MWUG Spring 2017 Getting Started with SOP/IBP Jeff Livingston Senior Solutions Consultant March 20, 2017
Agenda What is S&OP? Why S&OP? Getting started QAD DSCP Demo 3
What is Sales & Operations Planning (S&OP) Produce (Make/Buy) Sell 4
What is S&OP Executive Team Hierarchy alignment Sales Marketing Finance Operations Functional alignment Produce (Make/Buy) Sell 5
What is S&OP Review Forward Plans Agree Forward Plans Execute Forward Plans 6
5-Step S&OP Process Tom Wallace/Oliver Wight 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
Why S&OP - Benefits Executive involvement Product lifecycle Consensus forecast Inventory Forecast bias Customer service Capacity balancing 9
Financial Impact/Benefits of S&OP/IBP Typical Business Benefits of S&OP: 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 2.5-6.5 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
Getting Started with SOP/IBP 12
How to get started People Process System 13
How to get started People Executive Sponsorship Establish the process Process System Support the process S&OP co-ordinator 14
How to get started People Process System 15
How to get started People Start simple Process System 16
17 Start simple KPI s Process Scenarios Demand Volume & $ Supply KPI s Demand Supply Time
How to get started People Start simple Define Families Process System 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
Families Demand Planning Production Planning 20
How to get started People Start simple Define Families Process Plan meetings System 21
Plan meetings Data Gathering & Review Demand Review Capacity Review Pre-Exec Meeting Executive Meeting 22
How to get started People Start simple Define Families Process System Plan meetings Execute & Review 23
How to get started People Supports your process Flexible Process System 24
Flexible System Sales & Operations Planning Data Gathering Capacity Balancing Reporting KPI s Production Planning Distribution Planning Demand Planning 25
Flexible System Sales & Operations Planning Data Gathering Capacity Balancing Reporting KPI s Production Planning Distribution Planning Demand Planning 26
How to get started People Supports your process Flexible Process System Assumptions User experience 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
Are the pieces in place to mature to stage 3 or 4? Source: Gartner Five-Stage S&OP Maturity Model
QAD Demand and Supply Chain Planning Demonstration 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
http://www.qad.com/solutions/demand-andsupply-chain
Detroit May 8-11 explore.qad.com
Thank You 34
www.qad.com QAD Inc 35