sales and operations planning (s&op) …what’s … mfg... · organization to support s&op...

Sales and Operations Planning (S&OP)

…WHAT’S STOPPING YOU?

by…

Kaushik Dutta

Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL

Agenda

2

Sales and Operations planning

10-step methodology

Key considerations

Summary


S&OP … it’s all about ALIGNMENT

Vision

Goals

Strategies

Planning

Execution

Results

People (60%)

Process (30%)

Technology (10%)


10-step deployment methodology

1. Decide to do it

2. Form the design team

3. Educate everyone

4. Make a calendar

5. Design the process

6. Hold the first S&OP meeting cycle

7. Refine the process

8. Document the process

9. Train the users

10. Link S&OP to ERP


S&OP Process acceptance …Ground Reality

1

2

3

4

5

6

7

8

9

Source: AMR Research


Key consideration…

Goal clarity

Alignment to Strategy

Performance Measurement Metrics

Decision making

Forecasting

Connecting planning to execution


Goal Clarity…

Demand

Supply Product


Alignment to strategy…

S&OP objectives

Supply Chain Strategy

Business Goals

Pricing

Sales forecasting

Demand Forecasting

Demand Shaping

Inventory Management

Managing Supplies

Distribution Planning

Manufacturing

Product Differentiation

Customer Service

Cost Reduction

Profitability

Market Share

Outsourcing

Sustainability

Product

Innovation

Growth

Acquisition


Performance Measurement Metrics…

Demand

Customer Service

Inventory

Financial

Forecast accuracy

On time in Full

Days of Inventory

Inventory Turns

Return on Assets

Revenue

Profitability


Decision making…

Business Model Governance model

Globalization Span of Control

Supply Chain objective S&OP processes

Organization to support S&OP process People

Metrics Data, Details and Tools

Automate existing process or Change for better


Forecasting…

Choosing the right forecasting technique – Time Series, Regression, Judgmental

Choosing the forecast horizon to focus

Choosing the right level of dimension to forecast

Forecast definition – to book, to confirm, to produce, to move, to deliver, to invoice

Managing backlogs and carryovers

Marketing cycle Sales Cycle Forecasting cycle Order booking cycle

Communication, Awareness, Rewards and Recognition for Forecast Accuracy


Connecting Planning to Execution…

Supply Chain Strategy

Product Family Country 3 months – 6 months

Demand Constraints

Economy, Growth, Pricing, Trends &

Seasonality, Market

Distribution Constraints

Cost and Availability, Mode mix, Make or

Store or Buy

Production Constraints

Product mix

Supply Constraints

Cost, Availability, Supply mix

Supply Chain Planning (Tactical)

Product Group Zone/State/District 1 – 3 months

Demand constraints

Shipment, Price, Promotions

Distribution Constraints

Mode availability, Lot sizing as per mode, Safety Stock

Workcenter Constraints Shutdowns, Productivity

Yield & Utilization

Supply Constraints

Planned Availability

Supply chain planning (Operational)

Product/

SKU

Order booking

Open Orders

WIP

Productivity

Queue Times

Sequencing

Actual transport and supply availability

Customer 1 day – 1 month

Orders/

Shipment

Requested date/

Promised Date

Open Orders

/Production orders

/Inventory

Master data

Planned start

ERP


Summary …Laggards Vs Best-in-class

People

Goal

Alignment to Strategy

Process

Decision Making

Performance Measurement Metrics

Technology

Forecasting

Connecting Planning to Execution

Laggards Average Best in Class

Source: Aberdeen Group


A successful S&OP – … achieving RESULTS

Source: Aberdeen Group


By…

Thank you.

sales and operations planning (s&op) …what’s … mfg... · organization to support s&op...

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