Roi of sopmaturity_steelwedge

1 © 2013 Steelwedge Software, Inc. Confidential.

The ROI of S&OP Maturity


“Sales & Operations Planning has evolved,

and is maturing into the de-facto platform for

strategic business decision making.”

Gartner Managing VP, Mike Uskert


S&OP Maturity: Which Level Are You?


Can You Afford Not to…?

• LEVERAGE: All your data: ERP, CRM, Finance,

BI and SCM

• PREDICT: Scenario what-if analysis for best

response to market events

• MODEL: Supply constraints

• SENSE: Customer demand

• COLLABORATE: Internally and externally

• RECONCILE: Operational volumes and

financial views

• REACT: In real time vs. scheduled planning

• INFORM: Executives with an S&OP dashboard


Take a Look at Where You Are


S&OP Level 1: Reacting

• No formal process

• No clear owners of S&OP

• Multiple, disparate

spreadsheets


Level 1 Cost Example: Disparate Spreadsheets

Complex

Manual

Not Scalable

??? ??? ??? ??? ??? ???

Guesswork

Email

Spreadsheet

s Forecast

Security Risk

Category Metric

Functional Support Teams 8

Estimated FTEs 3.5

Hours per Month 580

Est. Annual Support Cost $348,000

23 tabs, 48 worksheets, 18 folders, 40 update files…


S&OP Level 2: Anticipating

• Some data in synch

• One department owns

standardized process

• Unconnected demand and

supply modules


Level 2 Challenge: Buy-in for Balance

• Most S&OP loses impact

and engagement through

• meaningless meetings

• weak preparation

• lack of synchrony

• lack of reliable data

• lack of decision making


• Internal and external collaboration

• Integrated demand-supply view

• “What-if " scenario analysis

S&OP Level 3: Collaborating


“ You can’t achieve Level 3 planning maturity without

supporting technology for company wide process.”

Gartner S&OP Marketscope

• Most large, multi-national organizations therefore require a purpose-

built S&OP technology to replace a disparate collection of:

• Spreadsheets

• Business Intelligence

• Traditional Supply Chain Planning software reporting

Level 3 Challenge: Technology Synch


S&OP Level 4: Orchestrating

• Integrated demand

sensing, response

• Integrated supply-demand

trade-offs with metrics

across finance and

operations


Technology Accelerates S&OP Value

Time

L1

L2

L3

L4

“Companies can have a hard time getting past basic levels of S&OP without technologies like

Steelwedge to support the process” - Tim Payne, Gartner VP of Supply Chain Analysis

Q1 Q2 Q3

SW Powered S&OP

Q4

Val

ue

Accelerated

Time to Value

Step Change

Maturity & Performance

Avoid

Process Failure


Break Through to S&OP Maturity Value


S&OP with Steelwedge: Save $5M-$10M per $1B in Revenue

**Forecast mix improvement 16%-30%


Maturity Payoff: ROI Example

Revenue: $500,000,000

COGS: $190,000,000

Inventory: $31,666,667

Revenue +5%: $25,000,000

COGS - 12%: ($22,800,000)

Inventory -17% ($5,383,833)

Level 4

Maturity:

Potential

Impact


Chart Your Journey

• People • Ensure Executive Sponsorship

• Recruit the Inter-Departmental Team

• Process • Review Current Planning

Process

• Determine Long-Term Goals, Near-Term Objectives, Metrics

• Create the Monthly Planning Process

• Set S&OP Monthly Meeting Agenda

• Manage and Measure to the Metrics

• Technology • Get Process-Enabling

Technology


Start Your Journey: Next Steps

Contact Us

3825 Hopyard Road, Suite 150

Pleasanton, CA 94588

[email protected]

1 (855) 980-8800

Resources

Gartner Webinar Recording Selecting the Right Planning

Technology: Time to Revisit Priorities

http://bit.ly/11Yaiyd

IBP Journey Whitepaper http://bit.ly/17DnLoc

Process-Enabled Technology

Whitepaper http://bit.ly/19DgHFs

Enterasys Case Study http://bit.ly/121ndPS

www.steelwedge.com/resources

mailto:[email protected]

mailto:[email protected]

http://bit.ly/11Yaiyd

http://bit.ly/17DnLoc

http://bit.ly/19DgHFs

http://bit.ly/121ndPS

http://www.steelwedge.com/resources

Roi of sopmaturity_steelwedge

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