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www.kinaxis.com - How business and technology has changed tremendously in the thirty years since S&OP was first defined, enabling much more proficient and integrated S&OP processes? Trevor Miles' highlights how companies are breaking the traditional S&OP mold from both a process and technology perspective.
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Copyright © 2014 Kinaxis All Rights Reserved. Copyright © 2014 Kinaxis All Rights Reserved.
Continuous S&OP – Breaking the Mold
Trevor Miles | e: [email protected] | m: +1.647.248.6269 | t: @milesahead
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Copyright © 2014 Kinaxis All Rights Reserved.
Where did this all start?
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Copyright © 2014 Kinaxis All Rights Reserved.
What have we been working toward?
The 5 step ES&OP Process - Tom Wallace, Executive S&OP: The Executive's Guide
Issues - Sequential - One Directional - High Level - Manual - Slow - Ignores margin
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Copyright © 2014 Kinaxis All Rights Reserved.
What else has been happening?
Oliver Wight: Transitioning from S&OP to IBP
DOS VisiCalc
Windows 95 SAP APO
Google GSM Mobile
Excel
SAP iPad
dotCom
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Copyright © 2014 Kinaxis All Rights Reserved.
Is there a common understanding?
• Analyst Insight: – S&OP can provide a powerful way to drive better functional
coordination and synchronization, particularly in the current uncertain business climate.
– Yet, it is a process that has had a hard time withstanding the test of time and is subject to repeated re-designs and re-imagining.
• Simon Ellis – Practice Dir., Supply Chain Strategies – IDC Manufacturing Insights
• March 04, 2010
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A lot has changed in 25 years Unprecedented time of global expansion
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A lot has changed in 25 years Cloud, Social, Mobile, Internet-of-Things, …
http://www.holyrood.com/2012/12/briefing-11/
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But our mental model is stuck in 1990s ideas
The traditional “plan then execute” model is the product both of historical thinking about supply chain processes and the state of available supporting technology.
Next Generation Supply Chain Management - The Integration of Planning and Execution, CSCO Insights Thought Leadership Series, Supply Chain Digest, 2009
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Copyright © 2014 Kinaxis All Rights Reserved.
People, Process, Technology
• Technology choice means – Different skills/people – Different processes – Different results
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What does “good” look like?
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StrataBridge, Evolution of Sales & Operations Planning, Andy Coldrick, Dick Ling & Chris Turner
Risk Adjusted Long Term Plan One number plan wrong approach
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Outside-In approach critical
Source: Gartner, Elevate Your S&OP Process From Traditional to Demand-Driven, Todd Applebaum and Jan
Kohler, Jul 2, 2012
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Outside-In approach critical
Supply Network
Innovation Network
Distribution Network
Source: Gartner, Elevate Your S&OP Process From Traditional to Demand-Driven, Todd Applebaum and Jan
Kohler, Jul 2, 2012
Finance
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Continuous S&OP – Breaking the mold
AND, not OR
Concurrent, not just sequential
Event-driven, not just calendar-driven
Effective, and efficient
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Continuous demand, supply, and market input
Continuous S&OP – Breaking the Mold
Ope
ratio
nal P
lann
ing
& E
xecu
tion
Financial Performance
Finance Consensus
Finance Scenarios
Statistical Forecast
Demand Consensus
Demand Scenarios
Sal
es &
Mar
ketin
g
New Product Gates
New Product Consensus
New Product Scenarios
Eng
inee
ring/
R&
D
Supply Performance
Supply Consensus
Supply Scenarios
Ope
ratio
ns
Fina
nce
Continuous S&OP • Generate plan • Sense when plan will not be met • Identify future risk • Mid-cycle adjustments • Know sooner, act faster
Key Capabilities • Range planning • Decision orchestration • Business trade-off analysis • Scenario planning • Assumption capture • Concurrent planning
– Time – Function – Hierarchy
Mon
itor P
erfo
rman
ce C
ontin
uous
ly
Future Risk
Exe
cutiv
e S
&O
P M
eetin
g
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It is a journey
Supply Chain Insights LLC Copyright © 2013, p. 18
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Copyright © 2014 Kinaxis All Rights Reserved.
It is a journey
Supply Chain Insights LLC Copyright © 2013, p. 19
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What does ‘good’ look like? Qualitative Improvements
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Copyright © 2014 Kinaxis All Rights Reserved.
What does ‘good’ look like? Quantitative Improvements
Copyright © 2014 Kinaxis All Rights Reserved. Copyright © 2014 Kinaxis All Rights Reserved.
Continuous S&OP – Breaking the Mold
Trevor Miles | e: [email protected] | m: +1.647.248.6269 | t: @milesahead