s&op, kinaxis

Copyright © 2011 Kinaxis Inc. All Rights Reserved.

Trevor Miles director, thought leadership [email protected]

Continuous and Collaborative S&OP


•  Technology choice means – Different skills/people – Different processes – Different results


S&OP – Balancing Competing Goals

13!

Goal: Make the financial budget. Top-down focus.

Wants: Control and predictability of operations Forecast: The budget/annual operating plan

Finance Su

pply

C

hain

Operations Sales and Marketing

Goal: A feasible plan. Bottom-up focus

Wants: Minimize risk and disruption Forecast: The demand plan

Goal: Maximize revenue and market share

Wants: Guaranteed product availability

Forecast: Sales plan

Goal: Minimize supply chain costs, often inventory

Wants: Minimum demand uncertainty

Forecast: Supply plan

Demand Side

Supply Side


S&OP – Balancing Competing Goals

14!

Goal: Make the financial budget. Top-down focus.

Wants: Control and predictability of operations Forecast: The budget/annual operating plan

Finance Su

pply

C

hain

Operations Sales and Marketing

Goal: A feasible plan. Bottom-up focus

Wants: Minimize risk and disruption Forecast: The demand plan

Goal: Maximize revenue and market share

Wants: Guaranteed product availability

Forecast: Sales plan

Goal: Minimize supply chain costs, often inventory

Wants: Minimum demand uncertainty

Forecast: Supply plan

Demand Side

Supply Side


S&OP in the Overall Planning Process D

egre

es o

f Fre

edom

Strategy Business Planning S&OP

Tactical Planning Execution

Scenario Planning

Financial Capacity Sourcing Inventory Product Demand


S&OP in the Overall Planning Process D

egre

es o

f Fre

edom

Strategy Business Planning S&OP

Tactical Planning Execution

Scenario Planning

Financial Capacity Sourcing Inventory Product Demand

Information “black holes”

Lack of visibility


Integrated business planning the goal D

egre

es o

f Fre

edom

Strategy

Integrated Business Planning

Execution

Finance Capacity Sourcing Inventory Product Demand

Scenario Planning

Business Planning S&OP

Tactical Planning


“If I had asked people what they wanted,

they would have said faster horses” "- Henry Ford


Continuous and Collaborative S&OP

AND, not OR

Collaborative, not linear

Event-driven, not calendar-driven

Effective, and efficient