MWUG Spring 2017 Getting Started with SOP/IBP
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1 MWUG Spring 2017 Getting Started with SOP/IBP Jeff Livingston Senior Solutions Consultant March 20, 2017
2 Agenda What is S&OP? Why S&OP? Getting started QAD DSCP Demo 3
3 What is Sales & Operations Planning (S&OP) Produce (Make/Buy) Sell 4
4 What is S&OP Executive Team Hierarchy alignment Sales Marketing Finance Operations Functional alignment Produce (Make/Buy) Sell 5
5 What is S&OP Review Forward Plans Agree Forward Plans Execute Forward Plans 6
6 5-Step S&OP Process Tom Wallace/Oliver Wight 7
7 Execution Planning MWUG Spring 2017 Getting Started with S&OP/IBP Why S&OP Sales and Operation Plan Strategic Planning Align Demand & Supply Master Production Schedule Capacity Planning Items & Resources Material Requirements Plan Detailed Planning Component Availability Shop Floor Schedule Sequencing 8
8 Why S&OP - Benefits Executive involvement Product lifecycle Consensus forecast Inventory Forecast bias Customer service Capacity balancing 9
9 Financial Impact/Benefits of S&OP/IBP Typical Business Benefits of S&OP: 10
10 % achieving metric improvement in past 2 years MWUG Spring 2017 Getting Started with S&OP/IBP Best-in-Class S&OP Value/Benefits Best-in-Class SOP companies have a Advantage in key performance improvements 90% 80% 73% 77% 84% 83% 81% 70% 60% 50% 40% 30% 20% 23% 48% 33% 40% 23% 26% 18% All Others BIC 10% 0% Customer Retention (%) Finished goods days of inventory Complete Order Fill Rate (%) Average Forecast Accuracy at the Product Family Level Gross Margin (% of revenue) Logistics costs as a % of sales 11
11 Getting Started with SOP/IBP 12
12 How to get started People Process System 13
13 How to get started People Executive Sponsorship Establish the process Process System Support the process S&OP co-ordinator 14
14 How to get started People Process System 15
15 How to get started People Start simple Process System 16
16 17 Start simple KPI s Process Scenarios Demand Volume & $ Supply KPI s Demand Supply Time
17 How to get started People Start simple Define Families Process System 18
18 Families S&OP aggregated into families Demand Planning Family-Site Demand Planning Product-Site Demand Planning Product-Customer Distribution Planning Product-Site Production Planning Product-Resource 19
19 Families Demand Planning Production Planning 20
20 How to get started People Start simple Define Families Process Plan meetings System 21
21 Plan meetings Data Gathering & Review Demand Review Capacity Review Pre-Exec Meeting Executive Meeting 22
22 How to get started People Start simple Define Families Process System Plan meetings Execute & Review 23
23 How to get started People Supports your process Flexible Process System 24
24 Flexible System Sales & Operations Planning Data Gathering Capacity Balancing Reporting KPI s Production Planning Distribution Planning Demand Planning 25
25 Flexible System Sales & Operations Planning Data Gathering Capacity Balancing Reporting KPI s Production Planning Distribution Planning Demand Planning 26
26 How to get started People Supports your process Flexible Process System Assumptions User experience 27
27 Where are you on the SOP Maturity Scale? S&OP Improvement One Step at a Time QAD DSCP Source: Gartner Five-Stage S&OP Maturity Model
28 Are the pieces in place to mature to stage 3 or 4? Source: Gartner Five-Stage S&OP Maturity Model
29 QAD Demand and Supply Chain Planning Demonstration 30
30 QAD DSCP Value Proposition QAD DynaSys DSCP Customer Benefits Increase in forecast accuracy: 10 to 40 points Decrease in inventory: 10 to 50% Increase in fill rate: 6 to 30 points Increase in gross profit margin: 5 to 15 points Decrease in working capital needs: 5 to 25% 31
31
32 Detroit May 8-11 explore.qad.com
33 Thank You 34
34 QAD Inc 35
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