Transcript Document

BIOTECH SUPPLY
CHAIN ACADEMY
October 8-9, 2012
Crowne Plaza, Foster City, CA
Sales & Operations Planning
Kevin Pegels – Oct. 9, 2012
Introduction – Kevin Pegels
([email protected])
•Work History:
•
3/2011 – Current: VP SCM Bayer Healthcare-Biotech
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3/2009 -3/2011: Sr. Director SCM Bayer Healthcare – Medical Devices
•
6/2004 – 6/2009: Sr. Director SCM Clorox Company
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6/2002 – 6/2004 – Director SCM Levi Strauss & Co.
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6/1997 – 6/2002 – Director SCM in CPG Industry Deloitte Consulting
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6/1988 – 6/1995 – Manager Clorox Company
•Education:
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1997: MBA Harvard University
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1988: B.S. Chemical Engineering Cornell University
•Certifications/Publications
•
CPIM Certified
•
Published in Harvard Business Review & Supply Chain Exec. Board
• Presentation Title • Date
Agenda
1. S&OP – quick definition
2. S&OP at Bayer Healthcare-Biotech
3. S&OP – how to secure Sr. Management support
4. Q&A
7/16/2015
3
Sales & Operation Planning - General
Sales & Operations Planning Process
Demand Review
S&OP Characteristics
S&OP Four Step Process
Demand Review
Analysis
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POS Trends
POS Forecast
Shipments
Orders
Inventory
Marketing Plans
Sales Plans
Forecast Accuracy
Supply Review
Demand Review
Alignment
KCDP Call
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Key Customer
Plans & Activities
POS Trends
Events
Supply Review
RCCP
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Capacity
Materials
Transportation
Item Review
Consensus Mtg
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Business Update
New Products
Category Trends
Key Customers
Events
Category S&OP
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Close-in execution
Plant Schedule
Transportation
Shipping Dates
GM S&OP
Business Update
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Demand Summary
- Major Drivers of Change
- Key Events
Consumption Trends
Key Customer Updates
KPI Review
Supply Summary
Risks & Opportunities
Alignment
Key Characteristics of S&OP Process
· Cross-functional and integrated business process
· Planning… proactive and forward looking
· Data driven… decision making on risks/contingencies
· Single common plan
Business Update
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Demand Summary
- Major Drivers of Change
- Key Events
Consumption Trends
Key Customer Updates
KPI Review
Supply Summary
Risks & Opportunities
P & L Update
Alignment
S&OP Process Key Principles
Customer First
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Key objective of process is to deliver optimal service to end
customers/countries and meet commitments to the Business
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“One” demand forecast drives financial and supply chain
planning. Budget forecasts and S&OP forecasts should be
“aligned” at each quarterly RF update..
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Identify potential risks/challenges early and develop contingency
plans as required
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Need to make timely decisions based on solid analytics and be
committed to decisions.
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Single source of the truth, data visibility and decision rationale
clear across the organization
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Clear to organization that S&OP process improves performance
and adds value (KPIs)
Single Forecast
Be Proactive
Decision Making
Transparency
Proven Process
Biotech S&OP Process by Major
Product Line
STEP 5
STEP 4
STEP 2
Affiliate
Demand
Planning
STEP 1
Data
Gathering
(Supply
Network
Planning)
(APO)
Saturday-Sunday
Weekly
Pre-Executive
Meeting
STEP 3
Communication / Verification
Monday-Tuesday
Supply
Planning
(Production
Scheduling)
Executive
Meeting
KPI Review, Capacity
review, Launch
Review, Identify
escalation topics
Tuesday-Thursday
Thursday before
Step-5 meeting
KPI Review,
Business Review,
Capacity Review,
Regulatory
Review, Resolve
escalation topics
Last Thursday
of every mth.
Monthly
Highlights:
1. S&OP process is co-owned by Supply Chain and Commercial Organization
2. S&OP process integrates weekly and monthly planning
3. Forward looking, normally 0-18 months
4. Focused on delivering KPIs, aligning supply/demand, and resolving business issues
5. Implemented in less than 6 months
S&OP – how to secure Sr.
Management Support
1. Develop and “Sell” Business Case: improved customer service,
reduced inventory, reduced scrap, and aligned supply and
demand to support business growth
2. Leverage improved forecast accuracy as critical metric and link
to strong S&OP process
3. Cross-functional nature of process and shared process
ownership among commercial and supply chain requires Sr.
Management leadership
4. Leverage industry benchmarks and best practice case studies
5. Secure top Sr. leadership who can drive ownership top down
through the organization
7/16/2015
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Typical S&OP Benefits
Global S&OP process has driven substantial benefits over the past
few years
12
12
Inv. <=12 Mths.
10
9.5
8
6
6
4
2
0
Jun 2009
Inventory DOH are decreasing
Dec 2009
Jun 2010
Excess/low shelf life inventory is
decreasing
In addition, customer service for the US and Europe has been above 98% target level
in 16 out of past 18 months
7/16/2015
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