A global technology company was unveiling and implementing a new integrated supply chain S&OP (Sales & Operations Planning), end to end process, backed by a brand-new Demand and Supply Planning tool to fully integrate with several ERPs. The company has several ERPs and S&OP process maturity levels across business units with very diverse products.
Business Challenges and Opportunity:
The Integrated Supply Chain function at the global technology company was implementing a new digital solution to assist with demand planning, supply planning, production planning, and the new S&OP processes. With several ERPs and S&OP process maturity levels across business units from project-based items to physical containers to engine motors and parts, this company lagged capabilities to foresee Demand and effectively plan Supply and Production accordingly. The implementation of the new digital solution to address the appropriate processes was estimated to save approximately $55M over five years, therefore fast and efficient actions were required.
Figure 1 | Clear scope of the processes that will be impacted by system implementation
The business process management team developed and utilized a software-based reference model – specific to the digital solution being implemented -to help customize and align the tool’s out-of-the-box capabilities with the end-to-end processes to help fully support and accelerate the implementation.
Capture As-is process models with SME’s from both IT and business. Processes were documented in digital process repository using BPMN.
Produced dynamic software reference models to show how processes are best organized to maximize value from the digital solution.
Reference models were leveraged to get both business and IT synergize on what the basic requirements were for the end-to-end process.
Design To-be processes which incorporated and aligned both the tool and process capabilities while highlighting process improvement opportunities.
Develop step-by-step roadmap to show how the system impacted the process, along with all critical data elements, in addition to functional and technical requirements.
Figure 2 | Process models highlighting how system implementation will impact new process
Project implementation time was decreased by 30% through a process-led approach to the digital process implementation.
Standardized process documentation & transformation approach. Establishing a greater understanding of the tool’s purpose and capability throughout organization.
The business and IT departments aligned on 57 newly defined system workflows, with input from 145 subject matter experts.
Figure 3 | Process simulation identifying scenarios where cost, cycle time, and inventory savings can be applied
Met all 250 requirements defined by the business for a successful implementation.
Company can now see through the lens of an integrated S&OP process to identify where constraints exist and where probability models need adjustments.
Increased transparency where scenarios and simulation can be used to save on inventory, promoting an agile, robust, and preventive approach to S&OP, avoiding the rush of spikes, and satisfying customer needs.
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