top sales and operations planning (s&op) tips and tech trends: power up for 2013

© 2012 Steelwedge Software, Inc. Confidential. 1 Plan. Perform. Profit.

7 Process and Technology Tips for 2013

Single Line of Sight: Plan, Perform, Profit


Agenda

•  Research Roundup •  Seven Key Process and Organization Capabilities

for Organizations •  Seven Key Technology Capabilities •  Summary


The Agility Gap How good are you at responding to rapid change?

90% Agility is crucial to business

27% Are good at agility

*May 15 S&OP Agility Research, Supply Chain Insights


S&OP Progress Rate Your Enterprise’s 2012 S&OP Progress:

23% 56% 13% 08%

A lot A little Not at all We lost ground

*Nov 27 2012 Steelwedge Agility Research


Responsiveness How challenging are mid-cycle changes to your planning process?

27% 41% 31%

Extremely Rather Somewhat No Problem

01%



Do you connect volume to mix in the planning process?

Mix Management

16% 13% 10%

Yes by cobbling together

spreadsheets

Yes using purpose

built S&OP technology

No we plan at the mix level

No we plan at the volume

level

62%



How do you facilitate collaboration through your process?

Collaboration

34% 9% 36%

Manual workflow - one set of business

rules

Manual workflow - multiple sets of business rules

Automated workflow

Execution is inconsistent at

present

21%



Risk Management How effective is your S&OP Process in risk management?

09% 46% 44% Excellent: very

effective at anticipating and

recovering

Very Good: effective at

sensing changes and responding

Good: we’re inconsistent

fundamentally and in our response

Weak: we do not anticipate and respond

well to changes

01%



Agenda




Tip #1: Don’t Get Stuck in Control Mindset

The Growth Paradox February 2012

Chris Turner, Principal, Stratabridge

•  Genesis of S&OP founded on control. Great in a static environment

•  But with volatility and internal change, can you afford a control focus?


Tip #2: Leverage Similarities in S&OP Approach S&OP Agility Webinar

March 2012 Tom Wallace, author, educator and founder TFWallace.com

•  Learn from horizontal best practices •  Recognize S&OP’s applicability:

– From earnings reporting – To New Product Introduction – To units measurement

•  Then, adapt to your specific needs


Tip #3: Balance Your Planning Like an Athlete: Build Flexibility, Strength and Balance

How S&OP Drives Agility May 2012

Research Findings of Lora Cecere, Founder of Supply Chain Insight


•  Today, S&OP landscapes are more complex. It is not a bell curve. The average company now has five S&OP processes. Eight years ago there was one.

•  Today, a company is 5X more likely to have a supply chain center of excellence than eight years ago. However, there is still a large gap in the effectiveness of S&OP.

•  90% of companies surveyed believe that a mature S&OP improves agility. However, only 13% of companies have effectively tied S&OP planning to execution.

Key Findings


Tip #4: Confront Conflicting Goals

Are Your Ready for the Sea Change in Supply Chain Strategy? April 2012

Roddy Martin, SVP Supply Chain Transformation Competitive Capabilities International

•  Balance goals across the organization:

–  Finance: control operations –  Operations: minimize demand uncertainty –  Supply chain: Minimize risk and disruption –  Sales and marketing: guarantee product availability


Tip #5: Make Change a Routine Part of Organizational Life

Improving Agility in Business Planning June 2012

Eric Deutsch, Partner Oliver Wight

•  Reduce or eliminate organizational trauma that paralyzes

many businesses attempting to adapt to new markets and environments


Tip #6: Pick the Right S&OP Practices for Your Organization

7 Practices of Effective S&OP August 2012

Peter Bolstorff, Author and Educator

•  Systematic management of ‘master data’ •  Synchronized tactical, and execution planning processes &

horizons •  Mature collaboration •  Data oriented understanding of the inputs to the forecast •  Intense focus on ‘point-of-sale’ or ‘sell through’ data •  Disciplined product life cycle management process •  A continuous improvement approach to understanding consumer

or user behavior


Tip #7: Continue to Gain Value from S&OP Foundation

What Mature S&OP Looks Like: Enterasys Case Study

October 2012 Jack Lyon, Vice President of Operations, Enterasys Networks

•  Crawl, Walk, Run methodology for continuing, incremental success

•  Master Data Management to connect and harmonize vital on-premise and cloud based data

•  Putting the Cloud to work for better scalability


Agenda




7 Key Technology Enablers Adapt and Automate Your Unique Process Act Faster with Analytics Mobilize your Planning Leverage the Power of the Cloud Reduce Time to Value Create a High Resolution IBP Process Accelerate Time to Value


Adapt and Automate Your Unique Process

Build Your Own Business Planning App


Steelwedge Business Apps

21

Inventory Segmentation

Stocking Strategy

Demand Pattern Segmentation

Inventory Segmentation

Service Level Planning

Demand Policy Company-specific

Processes

Build Your Own Business Apps


Take the efficient approach Understand Complexity and Its Impacts

Volatility

Imp

ac

t

Statistical Forecast with

Exception Monitoring

Collaboration with

Exception Monitoring

Stocking Strategy: Min/Max, Safety Stock, etc. with Exception Monitoring

Steelwedge Business Apps


Act Faster

Analytics Integrated with Planning Data


Cloud Based Analytics: Built for IBP

1. Traditional Performance Summary Dashboards

2. Traditional Metrics Dashboards

3. Dynamic Content Dashboards

4. Dynamic Visualization Dashboards

Bene

fits

Dashboard & Reports Sophistication

Increased User Adoption

Operational Performance

Transparency

Organizational Alignment

Better / Faster Decision-making


SAM screenshots

25


SAM screenshots

26


SAM screenshots

27


Mobilize your planning

Mobile Analytics For Executives and planners: offline dashboards, predictive analytics and exceptions For Mobile Sales: offline and web-enabled demand data

Enterprise Data

Steelwedge Analytics

Model


Leverage the Power of the Cloud

Cloud Based Delivery Platform


Cloud: At Your Service

30

1. Configure

Cloud Delivery Platform

Accelerated Time To Value

2. Integrate

Cloud Integration Portal

Flexible Data Exchange

3. Deploy

Cloud Services Portal

Automated Upgrades


Configure: Cloud Delivery Platform Multi-tenant Configuration Repository

- Industry blueprint & Best Practices

Customer Specific Configuration - Flexibility

Partner/Customer Access Control - Cloud management

Seamless Upgrades - Process flexibility

Rapid Implementation - Time to value

Monitoring and Statistics - User engagement

Steelwedge Cloud Delivery

Platform

Monitor

Rapid Implementation

Seamless Upgrade

Access Control

Customer Specific

Multi-tenant


Reduce Time to Value

Compass Express: Out of the Box S&OP Solution


Compass Express Out-of-the-box S&OP solution

S&OP Sales S&OP Operations Executive S&OP Collaboration

Pre-implemented based on SW best practices Accelerates implementations

Production ready configuration Net change to best practice vs.

blank slate design Solution visibility during design


High Resolution IBP Process

Big Data Powered S&OP


Bigger Demand/Supply Network = Bigger Data

Manufacturers

Wholesale Distributors

Suppliers

Customer Demand

Info

Goods Contract

Manufacturers

Logistics Providers

Virtual Manufacturers

Retailers

Internet/ Portals Internet/

Portals Internet/ Portals

Source: Rich Sherman, Keeping SCOR in the Supply Chain


Impacts of an Interdependent Network

•  Less control and visibility

•  Increased lead-times •  Planning collapsing into

execution •  More risks •  More change in the

business environment

Data required to monitor and control

these processes has grown 70% in the last

year


The Best S&OP is Powered by Big Data

•  Steelwedge: – powers Global 1000 planning – understands supply chain complexity – enables processes – manages growing data…


The Best S&OP is Powered by Big Data

•  Single unified data model for supply, demand and finance

•  Ability to do global scenario management across the supply, demand and finance

•  Extremely rich collaborative capabilities supported by Enterprise Enabled Excel

Demand

Supply

Finance


Data

volu

me/c

ompl

exity

Business Value

20-100X

2-10X

X

Combinatorial Explosion of Data Requires Advanced S&OP Technology

• Volumetric and financial • Cross instance reporting • Planning across operational and strategic time horizons in single environment • Global supply-demand scenarios • Real-time integration to back end systems

• Volumetric and financial • Detailed planning •  Improved system integration • Scenario management for functional areas

Advanced S&OP: Measures units/dollars and also links Supply, demand and finance

Big Data Powered S&OP: Measures units/dollars, links departments and time horizons and delivers multiple supply scenarios….. • Volumetric (not financial)

• Limited detail visibility • Limited system

integration • No scenario management Traditional S&OP: Measures units


Power High Resolution S&OP The Hierarchy of Supply

Chain Metrics Source: Gartner

Demand Forecast

Perfect Order

SCM Cost

AP Inventory Total AR

Cash-to-Cash

Supplier Quality

Supplier On-Time RM Inv Purch

Costs Dir. Mtl. Costs

Cost Detail

Production Schedule Variance

Plant Utilization

WIP+FG Inventory

Order Cycle Time

Perfect Order Detail

Diagnose

Assess

Correct

BIG DATA

From Unfocused S&OP……


Power High Resolution S&OP The Hierarchy of Supply

Chain Metrics Source: Gartner

Demand Forecast

Perfect Order

SCM Cost

AP Inventory Total AR

Cash-to-Cash

Supplier Quality

Supplier On-Time RM Inv Purch

Costs Dir. Mtl. Costs

Cost Detail

Production Schedule Variance

Plant Utilization

WIP+FG Inventory

Order Cycle Time

Perfect Order Detail

Diagnose

Assess

Correct

BIG DATA

To High Resolution S&OP……


Accelerate Time to Value

Technology Enabled Process Design


Steelwedge Test Drive

Why Test Drive Live System = Real User Input = Real Proof Point Validate Requirements Assumptions (Customer & SW) Validate Data Health and Availability (Customer & SW)

What is a Test Drive Compass Express “Best Practices” platform hosted by SW One time data load 8 hours of Hands-on Training

Optional: Integrated Planning Assessment / Design workshop


Agenda




A New Age of Business Agility Has Arrived REACT through synchronized global planning & risk sharing Coordinate with partners, customers and suppliers by leveraging the power the world’s only rapid-to-implement, and scalable cloud-based collaborative planning platform

GROW through integrated business planning Analyze supply, demand, finance, asset and workforce tradeoffs; understand the impact of alternate pricing, sourcing, mix, and volume scenarios

DECIDE by leveraging the power of data to gain insight Leverage the scalability of an elastic cloud-based planning platform to power predictive analytics that provide visibility.


SW Webinar Technology Trends

December 11, 2012

Single Line of Sight: Plan, Perform, Profit

top sales and operations planning (s&op) tips and tech trends: power up for 2013

Technology

steelwedge software

steelwedge agility research

sop agility research

sop process

sop technology

key process

agility gap

planning process