Steelwedge 2015 Agility Webinar Series: 3 New Year’s Resolutions to Improve Your Supply Chain

1 © 2015 Steelwedge Software, Inc. Confidential.

Single Line of Sight: Plan, Perform, Profit

3 New Year’s Resolutions to Improve your Supply Chain

January 21, 2015


Glenn Jones

Background

With over 15 years defining high value and forward thinking supply chain

management software products and solutions, Glenn is responsible for product

strategy at Steelwedge.

Prior to joining Steelwedge, Glenn co-founded Elementum, a silicon valley startup

focused on delivering supply chain risk management and visibility solutions in the

cloud.

Prior to Elementum, Glenn led product strategy and R&D at extremely innovative

supply chain software companies including E2open, Amitive, One Network

Enterprises, and i2 Technologies. Glenn is a pioneer in developing multi-tenant

supply chain products deployed in a SaaS solutions in the cloud.

Glenn holds a Bachelors of Science degree in Industrial Engineering at Texas A&M

University.

Executive Vice President,

Product Strategy

Steelwedge Software Inc.

3825 Hopyard Rd.

Pleasanton, CA 94588

Tel : (949) 588-1495

[email protected]

mailto:[email protected]


Ed Lewis

Background

With over twenty years of experience leading design, development and marketing of

S&OP and supply chain solutions, Ed is responsible for market assessment,

requirements definition and go to market strategy.

Prior to Steelwedge, Ed was CEO and President of Amitive, Inc. (acquired by GXS)

which he founded in 2004. Under his direction the company grew from start-up to a

leading cloud supply chain planning provider controlling complex supply chains

around the globe.

Prior to launching Amitive, Ed designed and implemented global SCM solutions for

numerous companies, including Mitsui & Co., as a Sales and Operations executive

and consultant. Ed holds a Juris Doctorate from Western State University, College of

Law.

Vice President,

Product Marketing

Steelwedge Software Inc.

3825 Hopyard Rd

Pleasanton, CA 94588

Tel : (949) 588-1495

[email protected]

mailto:[email protected]


Agenda

• Introduction

• Increase Forecast Accuracy with Collaboration

• Achieve Seamless Planning

• Actionable Insights from Big Data

• Questions and Answers


3 Resolutions to Improve Performance and Bottom Line

Big Data

• New Insights

• End to End Planning

• Real-time

Value of Innovation

• Increased forecast accuracy

• Improved customer satisfaction

• Increased agility, resiliency, market share

Collaboration

• External Trading Partners

• Salesforce Collaboration

Seamless Planning

• Multiple Applications

• Multiple Stakeholders

• Different Planning Terms


Agenda

• Introduction






Trading Partner Collaboration

Distributor

Supplier

Forecast Commit

Forecast

• Share Forecasts

• Management by exception

• Identify prioritize & resolve issues

Customer


Untapped Resource – Sales Insight for Demand Planning

Distributor

Supplier

Forecast Commit

Forecast

• Share Forecasts

• Management by exception

• Identify prioritize & resolve issues

Customer

Sales Organization


Improve forecast accuracy with sales intelligence

CRM contains valuable Demand Planning data ...

but most often is not integrated.

System of Record for the Sales organization.

Provides most up-to-date information on current

Opportunities.

No direct translation between CRM data and

demand planning terms. Often maintained at an

aggregate level - family, sub-family.

Vo

lum

e

Orders

Vague

opportunities

Time

M01 M02 M03 04 M05 M06 M07 ... M12 M13

Translation to Demand Planning terms required to unlock the

value in CRM data : value to volume, quarter to month,

product group to sub group etc.

Statistical forecast alone insufficient for Opportunity driven

business models (CTO, ETO, MTO, Projects).

Forecast


Key Considerations for Including CRM/Pipeline Information in Demand Planning

• CRM use case in Demand Planning;

• Information only

• Active part of the unconstrained forecast

• Manual Opportunity override, inclusion or adjustment

• Business Rules and Criteria to include CRM data;

• % probability

• Sales Stage

• Big Deals

• Exceptional Demand

• Conversion Rules

• Revenue to Volume

• Time Phased Data e.g. quarters to months

• Configure to Order attach rates for product options


High / medium / low

probability of winning is

decided according to

the ‘gut feel’ of Sales

Management

Quoted opportunities

only

Steelwedge Customer Example #1 Which Opportunities to Include?

Project

Opportunity

Low probability of

winning

High probability of

winning

Do not consider

for shortlist

Do not consider

for shortlist

Is information on

opportunity

volumes known?

Project opportunity, quantified to be

considered in the forecast

Estimate opportunity volumes based on

historical experience and market intelligence

NoYes

Medium

probability of

winning

Sales stage >=5

(Confidence level

>=75%)

Sales stage <5

(Confidence level

<75%)

Do not consider

for shortlist


Steelwedge Customer Example #2 Integration of Big Projects/Exceptional Demand

History Future

1. Baseline

2. “Repeatable”

abnormal demand

3. Abnormal

demand

Statistical rules

1. Statistical (baseline) forecast (SW)

3. Manual Overrides

1. Historic data will be manually changed in SW only in

exceptional circumstances – approval required

2. Most of the “fat” (historic projects and outliers) will be

‘dampened’ by statistical rules

1. “Repeatable” abnormal demand will be included in the

statistical (baseline) forecast

2. Future abnormal demand will be added through the CRM

3. Manual overrides based on additional sales and marketing

intelligence will be made to the forecast in SW

2. Abnormal

demand feed


Insert SPB screenshots here

Link to

ESOP

CRM Opportunity Pipeline via

Sales Pipeline Bridge

Opportunity Pipeline for Demand Management


2.42 Acct Mgr RE Laptops Max Stores-M

Opportunity Pipeline via


on

Opportunity Pipeline Detail


Capture Sales Forecast at the source – in the CRM

1. Opportunity

• Product

• Product Component Opportunity

3. Opportunity

Info and

Request for

Quote

Account Manager


1. Create/Change Opportunity in SFDC with

Product Information.

2. Generate Forecast in SFDC

At Opportunity

Creation Opportunities (1 & 2)

Opportunities with Package Detail (4)

4. Quote Into with Product Detail

Web Services based

data exchange

Web Services based data exchange

Package & Component Master Data (A)

A. Product & Component Master Data

Customer ERP


Salesforce Forecast Capture App

Sales Forecast Detail


Agenda

• Introduction






The Supply Chain Today

Extreme Volatility Climate/weather, fuel costs, natural disasters, currency, Demand High Customer Expectations Availability expected even with fluctuating demand.

Increasing Product, Sourcing and Distribution Complexity Mixed global and local sourcing and distribution. Change is the

new normal

Traditional SC Planning

does not deliver

Legacy systems cannot plan in real-time. Latency from multiple disconnected applications and schemas.

Plans are outdated before completed. Cumbersome collaboration process across organizations and functions.

Low customer satisfaction and reduced profitability Misalignment between units, revenue, margin, supply and demand.


IBP/S&OP Solutions: Heterogeneous Landscape


Strategic

and

Tactical

Planning

ERP CRM OMS WMS

Strategy New Products Analytics Performance

Financial Sales Demand Inventory

MES

Materials

Production

Operations

and

Execution

Supplier

Collaboration

Customer

Collaboration

OMS

A comprehensive solution requires multiple applications and integrations.

Multiple Applications = Planning Latency


Strategic

and

Tactical

Planning

Operations

and

Execution

Supply Chain Planning Platform

ERP CRM OMS WMS

Strategy New Products Analytics Performance

Financial Sales Demand Inventory

MES

Materials

Production

Supplier

Collaboration

Customer

Collaboration

OMS

Next Generation Supply Chain Planning

Seamlessly explore options, collaborate and take action with game changing technology.


Supply Chain Planning Technology Requirements

Demand Planning, SCP/APS Systems

ERP, Financial, & Transactional

Systems SAP, Oracle, etc.

Industry

Data

Single Cross-Functional

Planning Environment

Interactive planning for:

•All Stakeholders

•Plan Review

•Overrides

•Assumptions

•Scenarios

•Consensus Process

•Audit Trail

•Analytics

Systems Landscape Product / Sub-Family Customer Revenue

Product / Family Territory / Region Revenue

Product / Family Promotions Revenue

Product / Family Region Units & Revenue

Product Stock Locations Units and Inventory

Family / Series Territory / Region Revenue, Margin & Cash

Family / Series / BU Geo Revenue, Margin & Cash

Product Production Site Units and Capacity



Stakeholders

Account Managers

Sales Managers

Marketing

Demand Planners

Supply Planners

Production Planners

Finance

Executives

Customers

Suppliers

Cross-functional Planning

Environment

Supply Chain

Planning Technology


Agenda

• Introduction






Supply Chains do not Sense and have a Visibility issue


What is exciting in Supply Chain?


On line/Web Dashboards

Mobile Dashboards

Excel Reports

Email Dashboards & Alerts

Supply Chain Insight: How you need it…

Supply Chain

Insight



Executive Dashboard

At the airport, on his way to

meet with an important

customer, Jim notes a

misalignment in the APAC

forecast.

HighTechCo COO - Jim Burrell

Jim quickly sends an email to

the team asking about the

gap.

He circles the problem area

and also asks for

confirmation of production

capacity for the Freedom’s

launch




Start by Executing these New Year’s Resolutions Today

1. Incorporate sales and customer intelligence into your forecasting

process.

2. Leverage technology to support a seamless planning process and

improve agility

3. Identify and leverage data that is not currently being considered in

your planning process


Q&A Contact Us

Email: [email protected]

Telephone: North America +1 (855) 980.8800

United Kingdom +44 (0)121.232.4668

Netherlands +31 (0)70.7999.288

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