Fostering Demand Planning, Forecasting, S&OP for 30+ Years! 1 Sales & Marketing Winning them over Krishna Menon S&OP Leader Sullair Australia
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!1
Sales & MarketingWinning them over
Krishna MenonS&OP Leader
Sullair Australia
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!2
Agenda• Who gets excited about S&OP• Why this excitement• Reluctance to participate• Personality differences• Age old conflict• What is in it for Sales & Mktg • Four pillars• Winning them over• Make the Horse drink water• Come to the party• Win !! Win !!
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!3
• Since 1965 – Celebrating 50 years• Leading developer and manufacturer of compressed air solutions• Manufacturing facilities on 3 continents and a worldwide distribution network
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!4
Horse Story
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!5
Who gets excited about S&OP• S&OP usually initiated from an operational
perspective • Process owners• S&OP process focus points• S&OP meetings content
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!6
Why this Excitement• Centre stage• Protect “Operations” from the variability• Chance to prove why they got it wrong• Showcase their systems and processes• Opportunity to tame the wild horse
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!7
Operations Management• The design, operation, and control of the
transformation process that converts resources, labour and raw materials into finished goods and services that are sold to customers.
• Three KPI’s– Time: Reduce delays and cycle times– Quality: Improve quality and customer satisfaction– Cost: Reduce waste and costs
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!8
Sales• Primary measure
– Amount of sales made– Customer service levels– Profit margins
• Focus customer & customer service• Recognition • Perform or perish• Ongoing pressure - targets
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!9
Personality Differences• Sales
– Optimistic– Outgoing– Emotional
• Operations– Realistic, data driven– Process driven– Disciplined
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!10
• Differing & conflicting metrics• Unclear expectations• Lack of Information sharing• Same goal - different perspective
Age old conflict
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!11
You never seem to have on hand what
customer wants
Why do we have such long lead
times?
You Just cannot forecast right
We Cannot deliver to a Post Box
Why can’t you deliver what
we are selling?
Using a Dart Board to forecast will do a better job
The Supply Team never delivers on
time.
Why can’t you sell what we have in
stock?
Age old conflict
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!12
Reluctance to Participation• Time is money• Lack of trust• Reluctance to share information / control• Public display – poor performance /
forecast errors• Aversion to change
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!13
Barriers to Sales Forecast• “I want them out with customers, not
sitting in the office doing a forecast”• I’m not qualified to forecast• I don’t know statistics / past sales• That is not my number • You are not using my inputs anyway
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!14
Inaccurate Forecast• Sales forecast & sales plan – confusion• Over and under forecast• Asking for too much• Not including sales input• Lack of feedback communication
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!15
What’s in it for Sales & Mktg. ?• Impact on customer service• Support on winning an order• Inventory – the right one• Good communication• Common ground
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!16
Customer Service
QualityLead timeCostsValue Add
Inventory DIFOT Freight Cost Communication
CustomerCustomer ServiceMargins
Production Supply Chain
Sales
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!17
Four Pillars• Top management support
– Visible leadership• Discipline
– Consistency in meetings – Fixed agendas
• Transparency in DATA sharing– Feedback loop– Follow-up actions are documented and communicated
• TRUST– Restoring trust
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!18
S&OP Process leader• Unbiased process champion• Unbiased
– Measurement– Evaluation– Credibility– Authority
• The ideal leader should be a process facilitator
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!19
Winning them over• Focus on what we got right• Educate sales on impact of forecasting• Develop a simple sales-input process• Supporting sales in winning the sale• Feedback on the final forecast
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!20
Make the Horse drink water
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!21
Come to the Party !!• Motivated to succeed• Better sales• Improved forecast• Happier customers• Fewer conflicts• Enjoy the participation
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!22
Win !! Win !!• Realistic Forecast• Right Inventory• Lower cost of goods• Higher Margins• Less conflict• True north
Fostering Demand Planning, Forecasting, S&OP for 30+ Years!23
Q&A