kinaxis continuous sop - breaking the mold

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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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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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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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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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


Ope

ratio

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lann

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& 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

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ontin

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ly

Future Risk

Exe

cutiv

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&O

P M

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What does ‘good’ look like? Qualitative Improvements

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What does ‘good’ look like? Quantitative Improvements

kinaxis continuous sop - breaking the mold

Leadership & Management