integrated business planning powered by sap · pdf fileintegrated business planning powered by...

March 2016, Robert Kepczynski

Global Supply Chain Strategy & Design, Global Supply CoE

“How & What” value Syngenta extracts from

Integrated Business Planning powered by SAP IBP

2

“How & What” value, Syngenta extracts from Integrated Business Planning powered by SAP IBP

1. Business drivers for transformation

2. How Syngenta understands Integrated Business Planning

3. “How & What“ value Syngenta extracts from IBP powered by SAP

4. Syngenta considerations for next steps with SAP IBP

Classification: PUBLIC

3

1. Business drivers for transformation enabled by Integrated Business Planning

In-Territory challenges Opportunities

Improve visibility and data clarity

to inform profitable decisions on

all S&OP levels

Improve process efficiency,

increase selling time and remove

excess data consolidation effort

$$$$ Reduce lost sales and inventory

Equip Sales Reps with clear and

timely product availability dataHuge efforts to reconcile multiple sources of

S&OP data

Improve customer experience


4

• Evolutionary step of S&OP

• Revenue and profit projections

• Management of business trade offs & risks

• Inclusion of strategic plans

• One set of figures and not one figure driving business

• Budget gap identification & management

• Aggregate/detail WoW* level aligned to insights

• Increased process efficiency & effectivness

• Process outputs KPIs and measures

2. How Syngenta understands Integrated Business PlanningIBP vs S&OP key differentiators (1 of 2)

* WoW – Ways of working


5

Annual AIMonthly

CU/Territory

Annual Variety &

Formulation

CY and CY+1

S&OP SKU / month

(*Control Tower SKU / week)

CY to CY+5

Active Ingredient

Month & Year

CY+2 and CY+3

Formulation & Variety

Year

S&OP Processes

S&OP Levels

2. How Syngenta understands Integrated Business PlanningS&OP levels, processes, degree of harmonization (2 of 2)

As-Is degree of harmonization

H

M

L

L

HML/M

L


6

Monthly

CU/Territory

3.“What“ value Syngenta extracts from IBP powered by SAPProcesses (1 of 5)

Sales Input

Customer

Marketing

Input

Product

Marketing

Input

Demand

Planning

Input

Demand

ReviewPre-SOP

Allocation

PlanningSOP

UNCONSTRAINED CONSTRAINED

PHASED, VOL / «NET» REVENUE, PROFIT, BUDGET GAPS

DEMAND MANAGER LED

PHASED, VOL / «GROSS» REVENUE

DEMAND PLANNER LED


? ? ?

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3.“What“ value Syngenta extracts from IBP powered by SAPOrganization & Capabilities (2 of 5)

Demand Planner facilitates/ensures S&OP

process is followed, focused on delivery the

most realistic unconstrained forecast. Acts as system & data expert.

Marketing-led process to ensure alignment to strategic plans, focus on right products and

customers strategy/tactics.

Finance Business Partner & Pricing Manager focused to manage price elasticity, projected

margins, validate profit and revenue projections, validate & ensure integration with Fin System.

S&OP numbers are assumptions driven,

followed trough market drivers and assumptions framework

Demand Manager focus on

delivering the most profitable constrained plans e.g. allocation plan, volume & value base scenario planning, demand shaping.

Sales qualitative inputs are adapted to

local organization set up


8


We forecast uncertainity(events) +/-30 to 90 separately to enable appropriate supply planning & decisions

We forecast consignment sales according to Production &

Supply consignment fill-up forecast

and Finance revenue recognition forecast phasing

We forecast standard salesaccording to when we expect to sell/ship products to the 3rd party customers

We forecast Unconstrained and Constrained view separately. Unconstrained Sales Forecast is a view of up-to date market potentials. Constrained view considers supply constraints and financial commitments

We forecast barter sales as different “payment term” optionally with revenue recognition phasing different than volumetric

We forecast Combi-packs, ICS via Sales BOM to ensure E2E integration, profit / COGS assignment.

We forecast volume, value and related phasing


9

We forecast volumetric Commercial Returns and financial Accruals for it

We forecast Samples / Free of Charge to “netted out” of the Sales Revenue forecast but factored in to Supply Plans

We manage risks with Scenario Planning

- to promote the maximized profit in Constrained Sales Plan (volume, value, price, margin)

- to expose and manage gaps to the Budget

We forecast Royalties/License fees and factored in to ensure a complete Sales Revenue Forecast

We do local supply & demand balancing based on regional supply response

We define and integrate with ERP

Allocation plans to achieve most profitable outcome

Differentiated forecastingenabling step change in process efficiency & effectiveness



10

We enable integrated & flexible data model (structures) across all business lines and all geographies to execute process steps and all integration requirements.

Protected Inputs / “opinion lines” in role based templates to enable Forecast Value-add analysis and 6 Sigma improvements

Aggregate or detail level ways of working aligned to best insights. Effective disaggregation/aggregation

supporting changes of level. Top down and bottom upforecasting

* As-is, ** Planned

Many data sources* integrated via Hana Cloud Integration platform.

Excel as main user interface. Supported by

Web** & Fiori** UI

Same information but data load and work levels can be different

Cross process step controlled data flows

3.“What“ value Syngenta extracts from IBP powered by SAPSystem & Technology (5 of 5)


11 CLASSIFICAITON: Confidential

DEPLOY DESIGN GLOBALLY

Requires strong regional leadership support

• Current processes will change

• Design for needs not for wants

SYNCHRONIZE RELEASES ACROSS TERRITORIES

• Harmonized processes, terminology & functionality

• Clustered design, build, transformation

MINDSET IS CRITICAL

• “We Can!”

• Identify and drive collaboration internally and

with partners - “One Team” approach

INTEGRATED DESIGN & ROLL-OUT

• Integrated designs with other areas will

amplify benefits e.g. Pricing, Order

Management , Supply Response

1

ENSURE BUSINESS CONTINUITY

• Minimize seasonal impact

ITERATIVE DESIGN & BUILD FOR A COMMON GLOBAL FRAMEWORK

• Territories must think globally through the design process

• Staged transformation approach

3.“How“Syngenta extracts value from IBPApproach (1 of 2)


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3.“How“ Syngenta extracts value from IBPApproach (2 of 2)

Documentation, Knowledge

exchange platform

Best practices

Technical and Business Go-Live,

Clustered Design, Build & Transfromation

Co-innovation enabling Win-Win


Global team - overlap of

capabilites and clear

responsibilites

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● Functional perspective

● Geographical perspective

● Process perspective

Sales & Operations

SAP HANA Platform

Supply Chain Control Tower

DemandResponse &

SupplyInventory

Annual AIMonthly

CU/Territory

Annual Variety

& Formulation

STAGE 1 STAGE 2 STAGE 3

STAGE 1

STAGE 3

STEP2 TOOL TBC

• Midium size territory prototype

• 2 largest territories rollout

• Global sustainable scalability

STAGE 1

STAGE 2

STAGE 1 – Completed , STAGE 2 – In Progress, STAGE 3 - Planned

STAGE 3

4. Syngenta considerations for next steps with SAP IBP

Budget

Preparation

STAGE 3, TBC


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