Gartner Suppy Chain Planning Summit 2019 - GIB · 2.Variance/outlier review 3.Demand Influencers adjustments 4.Consensus review & transfer Sales/Demand Inventory Operations 5.Re-plan

© 2019 GIB SAP Silver Partner Build & Service

Gartner Suppy Chain Planning

Summit 2019

Ten Simple Steps to S&OP inside SAP


THE S&OP CHALLENGE

The S&OP process lives outside SAP

• Typically in Excel

• Inventory planning is not always taken into consideration

• Process steps are not connected

• Planning process is not connected to execution process

“What good is planning if it is not tied to execution? Today, only 11% of companies feel they effectively

tie the S&OP planning process to execution. Many companies have not built the processes to tie the

planning to execution. This is essential to drive the impact of S&OP process improvement into

business results.” Source: Supply Chain Insights LLC, Race for Supply Chain 2020 Study

“The No. 1 challenge among manufacturing companies is connecting S&OP planning to operational execution.

Source: Gartner, Set Up Sales and Operations Execution Process to Support the S&OP Cycle, January 2019


Per Gartner:

Keys for a Successful S&OP Process

Standardization

• Leverage a particular technology for skills, integration and best practices

Integrated operational planning

• Supporting a strong S&OP process that is linked back to operations and execution (S&OE)

Data and process integration

• A single version of the truth

Improved planning functionality

• Avoid islands of process, data or optimization


10 Step S&OP Process Enabled in SAP by GIB

Sales/Demand Inventory OperationsProcess

Steps

Value

• Automatic model selection via

proven statistical analysis

• Reduce hands on effort via

exception management

• Flexible & interactive

FOUNDATIONAL VALUE

NO DATA MOVEMENT, NO CLOUD FEES, NO ADDITIONAL HARDWARE,

SEEMLESS, REAL TIME INTEGRATION WITH SAP ERP

1. Statistical Baseline (automated)

2. Variance/outlier review

3. Demand Influencers adjustments

4. Consensus review & transfer







Sales/Demand Inventory Operations

5. Re-plan replenishment targets

(automated)

6. Review Range of Coverage

7. Simulate/What if parameter changes

8. Finalize new plan & update MM

(automated)

Process

Steps

Value






• Efficiently manage by groups and

service classes

• Optimize safety stocks by

incorporating demand variability

• Simulate potential changes before

adopting

FOUNDATIONAL VALUE










5. Re-plan replenishment targets

(automated)

6. Review Range of Coverage

7. Simulate/What if parameter changes

8. Finalize new plan & update MM

(automated)

9. Execute MRP in simulative mode

10. Finite capacity review

Process

Steps

Value






• Efficiently manage by groups and

service classes

• Optimize safety stocks by

incorporating demand variability

• Simulate changes before adopting

• Real time view of constrained

capacity incorporating the latest

SI&OP simulation

• Proactively adjust production

schedules to avoid costly constraints

FOUNDATIONAL VALUE




Execute on the Plan

FOUNDATIONAL VALUE



• Understand supply & demand in one, simple cockpit

• Identify most critical supply chain issues

• Simulate alternate supply plans

• Build optimized PO based vendor restrictions

MRP & Procurement Detailed Scheduling

• Visualize capacity constraints like missing parts

• Prioritize and sequence production orders

• Group based on characteristics

• Adjust schedule based on real time information


Planning Completed


Process Summary

10 Planning steps inside of SAP

Leveraging simulated and live data for an accurate, real time evaluation

Execution is tied to planning and enabled by SAP centric productivity tools

No data extraction and synchronization

No additional hardware to maintain or cloud fees to pay


Keys for a Supply Chain Planning System

Standardization

• Leverage a particular technology for skills, integration and best practices

Integrated operational planning

• Supporting a strong S&OP process that is linked back to operations and execution,

Data and process integration

• A single version of the truth

Improved planning functionality

• Avoid islands of process, data or optimization


Worldwide auto supplier of driveline components, motion technologies and thermal management solutions

REFERENCE CUSTOMER

113%Forecast accuracy increase of



REFERENCE CUSTOMER

113% 88% -94%

Forecast accuracy increase of Customer fill rates increased from



REFERENCE CUSTOMER

113% 88% -94% 16%Forecast accuracy increase of Customer fill rates increased from Open PO value reduced by

All within 8 months


Stop by Booth 220 for more information…

Forecast Buying ProductionInventory Operations Collaboration

MaximizeInventory Turns and Fill Rates

Automate & improve inventory planning

Increase Capacity Utilization

Increase Throughput

Lower production costs

Extend the Supply Chain

Share critical information across the chain using secure, web based tools

Streamline the MRP process

Proactive monitoring of supply & demand issues

More Accurately Predict Demand

Automate & improve the forecasting process

Improve Buying Efficiency

Lower Costs

Optimize PO & STO creation

EASY | AFFORDABLE | LOW RISK


GIB Positioning

Documents

Gartner Suppy Chain Planning Summit 2019 - GIB · 2.Variance/outlier review 3.Demand Influencers adjustments 4.Consensus review & transfer Sales/Demand Inventory Operations 5.Re-plan