While “International Talk Like a Pirate Day” is a light-hearted poke at the past, pirates are no longer a romantic notion to be celebrated.
Until a few years, most of us thought of piracy as a quaint problem from the distant past – a romantic time for most of us. From a historical perspective, piracy in the USA is most associated with the period when Thomas Jefferson was sending American warships to the Barbary Coast to fight and payoff pirates that were disrupting American trade.
However, in the last ten years piracy – largely centered off the horn of Africa has again risen to the forefront – no longer a romantic notion of times past. Today’s pirates were born of a vicious brew of our contemporary world – rising global trade, technological advancement, post-Cold War politics, poverty, violence and terrorism.
One may not consider it the foremost supply chain risk, but piracy endangers civilians, disrupts economies, encourages corruption, and could trigger an environmental disaster. Acts of piracy — boarding a ship to commit theft or other crimes — totaled 2,463 incidents between 2000 and 2006 according to a report published by the RAND corporation. These trends are the result of a range of phenomena, including a surge in maritime traffic and a decline of coastal security. The overall problem is almost certainly even greater than the figures suggest as researchers suspect nearly half of all piracy attacks are not reported, usually because of fears about subsequent investigation costs and increases to insurance premiums. Pirate attacks have also risen steadily in 2009 and 2010 in spite of international efforts to protect shipping.
From a supply chain point of view, there are two key risks to manage. The most remote but most serious risk is the potential for a port or…
Does this sound familiar?
The Sales VP is agitated…very agitated. “Don’t tell me what you CANNOT do, I made the sale, now you fill the orders!!!” The Operations VP responds in kind, “Your forecast was not even close to what you just booked. We cannot increase supply that fast!”
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Where do they fit in an S&OP cycle?
Sales and Operations Planning serves as a critical process to project, balance and manage the integration of supply and demand. The process starts with the demand signal. The Sales organization collects bottom-up forecasts from the distributed sales force. Sales management provides a top-down review injecting market and product insights. At this point, no supply constraints have been levied to temper the forecast. Thus, we refer to this as an unconstrained demand forecast.
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The S&OP cycle continues with demand and supply reviews. The intent of these cycle steps is to validate assumptions, check reasonableness and align resource plans needed to support planned demand. Although planning horizons vary from one business to the next, in general, manufacturers must commit in advance to facilities, material purchases and even labor. These supply side plans will limit the ability of the organization to significantly exceed its projected business level. Limitations tend to be tighter in the near term with greater flexibility in the medium to long term.
Through the S&OP process, the organization sets a projected business level that balances expected sales and production capabilities with financial and inventory implications. The constrained demand plan reflects a demand plan aligned with the supply plan.
Do we need both?
Many companies find it useful to distinguish and track the gap between unconstrained and constrained demand plans. An increasing gap may indicate lost opportunity to realize sales that exceed current capacity. Companies should scrutinize unconstrained demand…
SAS70 has become the gold standard for the auditing of service organizations, especially for providers of Software as a Services (SaaS). Steelwedge, the leading provider of Cloud based Sales and Operations Planning (S&OP) Services, has successfully completed the SAS70 Type II audit.
The SAS70 Audit is performed in two steps, each resulting in a report that’s issued by an independent and certified auditor.
The Type I Report describes the control objectives and controls that have been put in pace by the SaaS provider. The auditor renders an opinion on whether these objectives and controls are suitable for the type of operation the SaaA provider is offering. As Steelwedge’s controls and objective have been based on relevant ISO and COBIT guidelines, a positive SAS70 Type I report was easily issued in August 2009.
The Type II Report investigates actual compliance with Type I controls. In the Type II Report, issued to Steelwedge in January 2010, the auditor confirms Steelwedge’s adherence to established and documented industry standard processes. The auditor’s opinion was formed over a five month period through on-site visits, investigations and reviews.
The SAS70 audit offers piece of mind for our customers, knowing that their data is secure with Steelwedge. Our data center, our applications and our processes conform to the highest level of industry standards, and will continue to do so as Steelwedge continues to undergo Type II Audits in regular six month intervals.
Steelwedge customers and prospects alike can rely on the opinion of a certified and independent auditor to ensure compliance with their internal data and security needs. This eliminates the need to conduct individual custom audits, saving both time and money.
Steelwedge’s regular SAS70 Audits do more than simply check the box on the currently popular topic. As the business world evolves and security requirements…
Chomping on the last bagel in the breakfast laid out on the conference room table, the CEO stands up, stretches, and comments “Excellent presentation, S&OP really drives change… cutting edge ideas…this will definitely work.” The scene has been set. Following lots of nods, another three million in cash is headed down the drain.
Does this sound familiar? The launch of yet another change initiative triggered by a compelling presentation from external consultants, software vendor or even the latest best selling business book. However, after years of initiatives being unleashed on organizations, senior managers should understand that certain success factors must be in place to enable successful change.
1. Provide Strong Leadership
Sales and Operations Planning (S&OP) transformation initiatives are rarely sustainable unless they are led from the top. There is a direct linkage between the success of a change management program and leadership capabilities. An effective leader must demonstrate vision, courage & conviction
- A willingness to take both personal and business risks.
- A demonstrated commitment to change, not simply demanding it of others.
- Organizations such as Motorola and GE that have implemented exceptionally successful change programs include the development of key elements in their leadership training.
2. Develop a Compelling Vision
Developing a clear vision is important in making a culture change a reality. With an inspiring vision, people can visualize exciting possibilities and begin to act in accordance with them. Keeping the vision in the forefront of an organization’s thinking will ensure that energy and focus are sustained.
- What will the organization look like during and after the change program?
- Why should individuals and teams be engaged?
- What’s in it for them?
- What are the concerns that will emerge and how can they be addressed?
These are all critical questions that…
