IBF Dubai March-2015

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Fostering Demand Planning, Forecasting, S&OP for 30+ Years! 1 Sales & Marketing Winning them over Krishna Menon S&OP Leader Sullair Australia

Transcript of IBF Dubai March-2015

Page 1: IBF Dubai March-2015

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

Sales & MarketingWinning them over

Krishna MenonS&OP Leader

Sullair Australia

Page 2: IBF Dubai March-2015

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 !!

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

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Horse Story

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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

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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

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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

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Sales• Primary measure

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

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

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Personality Differences• Sales

– Optimistic– Outgoing– Emotional

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

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

Age old conflict

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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

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

forecast errors• Aversion to change

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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

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

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

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Customer Service

QualityLead timeCostsValue Add

Inventory DIFOT Freight Cost Communication

CustomerCustomer ServiceMargins

Production Supply Chain

Sales

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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

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S&OP Process leader• Unbiased process champion• Unbiased

– Measurement– Evaluation– Credibility– Authority

• The ideal leader should be a process facilitator

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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

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Make the Horse drink water

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

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

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Q&A