sap® s&op powered by sap hana®: practical steps to launch for results
DESCRIPTION
For more information visit www.plan4demand.com | email: [email protected] | or call 866-P4D-INFO S&OP Solution Director, Andrew McCall, discusses how to best understand, evaluate and move forward with SAP S&OP powered by SAP HANA. To view the recording of the event, visit http://bit.ly/SOPHANA Key take-a-ways include: • A quick review of the value and benefits of a high-performance Sales & Operations Planning Process • A concise overview of exactly what functionality SAP's S&OP on HANA provides • How the solution can best overcome common obstacles and drive process maturity • Practical steps to get started o Evaluating fit for your needs o Framing a practical fit o Planning requirements necessary for a successful pilot If you are fatigued from a "Brute-Force" data intensive S&OP process that is often a day late and a dollar short, this solution is for you. Real-Time Information is no longer out of reach. The event materials, questions we did not get to answer during the Q&A, as well as additional S&OP Materials, can be found in our S&OP Leadership Exchange LinkedIn Forum. We'd like to extend an invitation to you to join and leverage the experience of your peers & industry experts. http://linkd.in/SOPLeadershipExchange If you’d be interested in setting up a one-on-one discussion with Andrew McCall, surrounding your process, needs & any specific questions you have, email [email protected] to set up a time. Check out this webinar on-demand at http://www.plan4demand.com/Video-Webinar-SAP-SOP-powered-by-SAP-HANA-Practical-Steps-to-Launch-for-ResultsTRANSCRIPT
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SAP® S&OP POWERED BY SAP HANA®:
PRACTICAL STEPS TO LAUNCH FOR RESULTS
May 8th, 2013
PRESENTED BY:
ANDREW S. MCCALL
S&OP SOLUTION DIRECTOR
Proven SAP Partner
More than 500 successful SCP
engagements in the past decade.
We’re known for driving measurable
results in tools that are adopted across
our client organizations.
Our experts have an minimum of 10 years
supply chain experience.
Our SAP team is deep in both technology
and supply chain planning expertise; have
managed multiple implementations; have
a functional specialty.
“Plan4Demand has consistently put in extra effort
to ensure our Griffin plant consolidation and
demand planning projects were successful.”
-Scott Strickland, VP Information Systems
Black & Decker
Plan4Demand Overview
Objectives
Outline the Value of an S&OP Process that is performing well
SAP’s Solution Overview
Common Obstacles in the way of achieving S&OP Success
& How the Solution Addresses them
How to Get Started
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S&OP Value Proposition
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Top Value Opportunities Delivered by S&OP
Improved customer service and revenue generation
Improved coordination between Sales / Marketing /
Operations / Finance
Improved forecast accuracy
Better new-product introductions
Inventory reduction – The right mix of inventory
Reducing the cost of obsolete inventory
Capacity Utilization & Efficiency
S&OP Value Proposition
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Difficult to Quantify/Softer Benefits
Portfolio Management Capabilities
SKU Rationalization & Complexity Management
Improvement of Accountability & Control
Earlier visibility into issues
Embedded Communication & Complex Project Management Capability
Action Orientation
Exception and KPI focused
Item Best in Class Results*
Inventory Reduction 15% - 20%
Service Level Improvement 3% - 5%
Excess & Obsolete Reduction 25% - 40%
Unplanned Transfer & Expediting Cost 5% - 10%
Overtime Labor Reduction 10% - 12%
* Aberdeen Group 7/2011
* Tom Wallace - S&OP Cost & Benefits 2010
S&OP Value Proposition
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3 Keys
SAP’s Approach
Architecture
“Out of the Box” Fit
Some Key Solution Highlights
Solution Overview
Solution Overview
3 Key Points of Differentiation
Unified Data Model enables Real-Time Planning
Planning & Real-Time Analysis with a unified model of demand, supply
chain and financial data, at any level of granularity or dimension
Instantly Run Simulations & Scenario Comparisons
Rapid, interactive simulation and scenario analysis, using full S&OP
data model to support demand/supply balancing decisions
Context Based Social Collaboration
Embedded, context aware social collaboration enables rapid planning
and decision making across the organization with full track & trace
capability
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Solution Overview
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Solution Overview
Why HANA to Support S&OP?
S&OP is Enterprise “Big Data”
HANA Real-Time S&OP Processing
460 Billion Records Analyzed in 1 Second
18 Million S&OP Calculations/Second
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Customers
Products
Locations
Resources
Components
X Dollars
Multiple UoM’s
Currencies X
2 – 4 years of Time
Buckets
Sales, Finance,
Supply Plan
Scenarios
= Billions of
Data Points
Solution Overview
Excel Integration for “Familiar” front end
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Solution Overview
Easily Customize Data Views
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Solution Overview
Mobile Analytics, Scenario Comparisons
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Solution Overview
Process Based, Customizable Home Page
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Obstacles & Pain Points
Meeting These Challenges
Driving Maturity
S&OP Obstacles
S&OP Obstacles
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Pain Points
Too Many Spreadsheets
User Involvement
More Time with data than developing insights
Timing differences, outdated plans
Working at higher level of aggregation with easy ability to connect to
the mix level details
Rapid Scenario & Simulation Modeling
Executive Information is Disconnected from the plan data
Process Becomes a “check the box” exercise
S&OP Obstacles
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Meeting these Challenges
Leverage Spreadsheet view over common data model
Real Time Alerts & Custom Analytics drive user engagement
Common Plans, Instant Financial Impact
Load in Details from APO, other Planning Systems
Drill Down, all the way down…
Calculate at Detailed Levels
Unlimited Simulation
Scenario Comparison
Process Monitoring & Social Collaboration
Solution Overview
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Your Planning Vision & Maturity
10 Steps to Get Started
Defining a Pilot
More Info?
Getting Started
Getting Started
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Establishing a Planning Vision that fits your organization
Strategic Tactical
• Optimized long range capacity
(production & fulfillment)
• Effective Sourcing (Where Made,
Raw Material, Co-Man, Sourcing)
• Supported new product
development/product
transformation/ innovation
• Alignment with Annual Operating
Plan/LRStrat Plan
• Demand Responsive Inventory & Mix
Positions
• Credible Demand Forecast
• Accuracy/Stability
• Visibility
• Priorities
• Alignment on Pre-Build
Requirements & Lead Time Support
• Visibility to planned
production/deployment
• Reliable production/deployment
execution
Enablers
Management
Oversight
Business Insight
/ Metrics
Organization &
Talent
Processes,
Policies &
Controls
Information
Technology &
Data
Scope &
Interdependencies
Getting Started
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Getting Started: 10 Steps
1. Establish an S&OP Team
2. Create a Baseline Understanding & Shared Vision
3. Conduct Fit Analysis
4. Outline Current Planning Environment – APO, BoB, No Current Tools
5. View a Custom Demo
6. Define a Pilot
7. Establish Infrastructure Needs
8. Develop a Data Management Strategy (Data Services, ETL tools, etc.)
9. Establish S&OP Process Model Changes
10. Get Going – Perfect is the Enemy of Progress
Getting Started
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Defining a Pilot
Most Effective Pilots roll across the whole process, not a process step
Brand across the entire S&OP model as opposed to Piloting the Demand Review stage
of S&OP
Select a Pilot that is representative – not too complicated, not too easy – it
should reflect real challenges, without being impossible
Outline the key decisions or action points you want in each area of the model
and focus on them first
Create a pilot that outlines a broad array of business challenges: Consensus
Planning, Capacity, Inventory Performance, New Product Introductions, Mix
Complexity
Data is King – make sure your pilot can be supported by the Data Strategy you
envision using
Make it Quick – define a scope that allows you to go from Custom Demo of the
solution, through configuration/realization to live usage in 90 days – if its too
long, its too big!
•
June 5th Master Data Management
in SAP APO
More Info
Disclaimer
SAP, R/3, mySAP, mySAP.com, SAP NetWeaver®, Duet®,
PartnerEdge, and other SAP products and services mentioned
herein as well as their respective logos are trademarks or registered
trademarks of SAP AG in Germany and in several other countries
all over the world. All other product and service names mentioned
are the trademarks of their respective companies. Plan4Demand is
neither owned nor controlled by SAP.
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