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S&OP: Beyond the Basics

Posted by Glen Margolis, Founder & CEO | November 22, 2011 | Categories: expert advice, Integrated Business Planning, Sales & Operations Planning, Steelwedge Webinar

Webinar featuring S&OP Expert Tom Wallace
Wednesday, November 30 at 10:00 a.m. PST

Register for the webinar here!

Just as the Sales and Operations Planning practice has evolved dramatically over the past decade, so have the global market dynamics and complexities. In global business, volatility is the “new normal.” So, how do S&OP leaders adapt to that volatility and still make the best executive-level decisions that balance supply and demand, and integrate operational and financial plans?

This month’s webinar presenter, noted writer and educator Tom Wallace, asked just that question to some of the world’s best practitioners. He has collected their stories of taking planning to the next level –beyond the basics– to deliver Executive S&OP that runs the business with one set of numbers for better agility, performance and profit against a backdrop of global economic, political and environmental turmoil.

Taking S&OP to the Next Level’ is scheduled for Wednesday, November 30 at 10:00 a.m PST. Here, Tom will share case studies from experts who’ve used Executive S&OP to:

  • support the merger of two businesses into one high-performance business unit
  • serve as the basis for earnings calls to Wall Street
  • help create a new business
  • optimize global production plans and profits and
  • make cash flow projections 18 months into the future based on operational demand and supply plans.

Tom will talk more about his belief that Executive S&OP is quite simple in its structure and logic. But in practice, he sees that this often misleads companies into assuming that the process is simple to implement, while nothing could be farther from the truth.

Following Tom’s presentation, Nari Viswanathan, Steelwedge’s Vice President of Product Marketing will use industry examples to outline the additional value of deploying Collaborative S&OP Platform technology.

Finally, get answers to all…

We’ve recently announced the release of a ground-breaking solution for improving the speed, flexibility and ease of implementing and adopting the Steelwedge Cloud-based S&OP solution.

The Steelwedge S&OP Service Delivery Platform dramatically enhances the ability of our clients, partners and users to rapidly configure, integrate, implement and train users on a process-driven collaborative Steelwedge S&OP solution.

S&OP has quickly become a management necessity for companies operating complex, global supply chains in today’s climate of uncertainty and risk.  Executives facing pressure to manage volatility and risk have embraced Steelwedge to align demand and supply decisions with revenue, margin and customer service goals.  Companies that have rolled-out best-in-class S&OP practices have realized big gains, including a year-over-year gross profit margin increase of 48 percent, according to a recent study published by Aberdeen Group.

“In today’s volatile world, companies need to rapidly respond to changes in supply and demand as never before.  The Steelwedge S&OP Service Delivery Platform is truly a breakthrough for companies desiring to rapidly implement and adopt a flexible S&OP solution that drives corporate agility.” explained Glen Margolis, CEO of Steelwedge. “This new technology platform enables companies to quickly and cost effectively adopt globally collaborative S&OP processes.”

To learn more about our cool new technology, visit our web site.

I’ll be participating in my first Twitter chat tomorrow – I hope you’ll join me! The topic is The Continuing Emergence of Sales and Operations Planning. We’ll be live on Tuesday April 26 at 1pm Pacific time / 4pm Eastern time.

I’m going to be the guest for #SCMchat, hosted by Jeff Ashcroft  aka @SupplyChainNtwk. Here’s what Jeff has to say about it:

#SCMchat allows us to get to know SCM greats better & also get together to discuss cool SupplyChain and Logistics topics.

To chat, simply use the hashtag #SCMchat to be included in #SCMchat transcript. If you aren’t on Twitter, you can follow along using your browser to just listen! http://bit.ly/fJqqdf

Participants will have a chance to ask questions. The challenge will be keeping answers to 140 characters!

 

Do companies need to substantiate and quantify critical risk scenarios as part of their planning process?

Financial analysts evaluate return and earnings potential on a risk-adjusted basis. In other words, analysts incorporate an understanding of the volatility associated with returns when evaluating the underlying value of a business.

Today the only certainty is uncertainty.  How can one plan in a world seemingly dominated by unanticipated terrorist events, political upheaval in and around oil producing nations, natural disasters striking presumably well prepared, developed economies wreaking global havoc, and energy production disasters of all sorts?

What does this mean for planners? Validated and informed risk management and risk-based decision making is more important than ever.  Quantitative support and innovative solutions can help measure and estimate impacts; facilitate key business, financial and operational scenario management, and reduce the uncertainty attached to strategic growth, budgeting, change, and macroeconomic volatility.  In this environment sales and operations planning must truly be transformed into some sort of risk-adjusted integrated business planning scenarios (IBP).

What Will You Say When Shareholders Ask: “What Happened?”

Accurate quantification and assessment of risk is paramount to an organization’s success.  Executives need to ensure that their organizations are undertaking an efficient and effective process of quantifying risk.

Are key decisions made in the context of risk-adjusted scenarios?  Should we be doing some sort of actuarial analysis?

Is there an understanding of the full range of financial outcomes associated with a particular S&OP scenario?

Can we able to back up our scenarios with substantiated, sound, risk analysis?

Do we know how much risk and/or volatility can be sustained?

Does our organization have the right tools to navigate inevitable “Black Swan” events that will disrupt the best laid S&OP scenarios?

Are we confident that we have posted liabilities to match the risks our organization faces?…

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