SEUG

Financial, Sales & Operations Planning (FS&OP)Ronald Fischer

Senior Solutions Consultant

March 21, 2016

Agenda

• Why Financial Sales and Operations Planning• Demonstration of FS&OP• Q & A

Why Financial Sales and Operations PlanningQAD Demand Planning

• Measure the financial impact of all demand and supply chain planning decisions

• Ensure demand and supply plans support financial objectives

What is the purpose of FS&OP?FS&OP

Integrated & CollaborativeSales & Operations Planning

(S&OP)

DSCP Technology PlatformIntegrated End-To-End Demand & Supply Chain Planning (DSCP)

Network & Inventory Optimization (NIOP)

Collaboration Simulations

Integration Analysis

ProductionPlanning

DistributionPlanning

Op

era

tio

nal

Tact

ical

Stra

tegi

c

ProcurementPlanning

Buy Make Deploy Sell

DemandPlanning

Sales & Operations Planning (S&OP)

Demonstration of F&SOPQAD DSCP

FS&OP AdvantagesQAD DSCP

QAD DSCP

Source: Gartner Five-Stage S&OP Maturity Model

S&OP Improvement One Step at a Time

Financial S&OPFinancial S&OP

Demand Planning

SupplyPlanning

Demand Balancing

Management Review

1 2 3 4

Revenue Planning

CostPlanning

ProfitabilityPlanning

FinancialReview

Measure the financial impact of S&OP decisions

13

• Uncertain environments & risks

• Supply chain complexities, long lead times

• Large product range

• Global competition

• Over informed consumers

• Reverse logistics

• ALL HAVING A FINANCIAL IMPACT

Why Financial S&OP process is so important?S&OP process definition and objectives

QAD Demand and Supply Chain PlanningQAD DSCP

ObjectivesS&OP process definition and objectives

Service levelCapacityVolumes &

production rate

Actuals Planned

It’s all about balancing!

Demand Supply

Customer BenefitsQAD Demand Planning

• Increased forecast accuracy: 10 to 40 points

• Supply plan accuracy: higher than 94%

• Increased service level: 6 to 30 points

• Decreased inventory: 10 to 50%

• Decreased working capital needs: 5 to 25%

• Increased gross profit margin: 5 to 15 points

DSCP Customer BenefitsE2E S&OP

18

QAD DSCP Features and BenefitsQAD Demand Planning

• Synchronize planning data between DSCP and other systems

• Master and supply chain data

• Standard and custom data mapping

• Embedded ETL

• Integration with QAD, SAP, Sage, JDE, Oracle, Infor, Microsoft and “home-grown”

• Improves value of existing information systems

2-Way Systems IntegrationIntegrated End-to-End S&OP

ERPSystem(s)

SpecialtySystem(s)

CustomSystem(s)

DSCP

Single-Click Collaborative TechnologyIntegrated End-to-End S&OP

ProcurementPlanning

ProductionPlanning

DistributionPlanning

DemandPlanning

FinancialPlanning

DynaSys DSCP

Demand Plan Update

UpdatedPlan

UpdatedPlan

UpdatedPlan

UpdatedPlan

Real-time simultaneous updates of all or selected plans

Single source ofplanning information

• Browsers:• Google Chrome

• Internet Explorer

• Mozilla Firefox

• Opera

• Safari

• Devices:• iPad

• Mac

• PC

• Smart Phone

• Tablet

Web AccessIntegrated End-to-End S&OP

• Measure and predict plan performance

• More than 130 pre-built indicators

• User-defined indicators

• Focus on what matters

• Increases planning process efficiency

Plan DiagnosticsIntegrated End-to-End S&OP

Ensure plans are achievable and support objectives

Management by exception

What-If ScenariosIntegrated End-to-End S&OP

Plan B

Plan A

Current Plan

Scenario Comparison

Current PlanPlan APlan B

Targets andDiagnosticIndicators

Determine best course of action to meet your objectives

Financial S&OP ExamplesQAD Demand Planning

Financial S&OPFinancial S&OP

Demand Planning

SupplyPlanning

Demand Balancing

Management Review

1 2 3 4

Revenue Planning

CostPlanning

ProfitabilityPlanning

FinancialReview

Measure the financial impact of S&OP decisions

• Statistical forecasting

• Judgmental forecasting

• Collaborative forecasting

• Promotions & events forecasting

• Bottom-up and top-down forecasting

• Revenue forecasting

• Performance reporting

Demand PlanningQAD DSCP Demand Planning

Demand PlanningQAD DSCP Demand Planning

• Automatically converts forecasts into sales revenue projections

• Compares projected sales revenue against fiscal sales budget

Sales Budget ReviewQAD DSCP Demand Planning

Sales Budget ReviewQAD DSCP Demand Planning

Financial S&OPFinancial S&OP

Demand Planning

SupplyPlanning

Demand Balancing

Management Review

1 2 3 4

Revenue Planning

CostPlanning

ProfitabilityPlanning

FinancialReview

Measure the financial impact of S&OP decisions

• Multi-site stock replenishment planning

• Multi-sourcing

• Deployment optimization

• Dynamic safety stock calculations

• Push and pull strategies

• Constraint-based planning

• Shelf-life planning

• Distribution cost planning

• Performance reporting

Distribution Planning

Factory

Distribution Center

Distribution Center

Distribution Center

Factory

QAD DSCP Distribution Planning

Supply Planning: Inventory PlanningQAD DSCP Distribution Planning

Supply Planning: Global Stock BalancingQAD DSCP Distribution Planning

• Plant-level production & capacity planning

• Master production scheduling & detailed planning

• Just-in-time planning

• Resource fill-up planning

• Cost optimized planning

• Capable-to-promise

• Shelf-life planning

• Production cost planning

• Performance reporting

Production PlanningQAD DSCP Production Planning

Supply Planning: Production PlanningQAD DSCP Production Planning

• Automatically converts operational plans into financial measures and projections

• Aggregate and detailed views

Financial ReviewQAD DSCP

Financial ReviewQAD DSCP

QAD DSCP

Financial, Sales & Operations Planning (FS&OP)

Recent Customer Quote on FS&OP

“However, most interest lies in the ability of the tool to provide data that will replicate and eventually replace our “Monster” financial analysis spreadsheet. Thank you so much for listening and responding to our concerns. We are looking forward to partnering with you and your team on this and future projects.”

FS&OP

http://www.qad.com/solutions/demand-and-supply-chain

#QADExplore

SAVE THE DATE FOR EXPLORE 2016

www.qad.com/explore