BIOTECH SUPPLY CHAIN ACADEMY October 8-9, 2012 Crowne Plaza, Foster City, CA

Transcription

1 BIOTECH SUPPLY CHAIN ACADEMY October 8-9, 2012 Crowne Plaza, Foster City, CA Sales & Operations Planning Kevin Pegels Oct. 9, 2012

2 Introduction Kevin Pegels 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 Presentation Title Date

3 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 10/21/2012 3

4 Sales & Operation Planning - General Sales & Operations Planning Process Demand Review Supply Review Category S&OP GM S&OP S&OP Characteristics S&OP Four Step Process Demand Review Analysis POS Trends POS Forecast Shipments Orders Inventory Marketing Plans Sales Plans Forecast Accuracy Demand Review Alignment KCDP Call Key Customer Plans & Activities POS Trends Events Consensus Mtg Business Update New Products Category Trends Key Customers Events Alignment 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 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 Alignment

5 S&OP Process Key Principles Customer First Key objective of process is to deliver optimal service to end customers/countries and meet commitments to the Business Single Forecast Be Proactive Decision Making Transparency Proven Process 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)

6 Biotech S&OP Process by Major Product Line STEP 5 STEP 4 Executive Meeting Affiliate Communication / Verification STEP 1 Data Gathering (APO) STEP 2 Demand Planning (Supply Network Planning) STEP 3 Supply Planning (Production Scheduling) Pre-Executive Meeting KPI Review, Capacity review, Launch Review, Identify escalation topics KPI Review, Business Review, Capacity Review, Regulatory Review, Resolve escalation topics Saturday-Sunday Monday-Tuesday Tuesday-Thursday Thursday before Step-5 meeting Last Thursday of every mth. Weekly Monthly Highlights: 1. S&OP process is co-owned by Supply Chain and Commercial Organization 2. S&OP process integrates weekly and monthly planning 3. Forward looking, normally 0-18 months 4. Focused on delivering KPIs, aligning supply/demand, and resolving business issues 5. Implemented in less than 6 months

7 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 studies 5. Secure top Sr. leadership who can drive ownership top down through the organization 10/21/2012 7

8 Typical S&OP Benefits Global S&OP process has driven substantial benefits over the past few years Inv. <=12 Mths Inventory DOH are decreasing 0 Jun 2009 Dec 2009 Jun 2010 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 10/21/2012 8