View
216
Download
3
Category
Preview:
Citation preview
BIOTECH SUPPLYBIOTECH SUPPLYBIOTECH SUPPLYBIOTECH SUPPLYOctober 8-9, 2012
Crowne Plaza, Foster City, CA
Sales & Operations Planning
Kevin Pegels – Oct. 9, 2012
Introduction – Kevin Pegels (Kevin.Pegels@bayer.com)
• Presentation Title • Date
•Work History:• 3/2011 – Current: VP SCM Bayer Healthcare-Biotech• 3/2009 -3/2011: Sr. Director SCM Bayer Healthcare – Medical Devices• 6/2004 – 6/2009: Sr. Director SCM Clorox Company• 6/2002 – 6/2004 – Director SCM Levi Strauss & Co.• 6/1997 – 6/2002 – Director SCM in CPG Industry Deloitte Consulting• 6/1988 – 6/1995 – Manager Clorox Company•Education:• 1997: MBA Harvard University• 1988: B.S. Chemical Engineering Cornell University•Certifications/Publications• CPIM Certified• Published in Harvard Business Review & Supply Chain Exec. Board
Agenda
1. S&OP – quick definition
2. S&OP at Bayer Healthcare-Biotech
3. S&OP – how to secure Sr. Management support
4. Q&A
04/19/23 3
Sales & Operations Planning ProcessDemand Review Supply Review Category S&OP GM S&OP
S&
OP
Ch
arac
teri
stic
sS
&O
P F
ou
r S
tep
Pro
cess
Demand ReviewAnalysis
· POS Trends· POS Forecast· Shipments· Orders· Inventory· Marketing Plans· Sales Plans· Forecast Accuracy
Supply Review
RCCP· Capacity· Materials· Transportation
Item Review· Close-in execution· Plant Schedule· Transportation· Shipping Dates
Business Update
· Demand Summary- Major Drivers of Change- Key Events
· Consumption Trends· Key Customer Updates· KPI Review· Supply Summary· Risks & Opportunities
Demand ReviewAlignment
KCDP Call· Key Customer
Plans & Activities· POS Trends· Events
Consensus Mtg· Business Update· New Products· Category Trends· Key Customers
Events
AlignmentAlignment AlignmentAlignment
Key Characteristics of S&OP Process· Cross-functional and integrated business process· Planning… proactive and forward looking· Data driven… decision making on risks/contingencies· Single common plan
Business Update
· Demand Summary- Major Drivers of Change- Key Events
· Consumption Trends· Key Customer Updates· KPI Review· Supply Summary· Risks & Opportunities· P & L Update
Sales & Operation Planning - General
S&OP Process Key Principles
• Key objective of process is to deliver optimal service to end customers/countries and meet commitments to the Business
• “One” demand forecast drives financial and supply chain planning. Budget forecasts and S&OP forecasts should be “aligned” at each quarterly RF update..
• Identify potential risks/challenges early and develop contingency plans as required
• Need to make timely decisions based on solid analytics and be committed to decisions.
• Single source of the truth, data visibility and decision rationale clear across the organization
• Clear to organization that S&OP process improves performance and adds value (KPIs)
Single Forecast
Customer First
Be Proactive
Decision Making
Transparency
Proven Process
Biotech S&OP Process by MajorProduct Line
STEP 3
Supply Planning
(Production Scheduling)
Tuesday-Thursday
STEP 4
Pre-Executive Meeting
Thursday before Step-5 meeting
KPI Review, Capacity review, Launch Review, Identify escalation topics
Last Thursday of every mth.
STEP 5
Executive Meeting
KPI Review, Business Review, Capacity Review, Regulatory Review, Resolve escalation topics
Weekly Monthly
STEP 1 Data Gathering
(APO)
Saturday-Sunday
Affiliate
STEP 2
Demand Planning
(Supply Network Planning)
Monday-Tuesday
Communication / Verification
Highlights:1.S&OP process is co-owned by Supply Chain and Commercial Organization2.S&OP process integrates weekly and monthly planning3.Forward looking, normally 0-18 months4.Focused on delivering KPIs, aligning supply/demand, and resolving business issues5.Implemented in less than 6 months
S&OP – how to secure Sr. Management Support
1. Develop and “Sell” Business Case: improved customer service, reduced inventory, reduced scrap, and aligned supply and demand to support business growth
2. Leverage improved forecast accuracy as critical metric and link to strong S&OP process
3. Cross-functional nature of process and shared process ownership among commercial and supply chain requires Sr. Management leadership
4. Leverage industry benchmarks and best practice case studies5. Secure top Sr. leadership who can drive ownership top down
through the organization
04/19/23 7
Typical S&OP Benefits
04/19/23 8
Global S&OP process has driven substantial benefits over the past few years
12
9.5
6
0
2
4
6
8
10
12
Jun 2009 Dec 2009 Jun 2010
Inv. <=12 Mths.
Inventory DOH are decreasing Excess/low shelf life inventory is decreasing
In addition, customer service for the US and Europe has been above 98% target level in 16 out of past 18 months
Recommended