sap sales and operations planning

SAP Sales and Operations Planning Powered by SAP HANA

CSA Know How Network Conference

Jothish Karunakaran, Raghav Jandhyala

© 2012 SAP AG. All rights reserved. 2

S&OP Overview

S&OP Demo

S&OP Customer Experiences

SAP Sales And Operations Planning

Powered by SAP HANA


S&OP Overview

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

Typical S&OP Process


Sales & Operations Planning Commonly asked Questions

10% off 8 Marketing Campaigns planned this quarter, can we handle uplift?

Introducing Raptor! When, Where & How to time an New Product Introduction

New

YTD Margin 5.9% Understand causes & Evaluate options (Volumes, Prod. mix, Prices, Customer segments)

11.3% How will the Oil price hike impact our business?

104.6% 4 Plants running over capacity, are we planning too close to 100%?


Sales & Operations Planning

Profitably align Demand & Supply to drive new Revenue Growth and Reduce Supply Chain Cost

Real-Time Scenario Planning & Simulation

Complete Demand, Supply & Finance Model

Social Collaboration

Sales and Marketing

Forecasting

Consensus Demand Planning

Revenue & Profit

Impact

Inventory Target

Setting & Projections

Material & Capacity-

Constrained Planning

Executive Review & Real-Time Analytics

People Process Data


S&OP Pain Points

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Outdated demand, supply and finance plans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 mix

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


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


SAP Sales and Operations Planning 2.0 Powered by SAP HANA™

Solution Architecture

SAP HANA™

Cloud-based

S&OP Model & Engine

Dimensions

Attributes Key

Figures

Calculations Scenarios

Simulation

User Interface

Analytics

(Web)

Social

Collaboration

(Web/Mobile)

Sales/

Marketing

Demand

Planning

Finance

Supply

Chain

Planning Views

(Excel)

Executives

Administration

(Web)

ERP

CRM

BPC

APO

BW

Any Other

System

Excel

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S&OP HANA – Product Overview

Modern HTML5 based UI –

Social Collaboration Features

S&OP Process Dashboard

Data Integration

Admin capabilities

Social S&OP

User defined

Analytics

Excel based planning views

Scenario planning and

Simulation

Model and Calculations

Real time alerts


Data Integration using Business Objects Data Services

Data Services

Automated data loads from multiple

source systems

Secure On-Premise to Cloud integration

(https, sftp)

Configurable target data model with

extensibility

Flexible source-to-target integration

templates using SAP Data Services

Data export back to Source systems

2 Social Collaboration

3 Analytics / Mobility

4 Data Integration

5 Cloud

1 In Memory


SAP Sales And Operations Planning

Powered by SAP HANA

S&OP Demo

S&OP Overview

S&OP Customer Experiences


Customer Adoption - Overview

Customers signed = 4 (Product in GA since May 2012)

Industries = Consumer Products, Pharma = 2, High Tech = 1

Scenario Overview:

Consensus Demand Planning -> To arrive at consensus demand numbers across functions

Supply Review -> To see the capacity situation for products/brands

Supply/Demand Balancing -> Consider demand, capacity and inventory to arrive a plan

Executive Review -> Update and monitor exceptions with the senior management


High Level Project Schedule

PREPARE SYSTEM SETTINGS & ENABLEMENT GO-LIVE

wk 5 wk 10

Project Kickoff & Solution

Workshops

Model Setup and configuration

End user training

System

Verification

Data Loading

Key User Enablement

wk 2 wk 8 wk 11

Develop Data Extracts

wk 12 wk 13

Solution Blueprint Design

wk 4 wk 7 wk 9 wk 14 wk 1 wk 3 wk 6

a

b

Workshops

1. Kickoff

2. Planning Design

3. Analytics Design

4. Roles Definitions

5. Data Design

6. Key User and

System enablement

Checkpoints

a. Solution Design

b. System Verification


Scenario 1- Business Scope

Support Cross Functional Consensus Demand Planning for a major CP customer

Consensus Demand Planning:

• To collaborate across functions and arrive at a consensus demand number for the company to execute on

• Ability to change various levers and see the impact on execution plan using what-if analysis capabilities

• Bring in account/demand forecast and budget and compare this as you progress during the year

• To improve collaboration within teams and to improve transparency and accountability

• Ability to work with demand/revenue numbers both at brand/sub-brand level as well as Product/account level

Scenario – Account and Demand Planning Integration

Business Unit - 1 BU, US Region

Brands and Products – All products within one brand

Accounts – 3 Key Accounts


S&OP – Customer Case Study

Pain Points:

Shared excels, unstructured collaboration through meetings/emails, Inability to aggregate/disaggregate data across levels

quickly, no system support to model established process

Value with the solution:

Built in process framework – ability to model process, assign tasks and track progress

Real time simulation and planning capabilities

End user driven analytics/planning view creation


Customer Case Study –II . High Tech Company

Current Pain Points:

• Sales/Field Forecast, Business Scrub, Demand Plan and Revenue Plan are done manually based on spreadsheets that are

not integrated with SAP ERP system

• Forecast received are in varied formats and Process to derive to a Build Plan from forecast is cumbersome, subject to

errors, and is not scalable

• No process exist to measure S&OP KPIs, to enable forecast improvement, process discipline, and supply demand analysis.

• Need for a System that can lead to Process Standardization, Forecast Accuracy, Improved Demand Planning and Closed

loop process integrated with SAP.


Customer Case Study –II . High Tech Company

Monthly S&OP process aligned between two Business Units

Sales Forecast: From Field & Program Mgrs, raw input by customer group / part# / monthly buckets. Display previous shipments, current backlog, and consolidated forecast as decision support key figures. Include financial derived forecast elements.

Consensus Demand Review: Management scrub of Field Forecast. Calculate FG Build requirement by netting inventory with Demand Plan. Produce a single demand statement.

Key Component Supply Review: Explode BOM to calculate key component constraints. A Supply Shortage alert is triggered if a shortage exists.

S&OP Review: Calculate Revenue Plan – forecasted profit and revenue in $$ for the FG level units plan. Show real time analytics on Sales vs Revenue Plan.

Management Approval: Submit Consensus Demand Plan and or Commit Revenue Plan for Management Approval. Upon approval, transfer demand plan to Plant.

Colla

bora

tion


Customer Case Study –II .

Achieved Benefits:

• Process Standardization and single Integrated model for Demand , Supply and Finance across their

Business Units

• Moved from a spreadsheet managed environment to an online tool for forecasting, demand planning,

business scrub, & revenue projections.

• Be able to do comparisons, modeling & analytics at any phase of the process, within the tool.

• Manual work reduced by 80%.

• Measure forecast accuracy & details can now be viewed at a granular level

Implementation Details:

12 Weeks Partner led Implementation along with SAP Early Adoption backoffice support

Model includes : 4 Dimensions – Products, Customers, Plants, BOM KeyComponents ;

60 Key Figures across Field Input , Consensus Demand, Supply and Revenue

Snapshots for Waterfall Analysis of Demand and Revenue Plans

Thank you

sap sales and operations planning

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