Aligning your business planning involves a focus on people, process, and technology for proper forecasting and planning.

1. 1© 2014 Steelwedge Software, Inc. Confidential.
Single Line of Sight: Plan, Perform, Profit
S&OP: A Better Way to Run Your Business
Best Practice S&OP Aligns People, Process and Technology

2. 2© 2014 Steelwedge Software, Inc. Confidential.
Speakers
Danny Smith, VP Industries
Steelwedge Software
Jan Veerman, Managing Partner
EyeOn Solutions

3. 3© 2014 Steelwedge Software, Inc. Confidential.
Agenda
• S&OP: Current State and Challenges
• Realizing the Business Value from S&OP
• A Call to Action

4. 4© 2014 Steelwedge Software, Inc. Confidential.
A Brief History & Review of S&OP
• S&OP: “a better way to run your business”
• Evolved out of early work in Material and Production
Planning in the 1970s (by thoughts leaders like Oliver
Wight, TF Wallace, others)
• Expanded to include Sales, other groups in 1980s
• Continually evolving - latest version rebranded as
“Integrated Business Planning” (IBP) in 2000s
• Integrates Finance, R&D
• Executive value (i.e. risk mitigation; “what if” simulations)
• Extended to external processes

5. 5© 2014 Steelwedge Software, Inc. Confidential.
Great Results when Executives are Fully Engaged
“How involved is your executive team?”
Closing the Gaps in S&OP Study 2013: CSCO Insights

6. 6© 2014 Steelwedge Software, Inc. Confidential.
S&OP Accelerates Performance
“What kind of benefits is S&OP delivering?”
0% 10% 20% 30% 40% 50%
Forecast Accuracy
Customer Satisfaction
Asset Utilization
Inventory Value
Order Fill Rate
Revenue
Working Capital
Perfect Order
Return on Assets
Gross Margin
Inventory Turns
Substantial Overwelming
Sales and Operations Planning Research Study 2006: Ventana Research
Most are NOT getting
good results – why?

7. 7© 2014 Steelwedge Software, Inc. Confidential.
Reality: Most Execs Not Fully Engaged in S&OP Process
“Does your executive team own the S&OP process?”
Closing the Gaps in S&OP Study 2013: CSCO Insights
Why aren’t
executives
owning the S&OP
process?

8. 8© 2014 Steelwedge Software, Inc. Confidential.
Most Efforts Not Supporting Executive Needs
“Rate your S&OP capabilities”
16.7%
25.4%
29.4%
35.1%
45.0%
57.4%
55.7%
57.3%
54.2%
46.1%
25.9%
18.9%
13.4%
10.7%
8.9%
Integrated Supply/Demand
Integrated Financial Plans
Strategy Deployment
Strategic Initiatives
Scenario Planning
Low Medium High Still operations focused vs.
an enabler for executive
decision makingClosing the Gaps in S&OP Study 2013: CSCO Insights

9. 9© 2014 Steelwedge Software, Inc. Confidential.
Missing Big Opportunities
“Rate your S&OP approach”
12.5% 70.8% 16.7%
Focus
Backward Results In-Between Forward Planning
29.5% 65.2% 5.3%
Strategic Perspective
Short Term Problem Solving In-Between Exploiting Opportunities
18.9% 67.8% 13.3%
Approach to Results
Passive In-Between Actionable
Closing the Gaps in S&OP Study 2013: CSCO Insights
Not delivering on
true potential

10. 10© 2014 Steelwedge Software, Inc. Confidential.
34.2%
25.7%
28.4%
46.7%
44.4%
50.2%
Hit Financial Targets Synch Operating Strategies Ensure Execution of Strategies
Current Benefits Future Desired
Executives Want More
“Rate your current vs. desired capabilities”
Reality still a long way
from the potential
Closing the Gaps in S&OP Study 2013: CSCO Insights

11. 11© 2014 Steelwedge Software, Inc. Confidential.
Gap between Best Practices & Current Situation
“Rate your S&OP process” (maturity)
Closing the Gaps in S&OP Study 2013: CSCO Insights
32.2%
14.7%
8.4%
1.7%
Below Average
Only Adequate
Excellent
World Class
After 30+ years of S&OP only
10% rate themselves as
Excellent or World-Class

12. 12© 2014 Steelwedge Software, Inc. Confidential.
Agenda
• S&OP: Current State and Challenges
• Realizing the Business Value from S&OP
• A Call to Action

13. 13© 2014 Steelwedge Software, Inc. Confidential.
Key for Delivering Results:
Addressing All S&OP Critical Success Factors
People
(Collaborate)
Process
(Automate/Monitor)
Technology/Data
(Manage)

14. 14© 2014 Steelwedge Software, Inc. Confidential.
Blocking S&OP Results: Gaps with Existing Systems
“How satisfied are you with your current systems capabilities?”
Source: Executive Sales & Operations Planning: Process & Technology Strategies. Survey of 380 companies. Aberdeen Group 2007+
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Demand Supply Matching
What if Analysis
S&OP Plan Quality & Metrics
Role Based
Alerts & Exceptions
Fully Meets Needs Doesn't Fully Meet Needs

15. 15© 2014 Steelwedge Software, Inc. Confidential.
Best Practice S&OP Aligns People, Process & Systems
“We continue to look at S&OP as an
aspect of business that needs terrific
improvement…It’s hard to argue that
this shouldn’t be a central piece of
management software”
–Rob Kugel, Ventana Research

16. 16© 2014 Steelwedge Software, Inc. Confidential.
Gap between Best Practices & Current Situation
“What tools do you use for S&OP?”
Closing the Gaps in S&OP Study 2013: CSCO Insights
83% still using
spreadsheets or
limited functional-
silo tools

17. 17© 2014 Steelwedge Software, Inc. Confidential.
Industry
Data
S&OP
Ground Reality: the Difficulties of Supporting the Process
Marketing
Operations
Finance
Consolidation
Review, Overrides Consensus Process
Pre-ES&OP
Sales
Manual
Complex
Security Risk
Not Scalable
Does this Give Executives an Agile
Decision Making Process?

18. 18© 2014 Steelwedge Software, Inc. Confidential.
People, Process & Systems Together Enable and
Sustain S&OP Adoption & Values
Time
L1
L2
L3
L4
“Companies can have a hard time getting past basic levels of S&OP without technologies
like Steelwedge to support the process” - Tim Payne, Gartner VP of Supply Chain Analysis
Q1 Q2 Q3
SW Powered S&OP
Q4
Value
Accelerated
Time to Value
Step Change
Maturity & Performance
Avoid
Process Failure

19. 19© 2014 Steelwedge Software, Inc. Confidential.
Agenda
• S&OP: Current State and Challenges
• Realizing the Business Value from S&OP
• A Call to Action

20. 20© 2014 Steelwedge Software, Inc. Confidential.
Next Steps
• Understand your goals for S&OP
• Translation mechanism between strategic objectives and operations
• Enforcement mechanism to deliver results
• Unifying mechanism to have all functions “march in the same direction”
• Assess your maturity
• People
• Process
• Assess your technology support
• Cross functional platform for collaboration
• Inclusiveness: easy adoption

21. 21© 2014 Steelwedge Software, Inc. Confidential.
Crawl – Walk – Run Approach
• Identify gaps in people, process and systems
• Develop plans to close them
• Key to success is incremental value
• Start with quick win as phase 1 & foundation
• Expand the roll-out adding value as you go

22. 22© 2014 Steelwedge Software, Inc. Confidential.
Who are we?
40 Specialists in realizing forecasting and planning improvements
• Focus on design and implementation
• System independent
• Line management experience and university educated
• Cross functional & hands-on mentality
• Proven track records in interim management
• Industry focus; industrial companies, its
suppliers and customers
• Network facilitator
• Deliver concrete projects with a short
throughput time (max. 100 days) and clear deliverables.

23. 23© 2014 Steelwedge Software, Inc. Confidential.
EyeOn offering
Research &
Publications
Consulting
Expert Sessions /
Idea Labs
Benchmarks
Teaching
Interim
…
Outsourcing
Industry Networks

24. 24© 2014 Steelwedge Software, Inc. Confidential.
Selection of customers
High Tech Food / FMCG Process Life Science Zorg
Other

25. 25© 2014 Steelwedge Software, Inc. Confidential.
Mythe: It is not about predicting the future..
• “I think there is a world-market for about five computers” (Thomas J. Watson (IBM Chairman), 1943)
• “The worldwide demand for automotives will not surpass 1 million, due to the lack of
qualified chauffeurs” (Gottlieb Daimler, 1901)
• “If I had asked people what they have wanted, they would have said faster horses”
(Henri Ford, 1913)
• There are two sort of forecasts: Lucky or Wrong (Freek Aertsen, 1995)

26. 26© 2014 Steelwedge Software, Inc. Confidential.
The objective is to enable high quality decision making!!!

27. 27© 2014 Steelwedge Software, Inc. Confidential.
S&OP the cure for all diseases?
GDP$growth$
S&OP$publica5ons$

28. 28© 2014 Steelwedge Software, Inc. Confidential.
Most Companies Not Doing “Best Practices” S&OP
Percent of respondents running S&OP process
without input from the following departments
Percent of respondents conducting periodic
S&OP process without the following steps
Source: “Recession Survival Kit; cross-industry survey conducted for Supply Chain Management Review, on behalf of Oracle and IBM, by Reed Business Information; February,
2009. Response to question: “Which factors will enable your organization to achieve your primary business goal?” n = 537 responses.
36%
47%
48%
Sales
Finance
Manufacturing
44%
45%
47%
66%
66%
Demand
Planning
Inventory
Planning
Supply Planning
Supply / Demand
Match
Performance
Review

29. 29© 2014 Steelwedge Software, Inc. Confidential.
Benefits to be expected from S&OP
30%
32%
32%
34%
36%
38%
42%
50%
57%
59%
Improvements
in
the
perfect
order
Transporta=on
and
warehouse
management
Capital
planning
and
asset
management
Improving
new
product
launch
Determining
procurement
requirements
Determining
outsourced
manufacturing
Improving
asset
u=liza=on
Reduc=on
of
inventory
Improving
forecast
accuracy
Increasing
revenue
Source: Supply Chain Insights

30. 30© 2014 Steelwedge Software, Inc. Confidential.
DEMAND SUPPLY
Stock
Stock Levels
Forecast
Accuracy
Factory Performance
(CLIP / RLIP / LAP)
Service Level
(On Time In Full)
1 2
3
4
4 most important performance indicators S&OP process

31. 31© 2014 Steelwedge Software, Inc. Confidential.
Trends and movements in planning:
Technology driven

32. 32© 2014 Steelwedge Software, Inc. Confidential.
Large variety in Planning tools
• Traditional ERP vendors
• Operational focus
• Rigid
• Software as a Service (Saas) solutions
• Specific solutions
• Agile
• S&OP solutions

33. 33© 2014 Steelwedge Software, Inc. Confidential.
Key Learnings S&OP Implementations
• Old school ERP implementations do not fit business requirements
• Environment is changing fast à S&OP process + platform need to be
agile
• Think big, act small
• Short implementation cycles (25 – 50 days)
• SaaS Planning tools able to support S&OP process
• Master data management / data quality
• Involve business as soon as possible
• Maintenance of tool by business, not IT

34. 34© 2014 Steelwedge Software, Inc. Confidential.
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