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Connect the dots:Sonos achieves end-to-end supply chain visibility

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AgendaVivian Zhang

Guest speaker Vivian Zhang is a Sourcing Operations Analyst at Sonos. In this role, Vivian has led the cost management platform development, implementation, and process optimization to deliver efficiency across the organization. She has been with Sonos for three years, bringing five years of experience in the cost management field, including a background in both financial management and supply chain.

Ed Lewis

With over 20 years of experience leading design, development, and marketing of S&OP and supply chain solutions, Ed launched Valizant to help companies realize greater value from their supply chain planning initiatives through a holistic and agile approach. Prior to Valizant, Ed was VP of Product Marketing at Steelwedge Software and VP of Solutions Consulting. Prior to Steelwedge, Ed was CEO of Amitive, Inc. (acquired by GXS/OpenText). Ed also designed and implemented global SCP solutions as a consultant and practitioner for companies such as Dell, Toshiba and Mitsui & Co.

Speakers

Agenda

• Sonos’ Global Supply Chain

• Planning Complexity

• Sourcing Challenges and Solution

• Supply Demand Balancing Solution

• Supply Planning Solution

• Key Take-aways

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Sonos Supply ChainThe Home Sound System

Sonos Supply Chain• Global Supply Chain: NA, EMEA and APAC Regions

• Multi-channel sales: ECOM, Retail and distributors

• Planners: All regions

• Distribution Centers: All Regions

• Manufacturing Plants: China

• New product introductions

• Complex, multi-level bills of materials

• Second source initiative

Sourcing Challenges and Struggles

• An excel based Sourcing cost management process• Time consuming

• Manual process• Data validation• Deep dive and trouble shooting

• Low level of data integrity • Inflexible system environment

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Connect

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Volume:Actuals & Projection

s

• Real time actual andforecast supply plan

Bill ofMaterial

• Automated weekly BOM explosion

Sourcing

Projections

• Sourcing database: the core of costing and suppliermanagement activities

Material Planning

• Real time component forecast• Automated component forecast

publication to manufacturers

Contract Manufac

turer

• Scheduled BOM/Cost validation

SourcingCost/SupplierManagement

Model

Optimize

• Automated process• Real time Sourcing strategic spend/saving planning

• Both material and COGM• Real time supply plan and component requirements with improved

accuracy• Component forecast publication to suppliers

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Optimize

Optimize

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Optimize

• Data diagnostic functions built in to enable self check • Full visibility and one source of truth

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Agenda Agenda

• Sonos’ Global Supply Chain

• Planning Complexity

• Sourcing Challenges and Solution

• Supply Demand Balancing Solution

• Supply Planning Solution

• Key Take-aways

Supplyanddemandbalancing

Supplyplanning

Materialspend

Componentforecast

KeyComponentVisibility

PhaseIII PhaseIVPhaseIIPhaseI PhaseV

Transformation roadmap

Supply demand balancingprovides reliable channel commit

Challenges• Multiple plans compromised plan confidence

• Difficult and time consuming to “assemble” data from multiple sources

• Weekly C-Meeting report preparation disruptive to operations

• Scenario planning outdated before completion

Solution• Supply demand balancing solution with constraint based

planning

• Planned capacity, SKU mix, inventory target, and transportation mode levers

• Single source of truth for plan with automated data collection

Capacity planning accelerates commit and improves accuracy

Challenges• Capacity and key component constraint plans were

disconnected and manual

• Difficult to simulate combined impact on capacity and production

• Confidence in commit plan and its accuracy required improvement

• Manual effort to translate to purchase orders and logistics plan

Solution• Constraint-based capacity planning; standard/

premium/holiday capacity, component supply

• Seamless commit plan flow to supply demand balancing

• Automated PO generation and shipping container planning

Sonos Supply Chain Planning Today

• Intuitive role based planning dashboards• Day One planning• Planning alignment with seamless flow between apps• Collaboration across global organization• Automated forecast and PO publication to CM, logistics providers

and manufacturers

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Agenda Agenda

• Sonos’ Global Supply Chain

• Planning Complexity

• Sourcing Challenges and Solution

• Supply Demand Balancing Solution

• Supply Planning Solution

• Key Take-aways

Key Take-aways: Connect the Dots

1. Start on the Transformation Roadmap with a high impact function. Learnings will alter the course.

2. Demonstrating success builds momentum which carries to the next priority.

3. Retain company-specific processes and adopt best practices if they add value.

4. Increase user adoption through participation and transparency during implementation.

5. Retain business user ability to adapt to business conditions and process changes.

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Q & A