Strengthening the connection between the business and supply chain network

Strengthening the connection between the
business and supply chain network
Thursday October 19, 2017
11:00am PT | 2:00pm ET

Copyright © 2017 Deloitte Development LLC. All rights reserved. 2
Ken Olsen Ken is a Managing Director in Deloitte’s Supply Chain & Manufacturing Operations (SC&MO) service line and is the
Global Lead for the Supply Chain Planning Market Offering. Ken has over 19 years of consulting experience assisting
clients in the transformation of their supply chain capabilities including implementation of Integrated Business Planning
solutions. His clients include companies in Consumer Products, Retail, Manufacturing, Process, High-Tech, and
Automotive industries. His areas of experience include end-to-end supply chain planning process design, integrated
business planning, demand planning, supply planning, inventory management, and supply chain system
implementations.
Ken Caron Ken is a Senior Manager in the Supply Chain & Manufacturing Operations (SC&MO) service line. He has over 10 years
consulting experience in strategy and operations and 19 years of industry experience for process, manufacturing and life
sciences companies. Ken has rich experience in large scale implementation of APS solution across industries. His core
area of expertise are S&OP / IBP, demand and supply planning, inventory management and end-to-end supply chain
design and implementation. His experience includes full life cycle technology enabled supply chain transformations
including current state assessments, strategy and visioning, future state process design, and tool selection.
Vivek Soneja Vivek is a Managing Partner on Anaplan’s Business Transformation team. He is the Global Lead for Supply Chain Line of
Business at Anaplan. With over 20 years of consulting and industry experience, Vivek's management expertise includes
business/IT/operations strategy, business transformation, enterprise improvement, supply chain management and
program management. He also has strong expertise in managing and delivering large and complex technology enabled
transformation programs.
Welcome

Agenda
Introduction to Integrated Business Planning 8
and Common Challenges
Integrated Business Planning — A New Standard 12
Connected Planning 18
Case Study 24

Introduction
Integrated Business Planning
and Common Challenges

Polling Question
What Industry does you company operate in?
Please Choose.
□ Consumer Products
□ Manufacturing/Industrial Products
□ Energy/Utilities
□ Telecom/High-Tech
□ Health Care/Life Sciences
□ Retail
□ Food & Beverage
□ Other

Polling Question
What Functional role do you play in your company?
Please Choose.
□ Sales/Marketing
□ Finance
□ Supply Chain
□ Production/Operations
□ Procurement
□ Other

Polling Question
Where are you in your IBP Journey
Please Choose.
□ Haven't Left, Still Planning
□ Just Getting Started
□ Starting to Get Comfortable
□ Well on My Way
□ Quite Far Along

Integrated Business Planning (IBP) can help keep you on the right path to realizing
your plans
Alignment and Accountability
Ensure a clear understanding of the
“one” plan with clear accountability for
all stakeholders to develop the plan
Objectives
of IBP
Visibility
Provide on-going visibility to
financial projections vs. strategic
plans and budgets and projections
of supply chain constraints
Decisions and Actions
Provide a structured process open
to issue identification with a focus
on decisions; drive action items
across the organization plans to
achieve

Each function within the organization needs to work together and have these six
components in place for a holistic planning view. Lack of discipline and demonstrated
capability limit IBP to a supporting process
Key Reasons Why Organizations are Failing at IBP
No single person responsible for a unified
planning approach across functions: lack of
discipline and inconsistent reporting
templates, calendars, and approaches
Misaligned incentives, forcing functions
to sub optimize decisions and pull in
opposing directions; unrealistic targets set
No “market pulse” with missed
opportunities; inconsistent data across
functions; too many numbers too little
insights; limited scenario analysis
Unclear objectives and lack of a
clearly communicated mission
Limited capabilities, inability to
manage data to drive real-time
insights
People trained to report; poor decision-
making ability/transactional view;
“gamesmanship: in the forecasting
process/numbers
Mission
Analytics
IBP
Finance

The planning processes should connect information across multiple functions, each with
their specific requirements for the same, single company-wide operating plan
Some Companies Do Not Execute Planning as a Cross-Functional Capability
Stakeholder Overview
For some companies, each function looks at their own unique plan with its own lens, and does not reconcile them, nor perform
scenario analyses to predict financial impact to the organization.
Executives
Shareholder
Value,
KPI’s
Finance and Finance
Operations
Key Performance
Indicators (KPIs),
Annual Budget,
Latest Estimates
Procurement
Raw materials
Suppliers
Shareholder Value
Manufacturing
Locations
SKU’s
Supply Plan
Purchasing Plan
Financial Statements,
Management Reports
and Analytics
Sales/
Marketing
Key Accounts,
Brand Management
Demand Plan
Marketing Plan
Supply Chain —
Logistics
SKU’s
Warehouses
Logistics Plan
Inventory Plan

Polling Question
What are the primary challenges within your organization impacting the ability to
establish Integrated Business Planning?
□ Sponsorship
□ System limitation/data concerns
□ BU Alignment
□ Skills gaps/training
□ Culture/Change Management
□ Other

Integrated Business Planning
A New Standard

IBP has defined a “new” standard for traditional S&OP
IBP not only raises the bar for S&OP, but it addresses many of the challenges that have limited
the maturity and sustainability of S&OP over the last 20 years
Traditional S&OP Integrated Business Planning (IBP)
Executive
Reviews
Demand
Reviews
Supply
Reviews
S&OP
Reviews
Financial
Reviews
A cross-functional meeting-driven process
that provides governance to align demand
and supply plans and escalate exceptions
…but only a “piece” of the puzzle
IBP fully integrates all planning processes
from strategic to operational, to optimize
decision making against financial and
strategic goals
Innovation
Planning
Pricing and
Promotional
Planning
Inventory
Planning
Financial
Planning
Strategic
Planning
Production
Scheduling
Supply
Planning
Demand
Planning

Lack of discipline and capabilities cause organizations to miss projections and earnings
targets, with related misalignment in asset utilization and inventory levels.
IBP Has Defined a “New” Standard for the Traditional S&OP . . .
Alignment of operational plans with financial plans
Driven by annual and operational planning needs
Focused on goals beyond the execution window
Performance driven with clear metrics and KPIs
A cross-functional process owned by senior leadership
Elevating issues, making decisions, and taking actions
Proactive stakeholder engagement and ownership in
process
An ongoing supply/demand matching process
Consider pricing in manufacturing decisions
• Alignment of strategic, innovation, financial, inventory, and
operational plans
• Tuned to evolving customer and marketplace needs
• Strategic plan linked with responsiveness to near-term changes
and disruptions
• Enabled by rich analytics and technology capabilities
• A cross-enterprise process owned by the CEO, and the C-suite
• Issue resolution making financially backed decisions and
taking actions
• Continuous stakeholder skillset development and aligned
incentives
• Pricing, promotional inputs integrated with demand shaping
and sensing
• Shape pricing and propose volume/mix adjustments based on
customer priorities
Not Only . . . . . . But Also

IBP is a competitive edge capability that links multiple decision-making processes to
drive consensus on a unified go-to-market plan. IBP brings corporate closer to their
customer, and cohesively links corporate to its manufacturing function when working
well.
IBP
Demand
Consensus
Supply
Consensus
Plan
Consensus
Finance
Consensus
1
23
4
What should we sell…
Commercial consensus on unconstrained market
demand, pricing, and promotional impacts
What can we sell…
Supply Chain consensus on what we are able to supply,
and potential alternatives
What will we sell…
Business consensus on most advantageous response to
supply constraints
How will we improve performance…
Finance consensus on financial goals, impacts, and
needed future actions
1
2
3
4
IBP brings a company closer to its customers and synchronizes the value chain
Integrated Business Planning is the overarching way in which leading companies
run their business to achieve their overall strategy.

IBP is a leading capability that aligns segments, functions, brands, channels,
geographies, customers, and supply plans to the financial strategy and metrics linked
to the portfolio strategy.
IBP Drives Development and Execution of an Integrated Plan
Portfolio
Strategy and
Planning
Inventory
Planning
Financial
Planning and
Analysis
Demand and
Commercial
Planning
Supply
Planning
Operational
Reporting
and Analysis
Plan
Adjustments
IBP
Demand
Consensus
Supply
Consensus
Plan
Consensus
Finance
Consensus
1
23
4
Operational
Execution
Finalize Product Portfolio with
Financial Targets
Update the Financial
Plan (FP&A)
Executive Leadership Leads
Review of the Operating Plan
Develop an Unconstrained
Consensus Demand Plan
Position Inventory to Optimally
Balance Service and Cost
Evaluate Supply Constraints
and Assess Alternatives
Engage Operational Leadership to
Finalize the Operating Plan
Finalize the
Operating Plan

Integrated Business Planning Capability Framework
The technologies (software and hardware)
and tools required to support the capability
Clear roles, decision rights, and policies
and incentives that promote behavior to drive
the organization to achieve its mission
A cross-functional set of processes and
activities designed to align the
organization to one desired outcome
IBP should be “how” you run the
business; the IBP mission is how you
will operate, and what IBP will deliver
Information needed to drive scenario
planning and real-time, insight-driven
decision making
The competencies, skills, talent
infrastructure, and workforce planning
that enable an optimal talent base to execute
the capability
Mission
Analytics
IBP
Finance
Six dimensions

Connected Planning

Planning
Execution
Operations
Data People
Plans
Anaplan Platform: Connected Planning Approach and Potential Benefits
• Top-down alignment
• Dynamic decision-making
• Faster cycles (weeks-to-days)
• Automated adjustments
• Platform-enabled collaboration
• Cross-functional orchestration
• Driver-based modeling
• Scenario (what-if) analysis
• Resource optimization

What is Connected Planning?
Across one
department or area
Across the
company
One business
process
Speed
Agility
Visibility
Single, secure source
of planning and
decision data
Data
People
Plans
Greater collaboration,
deeper insights, faster
alignment
Dynamic, continuous
planning for any area
of your business
The new way connected planning A new way to run your business Connected planning potential benefits
1.5% SG&A savings
through improved visibility
and better decisions
3Forrester TEI study
Faster planning cycle times
—2 weeks to 2 days
1Del Monte
Expense variance reduced
by 50% from increasing
exchange rate planning
frequency from quarterly to
monthly
2Intel Security
1Del Monte customer testimonial
https://www.anaplan.com/customers/del-monte-case-study/
2Intel Security customer testimonial
https://www.anaplan.com/videos/intelsecurity-on-managing-sales-compensation-with-anaplan/
3Forrester Total Economic ImpactTM study
https://www.anaplan.com/papers/forrester-tei-infographic/thanks/

Connected Planning in Supply Chain
SC
Planning
SC
Execution
SC
Operations
• Demand & Supply Planning
• Sales & Operations Planning
• Trade Promotions Planning
• New Product Planning
• Supply Chain Finance
• SC Predictive Analytics
• Trade Promotions Optimization
• Resource Capacity
• Volume Forecasting
• Trade Promotions
Management
• Inventory/Distribution
Management
• New Product Management
Across one
department or area
Across the company
One business process

Three journeys
in core functions
that drive growth
and performance
5
The fifth journey
integrates all
functions to
connect across
the company.
1
2
3
Five Journeys to Connected Planning
Finance
Supply Chain
Sales
4
The fourth journey
connects the core
functions
Sales + Marketing
Supply Chain + R&D
Finance + HR/IT

• Mobile
• Collaborative
• Cloud based
• Scalable
• Processing power
Finance
International
Wholesale
Merchandising
Canada
Retail
• Real time
• User driven
• Connected across the
enterprise
• Modeling & Predictive
Capabilities
Integrate and connect multiple dynamic
data sources in real time
Infuse analytical capabilities to drive
better planning that matches demand
Collaborate within and across
channels and business functions
Connect single version of the truth for plans across
functions and to which the Company is executing
Dynamically connect, reconcile, and track plans
(e.g., top down and bottom up)
Reduce or eliminate multiple planning solutions
and offline spreadsheets
AlignedandLinked
Global
Retailer
Company Planning Potential Benefits

Case Study
Large Coop

Transform to be more insight–driven where decisions are made in the light of known
facts, reliable data, and critical analysis through the Implementation of a enterprise
business planning platform
The Program
Anaplan stood out as a key technology enabler that would provide a flexible
platform to support the boarder Integrated Business Planning (IBP) Vision
Predictive
Analytics
Governance
Data
Integration
Reporting and
KPIs
Process
Improvement
Use of a common business language and technology across functions
Standardization of disparate planning and reporting processes
Transparency, accuracy and reliability of data for key decisions

Multi-phased roadmap that starts with a solid — yet flexible — data integration and
Anaplan architecture, which will support an Integrated Business Planning framework
The Roadmap
• Obtain leadership support
• Establish program
governance
• Future-state Vision
• Requirements and design
• Rapid prototyping
• Complete Financial Planning Solution
• Data Integration Architecture
• Scalable and extendable platform
• Sales plan by Rep and Region
• S&OP plan with detailed production
constraints
• Supply chain plan for raw materials
and freight
• Operational Excellence
• Continuous improvement in forecast
accuracy and reductions in cycle time
• Improved insights
Leadership
Support
Discovery Phase
Foundation
Release (Finance)
S&OP and Supply
Chain Planning
Business as
Usual
1
2
3
4
5

Wrap Up
Key Take-Aways
Q&A

Successfully unlocking the value of IBP requires dedication of stakeholders across the
enterprise and a strong focus on process and change
Key Takeaways
Critical Elements
□ Clear vision - IBP is a journey: Understand process and
capability gaps and the value from closing them, and build
a roadmap of prioritized actions that drive quick wins and
sustainable benefits
□ Sponsorship: Executive willing to “Sell” the process and
align stakeholders
□ Change Management: IBP touches many functions across
the enterprise; care must be taken to bring the
stakeholders along

Q
A

Appendix

Integrated Business Planning will likely have a substantial impact on all aspects of
enterprise value creation, including revenue growth, cost reduction, and improved cash
flow.
Deloitte’s Enterprise Value Map — IBP Can Increase Shareholder Value
IBP Levers
Value Drivers
Functions Driving
Value
KPIs
Margin-based optimization of
product/volume/customer mix
More efficient cross-
functional promotion
planning process
Reduced cost of variability
throughout the value chain
Reduced op. costs with
optimal tactical planning
decisions
Higher utilization of fixed
assets
Optimal product mix based
on available capacity
Better trade-off between
service and cost
Improved planning
decisions based on
inventory value
Reduced Order-to-delivery
cycle time
Improved product
allocation
Mitigated supply
disruptions and improved
SC network inventory
Smoother new product
introduction process
Better collaboration with
customers on product
transitions
Enhanced product mix
availability alignment with
demand
Network-wide cost-based
optimization decisions
Fewer production
disruptions
Higher inventory visibility
Lower schedule volatility
Decreased occurrences of
expedited orders
Reduced safety stock due
to lower demand
uncertainty
Stronger alignment across
functions
Enhanced financial and
capacity planning
(strategic, annual, and
Latest Estimates)
Higher user adoption and
process sustainability
Alignment between IBP
and pricing initiatives
Shareholder Value
Delivery
Experience
Product
Innovation
Revenue
Management
Fixed Asset
Utilization
Cost Reduction
Working Capital
Utilization
Company
Strengths
KPIs KPIs KPIs KPIsKPIs KPIs KPIs
Sales/Marketing ExecutivesSupply Chain Supply Chains
and Finance
Manufacturing, Procurement,
Supply Chain
Revenue Growth Operating Margin Asset Efficiency Sustainability

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related
entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients.
Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal
structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
Copyright © 2016 Deloitte Development LLC. All rights reserved.
36 USC 220506
Member of Deloitte Touche Tohmatsu Limited
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network) is, by means of this communication, rendering
professional advice or services. Before making any decision or taking any action that may affect your finances or business, you should consult a qualified professional adviser.
No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

Strengthening the connection between the business and supply chain network

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Strengthening the connection between the business and supply chain network

Similar to Strengthening the connection between the business and supply chain network (20)

More from Anaplan

More from Anaplan (20)

Recently uploaded

Recently uploaded (20)

Strengthening the connection between the business and supply chain network