Sop Hana Who Moved My Spreadsheet.pptx

Insight Driven Outcomes

Who Moved My Spreadsheet?

+ Speaker Introduction

§  18+ years of experience in Supply Chain Management

§  Trained SAP implementa>on partner for S&OP Powered by HANA

§  Managed the supply chain planning system porEolio for the Clorox Company

§  Led mul>ple system implementa>ons including i2 Demand Planner, Logility, and APO

§  Managed a “Best-‐in-‐Class” vendor managed inventory program suppor>ng Wal-‐Mart

§  Piloted a Collabora>ve Planning, Forecas>ng, and Replenishment (CPFR) program with Target and Wal-‐Mart

2

Jeff Boyer S&OP Solu>ons Architect Intrigo Systems, Inc.

+ About Intrigo

INNOVATE

Source: AMR

Supply

Create

Demand

We are a bou>que Technology Consul>ng & Implementa>on Company focused on orchestra>ng Customer Value Networks at the confluence of Demand, Supply and Innova>on.

RESPOND SENSE “ 3

+

ADVISORY IMPLEMENTATION SUPPORT SERVICES

SOLUTIONS

PRODUCTS

Playing Field

Hi Tech/ Semiconductor

Retail/ Apparel and Footwear

Consumer Goods

ISEMI® IHITECH® FUSIONOPS® ICON®

SAP – ECC, APO, DiSM, SNC, EWM, SRM, APO on HANA, ICON-‐SCM, Resilinc

SAP – ECC, PLM, ME, MII, SFC

SAP – ECC, CRM, CHM, SFDC, e-‐Serv

Supply Chain

Manufacturing

Customer Care

SAP S&OP on HANA, SteelWedge S&OP

SAP – ECC, BPC Planning, BPC ConsolidaWon

SAP – ECC, SAP BW, BOBJ, BW on HANA, Fusionops

Financials

AnalyWcs

4

+ Who Moved My Spreadsheet? 5

“The quicker you let go of old cheese, the sooner you find new cheese”

-‐-‐ Spencer Johnson, MD

§  Cheese as a metaphor courtesy of Spencer Johnson, MD

§  Every spreadsheet is someone’s cheese

§  Today we will: §  Explain how S&OP Powered by

HANA drives integrated planning and breaks the dependence on standalone spreadsheets

§  Review a prac>cal applica>on of S&OP Powered by HANA at SMART Modular

+ Guest Speaker

§  30 + years of experience in Manufacturing and Supply Chain Management

§  Led in the design, development and launch of a number of successful SCM solu>ons, including the SAP Advanced Planner and Op>mizer.

§  Helped numerous customers evaluate and implement SCM solu>ons.

§  Currently focused on building the next genera>on of planning applica>ons that will enable our customers to more effec>vely respond to rapidly changing business condi>ons

6

Sandy Markin Senior Director Supply Chain Solu>ons SAP

What is the current view of S&OP and what are the factors driving customers interest and adopWon?

+

§  Escalate resoluWon plans with scenarios, if applicable §  Review key changes since last meeWng

§  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, MarkeWng, Finance and OperaWons, including quanWty, 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

ExecuWve Review Repeats

Monthly

8

+ Trends Driving S&OP AdopWon and Renewal

Market Pressures n  Uncertain economic condi>ons n  Need for greater agility

n  Escala>ng demands from customers

VolaWle Demand/Complex Supply Chain n  Supply chain complex and costly to manage

n  Demand increasingly vola>le n  Increased exposure to supply chain risk

Increasing Importance of Technology to S&OP n  Growing number of stakeholders in S&OP process

n  Need to leverage massive amounts of data for rapid decision making n  Pressure to reduce cost of deployment and implementa>on

9

+ Value of an Integrated S&OP Solution

* IBM Case Studies & Benchmarks from SAP Value Engineering

Tangible Benefits* % impact

Revenue

§  Top line revenue growth

§  In-‐stock % improvement

§  Service level increase

1-‐2%

20-‐30%

5-‐10%

OperaWng cost §  SKU raWonalizaWon

§  Order fulfillment lead Wme reducWon

§  Inventory carrying cost reducWon

10-‐15%

10-‐20%

5-‐10%

Asset UWlizaWon/Working capital §  ReducWon in inventory levels

§  Inventory turns increase

§  Cash-‐to-‐Cash cycle Wme reducWon

5-‐15%

5-‐10%

5-‐10%

10

What challenges do companies face today in running an efficient S&OP process?

+ S&OP Challenges Traditional Approaches are Broken creating Silos

§  Disparate data sources, perspec>ves and disconnected processes

§  Silo-‐ed planning with func>onal goals

§  Adhoc collabora>on over Email, Excel

§  No ability to Simulate & Understand Impact of decisions

Finance

Marketing

Sales

Operations

SCM

CRM

ERP

12

+ S&OP Pain Points

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

§  Cannot get users to provide input, especially sales, marke>ng and execu>ves

§  Spend more >me assembling data than planning

§  Outdated demand, supply and finance plans

§  Working at aggregates only and can’t connect to detailed mix

§  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

§  Execu>ve S&OP views lack latest informa>on

§  Execu>ve S&OP mee>ng informa>on is hard to share and is disconnected from planning tools

13

What advances in technology are acceleraWng this redefiniWon of S&OP Processes?

+ Technology Forces redefining IT Landscape

n  Informa>on Explosion n  Data doubling every 18

months n  Structured and

Unstructured data

n  Consumeriza>on of IT n  Expecta>on to make decisions

in real >me, at moments of risk and opportunity

n  Customers expect business experience to be as sa>sfying as personal experience

n  Ease of delivery, consump>on and interac>on with new orders of simplicity

n  Fundamentally new collabora>on paradigms without compromise on Integra>on, Integrity & Performance

n  Cloud coupled with real-‐>me enables new possibili>es

15

What is the SAP S&OP soluWon and how is it unique in addressing the challenges and exploiWng the technology advances discussed earlier?

+ SAP Supply Chain Solution Areas Complete Support for Integrated Business Planning

Consistent Supply Chain Data Model Products/Materials Bill of Materials RouWngs & Resources Supply Network LocaWons Business Partners

Sales and Opera>ons Planning

Collabora>ve Response Management

Manufacturing & Supply Planning Demand Management

Supply Chain Execu>on

Integrated Product Development Strategic

Tac>cal

Opera>onal

Execu>on

Sales Planning and Performance Management

Financial Performance Management

17

+

SAP Sales and OperaWons Planning 2.0 Powered by SAP HANA™

S&OP Solution Architecture

SAP HANA™

Cloud-‐based

S&OP Model & Engine

Dimensions Amributes Key Figures CalculaWons Scenarios SimulaWon

Process Workflow Alerts

User Interface

AnalyWcs (Web)

Social CollaboraWon (Web/Mobile)

Sales/ MarkeWng

Demand Planning

Finance

Supply Chain

Planning Views (Excel)

ExecuWves

AdministraWon (Web)

ERP

CRM

BPC

APO

BW

Any Other System

Excel

Web

UI

sfp | h

hps

Out-‐of-‐the

-‐box Integra>

on

Data Services (on

premise)

18

+ SAP Sales & Operations Planning

Unified Planning Environment

§ Single unified data model across Demand, Finance, Supply Chain to support both tac>cal and opera>onal planning at any level of granularity & dimension

§ Flexible process modeling

§ Planning, Analy>cs & Collabora>on driven off of this single model

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Real-‐Time Planning & SimulaWon Tools

§ Consensus demand planning, Rough-‐cut capacity planning, Volume & revenue modeling,

§ Alterna>ve what-‐if scenarios for rapid decision-‐making across mul>ple key figures, dimensions

§ Constraints at both detailed and aggregate level, R/T aggrega>on & disaggrega>on

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Real-‐Time Planning & SimulaWon Tools

§ Consensus demand planning, Rough-‐cut capacity planning, Volume & revenue modeling,

§ Alterna>ve what-‐if scenarios for rapid decision-‐making across mul>ple key figures, dimensions

§ Constraints at both detailed and aggregate level, R/T aggrega>on & disaggrega>on

21


Contextual Process OrchestraWon

§ Contextually organize People, Documents, S&OP Process Steps, S&OP Data, Ac>on items, Decisions, Alerts, etc. around the S&OP Process

§ Enable People to stay on top of relevant, contextual updates

22


Contextual Process OrchestraWon

§ Contextually organize People, Documents, S&OP Process Steps, S&OP Data, Ac>on items, Decisions, Alerts, etc. around the S&OP Process

§ Enable People to stay on top of relevant, contextual updates

23


Advanced AnalyWcs

§ Evalua>on of mul>ple levers to shape profitable demand

§ Faster iden>fica>on of problems through beher visualiza>on

§ Compare scenarios, track KPIs, monitor trends across mul>ple dimensions, granulari>es in R/T

§ End user personaliza>on and sharing

24


Data IntegraWon § Automated data loads from mul>ple source systems

§ Secure On-‐Premise to Cloud integra>on (hhps, sfp)

§ Configurable target data model with extensibility

§ Flexible source-‐to-‐target integra>on templates using SAP Data Services

§ Data export back to Source systems

25

What are customers saying about SAP’s S&OP soluWon?

Customer Feedback

“Today, our Sales & OperaBons Planning process is largely manual, managed over disconnected spreadsheets, spans mulBple internal teams and contract manufacturers, and it takes too much Bme and effort to respond to demand and supply variaBons. We were able to assess the impact of fluctuaBons in capacity posiBons at contract manufacturers on our sales forecasts in real-‐Bme, model alternaBve scenarios and cut our planning cycle Bme in half.”

James Smith Director, McKesson

“S&OP powered by HANA makes demand and supply balancing with large sums of data simple, fast, and acBonable. It integrates, aligns, and synchronizes Sales, OperaBons, and Finance in real Bme, allowing collaboraBve decisions with the help of analyBcs and simulaBons on a demand-‐driven supply chain. S&OP with HANA can do in hours what takes the business weeks to do.”

John Flebut Vice President, Atmel CorporaWon

“Cascades is aiming to cut inventory costs, as well as generate tens of millions of dollars in addiBonal savings. S&OP as a process looks very promising as a means to help achieve these objecBves. We were impressed with the level of engagement from the SAP team. S&OP on HANA, with its robust simulaBon capabiliBes, is a soluBon that looks like it has great potenBal to accelerate our achievement of these objecBves.”

Dominic Dore CIO, Cascades

“S&OP on HANA combines the real-‐Bme simulaBon and analysis capabiliBes of HANA with contextual social collaboraBon capabiliBes to provide a truly unique soluBon in the marketplace. It offers the opportunity to significantly increase the speed of decision making throughout the process and streamline collaboraBon across distributed teams. What can take days of preparaBon, with meeBngs and informaBon exchange, now has the possibility to be done all in one tool and in real-‐Bme enabling seamless synchronizaBon across the business funcBons.”

Chris Walker Director, Global S&OP Unilever

+ Case Study Summary 28

The Company’s Top ObjecWve §  To standardize and improve their S&OP process by elimina>ng a set of cumbersome

and error prone spreadsheets that are used for collec>ng field forecasts, genera>ng revenue plans, and balancing demand and supply plans

§  Provide for scalability and integra>on with backend systems while crea>ng the tools that will drive con>nuous process improvement and enable collabora>on

The ResoluWon §  Leverage the capabili>es of S&OP Powered by Hana to: §  Establish a standardized five-‐step process with specific ac>vi>es and tasks to drive

process discipline §  Define a set of KPI’s, Analy>cs, and Alerts to drive con>nuous plan and process

improvements §  Develop a set of specific planning view templates linked by a common data model to

reduce errors and improve collabora>on

The Key Benefits §  Moved from a stand-‐alone spreadsheet managed environment with lihle integra>on to

a fully integrated central repository for planning informa>on §  Gained the ability to do comparisons, modeling, and analy>cs at any phase of the

process at mul>ple levels of data granularity §  Reduced manual work §  On the road to improved forecast accuracy and plan performance due to ability to

generate KPI’s and apply learning’s from past performance into future plans §  Improved confidence and integrity in the S&OP process

SMART Modular is a technology leader in the design, development, and deployment of current and next-‐genera>on memory products.

HEADQUARTERS Newark, CA INDUSTRY Semiconductor COMPANY SIZE 1,442 WEBSITE http://www.smartm.com

+ Taking a Deeper Dive…

Manually prepare spreadsheet for forecast input

Request and receive input from field and manually update spreadsheet

Use spreadsheet to iden>fy and resolve

supply issues

Use spreadsheet to determine

commitment and revenue projec>ons

29

+ Pain Points 30

Manually intensive, loosely structured, and error prone

§  Designed a structured five-‐step process leveraging the collabora>on framework to drive process adherence

§  Leveraged Excel based planning views for collec>ng and compiling forecast inputs

Profile of business units is different by velocity and volume

§  Developed a common planning model for both business units with persisted master and transac>on data

Limited analyWcs to measure business performance

§  Built analy>c visualiza>ons to view business unit performance at a glance

No capability to do what-‐if analysis and repeatable scenario planning

§  Fully enabled simula>on and scenario func>onality

+ Use Case 31

How to leverage S&OP Powered by HANA to improve forecast accuracy?

§  Start with a sta>s>cal baseline

§  Build in demand intelligence

§  Capture and track assump>ons

§  Snapshot your prior forecasts to measure error and vola>lity

§  Make reviewing forecast performance a standard agenda item for your demand review mee>ng

+ Key Takeaways

§  Excel is a great tool; however, it quickly reaches its limit when suppor>ng an integrated planning process

§  Process discipline and collabora>on are key

ingredients to improving your organiza>ons planning capabili>es

§  It takes more than sta>s>cs to generate an accurate forecast and drive improvement over >me

+

Thank You! For addi>onal informa>on, please contact us

at [email protected] or visit www.intrigosys.com

Follow us: @Intrigosys