SALES & OPERATIONS PLAN

Service Background

Key recommendations from a preliminary assessment include the implementation of an S&OP process and development

Potential improvements in the S&OP process included, for instance, improvement of demand planning / forecast accuracy, expansion of planning horizon, among others

In this context, our service seeks to move forward in a supply chain transformational path, in designing and implementing a S&OP process closing the gaps to best practices identified, building on ValorX knowledge and experience accumulated during diagnostic phase and leveraging ValorX capabilities and know-how in implementing core SC processes such as S&OP and strategic sourcing

Service OBJECTIVE

• Design a detailed S&OP process incorporating recommendations identified during the assessment phase

• Implement, monitor and adjust the S&OP process design during pilot and implementation activities

Service SCOPE

Processes:

• S&OP – demand planning, supply planning, executive decision making

Service APPROACH

Design, pilot and implementation are key steps in the approach covered in varying degrees by this service proposal

The S&OP process can be implemented in three steps

detailed design of the prototype S&OP process

Step 1 – S&OP Process Development (1/5)

TASK 0: Initiate S&OP Change Management activities

TASK 1: S&OP Conceptual Training

TASK 2: Prototype S&OP Process Design – a) Preparation

• Confirm understandings of the client’s existing S&OP process

  • Interview individuals associated with the existing S&OP processes

    • Confirm the elements that are working well

    • Confirm opportunities for improvement

  • Interview members of the Management Team to explore their needs

    • With supply chain, quality, marketing, sales and financial responsibilities

    • Summarize the findings from the associated interviews

  • Establish a cross-functional S&OP Process Design Team

    • Arrange for representatives from Finance, Information Management, Manufacturing, Distribution, Planning, Purchasing, Sales and Marketing and Quality

DELIVERABLES

• • • Change management initiation

    • Preparation for prototype S&OP Process Design

    • Understanding of the client’s existing S&OP process

    • Identification of S&OP process design team

Step 1 – S&OP Process Development (2/5)

TASK 2: Prototype S&OP Process Design – b) Information Architecture

Conduct a working session to identify information and data architecture for prototype S&OP Process

• Review ValorX assessment of the existing practices

• Review proven S&OP processes from food and beverages and other industries

• Propose the key demand inputs and sources

  • Market forecasts, sales forecasts and plans, promotions, actual performance (e.g., forecast accuracy, volatility)

• Propose the key supply inputs

  • Operational performance and constraints, supplier agreements and flexibility (e.g., lead times, time fences, capacities, inventory targets), distribution requirements

• Propose the organizational linkages and roles and responsibilities

• Identify linkages with business and supply partners

• Propose product structures and planning hierarchy (e.g., packaging, bulk, finished bottles, etc)

• Propose planning and operating horizons

• Define weekly, monthly and annual activities related to the S&OP process

• Detail key performance metrics

DELIVERABLES

• • • Information flows

    • Data sources

    • Planning requirements

    • Key metrics

Step 1 – S&OP Process Development (3/5)

TASK 2: Prototype S&OP Process Design – c) Prototype and long term proposed processes

• Review the client’s current demand/supply planning capabilities against the proposed S&OP architecture

  • Assess the existing tools, templates, reports, and systems (e.g., capacity planning models, performance metrics, forecast templates, risk management plans)

  • Assess existing meetings and related processes

• Identify tools, processes, functions and capabilities that will need to be developed or refined (e.g., demand/supply balancing tools, new performance reports, capacity management tools, risk management plans)

• Refine a roadmap for the client’s S&OP process

  • Refine a roadmap for the client’s S&OP process

  • Near-term process based on tools and systems that can be developed quickly

  • Longer-term process supported by integrated applications systems and tools

• Review the S&OP assumptions and requirements and near-term and longer-term proposed processes with the Executive Committee

DELIVERABLES

• • • Current demand/supply planning capabilities vs proposed

    • Proposal of tools, processes, functions, capabilities to be developed or refined

    • Vision of protoytpe and long-term proposed processes

Step 1 – S&OP Process Development (4/5)

• Task 3: Develop the S&OP Process Templates, Metrics and Guidelines

• Conduct a second process design workshop

  • Review the client’s new forecasting processes and tools

  • Review the High Level S&OP process design for the client. Update the prototype design and associated assumptions

  • Define process development roles and responsibilities

• Develop the S&OP process templates, metrics and guidelines

  • Define data collection requirements and cycles

  • Develop plans to organize the requisite data sources

  • Design the Pre-S&OP meeting

  • Design the S&OP meeting

  • Define related process roles and responsibilities

DELIVERABLES

• • • Prototype S&OP Process Design

    • ‒ S&OP process templates, metrics and decision process and guidelines

Step 1 – S&OP Process Development (5/5)

• Task 4: Develop and Refine S&OP Tools and Systems

  • Develop the tools and systems required to enable the immediate implementation of the S&OP process

  • Leverage existing systems and tools

  • Develop new tools to address data synthesis, analysis and metrics requirements

• Task 5: Develop the Pilot Implementation Plan

  • Schedule the prototype Pre-S&OP and S&OP Meetings for execution of weekly and monthly cycles

  • Confirm the availability of the S&OP tools and systems

  • Confirm the lead times required to prepare the requisite data

  • Review the implementation plan with the Management Team

• Task 6: Customize S&OP process to store market

• Task 7: Train replicators to make process development in another locations

  • Pre-task: define replicators profile as well as key process participants and executives

  • Pre-task: internal and external search and hiring / transfer

  • Train replicators and transfer tools and knowledge

DELIVERABLES

• • • Prototype S&OP Process Design

      • Proposal of S&OP prototype tools and systems

      • Pilot implementation plan

Step 2 – S&OP Pilot and Implementation (1/2)

• TASK 0: Continue S&OP Change Management activities

• TASK 1: Conduct S&OP Training

  • Provide S&OP Training for everyone involved with the new process as well as replicators

    • Data creation, collection and synthesis

    • Pre-S&OP Meeting

    • S&OP Meeting

• TASK 2: Conduct S&OP weekly and monthly cycles

  • Establish cross-functional S&OP Process Design Team

  • Prepare the data required for demand, supply and S&OP meetings

  • Prepare and conduct Pre-S&OP Meetings

  • Prepare and conduct S&OP Meetings, including Executive meeting

  • Assess the performance of each cycle and the associated templates, tools and metrics

    • o Identify opportunities for improvement

  • Update the S&OP templates, tools and systems as required

DELIVERABLES

• • • Training of all involved in the new S&OP process

    • S&OP weekly and monthly cycles conduction

    • S&OP templates, tools and systems updates

Step 2 – S&OP Pilot and Implementation (2/2)

• TASK 3: Propose an architecture for longer-term S&OP Tools and Systems

  • Propose applications architecture to support the S&OP process

    • Work with the IT organization to establish plans to develop and integrate the associated systems

  • Review the proposed demand, supply and S&OP systems with the process participants

  • Propose plans and a budget for Step 3 S&OP Process Automation as appropriate

  • Review the performance of the S&OP Process with the Executive Committee

    • Address associated issues as required

DELIVERABLES

• • • Architecture landscape to support the S&OP Tools and Systems

    • Planning for systems integration

    • Proposal of budget for S&OP Process

    • Performance review of the S&OP Process with the Management Team