Subsessions (part one)
Stop forecasting: Start orchestrating your demand!
Your forecast is wrong. It is important that you have a good overview of what is happening in the marketplace. You can reach this goal by using non-conventional demand data sources not captured in your ERP system (Point-of-Sales, social media, web scraping). This enables you to react to a new reality, take measures to meet your demand, reach out to sales, marketing, product management etc. The demand manager 2.0 should not stop at forecasting, but be the orchestrator of a true collaborative demand creation process.
One Number Planning at Hospira
During this EyeOn round table on Integrated Business Management, Sabu Sheikh shared a case on One Number Planning, based on his experience as Head Integrated Business Planning EMEA at Hospira, a leading provider of infusion technologies for the healthcare industry.
The lively discussion which took place addressed the challenges of One Number Planning especially when linking financial planning to volume planning. Key enablers for Hospira:
- Active involvement of senior leadership team
- was ensured.
- All discussions revolved around Unit/$.
- Financial ‘Gaps’ were made visible.
- Supply Constraints were made visible.
- Trade-offs were managed by commercial team.
Integrated Business Planning (IBP) turned out the be the ‘secret sauce’ for Hospira’s success and eventual acquisition by Pfizer.
Note: This one-hour round table gave participants a taste of the ‘2,5 hour’ round table held at Croy Castle, Aarle-Rixtel (NL) biannually. A different Integrated Business Management topic is discussed each session. Topics are chosen by members and each session centres around a participant’s case. If you want to join (no fee), please send firstname.lastname@example.org an email.
Commercial Excellence improved S&OP’s successful implementation at Corbion
Boudewijn van Nuland, Vice-President Marketing at Corbion explained how Commercial Excellence can lead to a more successful S&OP implementation. Corbion, a major manufacturer of bio-based food ingredients, biochemicals and bioplastics, became the business owner of the S&OP process in 2016. Commercial Excellence initiatives such as customer segmentation, pipeline management and sales performance management, leveraged the implementation of this S&OP process. To successfully realize these initiatives, balanced change management is used between the ‘hard’ and ‘soft’ side of the implementation. It’s all about a mixture of ‘hearts & minds’.
Reduce cost via end-to-end stock optimization
– A Mediq case study by Jeroen de Lange
During this session, we showed how a 30% cost reduction for the Mediq private brand could be realized by taking the integral transport-, warehouse handling- and working capital cost in their supply chain into account. This approach is based on a combination of simulation and smart optimization techniques. We have determined what products should be supplied via a central warehouse and what products should be delivered directly to the selling unit. Most of the costs were reduced though by taking out all centrally and locally kept redundant stock. The model can easily be adjusted to support business decisions, for instance, on product portfolio harmonization initiatives and in leveraging high stock opportunities.
Supply planning improvement by KPI visualization: a customer case @Stryker
Measuring operational performance is key to business as well as making monthly improvements. During this one-hour session by Michael Anderson - Stryker, with representatives from Philips, B Braun, Cargill and others, the practice of setting up and visualizing these Key Performance Indicators (KPIs) was discussed
Dealing with KPIs is a tricky undertaking; comparing scores of the divisions is not the most interesting aspect of metrics. It’s far more interesting to track the performance of a single division over time to see how well it reacts to information provided by the KPI as well as to consecutive actions taken.
The compass to guide you on your APS journey
Guidelines have been offered when selecting and implementing an Advanced Planning System. An APS system enables decision making about the deployment of company’s strategy into daily operations. All attendants had not yet implemented an APS system, but were considering to implement one.
From the Target Operating Model to the requirements collection and definition, processes and master data design as well as tactics to select the best vendor from a Gartner or Lora Cecere’s Supply Chain Insights list help to progress on this journey.
The presentation highlighted EyeOn’s experiences from several implementations in Life Science and High Tech industry and participants interactively discussed pitfalls and key learnings.
Schneider Electric: mutual growth by collaborative planning with customer
Claude De Paoli (Schneider Electric) shared his experience on the collaborative planning programme Schneider is running. They moved from a Sell-In focused relationship towards a Sell-Through relationship with some of their distributors, resulting in mutual growth.
The programme was visualized as a tree. Good data at the roots; with improved promotions management, smooth product introduction, joint stocking policy and many other benefits which can be harvested.
The lessons learned: like the analogy of the tree, patience is key, because it can take years for the full benefits to materialize.
Increased data quality improves planning
Data Quality, Master Data Management, Meta Data…not exactly sexy topics. According to Gartner, about 85% of companies do not trust their company data due to errors, missing values, etc. Since the rise of Big Data was generated by Internet of Things (IoT) connected devices, the importance of improved data quality is higher than ever before because a variety of sources must be connected to one another.
Large companies such as Heineken, Tata Steel and Johnson & Johnson, recognize the value of increased data quality and have implemented Master Data structures and governance to clean the data and keep it clean.
To get started, EyeOn developed a framework based on our experience and the MDM Maturity Model by Gartner. This easy-to-follow approach defines the steps needed to start improving data quality within your company.
The 4 levels of planning in E2O companies
Decisions need to be made constantly at every level in the organization. The objective of planning is to enable high-quality decision making! Different decisions at various levels of the organization, on different horizons, need a separate set of accurate, reliable and up-to-date information. This is where the 4 levels of planning can be used so that E2O companies have the right info for the right decision!
During the session, there was a lively discussion amongst participants regarding which levels to use and how to maintain them. This led to interesting questions such as: ‘Should our planning be fully integral on lower levels?’, ‘On what level of planning should main contractors be integrated?’ and ‘How can planning be used most effectively during progress and business planning meetings?’