"What If" Analysis: How to Develop Corporate Muscle Memory with IBP

Editor's Notes

• #3: All of us in this room are more globally interdependent today than we were just a few years ago. -Supply networks are more global and complex than ever before - Customers are more globally dispersed than ever before - The flow of information is more rapid and global than ever beforeLike the USA, Japan is undergoing an economic transformation. The global economy and terrible natural disasters are just a few of the factors driving chagne. Businesses that were very self sufficient are being forced to look at outsourcing and pricing strategies for better global competitiveness--and survival.At the core of the transformation is creating more agility in our businesses. Agility is the ability to recognize and respond to change in your business environment to maintain the right demand, supply and financial balance to drive growth.Business agility STARTS with the business plan. [Click]
• #4: In fact, new research published in May 2012, shows that there is a GAP between the importance of business agility, and businesses actual ability to be nimble enough to respond to change with their business plans.90% of business executives interviewed said that agility was critical for their businesses to compete, yet-Only 27% feel that they are agile enough.So where should you start in creating your business agility? According to leading research firms such as Gartner and International Data Corporation, manufacturers across all markets worldwide, are turning the Sales & Operations Planning—or S&OP—to bring together a single view of their business for better market responsiveness. In fact, S&OP is the #1 application–and the most urgent area of inquiry for manufacturers.
• #5: Glen Margolis
• #6: Next, let me explain a bit more about HOW S&OP works. [CLICK]
• #7: [EJ to add discussion points…]Crawl…Walk… Run…Sprint…
• #8: And, today, the best way to ensure RAPID agility in your S&OP strategy is to power it with CLOUD based solutions.With the cloud, instead of costly, time-consuming and hard to use enterprise applications, built for IT, you can connect your line of business executives with: -little to no IT resource overhead and no investment in hardware infrastructure -much faster implementation: typically 30% faster than on premise solutions -user interface that is in a format your team already uses—Excel -any greater flexibility—built for configuration to use it as you need. [CLICK]
• #9: And, today, the best way to ensure RAPID agility in your S&OP strategy is to power it with CLOUD based solutions.With the cloud, instead of costly, time-consuming and hard to use enterprise applications, built for IT, you can connect your line of business executives with: -little to no IT resource overhead and no investment in hardware infrastructure -much faster implementation: typically 30% faster than on premise solutions -user interface that is in a format your team already uses—Excel -any greater flexibility—built for configuration to use it as you need. [CLICK]
• #10: This chart looks at how it all comes together: -your teams-your processes and -your technology -- connecting sales, operations, supplier, partner, customer, and finance data so that your executive team—here in the middle—has a clear line of sight to the financial and customer satisfaction implications of your supply/demand balancing decisions.Historically, S&OP was done sequentially, first selecting the teams, then building the process, and finally, adding technology. The biggest shift we’re seeing in today’s environment and in successful crawl, walk, run approaches, is more of a hybrid approach,Where the process and technology are brought up together, enabling the teams to better leverage, test and measure the potential of each process from the beginning. This drives higher participation and buy-in across the cross functional team—one of the biggest historical hurdles in S&OP success.
• #12: This chart looks at how it all comes together: -your teams-your processes and -your technology -- connecting sales, operations, supplier, partner, customer, and finance data so that your executive team—here in the middle—has a clear line of sight to the financial and customer satisfaction implications of your supply/demand balancing decisions.Historically, S&OP was done sequentially, first selecting the teams, then building the process, and finally, adding technology. The biggest shift we’re seeing in today’s environment and in successful crawl, walk, run approaches, is more of a hybrid approach,Where the process and technology are brought up together, enabling the teams to better leverage, test and measure the potential of each process from the beginning. This drives higher participation and buy-in across the cross functional team—one of the biggest historical hurdles in S&OP success.
• #13: And here are common benefits of S&OP:-from the operational: 70% more efficient planning which results in 30% more accurate forecasts, that drive 25% fewer stock outs and 20% less inventory excess-to the strategic value: better operations is going right to the bottom line with 5% lift in margins. [CLICK]