real time s & op with apcc - home - twin cities...

FUJITSU CONSULTING

Chandra Pandey – Director Supply Chain

Real Time S & OP with APCC

Agenda

■ What is S & OP, Why is it important■ S & OP Challenges■ Real Time S & OP – different approach■ Oracle Sales & Operations Planning Solution■ High Level Demo and Solution Walk through■ Fujitsu Value Chain Practice / COE

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S & OP – Balancing Supply & Demand•Sales and Operations Planning (S&OP) is an integrated business management process through which the executive/leadership team continually achieves focus, alignment and synchronization among all the functions of the organization.

•Sales•-Sale Forecast•- Promotions•Operations Plans•- Production Plan•- Inventory Plan•- Backlog•Financial & Strategic Plans

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Sales & Operations Planning Integration

Generate Statistical Forecast

Sales Forecasting

Demand Planning(Consensus

Forecast)

Supply Planning

Pre- SOP Reconciliation of

Plans(Match Supply /

Demand)

Finalize S & OP release for Execution

Actual Shipments

Promotional Execution

In-FlightConsumption

Data

Sales

Marketing

Manufacturing

Finance

ExecutiveProductDevelop-

ment

Consensus

Promotional & Volume Plans

Strategic Plans

Capacity Plans

PhaseIn/Phase Out Products

Demand Plans

Profitability

Service Levels

Inventory Levels

Promotion Effectiveness

Plan Accuracy

AlertsExceptions

Inputs Outputs

Sales & Operations Planning

Real-time

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Demand Management Differentiators

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Demand Management

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Demand Driven leaders typically have:■ 15% less inventory■ 17% stronger order fulfillment■ 35% shorter cash-to-cash cycle times

Source: AMR Benchmark Analytix

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Complete orderfill rate

% Gross margin % Customer

retention

Laggard

Industry norm

Best-in-class

Cur

rent

% p

erfo

rman

cePerformance metric© 2004 AberdeenGroup

Companies that excel at S&OP outperform their competition

S&OP leaders outperform their competitors:• Improved order fill rates• Increased gross margin

• Higher customer retention

Why is Sales and Operations Planning important?

CHALLENGES & TRADITIONAL APPROACH


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#1 impediment to data collectionWhat data is most challenging?

Time required for exec S&OP prepPre-work activities

S&OP: The challenge of data integration

No processintegration

Lack ofsystems

No access to right data

Takes a long time to gather

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• No connection between plans, plans not tied to execution• Misalignment between metrics and objectives

• Unreliable forecasts and production plans

Traditional approach doesn’t workDisconnected plans, long planning cycles, high latency in decision making

CUSTOMERS SUPPLIERS

Tier 2Tier 1

Paper

HIGH LATENCY, NO VISIBILITY

Reactive S&OP

Financialplanning

Supplyplanning

Productplanning

Demandplanning

Manual measurementand reporting from

multiple data sources

DIFFERENT APPROACHSales & Operations Planning

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Better approach – Real Time S & OP

■ Replace disconnected processes■ Replace spreadsheets with a ‘one number’ approach■ All key stakeholders collaborate on a single version of

the truth

■ Optionally, start with traditional S&OP process implementation

■ Better: move to real-time continuous S&OP

■ Enable real time decision making by providing key managers with instant “live” access to S&OP information – Self-service S&OP Executive Review dashboard

■ Enable key managers to determine what alternative S&OP scenarios need to be evaluated by assigning activities to planners

■ Move from a periodic reactive process to a real time iterative and proactive process that profitably balances demand, supply and budgets – demand sensing and shaping

■ Enforce S&OP decisions directly into operational planning and execution and close the loop via embedded performance management

Real time, continuous and collaborative Sales and Operations Planning process

Real-time Sales and Operations Planning

FinanceSupplyProduct Demand

FinanceSupplyProduct Demand

S&OP

Demand

SupplyTrade

Finance

DesignRisk

Better Approach - Real-time, continuous, and collaborative Sales and Operations Planning process.

■ Eliminate decision making latency by focusing on excellence in demand visibility

■ Sense demand more frequently and closer to the point of consumption

■ Replace spreadsheets with one number demand management – collaborate with all constituents

■ Improve your forecast accuracy ■ Use advanced analytics and statistics

■ Shape demand ■ Promotion excellence and decomposition■ Leverage granular demand signals (customer,

channel, store, shelf) ■ Identify and simulate cross selling opportunities

■ Evolve to real-time S&OP■ Profitable demand response■ Identify supply side opportunities■ Define and monitor customer based metrics■ Get real time visibility to sales tactics (price

breaks, promotions, deals)

ORACLE SOLUTIONSales & Operations Planning

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■ Interactively engage management■ Move from a periodic reactive to a

real time, iterative and proactive process

■ Reduce cycle time and improve alignment by automating the consensus process

■ Profitably balance supply, demand, and budgets

■ Drive tactical decisions into operational planning and execution, and monitor performance

■ Start quickly with best practice templates and easily adapt to your business – evolve at your own pace

Sales and operations planning detailed

analysis and simulation

Oracle Sales and Operations Planning solutionEnable the next generation best-in-class S&OP process

Finance(Hyperion)*

Supply(ASCP, SNO, IO)

Product(Agile)*

Demand(Demantra DM)

Advanced Planning Command Center

Detailed Planner Workbenches

Demantra Real-Time S&OP

* Planned for future

S&OP

Demand

SupplyTrade

Finance

DesignRisk

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Sales & Operations Planning Integration

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Supply Chain

Management and

Financials

Oracle EBS /JDE

Strategic Network Optimization

Inventory Optimization

Adv. Supply Chain Planning

Supply Chain Planning

Sales & Operation Planning

Demantra

S&OP

ASCP data, Supply Plan members, SNO publish data files

Items, Orgs, etc Calendars, Users

Shipments, Bookings, UOM, Currency, Conversion Rates, Price Lists

PLUSSCI data and unit

cost

Consensus Forecast

SNO/ASCPcollections

Sales & Operations Planning Integrationwith APCC

APCC

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Demand Review

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Supply Review

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Executive Review

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Put key management executives in charge

■ Enable key managers to continuously monitor S&OP performance

■ Provides 360 degree view of supply, demand, inventory, and cost details

■ Automatically translates operational to corporate metrics

■ Enables self-service access to dashboards and reports

■ Evaluate alternative business scenarios■ Define business planning scenarios and assign

activities to planners for execution■ Compare business impact of alternative scenarios ■ Link multiple planning processes together for

automated (BPEL) or manual execution

■ Power users can leverage direct links to Demantra RTS&OP to perform detailed analysis and simulation

■ Shape demand■ Simulate supply scenarios■ Perform financial reconciliation

Engage pro-actively via Oracle Advanced Planning Command Center

Sales and operations planning detailed

analysis and simulation

Finance(Hyperion)*

Supply(ASCP, SNO, IO)

Product(Agile)*

Demand(Demantra DM)

Advanced Planning Command Center

Detailed Planner Workbenches

Demantra Real-Time S&OP

* Planned for future

S&OP

Demand

SupplyTrade

Finance

DesignRisk

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Self-service access for key decision makers

Compare alternativebusiness scenarios

Analyze keyPlanning metrics

Analyze profitand loss

Evaluate supply constraints

Link directly to Demantra RTS&OP

worksheets

S&OP Dashboard for executive analysis

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Put key management executives in chargeExecute and compare alternative business scenarios

Advanced Planning Command Center ■ Compare alternative business scenarios

■ Planners execute scenarios

■ Automatically translate detailed planning information to corporate metrics

■ Track assumptions and attach supporting documents

■ Approve and drive into execution

■ Choose your baseline plan

■ Drive tactical and execution decisions

■ Monitor■ Continuously monitor

performance and get real-time visibility to deviations

Demantra DM ASCP / SNO IO

Business scenarios

Assignedactivities

Planners execute assigned activities

Suggested alternatives

for evaluation

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Interactive management review

■ What has changed since last month?■ Are we on plan financially? Is there any need to revise long term plans?■ How are we performing to performance metrics?■ What new risks do we need to consider?■ What decisions need to be made now and in the near future?■ How are product families performing?■ Are we on track with product development?■ Do we have any critical constraints?

Adapted from “Enterprise Sales and Operations Planning” - by Palmatier & Crum

Typical S&OP Management Review agenda

Operational EventsTactical DecisionsStrategic Decisions

Track orders Track shipments

Alert issues

Balance capacityRebalance inventory

Allocate productsShape demand

Service levelsInventory policyCarrier contracts

Product mixSupply network sourcing

Continuous S&OP process Execution

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Monitor and manage – Close the loop

■ Measure performance to plan■ Monitor sales, revenue, and profits against

plan■ Performance to budgets and financial plans■ Accuracy of the forecast at multiple levels■ Production performance to plan■ Inventory performance to plan

■ Proactively respond to deviations in performance

■ Identify root cause, assign accountability, and manage corrective action

■ Define and evaluate alternative business scenarios

■ Manage execution of scenarios; assign tasks to planners and other stakeholders

Control the S&OP process with Oracle Advanced Planning Command Center

Executive performance summary

Budget analysis

Profit and cost analysis

Alerts

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Close the loopProblem ► Cause ► Alternative solution evaluation

Revenue below target

Sales below target

Supply shortages

Competitorpromotion

Sales selling wrong product mix

Pricing issues

Critical part shortage

Lost productioncapacity

Lost sales due to lackof supply

Change product mix

Launch promotion

Adjust pricing

Promote alternate product

Plan overtime

Outsource production

Change inventory levels

Hedge supply

Analysis

Planning

What problem

do I have?

Why do I have this problem?

What actions should I

evaluate?

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<Insert Picture Here>

Start quickly with best practice templates and easily

adapt to your business

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• Start quickly, integrated with ERP– Seeded data streams for data commonly used in

the process– Common data model shared with DM, PTP– Seeded performance metrics– Seeded workflows

• Seeded templates for collaboration– Seeded consensus planning worksheets– Easily tailored to your business

• Configurable and extensible– Collaborate at any level

• Complete out of the box support for a typical best practice sales and operations planning process

Out-of-the-box starting point for Sales and Operations Planning

Start quickly with best practice templates

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Start quickly – Progress at your own pace

Eliminatespreadsheets

Single consensus demand numberPre-defined S&OP analysis

worksheetsDemand and supply review

Financial reviewPersonal dashboards

Demand shapingDemand and supply balancing

Workflow driven exceptionsPromotion planningFinancial planning

Network designPromotion optimization

Risk ManagementInventory Optimization

Product life cycle management

Evolve to a best-practice Sales and Operations Planning process

Phased Approach

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•Demantra Demand Management•Supply Planning (ASCP)•Demantra – •Real Time Sales & Operations Planning•Constraint Planning•Advanced Planning Command Center•(APCC)

SOLUTION WALK THROUGH & DEMO


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APCC Setups

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Scenarios creation

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Analysis in APCC- Example

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S & OP Dashboard to Demantra S & OP

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Value Chain Practice DifferentiatorsExperienc

ed Practitione

rs

• 60 plus practitioners value Chain

• 20 plus practitioners specifically in Value chain Planning ( average experience 5-8 yrs)

Established

Center of Excellenc

e

• Keeping up with Cutting Edge

• Ramp up quickly on new releases e.g. APCC on control release 12.1

• Various LAB environments

• Keeping up with Cutting Edge

• Ramp up quickly on new releases e.g. APCC on control release 12.1

• Various LAB environments

Deep Implement

ation Experienc

e

• Welch’s - Trade Promotions centric

• Cartech – Legacy Integration , Real Time S & OP

• DPI – High Volume Demand Management ( 20- 100 million rows of history)







Rock Stars & Guru

• Industry Experts – High Tech, Food & Beverage, Consumer Electronics

• Domain Experts – Order Management, Discrete MFG, Flow MFG







Fujitsu Solution

Sets

• Short Supply Allocation solution built on Global Order Promising

• Trip sequencing Workbench

• Buyers workbench













Strategic

Relationship with

Oracle

• Strategic Relationship with Product Strategic group

• Initiative on Co- development in several fronts e.g. SAP connector for Advanced Planning











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Value Chain COE

Center of Excellence (COE)

❑Lab Environment – current and last release ( R12, 11.5.10)❑Leading Practice Repository❑Fujitsu Solution sets❑Demonstration Scripts❑Offerings – Assessment studies

Demantra

COE

SupplyChain

Planning

Industry Specific

Core EBS

Supply Chain

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AQ&Q U E S T I O N S

A N S W E R S

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