Are you also tired of stand-alone spreadsheets in your S&OP process?

SAP Procurement & Logistics Day 2012

30 augustus

Are you also tired of stand-

alone spreadsheets in your

S&OP process?

Jan Heerema, EMEA SCM Center of Excellence

© 2012 SAP AG. All rights reserved. 3

What is S&OP?

Tom Wallace Definition

Sales & Operations Planning (S&OP) is a set of decision-making processes to:

Balance demand and supply

Integrate financial planning and operational planning

Link high-level strategic plans with day-to-day operations

http://www.tfwallace.com

http://www.tfwallace.com/

http://www.tfwallace.com/


Escalate resolution plans with scenarios, if applicable

Review key changes since last meeting

Based on updated demand plan, understand capacity and

material impacts, including contract manufacturing.

Understand long-term gaps in supply and demand

Consensus Demand Planning and New Products

Input from Sales, Marketing, Finance and Operations,

including quantity, price, revenue and margin

Review and resolve outstanding supply issues

Compare constrained plan with finance plan

Define and compare scenarios

A Typical S&OP Process

Demand

Supply

Balance

Executive

Review

Repeats

Monthly


S&OP Pain Points collected from the field….

Too many spreadsheets and systems involved in the S&OP process

Cannot get users to provide input, especially sales, marketing and

executives

Spend more time assembling data than planning

Outdated demand-, supply- and finance- plans

Working at aggregates only and can’t connect to detailed SKU level

Cannot change demand and view impact on supply and financials right

away

Too hard to simulate and compare planning scenarios

Planning decisions made without considering supply chain constraints

and profitability

Executive S&OP views lack latest information

Executive S&OP meeting information is hard to share and is

disconnected from planning tools


S&OP Maturity according to Gartner


Gartner Stage 3 S&OP Reference Architecture

Seven key functional requirements are required to support an S&OP

process in Stage 3 of the Gartner maturity matrix:

1. Hierarchy Management

2. Collaboration

3. Performance Management

4. Financial Reconciliation

5. Supply Chain Modeling

6. Scenario Planning

7. Workflow / Business Process Management


S&OP Reference Architecture According to Gartner

Operational

S&OP

‘Executive’

S&OP


How can SAP help to get to Stage 3 (and 4)

http://youtu.be/EZTMH3q5rxc

SAP_Sales__Operations_Planning__Powered_by_SAP_HANA.mp4




Unified Data Model

Real-time Planning

Simulations and

Scenarios – Instantly

Rich, Contextual

Social Collaboration

Planning and real-time

analysis with a unified

model of demand, supply

chain, and financial data at

any level of granularity and

dimension

Rapid, interactive

simulation and scenario

analysis, using the full

S&OP data model to

support demand-supply

balancing decisions

Embedded, context-aware

social collaboration enables

rapid planning and

decision-making across the

organization

SAP Sales & Operations Planning Powered by SAP HANA


Plan in Real-time With a Unified Data Model

Capabilities:

Plan in real-time, using a unified model of your

demand, supply chain and financial data within

a single, purpose-built S&OP solution

Analyze massive volumes of complex data

instantly at any level of granularity,

aggregation, and dimension

Import massive amounts of detailed data

directly from SAP and non-SAP sources

Benefits:

Optimize product/customer profitability and

product mix, considering supply and financial

constraints

Adjust inventory levels to reduce cost, while

meeting target customer service levels

Manage capacity utilization to avoid capacity

and material shortages


Run Simulations and Scenarios Instantly

Capabilities:

Rapidly run simulations of demand, supply

and financial changes using your full S&OP

data model to support what-if analysis

Compare planning scenarios and their

impact on key performance indicators in

real-time

Drill down into simulated data to perform

detailed analysis without the need for

manual disaggregation

Benefits:

Identify optimal set of tactics to drive

revenue growth and increase market share

Uncover opportunities to reduce supply

chain cost

Prepare for potential changes in demand

and supply before they happen


Enable Rich, Contextual Social Collaboration

Capabilities:

Track progress of the S&OP process,

including assignment and monitoring of

action items and the stakeholders

responsible

Collaborate quickly and easily using

embedded role and context-aware social

tools

Plan using user-friendly web and Microsoft

Excel interfaces

Benefits:

Increase speed and agility of planning

Drive greater engagement and improve

input from users across your organization

Improve precision of demand and supply

balancing


S&OP „Myth Busting‟

Myth: “We don‟t need S&OP in our department; that‟s a „supply chain thing.”

Myth: “S&OP is really simple. We‟re just going to get the S&OP system

implemented and then we‟ll have S&OP.”


Summary

SAP Sales & Operations Planning powered by SAP HANA is an

innovative, promising and game-changing solution that can help you to

get to stage 3 by supporting the key functional requirements of a S&OP

process in Stage 3 of the Gartner maturity matrix:

Hierarchy Management

Collaboration

Performance Management

Financial Reconciliation

Supply Chain Modeling

Scenario Planning

Workflow / Business Process Management www.sophana.com

http://www.sophana.com/


Q & A……when time permits

Contact information:

Jan Heerema

Business Development Manager SCM, EMEA

Amerikastraat 10

5232 BE `s-Hertogenbosch, The Netherlands

T +31 73 645 7848

E [email protected]

www.sap.com/scm

Thank You!

mailto:[email protected]

http://www.sap.com/scm

Are you also tired of stand-alone spreadsheets in your S&OP process?

Technology

sap ag

sop maturity

supply analysis

supply balancing

financial planning

balance demand

demand review

supply chain costprepare