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Content is intellectual property of and copyright by Integrated Business Planning Associates, LLC. All rights reserved
S&OP Framework
Aligning Sales and Operations Functions to Ensure that Customer Needs are Met
Anthony Reese
Partner and Co-Founder
Integrated Business Planning Associates
Business Forecast and Strategic Innovation 2015
February 17th, 2015
Speaker Background
Anthony Reese CPF CPIM SCOR-P
Is the co-founder of Integrated Business Planning
Associates and is a visionary leader with passion for
bringing exciting products to market. His early interest in
cars led to his first job as an auto mechanic and then into
an impressive career in the automotive / motorcycle
industry. Along the way, Tony earned two advanced
degrees from MIT and now brings in-depth knowledge of
Product Lifecycle Management, Demand Planning and
Operations Planning to clients wanting to implement Sales
and Operations Planning processes and its current best
practice form, Integrated Business Planning.
2
Integrated Business Planning Associates
3
Sales & Operations Planning
Demand Forecasting & Planning
Integrated Business Planning
Advanced Planning & Scheduling
We take time to understand your business and specific objectives for your planning processes… then
we apply a balanced, comprehensive methodology, addressing people-process-technology success
factors, with a careful focus on change management.
With a successful track record across industries, you can rely on our experienced and professional
resources to approach every engagement with a lasting commitment to your success.
Developing processes that fit your business…
Deliver cross-functional value…
With a financial and strategic focus…
Leading to improved bottom-line results.
Process Evaluation
Technology Selection
Business Process Design
Solution Architecture
Process Facilitation
Change Management
IBP2…the power of planning
The IBP2 Key
Success Factor Model
S&OP
People
Process
ToolsData
CultureChange
Management
4
The IBP2 Key
Success Factor Model
5
Why do we need a defined
Planning Horizon?
Support Long Supply Chains
– Time to source, produce and delivery
Support Instantaneous Demand
Support Effective Business Planning
– Understand where we are
– Clarity about our goals
– Time to develop and execute plans to attain our goals
6
What is the right planning
horizon and cadence?
7
18 Months
1Month
One very effective practice is to
create an 18 month planning
horizon…
with and S&OP process that
runs monthly
So why 18 Months?
An 18 Month Planning Horizon
– Gets out in front of annual business planning
• Aligning to one plan early
• Simplifying the annual business planning process
– Allows time for business planning & execution
• Enabling effective leadership
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Execution Tactical
0-3 months 4-12 months 12-18 months
Strategic
Applying Three Inputs: Bottom-Up
Forecasts, Plus Top-Down Plans, and
Goals & Objectives
9
and why S&OP Monthly?
Running S&OP monthly
– Frequent enough to support core business
cycles
• Creating a regular practice and expectations
– Frequent enough to support strategic focus
• Engaging leadership at the right strategic levels
10
Consensus Planning Horizon &
Cadence Simulation Exercise
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Consensus Planning Horizon &
Cadence Simulation Exercise
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Bottom Up Only Bottom Up + Top Down
Bottom Up + Top Down + Goals/Gap Closers to Meet Business Objectives
Financial PlanFinancial Plan Financial Plan
Financial Plan Financial Plan Financial Plan Financial Plan Financial Plan
Financial Plan Financial PlanFinancial Plan Financial Plan Financial Plan Financial Plan
Financial Plan Financial PlanFinancial Plan
Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up
Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom UpBottom Up
Top DownTop Down
Top DownTop Down
Top Down Top Down
Top DownTop DownTop DownTop Down
Top DownTop Down
Top DownTop DownTop Down
13
Bottom Up Only Bottom Up + Top Down
Bottom Up + Top Down + Goals/Gap Closers to Meet Business Objectives
Financial Plan Financial PlanFinancial Plan Financial Plan Financial Plan Financial Plan Financial Plan
Financial Plan Financial PlanFinancial Plan Financial Plan Financial Plan Financial Plan
Financial Plan Financial PlanFinancial Plan
Financial Plan
Consensus Planning Horizon &
Cadence Simulation Exercise
Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up
Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom UpBottom Up
Top DownTop Down
Top DownTop Down
Top Down Top Down
Top DownTop Down
Top DownTop DownTop DownGoal
Goal
Goal GoalGoal Goal
GoalGoal Goal
Gap
Gap
Actuals
Gap
Consensus Planning Horizon &
Cadence Simulation Exercise
14
Bottom Up Only Bottom Up + Top Down
Bottom Up + Top Down + Goals/Gap Closers to Meet Business ObjectivesBottom Up + Top Down
Financial PlanFinancial Plan
Financial Plan Financial Plan Financial Plan Financial Plan Financial Plan
Financial Plan Financial PlanFinancial Plan Financial Plan Financial Plan Financial Plan
Financial Plan Financial PlanFinancial Plan
Financial Plan Financial PlanBottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up
Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom Up Bottom UpBottom Up
Top DownTop Down
Top DownTop Down Top Down
Top DownTop Down
Top DownTop DownTop DownGoal
Goal
Goal GoalGoal Goal
Goal
Gap
Actuals
Gap
GoalGoal
ActualsActuals Bottom Up
Gap
Bottom Up
Questions
15
Connect With Me
Anthony Reese, San Jose, California
anthony.reese@ibp2.com
@ibp2dotcom
www.linkedin.com/in/avreese
831-708-8020
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