

Planning Views Combine Planning, Analytics in Familiar UI

Capture institutional knowledge / assumptions




Industry

Data

Systems Landscape


Environment

S&OP Technology

Stakeholders

Account Managers

Sales Managers

Marketing

Demand Planners

Supply Planners

Production Planners

Finance

Executives

Customers

Suppliers


Key Selection Criteria: Planning Processes

Planning Processes

Sales Revenue Planning

Statistical Forecasting

Consensus Demand Management

Source, Inventory and Master Planning

Rough Cut Capacity

Product Allocation

Key Material Planning

Procurement Planning

Rough Cut Financials

Executive S&OP

Trading Partner Collaboration

Product / Sub-Family Customer Revenue










Planning Terms




Industry

Data

Systems Landscape


Environment

S&OP Technology

Stakeholders

Account Managers

Sales Managers

Marketing

Demand Planners

Supply Planners

Production Planners

Finance

Executives

Customers

Suppliers


Key Selection Criteria: Solution Profile

S&OP Solution Profile

Systems Required

Ease of Use

Time to Value

Flexibility

Proven Solution

Architecture

S&OP Experience

S&OP Focus

Product / Sub-Family Customer Revenue










Planning Terms


Steelwedge RFI Template


Crawl – Walk – Run Approach

• Key to success is incremental value

• Crawl: plan ahead with end in site

• Walk: implement single solution

• Run: measure, improve, expand

• Sprint: align, integrate, monitor

• Start with quick win as phase 1 & foundation

• Expand the roll-out adding value as you go


Kaushal Dave

Product Marketing Manager

[email protected]

(213) 422-4341

Ed Lewis

VP, Product Marketing

[email protected]

(949) 588-1495

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