is your s&op lost in translation?
DESCRIPTION
While alignment between demand, supply and finance is essential for sales and operations planning (S&OP) success, each use different planning terms. As a result, many companies struggle to translate these terms into the “language” that each department speaks. Marketing and Sales use revenue terms, Operations plans in volume (cases, eaches, liters, kilograms) and Finance measures by revenue and margin. To make the translation even more challenging, different stakeholders plan at different levels of aggregation—or “dialects.” Some plan at the Product Family level, some at SKU and others at the Regional and Divisional level. This webinar will explore how powerful S&OP technology seamlessly translates planning data from across the organization and all levels of aggregation into relevant units of measure to provide essential stakeholder insights. Join this webinar to fully understand: - The translation obstacles that all companies face - The high costs associated with disjointed planning - Best practices to overcome translation challenges and ensure efficient and effective planningTRANSCRIPT
1 © 2014 Steelwedge Software, Inc. Confidential.
Single Line of Sight: Plan, Perform, Profit
Agility Webinar Series
Is Your S&OP Lost in Translation?
2 © 2014 Steelwedge Software, Inc. Confidential.
Today’s Presenter
Background
With over twenty years of experience leading design, development and
marketing of S&OP and supply chain solutions, Ed is responsible for market
assessment, requirements definition and go to market strategy.
Prior to Steelwedge, Ed was CEO and President of Amitive, Inc. (acquired
by GXS) which he founded in 2004. Under his direction the company grew
from start-up to a leading cloud supply chain planning provider controlling
complex supply chains around the globe.
Prior to launching Amitive, Ed designed and implemented global SCP
solutions for numerous companies, including Mitsui & Co., as a Sales and
Operations executive and consultant. Ed holds a Juris Doctorate from
Western State University, College of Law.
Vice President, Product
Marketing
Steelwedge Software Inc.
3825 Hopyard Rd
Pleasanton, CA 94588
Tel : (949) 588-1495
3 © 2014 Steelwedge Software, Inc. Confidential.
Agenda
• The Problem: The Spreadsheet Approach
• Solution: S&OP Automation
• Steelwedge in Action
• Industry Analysts and Experts
• Q & A
4 © 2014 Steelwedge Software, Inc. Confidential.
“ Steelwedge has grown into
the market's leading S&OP
solution in the cloud. ”
Rating: Positive
Global market share leader
Offices: USA, Europe, Japan & India
Founded in 2000, 50%+ year over year growth
Global organization focused on global delivery
Cloud Based Integrated Business planning platform
100% cloud-based for rapid deployment & value realization
Steelwedge: The S&OP Company
5 © 2014 Steelwedge Software, Inc. Confidential.
Agenda
• The Problem: The Spreadsheet Approach
• Solution: S&OP Automation
• Steelwedge in Action
• Industry Analysts and Experts
• Q & A
6 © 2014 Steelwedge Software, Inc. Confidential.
Planning Terms
Customer
Revenue
Product, Sub-family
Planning Terms
New Product
Promotions
Region
Planning Terms
Inventory and Capacity
Product
Stock and Production Locations
Finance Plans
Revenue, Margin & Cash
Region and Geo
Product Family
Demand Planning, SCP/APS Systems
ERP, Financial, & Transactional
Systems SAP, Oracle, etc.
Industry
Data
Data Collection,
Reconciliation
Operations
Marketing
Sales
Finance
Systems Landscape
Ground Reality: Trying It With Spreadsheets
7 © 2014 Steelwedge Software, Inc. Confidential.
Planning Terms Geo, Region Revenue, Margin, Cash Product Family
Planning Terms
New Product
Promotions
Region
Planning Terms
Inventory and Capacity
Product
Stock and Production Locations
Finance Plans
Revenue, Margin & Cash
Region and Geo
Product Family
Planning Terms
Customer
Revenue
Product, Sub-family
Pre-ESOP
Demand Planning, SCP/APS Systems
ERP, Financial, & Transactional
Systems SAP, Oracle, etc.
Industry
Data
Consolidation, Review,
Overrides
Data Collection,
Reconciliation
Consensus Process ESOP
Operations
Marketing
Sales
Finance
Systems Landscape
Ground Reality: Trying It With Spreadsheets
8 © 2014 Steelwedge Software, Inc. Confidential.
Planning Terms Geo, Region Revenue, Margin, Cash Product Family
Planning Terms
New Product
Promotions
Region
Planning Terms
Inventory and Capacity
Product
Stock and Production Locations
Finance Plans
Revenue, Margin & Cash
Region and Geo
Product Family
Planning Terms
Customer
Revenue
Product, Sub-family
Pre-ESOP
Ground Reality: Trying It With Spreadsheets
Demand Planning, SCP/APS Systems
ERP, Financial, & Transactional
Systems SAP, Oracle, etc.
Industry
Data
Consolidation, Review,
Overrides
Data Collection,
Reconciliation
Consensus Process ESOP
Operations
Marketing
Sales
Finance
Manual
Complex
Security Risk
Not Scalable
Does this Give Executives
an Agile Decision Making Process?
Systems Landscape
10 © 2014 Steelwedge Software, Inc. Confidential.
Poll Question 1
Does this look familiar?
11 © 2014 Steelwedge Software, Inc. Confidential.
Agenda
• The Problem: The Spreadsheet Approach
• Solution: S&OP Automation
• Steelwedge in Action
• Industry Analysts and Experts
• Q & A
12 © 2014 Steelwedge Software, Inc. Confidential.
IBP/S&OP Solutions: Heterogeneous Landscape
13 © 2014 Steelwedge Software, Inc. Confidential.
Best Practice S&OP Aligns People, Process & Systems
“We continue to look at S&OP as an
aspect of business that needs terrific
improvement…
It’s hard to argue this shouldn’t be a
central piece of management software”
–Rob Kugel, Ventana Research
14 © 2014 Steelwedge Software, Inc. Confidential.
Drive & Sustain Adoption & Values with S&OP Technology
Time
L1
L2
L3
L4
Q1 Q2 Q3
Step Change
Maturity &
Performance
Avoid Process
Failure
Q4
Val
ue
Accelerated
Time to Value
“Companies can have a hard time getting past basic levels of S&OP without
technologies … to support the process” -Tim Payne
VP Supply Chain Analysis, Gartner
15 © 2014 Steelwedge Software, Inc. Confidential.
S&OP Technology Requirements
Demand Planning, SCP/APS Systems
ERP, Financial, & Transactional
Systems SAP, Oracle, etc.
Industry
Data
Single Cross-Functional
Planning Environment
Interactive planning for:
•All S&OP Stakeholders
•Plan Review
•Overrides
•Assumptions
•Scenarios
•Consensus Process
•Pre-S&OP
•Executive S&OP
•Audit Trail
Systems Landscape Product / Sub-Family Customer Revenue
Product / Family Territory / Region Revenue
Product / Family Promotions Revenue
Product / Family Region Units & Revenue
Product Stock Locations Units and Inventory
Family / Series Territory / Region Revenue, Margin & Cash
Family / Series / BU Geo Revenue, Margin & Cash
Product Production Site Units and Capacity
Family / Series / BU Geo Revenue, Margin & Cash
Family / Series / BU Geo Revenue, Margin & Cash
Planning Views Stakeholders
Account Managers
Sales Managers
Marketing
Demand Planners
Supply Planners
Production Planners
Finance
Executives
Customers
Suppliers
Cross-functional Planning
Environment
S&OP Technology
16 © 2014 Steelwedge Software, Inc. Confidential.
• Mix & Volume forecasting - always in sync.
• At any combinations/level of the appropriate hierarchies, view/adjust: • Volume and Pricing, i.e. Product or Family by Customer or Region
• Costing, i.e. Product by Source
• Revenue and Margins, i.e. Family by Geo
Managing the Translation between Functions
17 © 2014 Steelwedge Software, Inc. Confidential.
Poll Question 2
How do you translate plans today?
18 © 2014 Steelwedge Software, Inc. Confidential.
Agenda
• The Problem: The Spreadsheet Approach
• Solution: S&OP Automation
• Steelwedge in Action
• Industry Analysts and Experts
• Q & A
19 © 2014 Steelwedge Software, Inc. Confidential.
Poll Question 3
What’s your company’s balance between
preparation and actual planning?
20 © 2014 Steelwedge Software, Inc. Confidential.
Agenda
• The Problem: The Spreadsheet Approach
• Solution: S&OP Automation
• Steelwedge in Action
• Industry Analyst and Experts
• Q & A
21 © 2014 Steelwedge Software, Inc. Confidential.
Steelwedge is a strong leader in S&OP and IBP
“Steelwedge is an ideal solution for a heterogeneous environment with multiple S&OP processes
with inputs from multiple ERP and APS technologies.”
Lora Cecere
Founder and CEO, Supply Chain Insights
“Steelwedge has grown into one of the market's leading S&OP solutions". “Steelwedge has
proven that it provides a capable and scalable Stage 3 S&OP solution suitable for global
deployments.”
Tim Payne
Research Vice President, Supply Chain Research Group, GARTNER
Steelwedge was among the highest ranked in capabilities scoring and was one of “the vendors
that were notable in portfolio strategy and portfolio benefits delivered.”
Simon Ellis
Supply Chain Practice Director, IDC
22 © 2014 Steelwedge Software, Inc. Confidential.
Tom Wallace – The Guru of S&OP
“ Sometimes people ask me about the S&OP
module from their ERP provider.
I respond that the next really good S&OP
software package that comes from a main line
ERP vendor … will be the first. We have yet to
see that happen.
You need to look and best-of-breed. And the
best of the best-of-breed is Steelwedge ”.
Tom Wallace,
Founder, T. F. Wallace & Co
Watch the video: http://www.youtube.com/watch?v=SVWaNiBC4Jo&index=4&list=PLF5EAC415A68DC43B
Integrated Business Planning for S&OP – Master Class with Tom Wallace: http://www.youtube.com/playlist?list=PLF5EAC415A68DC43B
23 © 2014 Steelwedge Software, Inc. Confidential.
Q&A Contact Us
Email: [email protected]
Telephone: North America +1 (855) 980.8800
United Kingdom +44 (0)121.232.4668
Netherlands +31 (0)70.7999.288
Japan +813-6277-8521
24 © 2014 Steelwedge Software, Inc. Confidential.