s&op: the time is now - slide deck - 18 aug 2015

Supply Chain Insights LLC Copyright © 2015, p. 1

S&OP: The Time Is Now! August 2015


About Me

• Founder of Supply Chain Insights• LinkedIn Influencer

• Guest Blogger for Forbes

• Author of three books: Bricks Matter (2012), The Shaman’s Journal (2014) and Supply Chain Metrics That Matter (December 2014)

• Partner at Altimeter Group (leader in open research)• Seven Years of Management Experience Leading Analyst Teams at Gartner

and AMR Research• Eight Years Experience in Marketing and Selling Supply Chain Software at

Descartes Systems Group and Manugistics (now JDA)• Fifteen Years Leading Teams in Manufacturing and Distribution Operations

for Clorox, Kraft/General Foods, Nestlé/Dreyer’s Grand Ice Cream and Procter & Gamble

Contact Information: • Email: [email protected]• Blog: www.supplychainshaman.com (10,000 page views/month)• Forbes: www.forbes.com/sites/loracecere/• Twitter: lcecere (6200 followers)• LinkedIn: www.linkedin.com/in/loracecere (46,000 followers)


Our Goal Is to Help the Average Joe


Four Years of Work

WileyDecember 2012

Wiley December 2014

Self-publishedSeptember 2014

Self-publishingSeptember 2015


The Goal


A Supply Chain Is a Complex System

with Complex Processes

with Increasing Complexity

What We Learned….


The Supply Chain Effective Frontier


CostVolumeGrowth

CEO

Chief Customer Officer

Chief Marketing Officer Sales

Account Teams

COO

VP of Supply Chain

Customer Service Procurement Logistics

CFO

CIO

VP of Manufacturing

Quality

Typical Organization Is Not Aligned


Supply Chain


Finance


Information Technology


• Integration with Product Development• Revenue Management• Network Design• Corporate Social Responsibility• Sales and Operations Planning• Supplier Development• Risk Management

What Are Horizontal Processes?


S&OP Decisions: Advice?


Making Decisions in S&OP


Leadership Understanding


Issue #1: Balance


Common Practice Market-driven Focus

S Ask sales Focus on market drivers:How do we best shape demand?

& Direct integration to supplyDesign of the value chain to optimize trade-offs, minimize risk, balance cycles, and orchestrate demand

OP Manufacturing plan Trade-offs between make, source and deliver

Getting to Letter Perfect


Challenges


Change Management

Twitter Hashtag: #SCIWebinar

S&OP Evolution

Manufacturing-Driven

Deliver a Feasible Plan for Operations

Match Demand with Supply

Sales DrivenMatch Demand

with Supply

Business-planning Driven

Maximize Profitability

Demand DrivenMaximize

Opportunity Sense and

Shape Demand

Market DrivenMaximize

Opportunity and Mitigate Risk. Orchestrate

DemandMarket to Market

Greater Benefit• Growth• Resilience• Efficiency


Fit of the Technologies

Twitter Hashtag: #SCIWebinar


Requirements: Planners


Process Gaps


Technology Effectiveness


Definition Given to Respondents


Evolution


Questions?


About MeAbout Me

• Founder of Supply Chain Insights• LinkedIn Influencer

• Guest Blogger for Forbes

• Author of three books: Bricks Matter (2012), The Shaman’s Journal (2014) and Supply Chain Metrics That Matter (December 2014)

• Partner at Altimeter Group (leader in open research)• Seven Years of Management Experience Leading Analyst Teams at Gartner

and AMR Research• Eight Years Experience in Marketing and Selling Supply Chain Software at

Descartes Systems Group and Manugistics (now JDA)• Fifteen Years Leading Teams in Manufacturing and Distribution Operations

for Clorox, Kraft/General Foods, Nestlé/Dreyer’s Grand Ice Cream and Procter & Gamble

Contact Information: • Email: [email protected]• Blog: www.supplychainshaman.com (10,000 page views/month)• Forbes: www.forbes.com/sites/loracecere/• Twitter: lcecere (6200 followers)• LinkedIn: www.linkedin.com/in/loracecere (46,000 followers)