SAP S&OP as a Catalyst for Enhanced Demand Planning...

© 2014 Intrigo Systems, Inc.

Insight Driven Outcomes

Albemarle: S&OP’s Anticipated SCM Contribution

SAP S&OP as a Catalyst for Enhanced

Demand Planning Efficiency

© 2014 Intrigo Systems, Inc. 2

Agenda: Company Overview

Company Overview

Implementation Methodology

Business Value

Q & A 6

5

4

3

2

1

Albemarle Testimonial

Introduction to S&OP


Speaker Introduction

Jeff Boyer S&OP Solutions Architect Intrigo Systems, Inc. [email protected]

20 years of experience in Supply Chain Management

Trained SAP implementation partner for S&OP Powered by HANA

Managed the supply chain planning system portfolio for the Clorox Company

Led multiple system implementations including i2 Demand Planner, Logility, and APO

Managed a “Best-in-Class” vendor managed inventory program supporting Wal-Mart

Piloted a Collaborative Planning, Forecasting, and Replenishment (CPFR) program with Target and Wal-Mart


About Intrigo

Enterprise on HANA

S & OP Sentiment

Track & Trace

BI

Sequencing

Innovation

DSIM

We are a solution provider of Business Applications focused on orchestrating

Customer Value Networks in the changing SAP Enterprise technology landscape.


Intrigo’s Playing Fields

Products

Services

Predictive modeling; Sentient ; e-Serve

BW on HANA

Biz Suite / Optessa

SOP on HANA / DSIM/ APO on

HANA

Solutions

HANA/ Syclo /Integration

In-m

em

ory

com

pu

ting

BUILT ON

HANA

Orchestrating Customer

Value Networks


Agenda: Introduction to S&OP

6

5

4

3

2

1 Company Overview


Business Value

Q & A




What Problem Are We Solving?

Finance

Marketing

Sales

Operations

SCM

CRM

Supply Chain: “Where/when am I going to

source this new product”

Finance: “How’s our overall

margin impacted by our

growth in BRIC?”

Sales Mgmt: Can we

support this new

account?

GM/CXO: “How do we

make sure we don’t miss the

quarter?”

Marketing: “How will a pricing

change impact demand of my highest volume

product family?”

Problem: Can’t plan across the organization in time, don’t have the right information and can’t test assumptions.

Consequence:

Miss the quarter

Lose a high-profile customer

Lose market share

E&O

© 2014 SAP AG. All rights reserved.


Where S&OP Fits Across Enterprise Planning

Strategic Planning

Sales Force Automation

Operational Planning

Opportunities, Promotions

Constrained Qty Plan

Short Term Plans

Scenario Plans

Constrained Revenue Margin Projections

Strategic Plans

Sales Forecast

Financial Planning

Scenario Plans

Constrained Rev & Margin Projections

Strategic

Tactical/Execution

AOP, Finance

Plan S&OP on HANA

Value:

• Make strategy actionable

• Integrate tactical planning & Execution

• Drive visibility and agility



S&OP Solution Architecture

SAP Sales and Operations Planning 3.0 Powered by SAP HANA™

Excel: Plan

Sales/ Marketing

Demand Planning

Finance

Supply Chain

Executives

Web

UI

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e-b

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Inte

grat

ion

Dat

a Se

rvic

e o

r H

CI

SAP HANA™

SAP Jam™

S&OP Model & Engine Attributes

Key Figures

Scenarios & Simulation

Predictive Analytics

Heuristics & Optimization

Process Workflow

Alerts

Social Collaboration

Web: Analyze

Mobile: Analyze

ERP

CRM

BPC

APO

BW

Any Other System

Files



How to Get Started

1 Phased approach

Option 1: parts of your business

BU1

Option 2: parts of your process

BU 2 & 3 BU 4-10

2 3 Quickly reconfigure the

S&OP solution Out-of-the-box S&OP

model and data integration

Reconfigure S&OP to meet your needs as requirements change • Hours to days • Driven by the business • Configuration based

ECC APO BPC

S&OP on HANA

Reduce implementation time and risk by leveraging SAP model and data integration

Achieve early wins by deploying in bite-sized chunks

Demand & Finance

Supply Net

Profit



Agenda: Implementation Methodology

6

5

4

3

Company Overview


Business Value

Q & A


Introduction to S&OP 2

1


S&OP With Intrigo

Experience: Intrigo has been through multiple S&OP implementations and development cycles with the individuals at SAP who are available to help support our projects.

Expertise: We have consultants with the required skill sets (DSOD/HCI; S&OP Data Model Configuration; SAP ECC, BW) who have worked on multiple S&OP implementations.

Industry Knowledge: We have collaborated with S&OP Product Management on accelerators for Process Manufacturing (Oil and Gas, Pharma, Dairy), High Tech and Automotive.

Scoping: We can quickly vet design decisions with product team when useful. We can rapidly escalate issues when necessary and get results.


What We Have Learned

Our experience has driven Intrigo to leverage

implementation methodologies that

increase the speed-to-value


Scope Right for Speed-to-Value

Intrigo uses an Agile Methodology for Speed-to-Value

The implementation cycle is divided into four Sprints

The primary output of Sprint 0 during the first week is the Configuration Backlog

This backlog will be used to determine the scope and duration of each subsequent sprints

Progress is measured and tracked by utilizing the Configuration Backlog and Burn-Down Chart Intrigo proprietary tools and templates are leveraged to accelerate the timeline as much as possible


Scope Right for Execution

Story ID Category Scope Item LOE Points Baseline Backlog Count Hours Per Ttl Hours Benchmark Hrs Blended Rate Total Cost Scope Item Count

1 Analytics Analytics 3 12 12 1 12 -$ Analytics 12

2 Data Model Time Profile and Calendar 5 2 2 4 8 Planning Views 10

3 Data Model Model Activation 8 2 2 8 16 Estimated Hrs Blended Rate Estimated Cost Users 20

4 Data Model Master Data Configuration 8 2 2 8 16 -$ Key Figures 54

5 Data Model Data Model Design 13 4 4 40 160

6 Integration Data Loads 13 4 4 40 160

7 Integration Data Integration (HCI) 13 4 4 40 160

8 Key Figures Editable (Forecasts) 3 5 5 1 5

9 Key figures Stored (Actuals) 5 8 8 4 32

10 Key Figures Attribute Transformations 8 2 2 8 16

11 Key Figures Alerts 8 5 5 8 40

12 Key Figures Calculated Key Figures 8 5 5 8 40

13 Key Figures Snapshots 8 24 24 8 192

14 Key Figures Time Reference Key Figures (Lcode) 13 5 5 40 200

15 Planning Operators Statistical Forecasting 13 2 2 40 80

16 Planning Operators Supply Planning 20 2 2 80 160

17 Planning Operators Optimizer 40 0 0 160 0

18 Planning Views Standard Planning View Templates 3 8 8 1 8

19 Planning Views Customized Planning View Templates 13 2 2 40 80

20 Process Model Process template 3 2 2 1 2

21 User Setup Visibility Filters 5 10 10 4 40

22 User Setup Users 3 20 20 1 20

23 User Setup Roles 3 5 5 1 5

24 User Setup Jam Configuration 13 1 1 40 40

25 Validation Validate Sizing Requirements 5 2 2 4 8

0

50

100

150

200

250

0

5

10

15

20

25

30

Key Figure Contribution to Effort

Backlog Count Ttl Hours

Key Concepts: Lock in the go-live date! Prioritize requirements for value Assess the level of effort Drive to deliver the greatest value


Overall Timeline

Sprint 0 Sprint 1 Sprint 2 Sprint 3 Sprint 4

The target is to complete implementing Sprints 0 through 4 within 13 to 16 weeks; however, this is dependent upon the final scope. Scope guidelines for a 13-16 week project are as follows:

o Five Step Process o 54 Key Figures o 10 Planning Views o 20 Users

Final scope and duration of implementation will be determined during Sprint 0

Four-week production support period begins at the completion of Sprint 4

Backlog Stored Key

Figures Calculated Key

Figures Time Reference

Key Figures Final Prep

Target: 13 – 16 Weeks

Daily Scrum Meetings

Test and validate early and often


• Frequency - Daily

• When - Start of each day

• Agenda

• Work completed

• Work in process

• Road Blocks

Scrum

• Frequency – Weekly

• When – End of each week

• Agenda

• Progress to date

• Open issues

Project Status • Frequency – Four

scheduled

• When – End of each Sprint

• Agenda

• Review progress

• Approve upcoming scope and timing

Sprint Review

Project Meeting Cadence

Project Team Stakeholders Steering Committee


Project Team Training One week of training during first week of

implementation project (Sprint 0) Courses are targeted for specific user segments within

the project team Outcome: Project Team understands functionality and

can speak to business requirements within context of the application

End User Training Train the trainer approach Training materials such as business process procedures

are developed throughout the lifecycle of the project Outcome: Project Team is fully enabled to rollout the

solution to their end user community Knowledge Transfer

IT Support and Business Super Users will be provided with a detailed design document and training on the specifics of their implementation

Outcome: Project Team is enabled to support their end user community and sustain the application over time

Training Approach


Agenda: Business Value

6

5

4

Company Overview


Business Value

Q & A



3

2

1


Typical Project Objectives

Deeper Integration: Creating and developing a fully integrated Sales and Operations Planning Process. Providing executive analytical reporting with drill down capability to see detailed levels such as business unit, product line or product family, geographical region, market segment, distribution channel or Industry, country, product type, and material number.

Stronger Forecasting: Comparing and simulating demand and sales data against financial guidance for multiple business scenarios (i.e. budget versus forecast and budget versus committed revenue).

Improved Collaboration: Enabling collaboration between cross functional teams to successfully manage the S&OP process.

Increased Automation: Eliminating the need for manual updates of Sales Quantity Forecast, Actual Sales Quantity history and statistical forecast related data.

Smoother Information Transfer: Sourcing the existing transaction and master data from SAP ECC and integrating the output generated by the solution back to SAP ECC to drive MRP and production planning.


Benefits Sought

Single “Source-of-the-truth”: This reduces the amount of time spent reconciling numbers

Familiarity with Tool: Planners continue to use Microsoft Excel, a tool they are familiar with, while benefiting from standardized templates that focus their efforts and are available online and offline.

Efficiency: The ability to quantify the impact of a change in demand in a particular product chain and its subsequent impacts on related product chains in a single view.

Reduced Manual Work: This reduces the risk of manual errors, improves planned performance and increases planning efficiency.

Visibility: There is an overall improvement in visibility to planning information.


6

5

Agenda: Albemarle Testimonial

4

Company Overview


Business Value

Q & A



3

2

1


Speaker Introduction

Satish C Nutakki Director, Solutions Architecture Albemarle [email protected]

20+ years of experience in IT management, IT technical, business process and functions

Effectively delivers seamless systems and support for diverse range of operations across North America, EMEA, APAC and Latin America

Known for exceptional technical proficiency, astute understanding of business process operations, and performance drivers across technology and management lines

MBA in International Business & Systems Design from University of Tasmania

BS in Mathematics, Statistics and Economics from Bangalore University


About Albemarle – Business Segments

Catalyst Solutions Revenue: $1.2 Billion

Heavy Oil Upgrading Clean Fuels Technologies Performance Catalyst

Solutions Antioxidants

Performance Chemicals Revenue: $1.5 Billion

Fire Safety Solutions

Fine Chemistry Services

Specialty Chemicals

2013 Revenues: $1.2 B

2013 Segment Income: $251 M

2013 Revenues: $1.5 B

2013 Segment Income: $280 M


About Albemarle – Catalyst Solutions


About Albemarle – Performance Chemicals


Diversified End-Markets


Global Footprint is a Competitive Advantage


Strategic Goals

One Albemarle

Standardized business processes globally across Albemarle

Supply Chain Transformation

Improved working capital efficiency

Rationalize inventory across business units

Responsive supply chain: Ability to commit to customers on a “real-time” basis

The Supply Chain Transformation Project includes rolling out SAP S&OP on HANA to 8 Business Units within the Catalyst GBU

S&OP on HANA

Develop and implement a strong, structured and sustainable S&OP process across global business units to achieve sustaining inventory reductions in working capital

Thank You!

For additional information, please contact us at [email protected] or visit us at www.intrigosys.com.

Follow us on Twitter: @IntrigoSys

© 2014 Intrigo Systems, Inc.

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