Building Sales and Operations Planning (S&OP) Shock Absorbers for Your Business
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Transcript of Building Sales and Operations Planning (S&OP) Shock Absorbers for Your Business
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Single Line of Sight: Plan, Perform, Profit
Building S&OP Shock Absorbers for Your Business with Lisa Aleman of Radisys and Dan Gilmore of Supply Chain Digest
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Supply Chain Videocast
Building S&OP Shock Absorbers for your Business Increasing S&OP Speed, Visibility and Control for Improved Decision-Making
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4 Radisys Corporation Confidential
About Radisys
Leader in Wireless
Infrastructure
Solutions
Celebrating 25th
Anniversary in 2013
Markets
• Telecom
• Aerospace and Defense
• Healthcare
Very Dynamic
Markets
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5 Radisys Corporation Confidential
How Outsourcing Impacted Radisys Planning
We lost the ability to plan demand and supply • Radisys planned the demand, but did not know the supply details
• EMS partner planned the supply, but did not know the demand
details
• There is no single plan that has both demand and supply details
Planning cycles are much longer and require
formal processes
Typical Outsourced Demand and Supply Planning
Supply
Planning
EMS
Demand
Planning
OEM Response
Request
Suppliers Customers
~12+ weeks
2-3 months out of synch at any given time
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6 Radisys Corporation Confidential
Other Challenges
Antiquated, spreadsheet-based demand planning tool
significantly constrained process
• Timing was also out of sync
• Different planning timing and cadence
• Couldn’t effectively execute a Lean program with customer
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7 Radisys Corporation Confidential
Supply chain automation • Acceleration of the information network speeds solutions
–Commitments
–Demand changes
–PO releases acknowledgements, consignment
– Inventory position
–B2B relationships – EMS partners/customers
Steelwedge and icon-scm Enable Accelerated Responses to Customers
Synchronized and Automated
SC Execution Network
Customer 1
Customer 2
Supplier 1
Supplier 2
Customer n Supplier n
EDI HTML
XML XML
RosettaNet
Logistics
Supplier: VMI HUB
EDI
EDI
Logistics
Supplier: Transportation
EDI
Financial
Forecast
Demand
Planning
EMS
Planning
& Scheduling
Feasible demand Performance to Plan
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8 Radisys Corporation Confidential
People/Process Impact
Tried first to replicate To Be process manually
Found plans for weekly updates not sufficient,
moved to daily updates
Was able to keep headcount flat through all of this
change
Now operate on “management by exception” basis
Eliminated multiple plans that existed within the
company to operate on a single plan
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9 Radisys Corporation Confidential
A Collaborative Solution for Success
Gather cross-functional
Plans
Create a company-wide
Consensus Forecast
Create Multi-Site
Build Plan
Optimize Build Plan
- Order Prioritization
- Sourcing Strategies
Match Demand & Supply
(mid- / long- term)
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10 Radisys Corporation Confidential
A Unified, Singular Company Plan
Short-term planning: Focus on ~3 months (one quarter)
Maintain and continue to enhance high service level
3-month capacity focus
OTD/Delinquency
Allocation management
Revenue management
Long-term planning: Focus on months 4 through 18
Focus beyond 3-month horizon
Obsolescence
Strategic planning process
Demand planning
Master data development
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11 Radisys Corporation Confidential
Automating the S&OP Process
Must really understand what problems you are trying to solve with automation
We required a lot of flexibility for demand planning (Steelwedge)
Needed robust prioritization and demand pegging tool (icon-scm)
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12 Radisys Corporation Confidential
Adding Shock Absorbers to the Supply Chain
Ability to easily disconnects between contract manufacturer plans and our plans
Increased forward visibility
Dramatic reduction in total demand planning cycles
Single demand and supply plan, one set of financial goals, etc.
Merger that brings some manufacturing back in house easily accommodated
Integration of financial, demand and supply planning
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13 Radisys Corporation Confidential
Lessons Learned
Link automation capabilities to problems to be solved in very detailed way
Set realistic expectations about what technology can achieve
Don’t overestimate how good/clean your data is
Steelwedge and icon-scm have detailed error checking
Keep on top of what contract manufacturer is really doing
Give team enough runway to absorb process change before automation is deployed
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Copyright SCDigest
Resources
• Lisa Aleman, Radisys
– www.radisys.com
• Steelwedge
– www.steelwedge.com
• icon-scm
– www.icon-scm.com
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© 2012 Steelwedge Software, Inc. Confidential. 15 Plan. Perform. Profit.
More Webinars
Upcoming Webinar
August 2013 Bob Ferrari, Ferrari Consulting Your S&OP Analytics: Crystal Ball or Ball and Chain?
On-Demand Webinars
July 16, 2013 Lisa Aleman, Radisys
Building S&OP Shock Absorbers for
Your Business
June 21, 2013 Tim Payne, Gartner
Selecting the Right Planning
Technology: Time to Revisit Priorities
May 29, 2013 Tom Wallace, S&OP Author, Educator
Optimizing Global Planning
www.steelwedge.com/resources
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© 2012 Steelwedge Software, Inc. Confidential. 16 Plan. Perform. Profit.