The ROI of S&OP Maturity - Steelwedge Planning

The ROI of S&OP Maturity

© 2013 Steelwedge Software, Inc. Confidential. 1

“Sales & Operations Planning has evolved,
and is maturing into the de-facto platform for
strategic business decision making.”

Gartner Managing VP, Mike Uskert

© 2013 Steelwedge Software, Inc. Confidential. 2

S&OP Maturity: Which Level Are You?

© 2013 Steelwedge Software, Inc. Confidential. 3

Can You Afford Not to…? 4

• 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

© 2013 Steelwedge Software, Inc. Confidential.

Take a Look at Where You Are

© 2013 Steelwedge Software, Inc. Confidential. 5

S&OP Level 1: Reacting

• No formal process
• No clear owners of S&OP
• Multiple, disparate

spreadsheets

© 2013 Steelwedge Software, Inc. Confidential. 6

Level 1 Cost Example: Disparate Spreadsheets

Guesswork Spreadsheet Manual
s Complex
Email Forecast

Not Scalable

??? ??? ??? ??? ??? ??? Security Risk

23 tabs, 48 worksheets, 18 folders, 40 update files…

Category Metric
Functional Support Teams 8
Estimated FTEs 3.5
Hours per Month
Est. Annual Support Cost 580
$348,000

© 2013 Steelwedge Software, Inc. Confidential. 7

S&OP Level 2: Anticipating 8

• Some data in synch
• One department owns

standardized process

• Unconnected demand and

supply modules

© 2013 Steelwedge Software, Inc. Confidential.

Level 2 Challenge: Buy-in for Balance 9

• Most S&OP loses impact

and engagement through

• meaningless meetings
• weak preparation
• lack of synchrony
• lack of reliable data
• lack of decision making

© 2013 Steelwedge Software, Inc. Confidential.

S&OP Level 3: Collaborating

• Internal and external collaboration
• Integrated demand-supply view

• “What-if " scenario analysis

© 2013 Steelwedge Software, Inc. Confidential. 10

Level 3 Challenge: Technology Synch

“ 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

© 2013 Steelwedge Software, Inc. Confidential. 11

S&OP Level 4: Orchestrating

• Integrated demand

sensing, response

• Integrated supply-demand

trade-offs with metrics
across finance and
operations

© 2013 Steelwedge Software, Inc. Confidential. 12

Technology Accelerates S&OP Value

Value

L4 SW Powered S&OP

L3 Step Change
Maturity & Performance
Accelerated
Time to Value

L2

L1

Avoid
Process Failure

Q1 Q2 Q3 Time Q4

“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

© 2013 Steelwedge Software, Inc. Confidential. 13

Break Through to S&OP Maturity Value

© 2013 Steelwedge Software, Inc. Confidential. 14

S&OP with Steelwedge: Save
$5M-$10M per $1B in Revenue

**Forecast mix improvement 16%-30% 15

© 2013 Steelwedge Software, Inc. Confidential.

Maturity Payoff: ROI Example

Revenue: $500,000,000 Level 4 Revenue +5%: $25,000,000
COGS: $190,000,000 Maturity: COGS - 12%: ($22,800,000)
Inventory: $31,666,667 Potential Inventory -17% ($5,383,833)
Impact

© 2013 Steelwedge Software, Inc. Confidential. 16

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

© 2013 Steelwedge Software, Inc. Confidential. 17

Start Your Journey: Next Steps

Contact Us Resources

3825 Hopyard Road, Suite 150 Gartner Webinar Recording
Pleasanton, CA 94588
[email protected] Selecting the Right Planning
1 (855) 980-8800 Technology: Time to Revisit Priorities
http://bit.ly/11Yaiyd
www.steelwedge.com/resources
IBP Journey Whitepaper

http://bit.ly/17DnLoc

Process-Enabled Technology
Whitepaper

http://bit.ly/19DgHFs

Enterasys Case Study

http://bit.ly/121ndPS

© 2013 Steelwedge Software, Inc. Confidential. 18

© 2013 Steelwedge Software, Inc. Confidential. 19