{"id":1238,"date":"2011-07-08T18:15:43","date_gmt":"2011-07-08T22:15:43","guid":{"rendered":"https:\/\/demand-planning.com\/?p=1238"},"modified":"2011-07-08T18:15:43","modified_gmt":"2011-07-08T22:15:43","slug":"best-of-the-best-sop-conference-learnings-and-application","status":"publish","type":"post","link":"https:\/\/demand-planning.com\/2011\/07\/08\/best-of-the-best-sop-conference-learnings-and-application\/","title":{"rendered":"Best of the Best S&amp;OP Conference \u2013 Learning\u2019s and Application"},"content":{"rendered":"<div id=\"attachment_1239\" style=\"width: 136px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/demand-planning.com\/wp-content\/uploads\/2011\/07\/Edward-Rodriguez.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1239\" class=\"size-full wp-image-1239\" title=\"Edward Rodriguez - E-Z UP \" src=\"https:\/\/demand-planning.com\/wp-content\/uploads\/2011\/07\/Edward-Rodriguez.jpg\" alt=\"Edward Rodriguez - E-Z UP \" width=\"126\" height=\"126\" \/><\/a><p id=\"caption-attachment-1239\" class=\"wp-caption-text\">Edward Rodriguez - E-Z UP <\/p><\/div>\n<p>We are a medium sized privately held business that has a large ERP, but probably hasn\u2019t invested into its processes and user reporting as much as we should. \u00a0In my 6 years with the company, I started as the Controller, and then moved to Director of our retail stores\/internet operation, and now I fill a void within<a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=297\"> Supply Chain<\/a>.\u00a0\u00a0 My emphasis has been with procurement, negotiation, and sourcing, however considering that my background is mainly in Finance, I was not as well versed as I should be in the more detailed aspects Supply Chain and the S&amp;OP process.\u00a0\u00a0 I found an advertisement for the <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=314\">IBF &amp; APICS Best of the Best Conference <\/a>while conducting internet searches related to <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=320\">bringing more value to the supply chain<\/a> and purchasing process.\u00a0\u00a0 Upon first glance it seemed too narrow for my goals, upon closer review it looked like a good opportunity to learn about the overall process of inventory supply\/demand, and a good way to bring some badly needed efficiency and harmony to what felt like a less-than-optimal process. I promised my boss a favorable ROI for the trip and off I went to Chicago.<\/p>\n<p>My day started with a review of survey results and challenges.\u00a0\u00a0\u00a0 One revelation that I found interesting was how Sales (Supply) driven the S&amp;OP process is.\u00a0\u00a0 As a person looking at this from the Ops side, it was scary to think about bringing our Sales group, whose direction is to \u201cjust sell,\u201d into such a complex process. Also, I had never thought of an S&amp;OP \u201cimplementation\u201d as much as taking these learning\u2019s and applying them as it seemed right. This was clearly incorrect, as the Best of the Best Conference presented the S&amp;OP process as a multifaceted, challenging change on how to do business. It became obvious that the way our company manages this process is outdated from somewhere in the past decade, so the call-outs from this discussion became very valuable. This included understanding the challenges (strategic coordination, executive buy in, technology, etc.) and recommended steps for a successful implementation. This was going to take a lot of learning to take back to the team at home.\u00a0 So I became especially devoted to assure that I absorbed all the knowledge I could.\u00a0 Plus, I networked so I could bounce thoughts and ideas from others in similar (or advanced) circumstances.<\/p>\n<p>As a newbie in this field, it made the most sense for me to go through the <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=320\">level 1 discussions<\/a>. The track started with a presentation titled, \u201cResolving Conflict &amp; Building Consensus in the Monthly S&amp;OP Process\u201d by Alan Milliken.\u00a0\u00a0 He was a very no-nonsense speaker and delivered many important lessons such as:<\/p>\n<ul>\n<li>The <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=321\">executive team <\/a>has to provide the goal and define the way<\/li>\n<li>Collaboration and consensus decision making are keys to success<\/li>\n<li>Goal is to resolve problems, not avoid problems<\/li>\n<li>Never give up trying to prioritize to reach goals, as management bias plays in, and you can\u2019t lose sight of the big picture.<\/li>\n<li>Watch for \u201cspectators\u201d who have a detailed agenda \u2013 take them to the woodshed<\/li>\n<\/ul>\n<p>Mr. Milliken\u2019s presentation outlined a demand-supply planning model, and documented linkages between the two that will be very applicable during our roll-out.\u00a0 In addition, he provided some very good ideas regarding agenda development and prioritization for the Executive S&amp;OP.<\/p>\n<p>Next was the presentation called \u201cHow to Effectively Utilize Forecasting and Demand Planning in the S&amp;OP Process, by Mr. Bill Oakley of TE Connectivity. Mr. Oakley laid the foundation of his presentation by posing the key question: \u201cHow do we evolve?\u201d\u00a0\u00a0 This was key for me, as our processes are somewhere in the stone-age, and that\u2019s not acceptable.\u00a0\u00a0 Some key lessons from his presentation included:<\/p>\n<ul>\n<li>S&amp;OP processes need to be concurrent to assure timeliness<\/li>\n<li>Don\u2019t ambush people with the process \u2013 describe, explain, get them excited!<\/li>\n<li>Every move must have a benefit.<\/li>\n<li>Metrics must be fully understood<\/li>\n<li>People, Process, and Technology must all work <span style=\"text-decoration: underline;\">together<\/span> to facilitate a functional and well run Demand Consensus<\/li>\n<\/ul>\n<p>Again, in retrospect some of this is obvious, however while dealing in the day-to-day, these things are easy to overlook.\u00a0\u00a0 Next was a lunch presentation by Sheetal Shah of Motorola, where he addressed key points regarding the incorporation of customers and vendors into the S&amp;OP process.\u00a0\u00a0 His comments were well noted and will certainly be included in a phase of our S&amp;OP roll-out.<\/p>\n<p>The next presentation of information was by my favorite presenter of the conference, Mr. Craig Faulkner of W.L. Gore.\u00a0\u00a0 He is a person who isn\u2019t faking the love of the S&amp;OP process, and who I hope to emulate during our roll-out.\u00a0\u00a0\u00a0\u00a0 I actually attended two of his presentations:\u00a0 \u201cSupply Planning for Both In-House and Outsource Manufacturing\u201d on Thursday, and \u201cHow S&amp;OP Can Support and Enhance New Product Launches\u201d on Friday.\u00a0\u00a0\u00a0 I absorbed many applicable lessons from this presentation, including:<\/p>\n<ul>\n<li>Inventory exists to account for uncertainty, otherwise we wouldn\u2019t need it.\u00a0 The inventory dilemma is how to balance it \u2013 not that it\u2019s just \u201cbad\u201d or \u201cgood\u201d<\/li>\n<li>An effective S&amp;OP process is a decision making process.\u00a0 Communicate and execute one plan.<\/li>\n<li>S&amp;OP should be dynamic, move with market needs, applies realistic goals, and is flexible to respond to market opportunities.<\/li>\n<li>There are many evolving benefits of S&amp;OP, including better customer service, reduced obsolescence, enhanced teamwork, and better decisions.<\/li>\n<\/ul>\n<p>The last presentation on Thursday was \u201cLean Forecasting\u201d by Mr. Mike Gilliland of the SAS Institute, and Mark Hahn from Amway. Admittedly this is an area that I was least comfortable with, however I felt it was important to get exposed to some of these <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=312\">demand-side concepts<\/a> that I could hopefully articulate to our Sales group properly.\u00a0\u00a0 These gentlemen were sharp and straightforward, and the following lessons stuck with me:<\/p>\n<p><strong><span style=\"text-decoration: underline;\">\u00a0<\/span><\/strong><\/p>\n<ul>\n<li>The primary forecast objective is to forecast as accurately, efficiently,\u00a0 and unbiased as possible<\/li>\n<li>Perfect forecasting is not realistic<\/li>\n<li>Focus on forecast efficiency<\/li>\n<li>Use FVA analysis to identify and mercilessly eliminate non\u2010value adding activities; streamline the forecasting process &amp; re\u2010direct wasted effort<\/li>\n<li>FVA is measured by comparing the results of a process activity to the results you would have achieved without doing the activity<\/li>\n<\/ul>\n<p>FVA was certainly a new concept, and I feel well armed to have an intelligent discussion with our Sales team about<a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=320\"> forecast methods and the benefits of applying statistical elements.<\/a><\/p>\n<p>The following morning started with a session titled \u201cSuccessful Implementation and Revitalization of S&amp;OP,\u201d presented by Mr. Bradley McCollum of Jarden Leisure and Entertainment. Mr. McCollum really went into the details of S&amp;OP, talking through responsibilities of the demand and supply sides in a really understandable manner.\u00a0\u00a0 Takeaways that I could appreciate included:<\/p>\n<ul>\n<li>An S&amp;OP Champion profile should include being well respected and dedicated to the process<\/li>\n<li>Forecasts need to be challenged \u2013 contradictions need to be addressed.\u00a0\u00a0 But disagree without being disagreeable.<\/li>\n<li>Successful S&amp;OP implementations start with executive commitment and ownership<\/li>\n<li>Build the right team. You want the \u201cA\u201d Team<\/li>\n<li>Take the time to have an effective kick-off; educate and plan<\/li>\n<li>Pro-actively communicate and manage risks; off the bat, agree to what you know and what you don\u2019t know<\/li>\n<\/ul>\n<p>Mr. McCollum\u2019s presentation will certainly be an important part of the <a href=\"http:\/\/ibf.org\/conferences.cfm?fuseaction=conferenceDetail&amp;conID=320\">road map to developing our process<\/a>.\u00a0\u00a0\u00a0 Not only did he present the details of demand and supply, but he documented how to make it all work together.<\/p>\n<p>Unfortunately I had to leave before Mr. Todd Gallant\u2019s \u201cPre and Executive S&amp;OP Session\u201d presentation. However, his presentation had very good, points that leant well to the entire family of sessions, and he has been very kind in answering my follow up questions via email.<\/p>\n<p>All in all, my participation in this event has opened my eyes to many great opportunities for my company, as well as for my <a href=\"http:\/\/ibf.org\/index.cfm?fuseaction=showObjects&amp;objectTypeID=47\">professional development<\/a>.\u00a0\u00a0 Unfortunately, this also really highlighted our shortcomings, where I didn\u2019t think we were so bad. However, I am now inspired to move my company forward procedurally and technically so that our processes can reach world-class status and our profitability is maximized.\u00a0\u00a0 Admittedly there was some overlap between the presentations; however for my purposes this really drove some key S&amp;OP principles home. You will find me at the crossroads where demand and supply meet.\u00a0\u00a0\u00a0 Thanks <a href=\"http:\/\/www.ibf.org\">IBF<\/a> and <a href=\"http:\/\/www.apics.org\">APICS<\/a>!<\/p>\n<p>Edward Rodriguez<br \/>\nDirector, Supply Chain Management<br \/>\nInternational E-Z UP<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We are a medium sized privately held business that has a large ERP, but probably hasn\u2019t invested into its processes and user reporting as much as we should. \u00a0In my 6 years with the company, I started as the Controller, and then moved to Director of our retail stores\/internet operation, and now I fill a [&hellip;]<\/p>\n","protected":false},"author":878,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[82,60,61,62,41,64,65,66,34,67,39,68,69,70,35,42,43,44,36,48,81,37,73,74,38],"class_list":{"0":"post-1238","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-forecasting-and-planning","7":"tag-apics","8":"tag-best-practices","9":"tag-business-forecasting","10":"tag-collaborative-forecasting","11":"tag-data-cleansing","12":"tag-demand-forecast","13":"tag-demand-forecasting","14":"tag-demand-management","15":"tag-demand-planning","16":"tag-demand-planning-and-forecasting-conference","17":"tag-economic-forecasting","18":"tag-executive-sop","19":"tag-forecast-accuracy","20":"tag-forecast-error","21":"tag-forecasting","22":"tag-forecasting-metrics","23":"tag-forecasting-models","24":"tag-forecasting-system","25":"tag-ibf","26":"tag-institute-of-business-forecasting-and-planning","27":"tag-inventory-management","28":"tag-sop","29":"tag-sales-operations-planning","30":"tag-sales-forecasting","31":"tag-supply-chain"},"_links":{"self":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts\/1238"}],"collection":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/users\/878"}],"replies":[{"embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/comments?post=1238"}],"version-history":[{"count":0,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/posts\/1238\/revisions"}],"wp:attachment":[{"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/media?parent=1238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/categories?post=1238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demand-planning.com\/wp-json\/wp\/v2\/tags?post=1238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}