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Introducing an IBP Process with SAP Integrated Business Planning for Sales and Operations at DSM Sinochem

1

Robert Bierhuizen• Study:

• Business Economics, Rotterdam, NL

• Work:

• Gist Brocades in 1992 -> business unit controller

• DSM bought GB in 1998 -> IT 2001 as business process expert FICO

• Worldwide DSM SAP software rollouts 2003–17

• Securing and improving standard processes

• SAP software modules:

• FICO, PPPI, WM, QM, integrated business planning

• Location: Rijswijk, Netherlands

2

Content

Introduction

Our Vision and IT Strategy

Why We Need an Advanced Planning Tool

Why Integrated Business Planning

How We Implemented Integrated Business Planning

Forecasting

S&OP Planning Cycle

Benefits

Fit with IT Strategy

Lessons Learned

Next Steps

3

Introduction Centrient Pharmaceuticals

5

Centrient Pharmaceuticals

Page 6

Who we are today

We are the global leader in sustainable antibiotics.

We produce and sell intermediates, active pharmaceutical ingredients (APIs), and finished dosage forms (FDFs).

We have 2,700 employees worldwide

We are headquartered in Rotterdam.

Our global presence

7

Content

Introduction





Forecasting

S&OP Planning Cycle

Benefits


Lessons Learned

Next Steps

8

Agility

Overview of IT strategy to support global businessFive main elements to support business growth

One DSP, One System, &

One way of Working

One organization,

one system, and one way of

working

Synergy

Cost efficiencyRobustness

Simplicity

9

Content

Introduction





Forecasting

S&OP Planning Cycle

Benefits


Lessons Learned

Next Steps

10

Why we implemented the advanced planning tool

Page 11

Problem statement and objectives 2015

• Microsoft Excel files: Not protected, manual work

• Forecasting, demand, and supply planning is not efficient

• Not ready for growing business

ProblemIntroduce an advanced planning system that:

• Lowers the risk

• Improves the forecasting accuracy

• Reduces planning (lead) times

Three main objectives

Content

Introduction





Forecasting

S&OP Planning Cycle

Benefits


Lessons Learned

Next Steps

12

Why integrated business planning

Page 13

Advantages of SAP Integrated Business Planning for sales and operations

• No limit on extra users

• Solid interface with SAP ERP software (also in the future)

• No extra costs for extra users

• Implementation by Atos, who has experience with our systems

• One-year contract

• Flexible to extend with other modules

• Access on any device possible

Content

Introduction





Forecasting

S&OP Planning Cycle

Benefits


Lessons Learned

Next Steps

14

How we implemented integrated business planning

Page 15

How we implemented implemented integrated business planning

Page 16

Phase 1: 2015

Global implementation of few product groups:

- Forecast and demand planning

Start: March 2015

Phase 2: 2016

Global implementation of allproducts:

- Forecast and demand planning

- Supply planning

Start: Q2 2016

The advanced planning system: One place for data for everyone

Cloud: Advanced planning S&OP tool

Orders booked, sales prices, stock value, BOM

Sales input (forecast)

Statistical forecast

Consensus demand plan

Run MRP

Supply plan scenarios

Agreed supply and inventory

plan

Agreed supply and inventory

plan

User friendly because of Microsoft Excel look and

feel

17

Content

Introduction





Forecasting

S&OP Planning Cycle

Benefits


Lessons Learned

Next Steps

18

Forecasting

Page 19

Forecasting – Example

Page 20

Content

Introduction





Forecasting

S&OP Planning Cycle

Benefits


Lessons Learned

Next Steps

21

S&OP planning cycle

Page 22

Salesforecast

Consensusdemand

Supply planning

Final supply planning

Input sales forecast

Statistical forecast

Report consensus demand

Check and adjust supply planning

Check capacity

Reporting and save planning version

Send the planned independent requirements to ERP

Update consensus demand

Content

Introduction





Forecasting

S&OP Planning Cycle

Benefits


Lessons Learned

Next Steps

23

Main benefits

Page 24

Sales and marketing:• Easy and sustainable way of updating forecast for your customers and products• Faster response to customers possible due to reduced S&OP cycle time• Mistakes easier to notice

Planner:• Microsoft Excel files are history• Input of sales done directly in the tool• Local demand automatically consolidated in global demand• Possibility to make scenarios

Directors and managers:• High-level overviews of inventories forecast with possibility to drill down• High-level overviews of demand forecast and possibility to drill down• Volume forecast and turnover forecast directly visible• Forecast accuracy visible on all levels

Content

Introduction





Forecasting

S&OP Planning Cycle

Benefits


Lessons Learned

Next Steps

25

Agility

Overview of IT strategy to support Centrient global businessFive main elements to support business growth

One DSP, One System, &

One way of Working

One organization, one system, and one way

of working

Synergy

Cost efficiencyRobustness

Simplicity

Content

Introduction





Forecasting

S&OP Planning Cycle

Benefits


Lessons Learned

Next Steps

27

Lessons learned

• Train IBP features and configuration before design

• Try to keep it simple

• Be prepared for lot of new updates

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Content

Introduction





Forecasting

S&OP Planning Cycle

Benefits


Lessons Learned

Next Steps

29

Next steps

• Finalize the rollout of supply planning

• Explore the options for short-term (order-based) planning

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Thank you.

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