S&OP Overview
Functions in xSOP
Demonstration
Why is Sales & Operations Planning needed ?
Constrained Revenue Growth
Downward Margin Pressure
Reduced Operating Efficiency
Challenges
require
Balance
Sales and Operations Planning is a process that enables the
balancing of demand and supply within financial boundaries and a
strategic plan.
Commitment
The results of that plan are measured, communicated and
mandatory for all organisations like sales, marketing, financials,
procurement, manufacturing and logistic operations.
Adaptiveness
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Integrated Business Management—S&OP Process
S&OP: Supported by Current SAP Software
1. Strategic Planning
Strategic Enterprise Management (SEM)
Business Intelligence - Business
Warehouse – Business Planning &
Simulation (BW – BPS)
BW – (CRM Analytics)
Pricing and Margin Management
(
Vendavo®
)
2. Demand Planning
APO Demand Planning (DP)
Sales Planning (BW/CRM)
3. Supply Planning
APO Supply Network Planning (SNP)
Supply Network Collaboration (Inventory
Collaboration Hub – ICH)
4.Supply/Demand Balancing
APO Demand Planning (DP)
APO Supply Network Planning
(SNP)
5. Management Evaluation & Analysis
Supply Chain Analytics and Visibility (Supply
Chain Performance Management – SCPM)
APO Demand Planning (DP)
S&OP Overview
Functions in xSOP
Goal of SAP xSOP
To compliment current SAP planning tools and
provide an easy to implement tool that
consolidates data, provides pre-defined
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S&OP gets all stakeholders on the same page
All departments can see the same data at the same time from their own perspective.
Sales
Finance
Manufacturing
And logistics
Procurement
Customer
Marketing
Channels
and brands
Products, sources,
capacity and destinations
Revenues, margins
and working capital
x-SOP: Innovate the Supply Chain
Product
Dev.
Operations
Sales &
Marketing
C-Level
Finance
CRM
SCM
BW
SCEM
S&OP
Enterprise
Services
Repository
• ASUG S&OP Cross-industry
Influence Council with Oliver Wight
collaboration
• Manage S&OP Process with
task/action item mgmt and e-mail
notifications
• All departments see the same data
at the same time in their resp. role
• Provide analysis, KPI’s and process
tracking tools for demand, supply,
inventory and financials
• Simple simulation and calculation
of price, supply or demand changes
• Leverages current SCM 5.0 and BW
implementations, but not
necessary. Ramp-up customers
needed for anticipated March 2007
release!!!
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Key Functionality S&OP
Integration and
Technology
KPIs and
Analytics
Document
Management
Process
Management
SAP system
connectivity
SCM 5.0
ERP 2005
Netweaver BI
2004S
SCM 4.x (RFC)
Characteristic
Mapping
Product
Hierarchy
Mapping
Key Figure
Mapping
Ability to add
additional Key
figures
Change
calculations for
KPIs
Organize graphs
and group KPIs
Separate views
for each aspect of
S&OP process
Demand
Supply
Inventory
Create tasks and
assign to users
Create Action
Items for
follow-up in next S&OP
process
Update task
completion
Notify via email
when tasks are
assigned
Integration and Technology
Delivered Characteristics
Business Unit
Region
Product Family
Product Sub-Family
Location
Resource
Configuration options
Characteristic texts can be
configured
Characteristics are analytic
application dependent
Mapping tables are provided to
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Integration and Technology
S&OP Calculations
and Data Mapping
ERP
BW
SCM
Data
Storage
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Data flow – SAP SCM 5.0 and xSOP
xSOP
Financial Data
•Budget (projected)
•Price
•Cost
Planning Data
•Demand Plan
•Supply Plan
BW
Compare
Scenarios
Compare
Supply to
Demand
Compare to
Budget
Update
Demand
Plan
Update
Supply Plan
SCM 5.0
Updates to Plans
•Demand Plan
xSOP KPIs Delivered
¾Demand Oriented
¾
Demand Plan Accuracy
¾
Demand Plan Bias
¾Inventory oriented
¾
Total inventory value ($)
¾
Inventory Turns ($ and Units)
¾
Days‘ Supply (DOI)
¾Production/Receipts Oriented
¾
Production to Schedule
¾
Delivery to Schedule (procurement)
¾
Delivery to Schedule (customer)
¾
Capacity Utilization
Financial
¾
Overall Margin
¾
Comparison to Budget (financial
plan)
¾Comparisons to Targets
¾
Target Inventory
¾
Target Turns
¾
Target Margin
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Key Functionality
Integration and
Technology
KPIs and
Analytics
Document
Management
Process
Management
Create tasks and assign to users
Create Action Items for follow up in
next month’s S&OP process
Update task completion
Notify via email when tasks are
assigned
Key Functionality
Integration and
Technology
KPIs and
Analytics
Document
Management
Process
Management
Store documents by Business
Unit/Region
Document risks, assumptions,
decisions
S&OP Overview
Functions in xSOP
Demonstration
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© SAP AG 2006, Title of Presentation / Speaker Name / 22
S&OP Overview
Functions in xSOP
Demonstration
Key Points
1. S&OP is an integral part of SAP’s SCM vision and strategy
2. xSOP allows users to see data in a manner that is pertinent to
their role in the company
3. xSOP supports not only the S&OP meetings, but the overall
business process of S&OP
4. xSOP allows for configuration of screens and analytics
© SAP AG 2006, Title of Presentation / Speaker Name / 26
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