Featured Presenters: Frank Kang, Managing Director, Supply Chain and Operations Advisory Services, KPMG Peter Yu, Director, Supply Chain and Operations Advisory Services, KPMG Ed Lewis, Vice President, Product Marketing and Planning, Steelwedge Software Whether your company is already advanced in its Integrated Business Planning (IBP) journey or is just starting to consider Sales and Operations Planning (S&OP), it can benefit from improved strategic and tactical alignment and increased agility. Please join us for this free webinar to learn about the many opportunities best-practice S&OP processes and technologies offer. The results? You meet financial targets, strengthen customer relationships and establish accountability within your organization by integrating your demand/supply planning with long-term strategic business goals. You will learn about: - The questions to ask when evaluating the effectiveness of your planning processes and deciding where and how to start on an effective IBP journey - A discussion on leading IBP Operating Model capabilities - The opportunities offered by the right technology to continuously improve your business planning processes

1. New Year, New Approach:
Take Your Integrated
Business Planning
Processes to the Next Level
in 2014
January 28 2014 Steelwedge Webinar
28,
kpmg.com

2. KPMG Presenters: Frank Kang and Peter Yu
Background
Frank, a managing director in KPMG Advisory Services, has 21 years experience in supply
chain transformation consulting experience in the Electronics, Consumer Packaged Goods,
Retail,
Retail Industrial Products and Telecommunications Industries He leads KPMG’s offering in
Products,
Industries.
KPMG s
integrated business planning, inventory optimization and supply chain analytics..
Frank Kang
Managing Director, Supply Chain and
Operations Advisory S i
O
ti
Ad i
Services
KPMG LLP, Washington, DC area office
Tel 415-577-1804
fkang@kpmg.com
Frank has extensive experience working with multinational firms attempting to achieve
greater supply chain integration into emerging markets. He has been a speaker at numerous
global conferences focusing on supply chain strategy, planning, visibility, analytics and
sustainability. Prior to KPMG, Frank was with IBM GBS, PwC Consulting and Booz Allen &
Hamilton.
Frank holds graduate and undergraduate degrees in Operations Research from Cornell
University.
Background
g
Peter, a director in KPMG Advisory Services, has 15 years experience in supply chain
transformation consulting experience in the Hi-Tech, Consumer Packaged Goods, Retail,
Industrial Products, and Automotive Industries. He has expertise in Integrated Business
Planning (IBP/S&OP) process improvements, and currently one of the leading members of
IBP/S&OP offerings at KPMG.
Peter J. Yu
Director, Supply Chain & Operations
Advisory Services
KPMG LLP, Chicago, Office
Tel 312-665-1397
pjyu@kpmg.com
Peter also has a strong background in global supply chain processes and systems
management with a focus on advanced supply chain planning (Global Demand, Supply,
Inventory, Capacity Planning) across number of industries improving their operations and
business performance.
Peter holds graduate and undergraduate degrees in Industrial & Operations Engineering and
Computer Science from the University of Michigan, Ann Arbor.
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2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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3. KPMG Advisory Overview
U.S. Advisory

Approximately 7,000
dedicated professionals

490 partners/MDs

10 service lines

35 service networks
Americas

Over 7,000
dedicated
professionals
EMEA

Over 20,000
dedicated
professionals
Asia Pacific

Over 5,000
dedicated
professionals
More than 30,000 talented
professionals across a worldwide
network – Wherever our clients need
us
100+ global methods and toolkits
to bring knowledge of the firm to
each client
Advisory areas:

Management Consulting

Risk & Compliance

Transactions & Restructuring
And we offer clients the benefit of working with a professional services
firm that draws upon the skills and experience of 140,000 audit, tax,
and business advisory colleagues across 146 countries.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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4. Agenda
 Questions
to address when evaluating the effectiveness of your planning
processes and deciding where and how to start on an effective IBP journey
 Leading
IBP Operating Model capabilities
 The
opportunities offered by the right technology to continuously improve your
business planning processes
 Q&A
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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5. IBP questions we will address throughout this webinar
1) What is IBP and how is it different than S&OP?
2) How do you start an IBP transformation journey? What
y
g
are some key considerations when embarking on an
IBP initiative?
3) Who should own the IBP process?
4) What are the leading capabilities firms need to drive an
effective IBP process?
5) How can you assess your current IBP maturity level?
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2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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6. IBP v. Traditional S&OP
Business Strategy Scenarios
Finance
Executive IBP
Primary Focus of Traditional S&OP
Demand
Customer
Collaboration
Supply
Development:
Products/ Services
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2013
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Supplier
Collaboration
5

7. Challenges with business planning
The current globalization of the supply chain, heightened competition, and increased customer requirements have
hindered business performance using traditional planning process:
Issues
Characteristics
Representative KPI Impacts
Unreliable financial forecasts as they are often not
based on accurate profitability analysis.
■ Financial forecast and operations plan
misalignment
Misalignment/Disconnect between financial plan
and operational plan due to the lack of consistent
collaboration with sales & marketing, supply chain, and
ll b ti
ith l
k ti
l h i
d
finance
■ Difficult to understand where the gap is
Delayed New Product Introduction (NPI) and End-ofLife (EOL) due to lack of integration into Demand &
Supply Planning and Execution
■ Unable to meet market demands fast
enough
■ Unable to plan and control EOL product
inventory
■ Revenue
Poor sales & marketing promotion planning
effectiveness due to lack of integration into demand
planning, inventory execution, and budget allocation
■ Unclear benefit of promotions
■ Promotion ROI
■ Negative impact on materials planning
■ Revenue/Cost
y
pp y
Lack of visibility on critical and chronic supply issues
(supplier’s repeated de-commits, no dual-sourcing
strategy)
■ On-going critical shortages
g g
g
■ Customer Service
■ Unclear n-tier supplier issues
■ Revenue/Cost
Business units and functional areas with their own
agendas therefore organization have difficulties
aligning the operations
■ Unaligned business targets
■ Revenue/Cost
■ Difficult to achieve strategic objectives
■ Customer Service
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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■ Financial forecast accuracy
■ Overall financial performance
■ Customer Service
■ Inventory
6

8. IBP principle #1: An IBP strategy must harmonize financial and
operational processes to customer demand
Harmonize the Planning Process: Right product, right place, right time, right price at the right cost

Maximize revenue while simultaneously minimizing operating expense and investment

Improve customer service
p

Capture market share

Collaborate with global and local operations to address market needs Demand shifts
–
Supply changes
–
Promotions
–
NPI
–
EOL
Illustrative
“Hug the Demand Curve
Hug
Curve”
Demand
$
Recovery
Supply
Lost Opportunity
& Shareholder $
Value
Recession
2005
2007
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2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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2009
Time
2011
2013
7

9. IBP principle #2: An IBP strategy must enable an organization to
optimally collaborate and address critical, cross-functional business
decisions across a product’s lifecycle
Supply Chain
Sales & Marketing

How can we source,
source
produce, and deliver
products on-time?

What is the forecasted
demand and can it be
fulfilled?

How can operations
achieve greater scalability
and cost reduction?

What is the achievable
customer service based on
sales strategies and
fulfillment capabilities?
PLM
Product Development
Finance

How is the product aligned
to customer need?

Is the product achieving
profitability targets?

How can we consistently
achieve on-time product
launches?

How can we achieve
greater financial forecast
accuracy?
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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10. IBP principle #3: An IBP strategy must create cross-functional alignment
and integration of planning and execution processes to ensure optimal
business performance

Align operational planning and
execution to strategic corporate
objectives

Integrate the executive team,
finance, sales & marketing,
supply chain, and product
development to drive real cost
reduction and customer service
excellence
–
–
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2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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Increased on-time delivery of
products and services
–

Reduction of operating
expenses & inventory
y
Improvement in budgeting and
costing accuracy
Leverages greater utilization of
information for scenario
management, analytics, and
reporting
9

11. Agenda
 Questions
to address when evaluating the effectiveness of your planning
processes and deciding where and how to start on an effective IBP journey
 Leading
IBP Operating Model capabilities
 The
opportunities offered by the right technology to continuously improve your
business planning processes
 Q&A
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
161986 161986
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10

12. KPMG’s recommended Integrated Business Planning (IBP) operating model
KPMG’s IBP Operating Model balances demand and supply, integrating product lifecycle and financial goals,
with key enabling processes and capabilities that support the operating model
Business
Integration and
Strategy
Process
Integration &
Collaboration
Finance
Governance
and Compliance
Planning and
Optimization
Financials
Suppliers
Operations
Supply
Balance
Demand
Sales and
Marketing
Customers
Products
Change
g
Management
Analytics and
y
Reporting
Product Lifecycle
Technology
Enablement and
E bl
t d
Infrastructure
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2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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End-to-End
Supply Chain
Visibility
11

13. IBP operating model establishes leading capabilities across the planning
process to meet the needs of today’s corporations
IBP Capability
Categories
Leading Capabilities
Description

Business Integration &
Strategy
Improved ability to use business drivers in planning, collaboration, and execution is
planning collaboration
achieved

Process Integration &
Collaboration
By integrating process across finance and operations, greater cross-functional
collaboration and functional alignment can be achieved to drive improve business
performance

Governance & Compliance
Manage and control the IBP operating model, coordinate and balance decision-making
globally vs. regionally vs. locally

Change Management
Continuous process improvement is essential to successful integrated business
transformation with demand planning, supply, product management and finance

End-to-End Supply chain
Visibility
Integrated
Planning Activities
Process
Governance and
Continuous
Improvement
Increased
Planning Visibility
Robust technology that enables integrated business planning process with real-time
information visibility regardless of IT platform configuration

Optimized
Business
Decisions Through
Analytics
Technology Enablement &
Integration

Planning Optimization
IBP optimization across financial, operational, tactical, and strategic plans through
advanced analytics for increased effectiveness, standardization and consistency

Analytics & Reporting
Enables ‘single version of the truth’ of the extended supply chain by providing
actionable real-time data across finance, transactional and planning platforms
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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14. End-to-end, cross enterprise financial and operational visibility is an
important enabler of IBP
IBP is capable of providing visibility across the entire supply chain network. A complete view of current activity
and future plan from inbound supply and outbound fulfillment activity across supply chain network
Supply & Inventory Visibility

Real time inventory across the
globe

Supply-demand
Supply demand disconnects

Collaborative planning (multi-tiers)

Production / Capacity capability

Transportation and logistics
Financial Visibility
Demand Visibility


Profits and margins

Customers


Pricing

Sales & Marketing


Working capital

Point of sales


Cash flow

Promotion plans

Asset Management

Product lifecycle: NPI and EOL
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
2013
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS
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15. IBP reference architecture is an integrated and agile process enabled
through technology advances
Demand
Supply
Executive
Consensus
Demand
IBP Processes
Constrained
Supply
Executive Review
Integrated Business Planning
Demand, Supply & Financial Integration
, pp y
g
IBP Technology
Enablement
Demand,
Supply &
Finance Data
Point Solution
Technology
Data
Forecasting,
Demand Plan,
ERP, CRM, Excel
SCM, ERP
Demand
Products &
Customers
Supply
Products &
Suppliers
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
2013
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Business
Intelligence, Data
Warehouse
Revenue, Units
14

16. © 2014 KPMG LLP, a Delaware limited liability partnership and
the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved.
NDPPS 161986
The KPMG name, logo and “cutting through complexity” are
registered trademarks or trademarks of KPMG International.