Syngenta Ibp 2r3b5v

“How & What” value Syngenta extracts from Integrated Business Planning powered by SAP IBP

June 2016, Robert Kepczynski Global Supply Chain Strategy & Design, Global Supply CoE

“How & What” value, Syngenta extracts from Integrated Business Planning powered by SAP IBP

1. Business drivers for transformation 2. How Syngenta understands Integrated Business Planning 3. “How & What“ value Syngenta extracts from IBP powered by SAP 4. Syngenta considerations for next steps with SAP IBP

2 Classification: PUBLIC

1. Business drivers for transformation enabled by Integrated Business Planning In-Territory challenges

Opportunities

$$$$

Reduce lost sales and inventory

Improve visibility and data clarity to inform profitable decisions on all S&OP levels Improve process efficiency, increase selling time and remove excess data consolidation effort Huge efforts to reconcile multiple sources of S&OP data

Equip Sales Reps with clear and timely product availability data

Improve customer experience

3 Classification: PUBLIC

2. How Syngenta understands Integrated Business Planning Strong alignment to Oliver Wight concept

1. Next step in S&OP maturity, tighter x-functional integration and embed IBP as strategic business managment process 2. Revenue, profit projections coupled with volumetric planning

3. Management of business trade offs, demand and supply risks/opportunities

4. Inclusion of strategic plans long term plans and marketing Drivers N Assumptions 5. Assumptions captured give meaning to the figures 6. Budget gap identification/management

7. Top down/Bottom up ways of working, level aligned to best insights

8. One set of figures and not one figure driving business 9. Effecient and effective process leveraging diferrentiated forecasting

4 Classification: PUBLIC

3.“What“ value Syngenta extracts from IBP powered by SAP Processes Various ways of selling products are reflected in various ways we capture demand signal

Monthly CU/Territory

Sales Input*

Customer Marketing Input Product Marketing Input

Supply Response

Demand Review Scenario Planning

Allocation Planning Scenario Planning

Pre-SOP

SOP

Scenario Planning

Demand Planning Input «GROSS» VOLUME & REVENUE

«NET» VOLUME & REVENUE, PROFIT, BUDGET GAPS

DEMAND PLANNER LED

DEMAND MANAGER LED

PHASED UNCONSTRAINED

PHASED CONSTRAINED * No of levels aligned to local organizational structures

5 Classification: PUBLIC

3.“What“ value Syngenta extracts from IBP powered by SAP Organization & Capabilities Demand Planner facilitates/ensures IBP process is followed, focused on delivery the S&OP numbers are assumptions driven, followed trough market drivers and assumptions framework

Marketing-led process to ensure alignment to strategic plans, focus on right products and customers strategy/tactics.

Sales qualitative inputs reflected in process steps are adapted to local

organization structure and / got to market strategies

6 Classification: PUBLIC

most realistic unconstrained forecast. Acts as process, system & data expert.

Demand Manager focus is on delivery of the most profitable constrained plans e.g. allocation plan, volume & value base scenario planning, demand shaping.

Finance Business Partner & Pricing Manager focused to manage price elasticity, projected margins, validate profit and revenue projections, validate & ensure integration with Fin System.

3.“What“ value Syngenta extracts from IBP powered by SAP Processes

IBP covers standard sales according to when we expect to sell/ship products to the 3rd party customers

We capture and manage in IBP

Samples / Free of Charge to “net out” the Sales Revenue forecast and inform Supply Plans.

We use IBP for consignment sales according to Supply consignment fill-up ,

We forecast Standard

revenue recognition

profit / COGS assignment.

Products, Combi-packs, ICS ensuring E2E integration &

according to finance phasing

We incorporate Royalties/License fees to ensure a complete Sales Revenue projection

We capture demand signal for B2B,

Distributors, Smallholders (small farmers), Associations …

In IBP financial commitment we incorporate volumetric Commercial Returns and financial Accruals for it

7 Classification: PUBLIC

3.“What“ value Syngenta extracts from IBP powered by SAP Processes

In IBP we capture

uncertainty (events)

We equip IBP&SOP management with simulations on budget gap exposure / closure e.g. Demand Shaping,

Sell-to-availability.

e.g. to enable supply planning of long lead-time formulations and AIs related to registration or any other event which requires non-demand driven production .

We define and integrate with ERP Allocation plans to achieve most profitable outcome and integration with Order-to-Cash process

For seeds business with short season (sometimes. 6 weeks window) we incorporate

weekly operational “S&OP” meeting aligned to monthly IBP SOP. It may leverage deployed data model and SAP IBP SOP tool capabilities.

We use product

categorization , process measurement and plan to use statistical forecasting to embed We manage in IBP business

trade offs, risks & opportunities with Scenario Planning, linked to assumptions captured in volume, value, price, margin

8 Classification: PUBLIC

differentiated forecasting

in IBP. It helps us to achieve step change in process efficiency & effectiveness

3.“What“ value Syngenta extracts from IBP powered by SAP System & Technology

Forecast Value-add Analysis, 6 Sigma READY. Protecting inputs in role based templates to achieve

Hana Cloud Integration platform used to integrate ca. 20 data sources: VENDAVO – pricing, SALESFORCE – plans, QUANTUM – ex-Rates, BI, APO, 3 x ECC, local CRMs ….

Cross process steps

controlled data flows

9 Classification: PUBLIC

We enable integrated & flexible data model (structures) across all business lines and all geographies to execute process steps and all integration requirements. (Planned size 11TB)

Top down / bottom up, Aggregate / detail working level aligned to best insights. Effective disaggregation/aggregation ing changes of level.

Data load and work levels can be different

3.“How“Syngenta extracts value from IBP Approach

ITERATIVE DESIGN & BUILD FOR A COMMON GLOBAL 1

FRAMEWORK

INTEGRATED DESIGN & ROLL-OUT • Integrated designs with other areas will amplify benefits e.g. Pricing, Order Management , Credit Management, Supply Response

IBP GLOBAL TEAM, DESIGNS HOW IT WORKS IN BUSINESS: - overlap of capabilites (business, best practices, systems) with clear responsibilites - operating model design: processes, organization and capabilites, systems - operating model transfromation (from as is to to-be, including forming IBP Center of Expertise) - configuration and build standards, - required technical and business , - documentation standards, - knowledge transfer to business, build, , rollout teams 10 Classification: PUBLIC

CLASSIFICAITON: Confidential

3.“How“ Syngenta extracts value from IBP Approach Co-innovation enables Win-Win Best practices in global design v 1.0

Technical and Business Go-Live, Clustered Design, Build & Transfromation

11 Classification: PUBLIC

4. Syngenta considerations for next steps with SAP IBP

● Functional perspective Supply Chain Control Tower Sales & Operations Demand

PLANNED 2017

Inventory

Response & Supply

SAP HANA Platform

● Technology

•

Major 6.1 •

•

IMPLEMENTED

IMPLEMENTED

Fiori UI

PLANNED 2016/2017

Web UI & Dashboards

PLANNED 2016/2017

•

12 Classification: PUBLIC

IMPLEMENTED

JAM Collaboration

PLANNED 2016/2017

4. Syngenta considerations for next steps with SAP IBP

● Geographical perspective • • •

Midium size territory

IMPLEMENTED

2 largest territories rollout

IN PROGRESS

Globally accelerated deployment

PLANNED 2017/18

● Process perspective

13 Classification: PUBLIC

IMPLEMENTED

IN PROGRESS

Monthly CU/Territory

Annual Variety & Formulation

PLANNED 2017/18

Annual AI

UNDER REVIEW

Budgeting process

Weekly inseason “SOP”

Questions ?

Today, I will be available at

booth.

How to manage roap and value realization? Do you need PoC and Prototypes for tool which still matures? How to approach IBP business cases? What are the IBP modules maturity and where they fit? How important data model and data integration is ? What opportunities SAP IBP S&OP creates? What challenges IBP creates compared to S&OP?

14 Classification: PUBLIC

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15

BACK UP SLIDES

17 Classification: PUBLIC

2. How Syngenta understands Integrated Business Planning S&OP levels, processes, degree of harmonization S&OP Processes

S&OP Levels

L/M

M

H

Monthly CU/Territory

Annual Variety & Formulation

Annual AI

CY and CY+1

CY+2 and CY+3

CY to CY+5

S&OP SKU / month

Formulation & Variety

Active Ingredient

(*Control Tower SKU / week)

Year

Month & Year

H

M

L

L

As-Is degree of harmonization

L

18 Classification: PUBLIC

SAP IBP overview, IBP 6.2, mid 2016 status

2

s S&OP and processes which require collaboration, simulations e.g. budgeting, financial planning, long term strategic planning

Supply Chain Control Tower Sales & Operations Planning

Demand

2

Inventory

2

Statistical forecasting, portfolio segmentation, short term demand sensing algorithms

19

Immature to realize benefits

Classification: INTERNAL USE ONLY

3

Response & 1 Supply

SAP HANA Platform

1

E2E exception based alerts, workflow, collaboration , reporting & analytics

Supply planning and demand response module which may work on order level, optimizes your supply plans and response

3

Inventory optimisation tool with proven “Smartops” algorithms behind

2

Gradually approach realization of benefits

3

Ready for realization of benefits

What SAP IBP S&OP can be used for Any «Planning» processes financial, budgeting, supply,sales, marketing and xfunctional which requires: • • • •

Consilidation of manual inputs Automatic calculation (as well integrated) Reconciliations Collaboration

• • • •

Scenario planning, simulations & comparisons Working level aligned to insights Own calculation and data flows Integration of various of data sources

• Data load level different or eaqual working levels • Posibility to design own disaggregation and aggregation rules

20 Classification: PUBLIC

Interfaces (UI) to access IBP Excel UI through IBP Add-in: • Review and modify planning data • Run Simulations

IBP S&OP

WEB UI: • Process completeness* • Dashboards* • istrative functions

* Functionality will be evaluated in 2016

21

Planning with Excel UI

Planning View Template • System representation of business process step • Stored planning view with predefined layout (formatting, charts) and settings (time horizon, key figures, planning levels). • End s create their own favourite planning view specific to portfolio, geography, planning level specific to WoW etc.

Favourite Planning View • End -defined or key -defined (and shared) view that allows to execute process step in customized way, specific WoW.

Planning Multi-View • Excel Workbook normally contains more than one Planning View. • Workbooks are designed to variants of the process like consignment or ing with extra information like Analytical view.

22

Planning View IBP Toolbar tab End ’s main functions

Info section

Chart area Header section

Time Horizon Planning Level / Data Dimensions

Planning Data section

Multi-View tabs

23

Favourite Planning View …to specific Planning View linked to best insights

From Global Planning View Template…  Time Period (year, quarter, month)  Time Horizon  Rolling

 Master Data Type ATTRIBUTES (from 1 to 15)*

 Key Figures  Currency  Unit of Measure (UoM)

 Rows and Axis disposition

 Master Data Type ATTRIBUTES constraining displayed data

24

IBP S&OP Integration ●

SAP HANA Cloud Integration (HCI) is used to move data into and out of SAP Integrated Business Planning: - Import: HCI directly connects to On-Premise systems to extract and securely pipe data from source systems to IBP target tables via secure HTTP (HTTPS). - Export: For each planning area in IBP, there is an IBP calculation scenario that allows the extraction of all IBP key figures on any aggregate level. In addition, the extraction of master data via HCI is also ed. IBP master data tables are exposed as read-only. Agent provides access to HCI from Syngenta.

●

SFTP

AGENT ERP

APO

FI

https

RFC

EBI

IBP S&OP

SAP Cloud Environment

Syngenta Environment

Firewall

25

HCI

MDM

Hana Cloud Integration

OASIS (PI)

On-Premise Systems

26 Classification: PUBLIC