March 2016, Robert Kepczynski
Global Supply Chain Strategy & Design, Global Supply CoE
“How & What” value Syngenta extracts from
Integrated Business Planning powered by SAP IBP
2
“How & What” value, Syngenta extracts from Integrated Business Planning powered by SAP IBP
1. Business drivers for transformation
2. How Syngenta understands Integrated Business Planning
3. “How & What“ value Syngenta extracts from IBP powered by SAP
4. Syngenta considerations for next steps with SAP IBP
Classification: PUBLIC
3
1. Business drivers for transformation enabled by Integrated Business Planning
In-Territory challenges Opportunities
Improve visibility and data clarity
to inform profitable decisions on
all S&OP levels
Improve process efficiency,
increase selling time and remove
excess data consolidation effort
$$$$ Reduce lost sales and inventory
Equip Sales Reps with clear and
timely product availability dataHuge efforts to reconcile multiple sources of
S&OP data
Improve customer experience
Classification: PUBLIC
4
• Evolutionary step of S&OP
• Revenue and profit projections
• Management of business trade offs & risks
• Inclusion of strategic plans
• One set of figures and not one figure driving business
• Budget gap identification & management
• Aggregate/detail WoW* level aligned to insights
• Increased process efficiency & effectivness
• Process outputs KPIs and measures
2. How Syngenta understands Integrated Business PlanningIBP vs S&OP key differentiators (1 of 2)
* WoW – Ways of working
Classification: PUBLIC
5
Annual AIMonthly
CU/Territory
Annual Variety &
Formulation
CY and CY+1
S&OP SKU / month
(*Control Tower SKU / week)
CY to CY+5
Active Ingredient
Month & Year
CY+2 and CY+3
Formulation & Variety
Year
S&OP Processes
S&OP Levels
2. How Syngenta understands Integrated Business PlanningS&OP levels, processes, degree of harmonization (2 of 2)
As-Is degree of harmonization
H
M
L
L
HML/M
L
Classification: PUBLIC
6
Monthly
CU/Territory
3.“What“ value Syngenta extracts from IBP powered by SAPProcesses (1 of 5)
Sales Input
Customer
Marketing
Input
Product
Marketing
Input
Demand
Planning
Input
Demand
ReviewPre-SOP
Allocation
PlanningSOP
UNCONSTRAINED CONSTRAINED
PHASED, VOL / «NET» REVENUE, PROFIT, BUDGET GAPS
DEMAND MANAGER LED
PHASED, VOL / «GROSS» REVENUE
DEMAND PLANNER LED
Classification: PUBLIC
? ? ?
7
3.“What“ value Syngenta extracts from IBP powered by SAPOrganization & Capabilities (2 of 5)
Demand Planner facilitates/ensures S&OP
process is followed, focused on delivery the
most realistic unconstrained forecast. Acts as system & data expert.
Marketing-led process to ensure alignment to strategic plans, focus on right products and
customers strategy/tactics.
Finance Business Partner & Pricing Manager focused to manage price elasticity, projected
margins, validate profit and revenue projections, validate & ensure integration with Fin System.
S&OP numbers are assumptions driven,
followed trough market drivers and assumptions framework
Demand Manager focus on
delivering the most profitable constrained plans e.g. allocation plan, volume & value base scenario planning, demand shaping.
Sales qualitative inputs are adapted to
local organization set up
Classification: PUBLIC
8
3.“What“ value Syngenta extracts from IBP powered by SAPProcesses (3 of 5)
We forecast uncertainity(events) +/-30 to 90 separately to enable appropriate supply planning & decisions
We forecast consignment sales according to Production &
Supply consignment fill-up forecast
and Finance revenue recognition forecast phasing
We forecast standard salesaccording to when we expect to sell/ship products to the 3rd party customers
We forecast Unconstrained and Constrained view separately. Unconstrained Sales Forecast is a view of up-to date market potentials. Constrained view considers supply constraints and financial commitments
We forecast barter sales as different “payment term” optionally with revenue recognition phasing different than volumetric
We forecast Combi-packs, ICS via Sales BOM to ensure E2E integration, profit / COGS assignment.
We forecast volume, value and related phasing
Classification: PUBLIC
9
We forecast volumetric Commercial Returns and financial Accruals for it
We forecast Samples / Free of Charge to “netted out” of the Sales Revenue forecast but factored in to Supply Plans
We manage risks with Scenario Planning
- to promote the maximized profit in Constrained Sales Plan (volume, value, price, margin)
- to expose and manage gaps to the Budget
We forecast Royalties/License fees and factored in to ensure a complete Sales Revenue Forecast
We do local supply & demand balancing based on regional supply response
We define and integrate with ERP
Allocation plans to achieve most profitable outcome
Differentiated forecastingenabling step change in process efficiency & effectiveness
3.“What“ value Syngenta extracts from IBP powered by SAPProcesses (4 of 5)
Classification: PUBLIC
10
We enable integrated & flexible data model (structures) across all business lines and all geographies to execute process steps and all integration requirements.
Protected Inputs / “opinion lines” in role based templates to enable Forecast Value-add analysis and 6 Sigma improvements
Aggregate or detail level ways of working aligned to best insights. Effective disaggregation/aggregation
supporting changes of level. Top down and bottom upforecasting
* As-is, ** Planned
Many data sources* integrated via Hana Cloud Integration platform.
Excel as main user interface. Supported by
Web** & Fiori** UI
Same information but data load and work levels can be different
Cross process step controlled data flows
3.“What“ value Syngenta extracts from IBP powered by SAPSystem & Technology (5 of 5)
Classification: PUBLIC
11 CLASSIFICAITON: Confidential
DEPLOY DESIGN GLOBALLY
Requires strong regional leadership support
• Current processes will change
• Design for needs not for wants
SYNCHRONIZE RELEASES ACROSS TERRITORIES
• Harmonized processes, terminology & functionality
• Clustered design, build, transformation
MINDSET IS CRITICAL
• “We Can!”
• Identify and drive collaboration internally and
with partners - “One Team” approach
INTEGRATED DESIGN & ROLL-OUT
• Integrated designs with other areas will
amplify benefits e.g. Pricing, Order
Management , Supply Response
1
ENSURE BUSINESS CONTINUITY
• Minimize seasonal impact
ITERATIVE DESIGN & BUILD FOR A COMMON GLOBAL FRAMEWORK
• Territories must think globally through the design process
• Staged transformation approach
3.“How“Syngenta extracts value from IBPApproach (1 of 2)
Classification: PUBLIC
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3.“How“ Syngenta extracts value from IBPApproach (2 of 2)
Documentation, Knowledge
exchange platform
Best practices
Technical and Business Go-Live,
Clustered Design, Build & Transfromation
Co-innovation enabling Win-Win
Classification: PUBLIC
Global team - overlap of
capabilites and clear
responsibilites
13
● Functional perspective
● Geographical perspective
● Process perspective
Sales & Operations
SAP HANA Platform
Supply Chain Control Tower
DemandResponse &
SupplyInventory
Annual AIMonthly
CU/Territory
Annual Variety
& Formulation
STAGE 1 STAGE 2 STAGE 3
STAGE 1
STAGE 3
STEP2 TOOL TBC
• Midium size territory prototype
• 2 largest territories rollout
• Global sustainable scalability
STAGE 1
STAGE 2
STAGE 1 – Completed , STAGE 2 – In Progress, STAGE 3 - Planned
STAGE 3
4. Syngenta considerations for next steps with SAP IBP
Budget
Preparation
STAGE 3, TBC
Classification: PUBLIC
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public
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SAP Forum Basel 2016 – Professionals Day
Stream Digital extended Supply Chain, Room Helvetia 1