Driving a new age of connected planning

Transcription

1 Driving a new age of connected planning

2 1. Need to Connect.... 2

3 Exponential Supply Chain Complexity 2000s Pre 1970s Ship & Rail Inventory Mgmt Push 1970s MRP & spreadsheets Invented First WMS & DC Truck and Air Freight 1990s ERP Invented Outsourcing Large MOQ Co-planning SCOR Information flow SC Services Demand Driven networks Function-specific Tools Small MOQ Design and Service Digital, Omnichannel

4 Collaboration Across The Network Production Facilities Distribution Center Warehouse Customer Channel Raw Material Suppliers 3 rd Party Logistics 3 rd Party Logistics Contracted Producers Channel Partners Customers

5 Traditional Planning Shock Absorbers REAL WORLD SKU Proliferation Escalating Variability Uneven Markets Demand Volatility Limited Suppliers Digital DIsruption Short Product Lifecycle Regulatory Change Emerging Markets Natural Calamities SUPPLY CHAIN PLANNING Custom Value Network Creation Order Management Purchasing Strategic Network Design Warehouse Management Factory Scheduling Distribution Order Mgmt. Master Scheduling Transportation Management Materials Management Resource scheduling EXECUTION

6 Typical S&OP / IBP Solution ERP System MES System MRP System Transportation Management System CRM Tool Financial Planning system Warehouse Management System HCM Tool Ad-hoc reporting and planning tools Forecasting Tool Supplier Collaboration Platform DC / WMI Inv Mgmt MPS Order Fulfillment ATP Strategic Pricing S&OP Management Reports

7 Business Decisions Increasingly Made Outside Planning Applications Decision Makers Strategy / Innovation Marketing Sales Finance & HR/IT/Assets/ Facilities Supply Chain and Operations Ongoing Analysis & Collaboration Decision Support Custom Point Solution Periodic decisions & assumptions Plan Systems of Record Planning Applications JDA APO Hyperion Enter the plan during each period Data Collection Data & Analytics Tools BW Essbase MDM BOBJ Tableau Enable reporting against plan Day-to-day operations Transactional Systems ERP CRM HCM Marketing WMS Mfg. Execute against plan

8 Lowest Common Denominator is still 70% of business users still rely on spreadsheets for critical portions of business 1 year after purchasing tool 1 1 Deloitte; Spreadsheet Management Not What you Figured

9 Lowest Common Denominator is still 88% of spreadsheets contain formulaic or link errors 3 2 Adapted from Rebus; The Real Cost of Manual Analytics in the Supply Chain

10 Lowest Common Denominator is still 5% of an entire organization s available time is spend on updating or using advanced supply chain spreadsheets 2 3 Panko, Raymond R; What We Know about Spreadsheet Errors

11 Lowest Common Denominator is still 70% of business users still rely on spreadsheets for critical portions of business 1 yr after purchasing tool 1 88% of spreadsheets contain formulaic or link errors 3 5% of an entire organization s available time is spend on updating or using advanced supply chain spreadsheets 2 Despite advances in IT tools, 1% of revenue is spent inefficiently making decisions with inaccurate data for supply chain 1 Deloitte; Spreadsheet Management Not What you Figured 2 Adapted from Rebus; The Real Cost of Manual Analytics in the Supply Chain 3 Panko, Raymond R; What We Know about Spreadsheet Errors

12 How do you spend your time? 30% Making Decisions 70% Preparing Data 4 4 CrowdFlower Data Science Report, 2016

13 Today s Planning System Landscape While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Common Challenges with Packaged Solutions Significant Investment Requirements Heavy upfront costs, waterfall approaches, and long lead-times / effort before getting up and running Solution to Process Disconnects Difficult / unintuitive solutions requiring the business to adapt to the vendor s way of doing things Limited Capabilities Inadequate support for connected planning within and across business functions and lack of analytics Common Responses Sub-Optimal Custom Solutions or XLS Since they can t find the perfect solution, many settle for homegrown point solutions or Excel tools Processes Are Not Standardized Point solutions and Excel make it easy for silos to do it their way and inhibit leading practice standardization Disparate, Fragmented Tools Connected planning is never attempted, much less achieved, and myriad of solutions lead to system landscape explosion 13

14 2. Get Connected... 14

15 What is connected planning? The new way connected planning A new way to run your business Data Single, secure source of planning and decision data One business process People Greater collaboration, deeper insights, faster alignment Across one department or area Plans Dynamic, continuous planning for any area of your business Across the company

16 Why is Connected Planning So Unattainable? There are five key barriers that need to be addressed : Organizational Silos Data Flexibility Technology Work Flow Lack of visibility of plans across functions Legacy kingdoms with limited sharing of data Data availability, inconsistency and quality issues Multiple sources of data challenging to reconcile Dynamic changes and varying timeframes for product planning Difficult to build flexibility to cover different planning levels or diverse categories Manually intensive to coordinate, consolidate, and share data Multiple purpose built tools that cannot be aligned Different planning levels, horizons and cycle times Inability to quickly change plans, perform what-ifs, flow changes 16

17 Connected Planning Fundamental Differences Intelligent Capabilities Packaged Solutions Limited advanced and predictive analytics capabilities Limited dashboards and exception management logic Anaplan Automated recommendations to accelerate planning process User-friendly management and in-module scenario planning Flexible Build & Modify Capabilities Standard Reports Slow technologies that do not always reflect real-time changes across business units Modifications are often lost or lead to duplicated, inaccurate information Reporting is limited or non-existent in the solution Reporting is ad hoc / individualized Tendency to drop into xls to marry multiple data sets, driving effort and degrading trust Cloud-based, in-memory engine - real-time planning at scale Intuitive, role based spreadsheet-like user experience All reports update in real-time based on changes made within planning modules Easy-to-develop ad hoc reports complement standard reports Connected Solution Platforms are disparate and/or business unit-specific, limiting cross-team integration Tendency for many to still do heavy lifting in Excel or copy/paste into the solution Models and reports can be modified specific to each BU / division / geography without disconnecting plans Aggregation can be done across multiple plans and dimensions (like account, category, and product attributes) 17

18 Connected Planning Benefits Aligned and Linked Connect single version of the truth for plans across functions and to which the Company is executing Collaborate within and across channels and business functions Dynamically connect, reconcile, and track plans (e.g., top down and bottom up) Integrate and connect multiple dynamic data sources in real-time Infuse analytical capabilities to drive better planning that matches demand Reduce or eliminate multiple planning solutions and offline spreadsheets WORKFORCE SUPPLY CHAIN ERP PLM Real-time User driven FINANCE MERCHANDISING CRM FINANCIALS Connected across the enterprise Modeling & Predictive Capabilities HR OTHER Mobile SALES Collaborative Cloud-based Scalable MARKETING Processing power 18

19 Proven Benefits of Connected Planning Speed Agility Visibility Reduced Planning Cycle Time 80%(2 wk to 2 d) Food & Beverage Manufacturer Reduced Order Processing Time 55% from 7 to 2 Days High Tech Manufacturer Increased OM capacity by 150% in 8 weeks High Tech Manufacturer Reduced functional FTE requirement for impacted processes by 40% High Tech Manufacturer 1.5% sustained increase in Net Income Global Apparel Manufacturer Uncovered $15M in missing inventory High Tech Manufacturer Effectively Planned 55% incremental demand via new bundles High Tech Manufacturer Enabled SKU-level, cross SKU bundles, planning High Tech Manufacturer

20 Connect - Streamline Decision Making Decision Makers Strategy / Innovation Marketing Sales Finance & HR/IT/Assets/ Facilities Supply Chain and Operations Ongoing Analysis & Collaboration Data People Plans Ongoing analysis and decision making Plan Systems of Record Planning Applications JDA APO Hyperion Complement or replace legacy tools Data Collection Data & Analytics Tools Business Warehouse Master Data Mgmt BOBJ Tableau Combine analytics & decision making Day-to-day operations Transactional Systems ERP CRM HCM Marketing WMS Mfg. Execute against plan

21 How could you spend your time? 70% Making Decisions 30% Preparing Data 4 CrowdFlower Data Science Report, 2016

22 Supply Chain Solutions Connected Planning Solutions for Supply Chain Best Practice Implementation / Roadmap Product Planning NPI / EOL / Cannibalization Commercialization & Ramp Planning Contrib. Margin Analysis Project Planning Resource Constraint Mgmt Brand, Portfolio, Platform Planning Demand Management Demand Planning Forecasting (Multi-method) Demand Sensing & Shaping Collaborative Planning & Fcst Merch. & Assort. Planning Trade Promotion Mgmt Supply Management Supply Planning Capacity Planning Inv. Planning & MEIO Production Planning Dist. & Network Planning Capable to Promise S&OP / IBP S&OP KPIs & Reporting Inventory & Service Policy Margin Management What-If Analysis Scenario Planning

23 Connected Planning Footprint An end-to-end process and solution to connect across all dimensions and between all functions Illustrative Footprint Pre-Season In-Season Marketing Plans Master Data Sourcing PLM Size / Pack Replenish ment Financial Targets Strategy & Hindsight Financial Plans Category Plans Demand Forecasts Account Plans Assortment Plans / PD Lines Plans Buy Plan POs Allocations Supply Chain Plans OTB Space Plans Promo & MD Plans Clearance Multiple Connections Process Input Anaplan Enabled Linked System 23

24 What does an Anaplan implementation look like? Fast Focused around short, quick releases delivering rapid value Iterative Foundations take form early, allowing for iterative refinement Collaborative Focused on customer enablement throughout the journey

25 Accelerating Success App App App App App App Anaplan Journey App HUB HUB Single Use Case Multiple Independent Use Cases Multiple Connected Use Cases Delivery Model Anaplan / SI Support Customer Leading 1. Establish 2. Operationalize 3. Scale Evolution Deploy 1 st project successfully Identify key roles - Executive Sponsor, COE Lead, Anaplan Architect, Business Lead Form delivery team Establish Sprint Cadence Establish Data Governance Identify functional and regional business owners Designate overall Solution Architect / Technical Owner Identify and train model builders business or IT Define demand management process for new model requests Define COE career path and goals Adjust centralized vs regional model builder capacity Drive Anaplan adoption by identifying appropriate use cases Invest in additional Anaplan training for key COE resources

26 3. Stay connected... How to be good at change... Speed Flexibility Visibility Ability to experiment 26

27 81% Agree plans change during execution 75% Expect they will need to plan more frequently 5% Strongly agree they are effective at ongoing coursecorrections Source: HBR survey, 2016

28 Anaplan Centre of Excellence Model Move to self sufficiency Drive improvements in capability Ensure resilience Maintain Consistency & Governance Data & Meta Data Model design Processes User experience Share learning Empower organic growth of the business to expand the connections Create a service for the business to become more efficient

29 The Centre of Excellence Model Change management Skills and expertise An implementation approach Access to support Self-Sufficiency Direction and governance An Anaplan savvy Data governance and integration Access to Knowledge and Best Practices

30 Anaplan recognition 2017 LEADER 2016 VISIONARY 2016 HYPE CYCLE LATEST MARKET GUIDE LATEST MARKET GUIDE Sales Performance Management Magic Quadrant Strategic Corporate Performance Management Magic Quadrant Human Capital Management Software, Workforce Planning & Modeling Trade Promotion Management and Optimization Sales and Operations Planning 2016 CTO Award for Innovation

31 Sales & Operations Planning End to End Supply Chain Planning Supply Planning Operations Demand Planning Trade Promotion Merchandise Planning

32 Key takeaways A connected planning approach results in better, more collaboratively created plans that are resilient in the face of change Questions Anaplan is a unique platform to develop, integrate, reconcile, refine, and manage plans Anaplan capabilities can be implemented quickly using agile processes Anaplan is highly scalable and supports very complex, financial, product and supply chain planning models 32