S&OP

1. 1© 2013 Steelwedge Software, Inc. Confidential.
The ROI of S&OP Maturity

2. 2© 2013 Steelwedge Software, Inc. Confidential.
“Sales & Operations Planning has evolved,
and is maturing into the de-facto platform for
strategic business decision making.”
Gartner Managing VP, Mike Uskert

3. 3© 2013 Steelwedge Software, Inc. Confidential.
S&OP Maturity: Which Level Are You?

4. 4© 2013 Steelwedge Software, Inc. Confidential.
Can You Afford Not to…?
• LEVERAGE: All your data: ERP, CRM, Finance,
BI and SCM
• PREDICT: Scenario what-if analysis for best
response to market events
• MODEL: Supply constraints
• SENSE: Customer demand
• COLLABORATE: Internally and externally
• RECONCILE: Operational volumes and
financial views
• REACT: In real time vs. scheduled planning
• INFORM: Executives with an S&OP dashboard

5. 5© 2013 Steelwedge Software, Inc. Confidential.
Take a Look at Where You Are

6. 6© 2013 Steelwedge Software, Inc. Confidential.
S&OP Level 1: Reacting
• No formal process
• No clear owners of S&OP
• Multiple, disparate
spreadsheets

7. 7© 2013 Steelwedge Software, Inc. Confidential.
Level 1 Cost Example: Disparate Spreadsheets
Complex
Manual
Not Scalable
??? ??? ??? ??? ??? ???
Guesswork
Email
Spreadsheet
s
Forecast
Security Risk
Category Metric
Functional Support Teams 8
Estimated FTEs 3.5
Hours per Month 580
Est. Annual Support Cost $348,000
23 tabs, 48 worksheets, 18 folders, 40 update files…

8. 8© 2013 Steelwedge Software, Inc. Confidential.
S&OP Level 2: Anticipating
• Some data in synch
• One department owns
standardized process
• Unconnected demand and
supply modules

9. 9© 2013 Steelwedge Software, Inc. Confidential.
Level 2 Challenge: Buy-in for Balance
• Most S&OP loses impact
and engagement through
• meaningless meetings
• weak preparation
• lack of synchrony
• lack of reliable data
• lack of decision making

10. 10© 2013 Steelwedge Software, Inc. Confidential.
• Internal and external collaboration
• Integrated demand-supply view
• “What-if " scenario analysis
S&OP Level 3: Collaborating

11. 11© 2013 Steelwedge Software, Inc. Confidential.
“ You can’t achieve Level 3 planning maturity without
supporting technology for company wide process.”
Gartner S&OP Marketscope
• Most large, multi-national organizations therefore require a purpose-
built S&OP technology to replace a disparate collection of:
• Spreadsheets
• Business Intelligence
• Traditional Supply Chain Planning software reporting
Level 3 Challenge: Technology Synch

12. 12© 2013 Steelwedge Software, Inc. Confidential.
S&OP Level 4: Orchestrating
• Integrated demand
sensing, response
• Integrated supply-demand
trade-offs with metrics
across finance and
operations

13. 13© 2013 Steelwedge Software, Inc. Confidential.
Technology Accelerates S&OP Value
Time
L1
L2
L3
L4
“Companies can have a hard time getting past basic levels of S&OP without technologies like
Steelwedge to support the process” - Tim Payne, Gartner VP of Supply Chain Analysis
Q1 Q2 Q3
SW Powered S&OP
Q4
Value
Accelerated
Time to Value
Step Change
Maturity & Performance
Avoid
Process Failure

14. 14© 2013 Steelwedge Software, Inc. Confidential.
Break Through to S&OP Maturity Value

15. 15© 2013 Steelwedge Software, Inc. Confidential.
S&OP with Steelwedge: Save
$5M-$10M per $1B in Revenue
**Forecast mix improvement 16%-30%

16. 16© 2013 Steelwedge Software, Inc. Confidential.
Maturity Payoff: ROI Example
Revenue: $500,000,000
COGS: $190,000,000
Inventory: $31,666,667
Revenue +5%: $25,000,000
COGS - 12%: ($22,800,000)
Inventory -17% ($5,383,833)
Level 4
Maturity:
Potential
Impact

17. 17© 2013 Steelwedge Software, Inc. Confidential.
Chart Your Journey
• People
• Ensure Executive Sponsorship
• Recruit the Inter-Departmental
Team
• Process
• Review Current Planning
Process
• Determine Long-Term Goals,
Near-Term Objectives, Metrics
• Create the Monthly Planning
Process
• Set S&OP Monthly Meeting
Agenda
• Manage and Measure to the
Metrics
• Technology
• Get Process-Enabling
Technology

18. 18© 2013 Steelwedge Software, Inc. Confidential.
Start Your Journey: Next Steps
Contact Us
3825 Hopyard Road, Suite 150
Pleasanton, CA 94588
info@steelwedge.com
1 (855) 980-8800
Resources
Gartner Webinar Recording
Selecting the Right Planning
Technology: Time to Revisit Priorities
http://bit.ly/11Yaiyd
IBP Journey Whitepaper
http://bit.ly/17DnLoc
Process-Enabled Technology
Whitepaper
http://bit.ly/19DgHFs
Enterasys Case Study
http://bit.ly/121ndPS
www.steelwedge.com/resources

19. 19© 2013 Steelwedge Software, Inc. Confidential.