are you also tired of stand-alone spreadsheets in your s&op process?
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SAP Procurement & Logistics Day 2012
30 augustus
Are you also tired of stand-
alone spreadsheets in your
S&OP process?
Jan Heerema, EMEA SCM Center of Excellence
© 2012 SAP AG. All rights reserved. 3
What is S&OP?
Tom Wallace Definition
Sales & Operations Planning (S&OP) is a set of decision-making processes to:
Balance demand and supply
Integrate financial planning and operational planning
Link high-level strategic plans with day-to-day operations
http://www.tfwallace.com
© 2012 SAP AG. All rights reserved. 4
Escalate resolution plans with scenarios, if applicable
Review key changes since last meeting
Based on updated demand plan, understand capacity and
material impacts, including contract manufacturing.
Understand long-term gaps in supply and demand
Consensus Demand Planning and New Products
Input from Sales, Marketing, Finance and Operations,
including quantity, price, revenue and margin
Review and resolve outstanding supply issues
Compare constrained plan with finance plan
Define and compare scenarios
A Typical S&OP Process
Demand
Supply
Balance
Executive
Review
Repeats
Monthly
© 2012 SAP AG. All rights reserved. 5
S&OP Pain Points collected from the field….
Too many spreadsheets and systems involved in the S&OP process
Cannot get users to provide input, especially sales, marketing and
executives
Spend more time assembling data than planning
Outdated demand-, supply- and finance- plans
Working at aggregates only and can’t connect to detailed SKU level
Cannot change demand and view impact on supply and financials right
away
Too hard to simulate and compare planning scenarios
Planning decisions made without considering supply chain constraints
and profitability
Executive S&OP views lack latest information
Executive S&OP meeting information is hard to share and is
disconnected from planning tools
© 2012 SAP AG. All rights reserved. 6
S&OP Maturity according to Gartner
© 2012 SAP AG. All rights reserved. 7
Gartner Stage 3 S&OP Reference Architecture
Seven key functional requirements are required to support an S&OP
process in Stage 3 of the Gartner maturity matrix:
1. Hierarchy Management
2. Collaboration
3. Performance Management
4. Financial Reconciliation
5. Supply Chain Modeling
6. Scenario Planning
7. Workflow / Business Process Management
© 2012 SAP AG. All rights reserved. 8
S&OP Reference Architecture According to Gartner
Operational
S&OP
‘Executive’
S&OP
© 2012 SAP AG. All rights reserved. 9
How can SAP help to get to Stage 3 (and 4)
http://youtu.be/EZTMH3q5rxc
© 2012 SAP AG. All rights reserved. 10
Unified Data Model
Real-time Planning
Simulations and
Scenarios – Instantly
Rich, Contextual
Social Collaboration
Planning and real-time
analysis with a unified
model of demand, supply
chain, and financial data at
any level of granularity and
dimension
Rapid, interactive
simulation and scenario
analysis, using the full
S&OP data model to
support demand-supply
balancing decisions
Embedded, context-aware
social collaboration enables
rapid planning and
decision-making across the
organization
SAP Sales & Operations Planning Powered by SAP HANA
© 2012 SAP AG. All rights reserved. 11
Plan in Real-time With a Unified Data Model
Capabilities:
Plan in real-time, using a unified model of your
demand, supply chain and financial data within
a single, purpose-built S&OP solution
Analyze massive volumes of complex data
instantly at any level of granularity,
aggregation, and dimension
Import massive amounts of detailed data
directly from SAP and non-SAP sources
Benefits:
Optimize product/customer profitability and
product mix, considering supply and financial
constraints
Adjust inventory levels to reduce cost, while
meeting target customer service levels
Manage capacity utilization to avoid capacity
and material shortages
© 2012 SAP AG. All rights reserved. 12
Run Simulations and Scenarios Instantly
Capabilities:
Rapidly run simulations of demand, supply
and financial changes using your full S&OP
data model to support what-if analysis
Compare planning scenarios and their
impact on key performance indicators in
real-time
Drill down into simulated data to perform
detailed analysis without the need for
manual disaggregation
Benefits:
Identify optimal set of tactics to drive
revenue growth and increase market share
Uncover opportunities to reduce supply
chain cost
Prepare for potential changes in demand
and supply before they happen
© 2012 SAP AG. All rights reserved. 13
Enable Rich, Contextual Social Collaboration
Capabilities:
Track progress of the S&OP process,
including assignment and monitoring of
action items and the stakeholders
responsible
Collaborate quickly and easily using
embedded role and context-aware social
tools
Plan using user-friendly web and Microsoft
Excel interfaces
Benefits:
Increase speed and agility of planning
Drive greater engagement and improve
input from users across your organization
Improve precision of demand and supply
balancing
© 2012 SAP AG. All rights reserved. 14
S&OP „Myth Busting‟
Myth: “We don‟t need S&OP in our department; that‟s a „supply chain thing.”
Myth: “S&OP is really simple. We‟re just going to get the S&OP system
implemented and then we‟ll have S&OP.”
© 2012 SAP AG. All rights reserved. 15
Summary
SAP Sales & Operations Planning powered by SAP HANA is an
innovative, promising and game-changing solution that can help you to
get to stage 3 by supporting the key functional requirements of a S&OP
process in Stage 3 of the Gartner maturity matrix:
Hierarchy Management
Collaboration
Performance Management
Financial Reconciliation
Supply Chain Modeling
Scenario Planning
Workflow / Business Process Management www.sophana.com
© 2012 SAP AG. All rights reserved. 16
Q & A……when time permits
Contact information:
Jan Heerema
Business Development Manager SCM, EMEA
Amerikastraat 10
5232 BE `s-Hertogenbosch, The Netherlands
T +31 73 645 7848
E jan.heerema@sap.com
www.sap.com/scm
Thank You!
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