how to support your sop strategy with the latest technology final

7/23/2019 How to Support Your Sop Strategy With the Latest Technology Final

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HOW TO SUPPORT YOUR SALES AND OPERATIONS PLANNING

(S&OP) STRATEGY WITH THE LATEST TECHNOLOGYDAVE GREEN & SYLVAIN FAURE

21ST OCTOBER 2014



Copyright © 2014 HCL Technologies Limited | www.hcltech.com2

AGENDA

Key Market Trends Impacting S&OP1

Key Technology Needs in Support of a High Maturity S&OP

2

3 How SAP’s New Supply Chain Offering Impacts your SAP Landscape

Wrap Up and Questions4




AGENDA



2






S&OP – A THREE DECADE JOURNEY

30 years ago Today

Who does it? Early Adopters Everyone has S&OP

Audience Supply Chain Centric Global Process

Environment Steady economic growth Volatility

Complexity One S&OP Multiple S&OP

Focus Feasible Plan Integrated Business Planning & more

What are the remaining barriers to its full adoption?

S&OP has evolved to adapt to the new global economic environment

S&OP has gain a strategic importance to drive both growth and efficiency improvement as well as resilience

S&OP is now supported by a wide set of know how, experts and technology




MATURITY MODEL FOR S&OP

The feasible planIntegrated BusinessPlanning (IBP)




WHAT ARE THE BARRIERS TO INCREASED S&OP

MATURITY?

1

2

3

4

Main barriers remain people related:

Executive support and education

Ownership and organization structure

Availability of planning skills and capabilities

The adoption of forecast

99% Technology!


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TECHNOLOGY IS BECOMING KEY TO S&OP SUCCESS

Entering the era of“Big Data”

With the availability of data (both structured and unstructured) at an all-time highfrom all areas of the supply chain (demand signal repositories, news feeds, socialnetworks, RFID tags, GPS tracking, Smart Meters, etc.) the focus will migrate toleveraging data as a competitive advantage

In-Memorytechnology enters

supply chain space

Wider scale leveraging and adoption of in-memory computing technologiesamong enterprise and specialty supply chain vendors, coupled with broaderleveraging of data mining, have the potential to be game changing influences onsupply chain business planning and response management

Supply Chain ClockSpeed

The reality is that today’s supply chains are expected to be more responsive tochange. Changes in supply, demand, or changing economic factors, the old

adage still apply to supply chains: the only constant is change itself!

Collaboration is key Over the past two years, however, sparked to action by the economic downturn,companies are revisiting collaboration” within and outside of their organizations.

Source: Forbes

The 4 main S&OP Market Trends according to Forbes



AGENDA



2





S&OP NEED FOR BIG DATA

Do volumetric and financial planning in the sameenvironment

Consolidate multiple S&OP in a single set offinancials to fully understand the impacts.

Plan across operational and strategic timehorizons in single environment

Create and compare multiple global supply-demandscenarios

A Single Data Model across Demand,Supply, Inventory and Finance

=Big Data Technology

Key business requirements to achievestages 3 and 4 of the maturity model

Note: above requirements are not fu l ly su ppor ted by th e legacy SAP applic ation su ites such as ERP, SCM/APO, BI/BW.



S&OP NEED FOR IN-MEMORY COMPUTING

Iterative plan building through real-time simulation acrossdemand, supply, inventory and finance

Powerful analytics including executive dashboard anddrilldown capabilities

Single UI combining execution and analytics (e.g., built-inbias within the planner screen).

Ensure real-time integration to execution systems.

Predictive Analytics for short to mid term market sensing

(channel demand, commodity pricing, etc.)

Social Media Mining for risk management and market sensing

Real Time Data Processing of Big Data=

In Memory Computing

Key business requirements to achieve

stages 3 and 4 of the maturity model

Note: above requirements are not ful ly su pported by the legacy SAP appl ication suites such as ERP, SCM/APO, BI/BW.

S&OP NEED FOR SOCIAL MEDIA TYPE



S&OP NEED FOR SOCIAL MEDIA TYPE

COLLABORATION

Process calendar management capabilities with integration tocorporate calendar application.

Issue tracking and workflow support with consumerapplication look and feel.

Seamless participation to the S&OP process with datavisualization from any device.

Collaboration across regions, business units as well as externalbusiness partners

Social Media Type Collaboration

Key business requirements to achievestages 3 and 4 of the maturity model

Note: above requirements are not fully supported by the legacy SAP application suites such as ERP, SCM/APO, BI/BW.



AGENDA



2



THIS YEAR SAP ANNOUNCED THEIR NEXT GENERATION



THIS YEAR SAP ANNOUNCED THEIR NEXT GENERATION

SUPPLY CHAIN

Powered by SAP HANA ®

Demand Sensing & Shaping

Service Parts Management

Response

Orchestration

Manufacturing &

Supply

Orchestration

Demand-Driven SupplyNetwork (DDSN)

Sales & Operations Planning

Demand Supply

Integrated BusinessPlanning (IBP)

Supply Chain Integrity

WarehouseManagement

TransportationManagement

Logistic andOrder Fulfilment

Inventory Response

Enable supply chain professionals to navigate, analyze and profitably manage the end-to-end supply chain in real-time

Supply Chain Control Tower

INTEGRATED BUSINESS PLANNING A POWERFUL



INTEGRATED BUSINESS PLANNING – A POWERFUL ALIGNMENT TO THE MARKET TRENDS



Demand Supply

Integrated Business

Planning (IBP)

Inventory Response

Some Core Characteristics

Complete unified and scalable model Demand, supply chain, and financial model at aggregate and

detailed levels

Real-time what-if scenario planning

Social collaboration

Transparent communication

Decision recording.

Ease of Use and Low TCO

Excel, Web based and Mobile UI

Standard SAP Integration

Big Data In Memory

Computing

Social Media Type

Collaboration

S o u r c e : S A P

A G

S o u r c e : S A P

A G

S o u r c e : S A P

A G

Excel User Interface Flexible role based analytics Custom Alerts and Cases

INTEGRATED BUSINESS PLANNING HOW DOES IT





Demand Supply

Inventory Response

IBP for S&OP + IBP for Supply covers most of the functional

requirements delivered by APO DP and SNP

Noticeable advanced features missing (as of Q2/2014): Causalforecast, deployment and CTM.

IBP for Inventory provides functionalities similar to the SmartOps

application

It run within the single IBP data model

A new demand management solution to support advanced long

term and short term demand sensing should soon be announced

Integration from other SAP applications (ERP, APO, etc.) to IBP is

very functional.

Integration from IBP back to other SAP applications has functional

limitation.

IBP feature set is expanding very rapidly!

INTEGRATED BUSINESS PLANNING – HOW DOES IT

AFFECTS YOUR CURRENT APO LANDSCAPE?


IBP for S&OP

Integrated Business

Planning (IBP)

IBP forInventory

IBP for

Response

Existing application with minimalinvestment expected.

New application released within the last 24

months.

New application expected to be

announced within the next 18 months.

IBP forSupply

APO SNP

Predictive

Demand Mgt

APO DP




AGENDA



2






WRAP UP

Improving your S&OP maturity is an achievable goal

If you want to learn more on how to build your S&OP optimization roadmap or have a demo of SAP

latest SAP HANA based S&OP tools, feel free to contact us.

Key success factor = building a roadmapwith clear goals and plans to up the maturity chain

David GreenDirector, Supply Chain Practice

[email protected]

Sylv ain FaureDirector, Supply Chain Solutions

[email protected]

mailto:[email protected]







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