How & What value Syngenta extracts from. Integrated Business Planning powered by SAP IBP

Transcription

1 How & What value Syngenta extracts from Integrated Business Planning powered by SAP IBP June 2016, Robert Kepczynski Global Supply Chain Strategy & Design, Global Supply CoE

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 2

3 1. Business drivers for transformation enabled by Integrated Business Planning In-Territory challenges Opportunities $$$$ Reduce lost sales and inventory 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 Huge efforts to reconcile multiple sources of S&OP data Equip Sales Reps with clear and timely product availability data Improve customer experience 3

4 2. How Syngenta understands Integrated Business Planning Strong alignment to Oliver Wight concept 1. Next step in S&OP maturity, tighter x-functional integration and embed IBP as strategic business managment process 2. Revenue, profit projections coupled with volumetric planning 3. Management of business trade offs, demand and supply risks/opportunities 4. Inclusion of strategic plans long term plans and marketing Drivers N Assumptions 5. Assumptions captured give meaning to the figures 6. Budget gap identification/management 7. Top down/bottom up ways of working, level aligned to best insights 8. One set of figures and not one figure driving business 9. Effecient and effective process leveraging diferrentiated forecasting 4

5 3. What value Syngenta extracts from IBP powered by SAP Processes Monthly CU/Territory Various ways of selling products are reflected in various ways we capture demand signal Sales Input* Customer Marketing Input Product Marketing Input Demand Review Scenario Planning Supply Response Allocation Planning Scenario Planning Pre-SOP Scenario Planning SOP Demand Planning Input «GROSS» VOLUME & REVENUE DEMAND PLANNER LED PHASED UNCONSTRAINED «NET» VOLUME & REVENUE, PROFIT, BUDGET GAPS DEMAND MANAGER LED PHASED CONSTRAINED * No of levels aligned to local organizational structures 5

6 3. What value Syngenta extracts from IBP powered by SAP Organization & Capabilities S&OP numbers are assumptions driven, followed trough market drivers and assumptions framework Demand Planner facilitates/ensures IBP process is followed, focused on delivery the most realistic unconstrained forecast. Acts as process, system & data expert. Marketing-led process to ensure alignment to strategic plans, focus on right products and customers strategy/tactics. Demand Manager focus is on delivery of the most profitable constrained plans e.g. allocation plan, volume & value base scenario planning, demand shaping. Sales qualitative inputs reflected in process steps are adapted to local organization structure and / got to market strategies Finance Business Partner & Pricing Manager focused to manage price elasticity, projected margins, validate profit and revenue projections, validate & ensure integration with Fin System. 6

7 3. What value Syngenta extracts from IBP powered by SAP Processes IBP covers standard sales according to when we expect to sell/ship products to the 3rd party customers We capture and manage in IBP Samples / Free of Charge to net out the Sales Revenue forecast and inform Supply Plans. We use IBP for consignment sales according to Supply consignment fill-up, revenue recognition according to finance phasing We forecast Standard Products, Combi-packs, ICS ensuring E2E integration & profit / COGS assignment. We incorporate Royalties/License fees to ensure a complete Sales Revenue projection We capture demand signal for B2B, Distributors, Smallholders (small farmers), Associations In IBP financial commitment we incorporate volumetric Commercial Returns and financial Accruals for it 7

8 3. What value Syngenta extracts from IBP powered by SAP Processes In IBP we capture uncertainty (events) e.g. to enable supply planning of long lead-time formulations and AIs related to registration or any other event which requires non-demand driven production. We define and integrate with ERP Allocation plans to achieve most profitable outcome and integration with Order-to-Cash process We equip IBP&SOP management with simulations on budget gap exposure / closure e.g. Demand Shaping, Sell-to-availability. We manage in IBP business trade offs, risks & opportunities with Scenario Planning, linked to assumptions captured in volume, value, price, margin For seeds business with short season (sometimes. 6 weeks window) we incorporate weekly operational S&OP meeting aligned to monthly IBP SOP. It may leverage deployed data model and SAP IBP SOP tool capabilities. We use product categorization, process measurement and plan to use statistical forecasting to embed differentiated forecasting in IBP. It helps us to achieve step change in process efficiency & effectiveness 8

9 3. What value Syngenta extracts from IBP powered by SAP System & Technology Forecast Value-add Analysis, 6 Sigma READY. Protecting inputs in role based templates to achieve We enable integrated & flexible data model (structures) across all business lines and all geographies to execute process steps and all integration requirements. (Planned size 11TB) Hana Cloud Integration platform used to integrate ca. 20 data sources: VENDAVO pricing, SALESFORCE account plans, QUANTUM ex-rates, BI, APO, 3 x ECC, local CRMs. Top down / bottom up, Aggregate / detail working level aligned to best insights. Effective disaggregation/aggregation supporting changes of level. Cross process steps controlled data flows Data load and work levels can be different 9

10 3. How Syngenta extracts value from IBP Approach INTEGRATED DESIGN & ROLL-OUT Integrated designs with other areas will amplify benefits e.g. Pricing, Order Management, Credit Management, Supply Response 1 ITERATIVE DESIGN & BUILD FOR A COMMON GLOBAL FRAMEWORK IBP GLOBAL TEAM, DESIGNS HOW IT WORKS IN BUSINESS: - overlap of capabilites (business, best practices, systems) with clear responsibilites - operating model design: processes, organization and capabilites, systems - operating model transfromation (from as is to to-be, including forming IBP Center of Expertise) - configuration and build standards, - required technical and business support, - documentation standards, - knowledge transfer to business, build, support, rollout teams 10 CLASSIFICAITON: Confidential

11 3. How Syngenta extracts value from IBP Approach Co-innovation enables Win-Win Best practices in global design v 1.0 Technical and Business Go-Live, Clustered Design, Build & Transfromation 11

12 4. Syngenta considerations for next steps with SAP IBP Functional perspective Supply Chain Control Tower Sales & Operations IMPLEMENTED PLANNED 2017 Demand Inventory Response & Supply SAP HANA Platform IMPLEMENTED Technology Major upgrade to 6.1 Fiori UI Web UI & Dashboards JAM Collaboration IMPLEMENTED PLANNED 2016/2017 PLANNED 2016/2017 PLANNED 2016/

13 4. Syngenta considerations for next steps with SAP IBP Geographical perspective Midium size territory 2 largest territories rollout Globally accelerated deployment IMPLEMENTED IN PROGRESS PLANNED 2017/18 Process perspective IMPLEMENTED IN PROGRESS PLANNED 2017/18 UNDER REVIEW Monthly CU/Territory Annual Variety & Formulation Annual AI Budgeting process Weekly inseason SOP 13

14 Questions? Today, I will be available at booth. How to manage roadmap and value realization? Do you need PoC and Prototypes for tool which still matures? How to approach IBP business cases? What are the IBP modules maturity and where they fit? How important data model and data integration is? What opportunities SAP IBP S&OP creates? What challenges IBP creates compared to S&OP? 14

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17 BACK UP SLIDES 17

18 2. How Syngenta understands Integrated Business Planning S&OP levels, processes, degree of harmonization S&OP Processes S&OP Levels L/M M H H M L L Monthly CU/Territory Annual Variety & Formulation Annual AI CY and CY+1 CY+2 and CY+3 CY to CY+5 As-Is degree of harmonization L S&OP SKU / month (*Control Tower SKU / week) Formulation & Variety Year Active Ingredient Month & Year 18

19 SAP IBP overview, IBP 6.2, mid 2016 status Supports S&OP and processes which require collaboration, simulations e.g. budgeting, financial planning, long term strategic planning 2 Statistical forecasting, portfolio segmentation, short term demand sensing algorithms Demand Supply Chain Control Tower Sales & Operations Planning 2 Inventory SAP HANA Platform Inventory optimisation tool with proven Smartops algorithms behind 2 Response & Supply E2E exception based alerts, workflow, collaboration, reporting & analytics Supply planning and demand response module which may work on order level, optimizes your supply plans and response Immature to realize benefits Gradually approach realization of benefits Ready for realization of benefits 19 Classification: INTERNAL USE ONLY

20 What SAP IBP S&OP can be used for Any «Planning» processes financial, budgeting, supply,sales, marketing and x- functional which requires: Consilidation of manual inputs Automatic calculation (as well integrated) Reconciliations Collaboration Scenario planning, simulations & comparisons Working level aligned to insights Own calculation and data flows Integration of various of data sources Data load level different or eaqual working levels Posibility to design own disaggregation and aggregation rules 20

21 User Interfaces (UI) to access IBP Excel UI through IBP Add-in: Review and modify planning data Run Simulations IBP S&OP WEB UI: Process completeness* Dashboards* Administrative functions * Functionality will be evaluated in

22 Planning with Excel UI Planning View Template System representation of business process step Stored planning view with predefined layout (formatting, charts) and settings (time horizon, key figures, planning levels). End users create their own favourite planning view specific to portfolio, geography, planning level specific to WoW etc. Favourite Planning View End user-defined or key user-defined (and shared) view that allows to execute process step in customized way, specific WoW. Planning Multi-View Excel Workbook normally contains more than one Planning View. Workbooks are designed to support variants of the process like consignment or supporting with extra information like Analytical view. 22

23 Planning View IBP Toolbar tab End User s main functions Info section Chart area Header section Time Horizon Planning Data section Planning Level / Data Dimensions Multi-View tabs 23

24 Favourite Planning View From Global Planning View Template to user specific Planning View linked to best insights Time Period (year, quarter, month) Time Horizon Rolling Master Data Type ATTRIBUTES (from 1 to 15)* Key Figures Currency Unit of Measure (UoM) Rows and Axis disposition Master Data Type ATTRIBUTES constraining displayed data 24

25 OASIS (PI) HCI Hana Cloud Integration IBP S&OP Integration SAP HANA Cloud Integration (HCI) is used to move data into and out of SAP Integrated Business Planning: - Import: HCI directly connects to On-Premise systems to extract and securely pipe data from source systems to IBP target tables via secure HTTP (HTTPS). - Export: For each planning area in IBP, there is an IBP calculation scenario that allows the extraction of all IBP key figures on any aggregate level. In addition, the extraction of master data via HCI is also supported. IBP master data tables are exposed as read-only. Agent provides access to HCI from Syngenta. On-Premise Systems MDM SFTP ERP FI RFC AGENT https IBP S&OP APO EBI Syngenta Environment Firewall SAP Cloud Environment 25

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