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Minerals needs to improve its S&OP response to customer and market changes to optimize profitable outcomes, in close to real-time:
Why does Weir need a S&OP process?
§ S&OP approach was fragmented and not harmonized
§ S&OP process was a slow, elaborate and manual process
§ Little consistency in how demand is consolidated an translated into supply requirement and there is little system visibility of Regional or Global demand and capacity situation
§ Long lead times even though capacity would be available elsewhere in the network
Expected Benefit The process and tools Lessons learnedIntroduction of customer
Sales & Operations Planning – S&OP§ Sales & Operations Planning (S&OP) is a set of decision-making processes,
to balance demand and supply, to integrate financial planning and operational planning, to deploy strategy.
§ In narrow terms : S&OP is about CHANGE.
It provides a “window into the future”, so that companies can1) see potential problems ahead of time 2) take corrective action and 3) prevent potential problems from becoming a real ones.
Expected Benefit The process and tools Lessons learnedIntroduction of customer
Expected Benefit The process and tools Lessons learnedIntroduction of customer
Project approachWhy S&OP Q & A
Benefits
Customer Service Improvement • Through planning and leveling of constrained
resources the avg. Sales order cycle time is reduced
• Uncover capacity restrictions within the network and shift production accordingly to solve bottlenecks before they occur; improve the “First Time Fill” & deliver on confirmed delivery date
• Higher forecast accuracy due to better demand visibility supported by sophisticated prognosis models facilitates network wide reduction of inventories and safety stocks.
• Balance inventory throughout network –shift over-inventories to short-handed locations
Inventory Reduction
• Prevent obsolete material by monitoring the “days of supply” across the entire network, alerting the planners early to potential issues using threshold values
• Recognize surplus material and balance it throughout the network
Surplus & Obsolescence Reduction
• By using an integrated planning solution with scenario capabilities, balancing of ordering, inventory, transportation and production costs can be achieved across the entire enterprise
Supply Chain Cost Reduction
Soft Benefits such as: • Enhanced Teamwork• Better Communications (in- and external)• Better Decisions in shorter time frames• Strategy Linkage• Improved Accountability & Control• Improved Foresight / Window to future
• Reducing risk of new product launches by balancing capacity between the existing and new product(lines).
• Creating visibility to all parties involved.
New Product Launch Risk Reduction
• Cross-plant recognition of over- and under-utilization giving options of optimization across the network or potential for contract manufacturing
Expected benefitsWhat problems will S&OP solve and HOW will it help solve them?
§ The primary objectives of S&OP are: § Improved Customer Service (On Time Delivery, Lead Time, Service Levels)§ Improved Operational Efficiency (cost management, asset utilization,
inventory, plant & equipment deployment)
§ S&OP can help improve performance through:§ Better forecast accuracy and dialogue§ Faster planning and execution response times§ Better visibility of demand and supply mismatches
Expected Benefit The process and tools Lessons learnedIntroduction of customer
Challenges so far…Do not underestimate the following factors:
§ New Software> IBP S&OP is completely flexible> Software and Implementation knowledge is key
§ Integration of system through HANA Cloud Integration
§ Process and Data> Product hierarchy development> Connection to C4C
§ Organizational Change Management - Harmonization Effort> Across Regions and Companies> Across Departments (Sales, Production, Finance)> Aligning Planning Level -> Rules for disaggregation
Expected Benefit The process and tools Lessons learnedIntroduction of customer
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Westernacher brings over 10 years of experience in optimizing Planning Processes. We will bring this experience to a no obligation half / fully day on site workshop to discuss a potential engagement.
Workshop objectives
• Identification of specific organizational challenges in your company
• Provide SAP IBP solution overviews
• Establish potential solution approach, based on selected live SAP IBP demo scenarios
Offer for a half / full day (free of charge) workshop at your premises
Suggested participants from your side
• Managing Director / Board Member• Head of Corporate IT• Process owner Planning • Finance
Proposed agenda
Potential participants from Westernacher
• Lars Sondergaard, Managing Partner and Head of Global Planning Practice
• Dr. Steffen Blunck, Managing Partner Senior Consulting and Solution Architect
• Christian Schmaus, Managing Partner, Senior Management Consultant
• Meet & Greet, short introduction of participants and companies • Presentation and discussion of IBP-Processes • Discussion of challenges in your organisation
• Overview of SAP IBP solution • Potential solution approach, based on selected SAP IBP scenarios • Summary and next steps
The content for this workshop is only a proposal and we will be happy to incorporate any individual requirements. We recommend a short teleconference before the workshop to finalize the agenda.
Expected Benefit The process and tools Lessons learnedIntroduction of customer