Fostering Demand Planning, Forecasting, S&OP for 30+ Years!1

Sales & MarketingWinning them over

Krishna MenonS&OP Leader

Sullair Australia

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!2

Agenda• Who gets excited about S&OP• Why this excitement• Reluctance to participate• Personality differences• Age old conflict• What is in it for Sales & Mktg • Four pillars• Winning them over• Make the Horse drink water• Come to the party• Win !! Win !!

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!3

• Since 1965 – Celebrating 50 years• Leading developer and manufacturer of compressed air solutions• Manufacturing facilities on 3 continents and a worldwide distribution network

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!4

Horse Story

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!5

Who gets excited about S&OP• S&OP usually initiated from an operational

perspective • Process owners• S&OP process focus points• S&OP meetings content

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!6

Why this Excitement• Centre stage• Protect “Operations” from the variability• Chance to prove why they got it wrong• Showcase their systems and processes• Opportunity to tame the wild horse

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!7

Operations Management• The design, operation, and control of the

transformation process that converts resources, labour and raw materials into finished goods and services that are sold to customers.

• Three KPI’s– Time: Reduce delays and cycle times– Quality: Improve quality and customer satisfaction– Cost: Reduce waste and costs

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!8

Sales• Primary measure

– Amount of sales made– Customer service levels– Profit margins

• Focus customer & customer service• Recognition • Perform or perish• Ongoing pressure - targets

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!9

Personality Differences• Sales

– Optimistic– Outgoing– Emotional

• Operations– Realistic, data driven– Process driven– Disciplined

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!10

• Differing & conflicting metrics• Unclear expectations• Lack of Information sharing• Same goal - different perspective

Age old conflict

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!11

You never seem to have on hand what

customer wants

Why do we have such long lead

times?

You Just cannot forecast right

We Cannot deliver to a Post Box

Why can’t you deliver what

we are selling?

Using a Dart Board to forecast will do a better job

The Supply Team never delivers on

time.

Why can’t you sell what we have in

stock?

Age old conflict

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!12

Reluctance to Participation• Time is money• Lack of trust• Reluctance to share information / control• Public display – poor performance /

forecast errors• Aversion to change

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!13

Barriers to Sales Forecast• “I want them out with customers, not

sitting in the office doing a forecast”• I’m not qualified to forecast• I don’t know statistics / past sales• That is not my number • You are not using my inputs anyway

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!14

Inaccurate Forecast• Sales forecast & sales plan – confusion• Over and under forecast• Asking for too much• Not including sales input• Lack of feedback communication

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!15

What’s in it for Sales & Mktg. ?• Impact on customer service• Support on winning an order• Inventory – the right one• Good communication• Common ground

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!16

Customer Service

QualityLead timeCostsValue Add

Inventory DIFOT Freight Cost Communication

CustomerCustomer ServiceMargins

Production Supply Chain

Sales

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!17

Four Pillars• Top management support

– Visible leadership• Discipline

– Consistency in meetings – Fixed agendas

• Transparency in DATA sharing– Feedback loop– Follow-up actions are documented and communicated

• TRUST– Restoring trust

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!18

S&OP Process leader• Unbiased process champion• Unbiased

– Measurement– Evaluation– Credibility– Authority

• The ideal leader should be a process facilitator

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!19

Winning them over• Focus on what we got right• Educate sales on impact of forecasting• Develop a simple sales-input process• Supporting sales in winning the sale• Feedback on the final forecast

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!20

Make the Horse drink water

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!21

Come to the Party !!• Motivated to succeed• Better sales• Improved forecast• Happier customers• Fewer conflicts• Enjoy the participation

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!22

Win !! Win !!• Realistic Forecast• Right Inventory• Lower cost of goods• Higher Margins• Less conflict• True north

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!23

Q&A