MY S&OP Process in 2010

12 Jan 2010

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Executive SummaryIn Place

S&OP meetings – Correct sequence of meetings; Demand; Supply, Pre-S&OP and S&OP meetings. Feeder meetings of bottom up demand from sales region and Sales Target Achievement meetings into Demand meetingClear defined ownership of S&OP process by GM with implementation and driving by Supply Chain DirectorSeparate Chairman for each meeting – Sales for Bottom Up & STAM, Marketing for Demand, Supply Chain for Supply; Finance for Pre-S&OP and MD for S&OP

To DoEstablish clear agenda and objectives for each meeting with defined outcome expectedRefine current KPIs that are shown at each meeting and to identify KPIs that are to be shared across functionsUnderstand use of statistical forecasting methods and develop usage of APO furtherContinue challenge to establish clear base line and promotion volumes forecastStretch Planning Horizon from M+12 to M+18Reinforce S&OP process,

Discipline from all functions, Filling the gaps

1. Formalize Meetings Input Score card, Agendas & Action

Forecast Meeting

Forecast Meeting

Forecast Meeting

Forecast Meeting

To formalize expected inputs, reporting scorecards and action points for each of the four meetings – Demand; Supply; Pre-S&OP and S&OP

Moving to pre-work and exception

Timeline : Supply Chain director by 31 Jan 2010

1. Define & Prepare KPI Dashboard to be review in each meeting. E.g. forecast accuracy, Case fill rate.2. Good preparation before the meeting, raise only those SKUs with issues . Sell in/Sell out trending by brands, SHD at distributors.3. Document assumptions used to produce output scenario to have alignment between dept.

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2.Combined input from Bottom up Regional numbers with Marketing and Medical Mid to long term forecasts

Continuous challenge on aligning the numbersTo continue to work on this process by building templates for people to completeTo improve link between STAM and Forecast Meeting by include promotion activities in Bottom up forecast. Timeline : Supply Chain, Sales and Marketing Directors by Mar 2010

Actions Taken are:1. Monthly bulletin that issue by sales to include promotion activities & mechanics ( National and Channel promo for the next 3 months).2. DDM will update bottom up forecast which consider incremental volume for the promotion activities.3. Final output by brand from STAM will be used as guide for forecast Meeting.

STAMForecast Meeting

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3. Stretch Planning horizon to M+18Training in statistical forecasting method in MY week 4 2010. T0 combine with APO training on 27,28 and 29 Jan by Annie Chen; DAN’IS APO analyst. Participating countries – Malaysia and Thailand.To use Statistical forecasting method for volumes beyond M+12 or into next FY planning i.e. FY11

4. Split Sell In forecast into weekly bucket for M to M+3

Proposal to split current M to M+3 sales forecast from monthly bucket into weekly bucketNeed to split into weekly volumes in order to plan when to produce volumesHorizon further than M+4 to use 30:30:20:20 for weeks 1-4 for months 4 to 18To discuss with Sales on requirementAction : Supply Chain and Sales Director – Jun 2010