Optimizing the supply chain has become a top priority for organizations worldwide. Unfortunately, sales and operations planning (S&OP) isn’t usually designed to fully integrate with the supply chain, much less finance and sales. A collaborative, continuously optimized planning approach to link demand, inventory, manufacturing, and fulfillment requirements will yield the best results. Mark Smith, CEO and Chief Research Officer of Ventana Research, and Vivek Soneja, Managing Partner and Global Head of Supply Chain Management at Anaplan, discuss the best practices and technological approaches that optimize the supply chain to move beyond the ERP, SCM, and spreadsheet chaos that hold many businesses back. Learn: -How to adopt a continuous planning process for your supply chain -Why many technological approaches fall short and limit your business potential -How to enable inventory optimization for rapid “just-in-time” manufacturing -Where you can use collaborative planning to guide critical decisions -Best practices for your supply chain through industry research and customer examples

2. Breaking Bad Habits with
Continuous
Supply Chain Planning
Webinar Presentation
Mark Smith
CEO & Chief Research Officer
January 2018
@ventanaresearch ventanaresearchblog.ventanaresearch.com @marksmithvr

3. Mark Smith
CEO & Chief Research Officer
Mark is responsible for the overall business and research direction of
Ventana Research and drives the global research agenda covering both
business and technology areas. He defined the blueprint and
methodology for improving business by using benchmark research to
provide guidance across people, processes, information and
technology. Mark is an expert in enterprise software and business
technology innovations including: business analytics, big data, cloud
computing, business collaboration, mobile technology and social media.
Mark started Ventana Research more than a decade ago; he has worked
in the software industry for 25 years leading innovations in research
and technology. Mark was rated the 2011 software industry analyst of
the year by The Institute of Industry Analyst Relations (IIAR). Mark is
also ranked as one of the top ten technology influencers in 2012 by
Human Resources Executive magazine.
© 2018 Ventana Research
@marksmithVR

4. Vivek Soneja
Global Head of Supply Chain Solutions, Anaplan
Vivek is Global Head of Supply Chain Solutions at
Anaplan. With more than 20 years of consulting and
industry experience, Vivek’s management expertise
includes business/IT/operations strategy, business
transformation, enterprise improvement, supply chain
management, and program management. He also has
strong expertise in managing and delivering large and
complex technology-enabled transformation programs.
© 2018 Ventana Research

5. © 2018 Ventana Research
Managing Supply Chains is Complex

6. Unifying Supply Chain Requires Continuous Planning
Planning is pervasive but not always formal and rarely coordinated.
PLAN
Marketing
Demand
Sales
Forecast
S&OP
Supply
Chain
Inventory
Budget
Strategic
Long-Range
Workforce
Operations
Capital
Spending
© 2018 Ventana Research

7. © 2018 Ventana Research
7
• Scenario planning
• Driver-based planning
• Rolling periods
• Integrating planning
• Effective technology
• Unified data & analytics
• Process support
• People & Collaboration
Continuous Planning Requires Sophistication

8. Bad Habit: Limited Linkage in Planning Cycles
• Linking summary and detail information
in plans is not well done by
organizations today.
• Less than third of organizations have
direct link between plans and updates.
• Most organizations still find
incompatible tools (52%) across
organization impeding efforts.
• Lack of linkage usually is part of having
disparate spreadsheets and systems
that are not integrated or unified.
© 2018 Ventana Research

9. Bad Habit: Not Make Planning Data Accessible
• Manually assembling data sets and
validating their accuracy is too time
consuming for fast planning cycles.
• Planning data is typically kept in multiple
desktop spreadsheets and separate
enterprise systems.
• An inability to gather data makes
understanding trade-offs hard or
impossible.
• Centralizing planning related data will
help facilitate continuous planning.
© 2018 Ventana Research
Data Lacking to Measure Trade-Offs
Few have all the numbers they need
All of the
numbers
Most of the
numbers
Limited
ability
to measure
Unable to
measure
12%
30%
41%
17%

10. © 2018 Ventana Research
10
Bad Habit: Spreadsheets Create Errors & Waste Time

11. Bad Habit: Plans Become Stale and Not Relevant
• Planning is not set-it-and-forget-it
and must be continuously updated.
• Demand plans become stale and out
of date for 45 percent of
organizations impacting supply chain
planning accuracy.
• Shorter planning cycles makes
frequent revisions feasible.
• Faster planning cycles ensure more
relevant information to assess.
© 2018 Ventana Research
48%
45%
36%
33%
29%
Workforce
Demand
Capital
Spending
Marketing
Budget
Plans Do Not Remain Relevant
Few sustain relevance over the planning period

12. © 2018 Ventana Research
S&OP and Inventory Optimization Enables Results

13. © 2018 Ventana Research
Embrace Four Dimensions of Planning for Success
People
• Ownership, collaboration
Process
• Faster cycles
Information
• Accurate, timely,
accessible
Technology
• The right software

14. © 2018 Ventana Research
Unify Inventory and Demand Planning for Supply Chain

15. © 2018 Ventana Research
Integrated Planning Enables Supply Chain Optimization

16. Agile Planning Enables Supply Chain Optimization
Continuous planning promotes
short planning cycles.
• Shorter lags in response to
changing market and
competitors’ actions
• Ability to explore a broader
set of scenarios.
• Optimize use of inventory for
demand chain.
• Plan, re-plan and assess at any
time.
© 2018 Ventana Research

17. © 2018 Ventana Research
Enable Workflow and Approval for Supply Chain Planning

18. A Better Approach: Driver Based Models
Driver-based models’ advantages:
• Explicitly separates units and rates to clarify
assumptions and performance.
• Better representation of the
interconnected relationships of a business.
• Easier to update for short planning cycles.
• Can be built around key performance
indicators to focus managers on business
elements that have the greatest impact on
results.
© 2018 Ventana Research

19. © 2018 Ventana Research

20. Best Practice: Scenario Planning for Supply Chain
Key Insight: Organizations who enable
scenario planning find plans more accurate.
• Almost three quarters (73%) of
organizations who allow for scenarios to
be explored find their plans overall
accurate plans.
• The other third (36%) who allow limited
exploration of scenarios have overall
accurate plans.
• Allow planning to explore and
support scenarios to get more
accurate plans.
© 2018 Ventana Research

21. Best Practice: Increase Accuracy of Supply Chains
Key Insight: Supply chain planning has
highest percentage of organizations who find
it accurate.
• Half (47%) of organizations find supply
chain planning accurate though it has
room for improvement.
• Below the average is S&OP which is
somewhat accurate at 40 percent with
plenty to do to improve.
• State of planning and accuracy
points to lack of focus to
improve planning to best
support needs of business.
© 2018 Ventana Research

22. Best Practice: Collaboration Optimizes Planning
Key Insight: Collaboration is a critical driver
to the success of planning.
• Over fourth fifths (85%) of organizations
that collaborate effectively manage the
planning process well.
• The remaining set of organizations that do
not collaborate effectively do not manage
planning well.
• Utilization of collaboration to fine tune
and coordinate needs will more
effectively plan their needs
for supply chain.
© 2018 Ventana Research

23. Best Practice: Properly Evaluate Planning Systems
Key Insight: Organizations looking to evaluate
software should prioritize usability, reliability
and manageability as part of their
deployments.
• Usability has an overall importance to 92
percent of organizations.
• Reliability has overall importance to 84
percent of organizations that support the
performance and scalability needs of an
enterprise for planning.
• Balance evaluation criteria for
planning systems to ensure
you are able to support the
overall needs of business.
© 2018 Ventana Research

24. The Right Software Matters
Continuous planning requires a dedicated planning application.
• Enables a company to forecast, plan, communicate and coordinate supply chain
to business performance.
• Supports fast cycles of iteration and optimization.
• Connects all of the planning units in an organization in a single environment.
• Gives a coordinate planning level flexibility that can adapt to demand and supply
chain changes.
• Scales to the requirements of the supply chain for continuous planning.
• Automates administration – workflows, notifications, progress tracking, etc.
• Facilitates collaboration along the process and workflow of the supply chain.
24© 2018 Ventana Research

25. Connecting Plans to Improve Supply Chain Performance
25© 2018 Ventana Research
63% said that
connecting
finance and
business plans is
important to
improving
performance.
Continuous
Planning
Budget
Demand
Sales
Forecast
S&OP
Supply
Chain
Inventory
Project
Strategic
Long-Range
Workforce
Operations
Capital
Spending

26. Plan for Success in Supply Chain
Seven
characteristics
of effective
supply chain
planning:
© 2018 Ventana Research
• Connects supply chain and business.
• Accurately anticipates requirements and
allocates required resources.
• Everyone is on the same page aligned to
the same objectives.
• High participation to promote buy-in and
gather front line intelligence.
• Contingency planning.
• Performance management oriented.
• Continuously improving.

27. Maximize Return from Planning Investments
© 2018 Ventana Research

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

29. Anaplan Connects & Streamlines Decision Making Across the
Enterprise
ERP CRM HCM Marketing WMS Mfg.
Transactional
Systems
BW MDM BOBJ Tableau
Data & Analytics
Tools
BPC APO Hyperion
Planning
Applications
Day-to-day
operations
Data
Collection
Plan
Systems
of Record
Ongoing
Analysis &
Collaboration
Execute
against plan
Combine
analytics &
decision making
Complement
or replace
legacy tools
Ongoing analysis and
decision making
Data People Plans
Strategy /
Innovation
Marketing Sales
Finance
&
HR/IT/Assets/
Facilities
Supply Chain
and Operations
Decision Makers

30. Real-life Example
ERP System
MES System
Transportation Management System
Warehouse Management System
MRP System
HCM Tool
Microsoft (excel)
Financial Planning system
CRM Tool
S&OP
Management
Reports
Inventory
Management
MPS
Forecasting
Tool
Strategic
Pricing Tool
Supply
Optimization
Tool
Order
Fulfillment
Tool

31. …the new way -
Connected Planning
…to run your
business
…and realize the
benefits
Across one
department or area
Across the company
One business process
Speed
Agility
Visibility
1.5% SG&A savings through
improved visibility and better
decisions
Forrester TEI study
Faster planning cycle times
—2 weeks to 2 days
Del Monte
Expense variance reduced by
50% from increasing exchange
rate planning frequency from
quarterly to monthly
Intel Security
Single, secure source
of planning and
decision dataData
People
Plans
Greater collaboration,
deeper insights, faster
alignment
Dynamic, continuous
planning for any area
of your business
Across the Value Chain
Network
Plans optimized to
minimize risk and
maximize profitability Extension
Ecosystem Planning: Where
applicable, integration
across vendors / suppliers,
customers / consumers,
partners / providers

32. Connect your data to your people and plans
Integrate all your
supply chain data
from any source
Maintain a single
repository of
supply chain data
Quickly and
systemically
adjust data in one
place
Product
Portfolio
Management
Demand
Planning
S&OP
CRM ERP
Distribution
Planning
Supply
Planning
HRIS

33. Anaplan for Supply Chain
An overview of functional value drivers
Product Portfolio
Management
• Sunset under-
performing
products in the
most cost effective
way
• Forecast NPIs
across demand and
supply to evaluate
profitability
• Visibility of critical
path to NPI success
Demand Planning
• Forecast,
consolidate, and
shape demand
from all sources
and scenarios
• Maximize
downstream
visibility
• Increase forecast
accuracy at scale
Supply Planning
• Constrain demand
and identify
capacity gaps at all
levels
• Plan by exception
for maximum
productivity
• Manage supply
trade-offs with
clear visibility of
impact
Sales & Operations
Planning
• Review both plans
and metrics across
all critical business
functions
• Address trade-offs
and escalations
across planning
silos
• Align on a common
goal
Strategic Policy Management
Product & Customer Segmentation, Service Policy, Distribution Strategy, Allocation Rules

34. Collaborate in Real Time Across Your Global Network
Raw
Material
Suppliers
Contracted
Producers
3rd Party
Logistics
Distribution
Center
Warehouse Customer
Channel
Customers
Production
Facilities
3rd Party
Logistics
Channel
Partners
connecting trade partners across the entire supply chain…

35. Executing Strategic Priorities with Anaplan
Drive Top-
line Growth
Lower
Operational
Costs
Deliver
Bottom-line
Results
Account
Segmentation
Rev. & Vol.
Planning
Marketing
Performance
Mgmt.
Trade Spend
Mgmt.
Field Sales /
Retail Execution
Planning
New Product
Modeling
Demand
Management
Capacity
Planning S&OP
Inventory
Optimization
Production
Planning
Strategic
Planning
Brand Portfolio
Planning
M&A Modeling
Workforce
Planning
Project Portfolio
Planning
OpEx Planning
CapEx
Planning
Revenue
Planning /
Forecasting
AOP
Zero Based
Budgeting
Make
Strategic
Choices
Commodity Price
Forecasting
Sales /
Commercial
Finance
Supply
Chain
Corporate
Product
Profitability
Modeling
Long Range
Planning

36. Kimberly-Clark’s Anaplan Journey
Drive Top-
line Growth
Lower COGS
Deliver
Bottom-line
Results
Account
Segmentation
Rev. & Vol.
Planning
Marketing
Performance
Mgmt.
Trade Spend
Mgmt.
Field Sales /
Retail Execution
Planning
New Product
Modeling
Demand
Management
Capacity
Planning S&OP
Inventory
Optimization
Production
Planning
Strategic
Planning
Brand Portfolio
Planning
M&A Modeling
Workforce
Planning
Project Portfolio
Planning
OpEx Planning
CapEx
Planning
Revenue
Planning /
Forecasting
P&L Modeling
/ AOP
Zero Based
Budgeting
Make
Strategic
Choices
Commodity Price
Forecasting
Sales /
Commercial
Finance
Supply
Chain
Corporate
Product
Profitability
Modeling
Long Range
Planning
2 6
4 4
1 1 1
1
5 5
1
7
1
3 3

37. 37
Case Study: Dairy Farmers of America
Integrated performance management solution – leveraging cloud architecture enables real
time demand scenario analysis on market changes
Data Source Data Staging
Analytics
Application
Reporting Benefits
• Cloud environment &
Agile methodology
• In-memory block
technology supporting
real-time driver based
modeling
• Self service for all
users
• Real-time demand
scenario analysis on
market changes
• Profitability analysis at
material level for
budget/forecast
• Sales and Operational
planning
Master Data Management and Data Governance
SAP ECCSAP ECC
GLGL GLCOPA
GLMM GLSD
GLMaster Data
Anaplan
Connect
Anaplan
Connect
In-Memory
Cloud Data
Hub Model
SAP
Data
Scvs
In Memory
Models
Sales &
Operational
Planning
Demand
Planning and
Optimization
Standard COGS
Models
Workforce
Planning
SG&A to Plant
Allocations
Anaplan
Reports
In Memory Cloud
Dashboards
Excel Reporting
on Cloud
SAP BI/BOBJ
Markets
MEI – Trade
Spend
ADP - Workforce

38. Productivity Gains
• 125% Increase
Cost Savings
• Supporting twice as large a sales
force with a 63% reduction in staff
Efficiency Gains
• Sales Planning completed 3X faster
Plan
(10%)
Analysis
(30%)
Data
(60%)
Plan
(30%)
Analysis
(60%)
Data (10%)
Before Anaplan After Anaplan
2011 2012 2013 2014 2015
• Non Anaplan
• 22 Resources
• 1,200 Reps
• Anaplan
• 10 Resources
• 1,600 Reps
• Anaplan
• 9 Resources
• 1,900 Reps
• Anaplan
• 8 Resources
• 2,200 Reps
• Anaplan
• 8 Resources
• 2,400 Reps
Cost
Value
Create Plan & Execute (12 Weeks)
Prior Anaplan
Create Plan & Execute (8 Weeks)
Anaplan (Sales & Sales
Finance)
Non Anaplan (FP&A & HR)
Create Plan & Execute (4 Weeks)
Anaplan (Sales, Sales
Finance, FP&A, and HR)
Value Delivered
1
3
2

39. Connect Planning Benefits
1.5% SG&A savings
through improved visibility
and better decisions
Forrester TEI study
Informed
decisions
Headcount reduced by
50% in the capacity
planning team
Royal & Sun Alliance, Plc
Productivity
40% time savings in the
reporting and forecasting
cycles
Legal & General Plc
Speed
537%
ROI
Forrester TEI Study

40. Questions?
Twitter
@marksmithvr & @ventanaresearch
LinkedIn
http://www.linkedin.com/company/ventana-research
Analyst Perspectives
http://marksmith.ventanaresearch.com
Electronic Mail
mark.smith@ventanaresearch.com

41. Breaking Bad Habits with
Continuous
Supply Chain Planning
Webinar Presentation
Mark Smith
CEO & Chief Research Officer
January 2018
@ventanaresearch ventanaresearchblog.ventanaresearch.com @marksmithvr