Post on 08-Nov-2020
Introducing an IBP Process with SAP Integrated Business Planning for Sales and Operations at DSM Sinochem
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Robert Bierhuizen• Study:
• Business Economics, Rotterdam, NL
• Work:
• Gist Brocades in 1992 -> business unit controller
• DSM bought GB in 1998 -> IT 2001 as business process expert FICO
• Worldwide DSM SAP software rollouts 2003–17
• Securing and improving standard processes
• SAP software modules:
• FICO, PPPI, WM, QM, integrated business planning
• Location: Rijswijk, Netherlands
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Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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Introduction Centrient Pharmaceuticals
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Centrient Pharmaceuticals
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Who we are today
We are the global leader in sustainable antibiotics.
We produce and sell intermediates, active pharmaceutical ingredients (APIs), and finished dosage forms (FDFs).
We have 2,700 employees worldwide
We are headquartered in Rotterdam.
Our global presence
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Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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Agility
Overview of IT strategy to support global businessFive main elements to support business growth
One DSP, One System, &
One way of Working
One organization,
one system, and one way of
working
Synergy
Cost efficiencyRobustness
Simplicity
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Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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Why we implemented the advanced planning tool
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Problem statement and objectives 2015
• Microsoft Excel files: Not protected, manual work
• Forecasting, demand, and supply planning is not efficient
• Not ready for growing business
ProblemIntroduce an advanced planning system that:
• Lowers the risk
• Improves the forecasting accuracy
• Reduces planning (lead) times
Three main objectives
Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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Why integrated business planning
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Advantages of SAP Integrated Business Planning for sales and operations
• No limit on extra users
• Solid interface with SAP ERP software (also in the future)
• No extra costs for extra users
• Implementation by Atos, who has experience with our systems
• One-year contract
• Flexible to extend with other modules
• Access on any device possible
Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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How we implemented integrated business planning
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How we implemented implemented integrated business planning
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Phase 1: 2015
Global implementation of few product groups:
- Forecast and demand planning
Start: March 2015
Phase 2: 2016
Global implementation of allproducts:
- Forecast and demand planning
- Supply planning
Start: Q2 2016
The advanced planning system: One place for data for everyone
Cloud: Advanced planning S&OP tool
Orders booked, sales prices, stock value, BOM
Sales input (forecast)
Statistical forecast
Consensus demand plan
Run MRP
Supply plan scenarios
Agreed supply and inventory
plan
Agreed supply and inventory
plan
User friendly because of Microsoft Excel look and
feel
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Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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Forecasting
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Forecasting – Example
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Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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S&OP planning cycle
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Salesforecast
Consensusdemand
Supply planning
Final supply planning
Input sales forecast
Statistical forecast
Report consensus demand
Check and adjust supply planning
Check capacity
Reporting and save planning version
Send the planned independent requirements to ERP
Update consensus demand
Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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Main benefits
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Sales and marketing:• Easy and sustainable way of updating forecast for your customers and products• Faster response to customers possible due to reduced S&OP cycle time• Mistakes easier to notice
Planner:• Microsoft Excel files are history• Input of sales done directly in the tool• Local demand automatically consolidated in global demand• Possibility to make scenarios
Directors and managers:• High-level overviews of inventories forecast with possibility to drill down• High-level overviews of demand forecast and possibility to drill down• Volume forecast and turnover forecast directly visible• Forecast accuracy visible on all levels
Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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Agility
Overview of IT strategy to support Centrient global businessFive main elements to support business growth
One DSP, One System, &
One way of Working
One organization, one system, and one way
of working
Synergy
Cost efficiencyRobustness
Simplicity
Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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Lessons learned
• Train IBP features and configuration before design
• Try to keep it simple
• Be prepared for lot of new updates
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Content
Introduction
Our Vision and IT Strategy
Why We Need an Advanced Planning Tool
Why Integrated Business Planning
How We Implemented Integrated Business Planning
Forecasting
S&OP Planning Cycle
Benefits
Fit with IT Strategy
Lessons Learned
Next Steps
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Next steps
• Finalize the rollout of supply planning
• Explore the options for short-term (order-based) planning
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Thank you.
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