K

Supply Chain Mindmapping

type industry sector
main drivers

Mind map for S&OP and IBP

Companies already putting Blended Learning into practice in their supply chains include:
# sales/supply units

# SKU’s
# finished products
# components
# supply units
# sales units

sponsor complexity # bill-to customers

Increased demand volatility is one
owner ownership converging
of the main reasons why many footprint
coordinator diverging
companies are busy implementing non-compliance or apathy pipeline model
Sales & Operations Planning grudging compliance ORGANISATION COMPANY central
management
(S&OP). They are trying to go compliance decentralised
further than simply balancing commitment commitment
4 1 current level
1. react
2. anticipate
Increasing the knowledge of
expected demand with production
Providingparticipants
all managers with the same
calendar
3. integrate
volumes, by also integrating
supply
financial budgets chain professionals
and business fundamental
frequencyknowledge and skills
meeting structure
S&OP maturity long term
4. collaborate
5. orchestrate
standard agenda ambition mid term
scenarios into the process. What
documented short term
should companies take into internal training
assessment internal
account in order to reach the external training competencies external experts
next level of S&OP maturity? consultancy ACT 1. updating files
Consultancy firm Involvation and 1. data collection 2. data generation

PREPARE FOR TOMORROW,

3. data analysis
Supply Chain Media have therefore
4. data distribution
designed a mind map, including
business assumptions
practical directions and warning definition availability
Make To Order
road signs. easily available push/pull point Make To Stock
NEXT
ENABLE TODAY!
one set of numbers hybrid
baseline
reliable
standard reports
consistency data Check LEVEL PLAN 2. demand planning
components
internal events
reproducibility
products
S&OP external customer orders
customer forecast
geography hierarchy 1. demand sensing
customers forecasting 2. demand shaping
time 3. demand shifting
Mind map creators:
no ERP DO
one ERP ERP business assumptions utilisation
multiple ERPs flexibility
internal skills & competencies
short term forecasting tools
shift schedules
long term forecasting tools demand planning capacity
3. supply planning performance (OEE)
scenario support IT-systems
production planning other factories
THE SUPPLY CHAIN BY: production scheduling
supply planning external
contract manufacturing
bottleneck materials
volume/value conversion transactional
versions high
online scenario functionality
business Intelligence tools middle
scenarios
www.thevaluechainacademy.com | +31 302217766 risks low

financial budget 3 2 complexity levels

infinite capacity
with bottlenecks
rolling budget
issue identification
financial forecast INFORMATION PROCESS 4. pre-meeting demand-supply balancing
budget financial data scenario development
financial gap define agenda for Executive meeting
forecast
ef.indd 1 scenario analysis 22-04-1616 10:41 volume impact
action plan gap closing review Pre-meeting decisions value impact
GAP analysis vs. business plans
5. executive meeting KPIs
continuous improvement
accountability

issue resolution summarise actions

Mind map manual
First step is a thorough analysis of the
company; what is the industry segment
that it operates in, what are SKU and
customer complexities and how are the
latter served? Another essential step
is to assess the maturity level of the
current S&OP process. To what extent
does the company plan its profitability
and does it make use of scenarios?
What is the planning horizon? Combining
this analysis with the company’s S&OP
ambitions results in a blueprint for the
process: Plan.
Step 2 describes the actual and peri-
odical S&OP process. This starts with
extensive data collection, followed by
Demand and Supply Planning. Bottle-
necks are identified in the so-called Pre-
meeting, that also decides which issues
have to be resolved in the final S&OP
meeting. Companies with more mature
S&OP processes are able to plan further
ahead, using planning horizons of 1-2
years. After the final Executive meeting
it is clear what the company will do in
the coming months: Do.
Based on the first two steps, a company
determines its S&OP data requirements.
Standard Enterprise Resource Planning
(ERP) systems with static order data
generally offer insufficient support.
Various software packages offer more
sophisticated support in determining the
expected market demand (forecasting)
and creating production plans against
finite capacities. For integrating financial
data and analysing scenarios, prefer-
ably at various levels of aggregation,
again other tools are required. Once the
required data and systems are available,
the company can start the implementa-
tion: Check.
The fourth step in the mind map focuses
distribute actions
on the organisation of the S&OP process. sary organisational structure has been
In case the primary objectives are finan- defined, the company can start with the
cial planning and profitability, next to actual execution of S&OP: Act.
demand-supply balancing, the ownership
of the process should move from Supply
Chain to the P&L responsible person.
The geographical scope has a crucial
impact on the meeting structure and the
required competencies. Once the neces-