Keeping the Sales and Operations Planning (S&OP) process alive. Creating the need, meeting the need, and sustaining delivery.

1. Michael Ryan, Carlisle Brake & Friction
Sales & Operations Planning Summit, Boston, MA
September 25, 2014
Keeping S&OP Alive
Copyright © 2014 Carlisle Brake & Friction

2. 2Keeping S&OP Alive ● September 25, 2014
CARLISLE INTERCONNECT
TECHNOLOGIES
CARLISLE FOOD
SERVICES
C A R L I S L E B R A K E
& F R I C T I O N
CARLISLE CONSTRUCTION
MATERIALS
Carlisle Companies (NYSE:CSL)
Overview
 Diversified Manufacturing Conglomerate
 Headquartered in Charlotte, NC
 2013 Revenues: $2.9B
 Public Company (CSL on NYSE)

3. 3Keeping S&OP Alive ● September 25, 2014
Markets & Applications

4. 4Keeping S&OP Alive ● September 25, 2014
Carlisle Brake & Friction
“Carlisle Brake & Friction is the first choice in innovative braking
and friction solutions for the world’s top manufacturers. Our
global manufacturing, sales and support networks ensure we
are there to serve and support our customer base, wherever
they may be.”
Matt Dietrich, President CBF

5. 5Keeping S&OP Alive ● September 25, 2014
Keeping S&OP Alive
Mapping the Path Forward
ResultsProcess Discipline

6. 6Keeping S&OP Alive ● September 25, 2014
Why Did We Invest in an S&OP Process?
What Has S&OP Helped Us See?
What Have We Learned from S&OP?
Why Keep Going with S&OP?
Keeping S&OP Alive
Reflecting on S&OP

7. 7Keeping S&OP Alive ● September 25, 2014
Why did we start an S&OP process?
• Wanted to add value to the business
• Be better suppliers for our customers
S&OP is…
• A Business Process
• Market based and customer driven
• Collaborative and cross-functional
• Metrics tracked; performance driven
• Tied to execution of strategic plans
• Process of continuous improvement
Why Did We Start an S&OP Process?
What Motivated the Business?
Executive
S&OP
Product
Review
Demand
Review
Demand / Supply
Balance
Supply
Review
Integrated
Reconciliation
Closed Loop
Process

8. 8Keeping S&OP Alive ● September 25, 2014
S&OP will become “The Way We Work” at Carlisle Brake & Friction
Why “Do” S&OP?
Sales Perspective:
• Improved Supply
• Improved OTD
• Results in Sales Revenue
What’s In It For Me? (WIIFM)
Quantitative: It Can be Measured
The WIIFM of S&OP
What’s in It For Me? CBF?
Manufacturing Perspective:
• Improved Forecasts
• Improved Communication
• Results in Better Execution
From a Business Perspective:
• Support Reaching Our 2014 Global Sales Goal
• Demonstrate Capability to Customers as a Reliable and On Time Supplier
• More Efficient Use of Capital by Linking Production, Shipments and Inventory

9. 9Keeping S&OP Alive ● September 25, 2014
What Has S&OP Helped Us See?
• Plenty of Opportunity!
– Some coming from existing broken processes / awkward practices
• S&OP Shows us the “Rocks” in the Water
What Has S&OP Helped Us See?
Are the Results Measurable?
We Were… We Are… We Are Going…
• Communication by exception
• Improved Forecast Accuracy
• Plan for every part
• Align inventory to demand
Order
Management
Supply
Planning
Inventory
Management
• Daily interaction w/ plants
• No Demand Planning Org
• No Forecasting software
• Near term (<30 days) focused
• Reactive inventory mgmt.
Where…
• Moving to standard lead times
• Staffed
• Implementing Software
• Rough Cut Capacity Planning
• Calculating inventory entitlement
Demand
Planning

10. 10Keeping S&OP Alive ● September 25, 2014
What Have We Learned from S&OP?
• It’s not always easy
• Need to demonstrate tactical wins while implementing long term strategy
• No Team (Function, Group, Etc.) is Perfect
– Each brings their own perspective
– Value can mean different things
– Each Team adds value to the process!
What Have We Learned from S&OP?
Are the Results Measurable?
S&OP

11. 11Keeping S&OP Alive ● September 25, 2014
Why Keep Going with S&OP?
• Value from tactical wins creates breathing room to implement strategy
• Show “Wins” for the business
• Share the spotlight
Why Keep Going with S&OP?
How Do We Keep S&OP Alive?
5
1
2
3
4
No Process
Sustainable Process
Marginal Process
Basic Process
Linked Process
• Reactive
• Backorders
• Disconnected
• Predictive
• High Fill Rates
• Strategic
• Proactive
• Consistent Fill Rates
• Sales & Operations Linked
• Monthly Process
• Improving Fill Rates
• Routine Discussions
• Tactical (Daily)
• Poor Fill Rates
• Ad Hoc Discussions
We Are Here
• Harnessing Engagement
• Prioritizing Opportunities
• Implementing Process

12. 12Keeping S&OP Alive ● September 25, 2014
Focus on Metrics That Matter
• Customer Facing Metrics
– On Time Delivery
– Backorders
– Customer Forecast Accuracy
• Internal Metrics
– Forecast Accuracy
– Schedule Attainment
– Inventory Turns
Understand Interrelationship between Metrics
– Aligned & complementary goals
Make It Measurable
Get A Baseline, Drive Continuous Improvement
Maximum Service
Maximum Profit
Reduced
Service
Undersold
Plan
Reduced
Service
Oversold
Plan
• Lost Sales
• Backorders
• Overtime
• Expediting
• Cash
• Inventory
• Capacity
• Utilization
Profit
“One Goal, One Plan”

13. 13Keeping S&OP Alive ● September 25, 2014
Sales & Operations Planning (S&OP)
Moving Forward on Our Journey

14. 14Keeping S&OP Alive ● September 25, 2014
For More Information
Mryan@CarlisleCBF.com
www.Linkedin.com/in/isolveproblems