SupplyChainBrain attended our annual Kinexions user conference, and while there, they completed a number of video interviews with customers, analysts, and Kinaxis executives. And, we’d like to share them!
In this interview, hear Kathyleen Beveridge, director of sales operations with Qualcomm discuss “What’s Wrong With Traditional S&OP?” According to Beveridge, the sales and operations planning (S&OP) process brings great value to an organization, but companies need to take a fresh approach in order to ensure more efficient planning cycles.
Sales and operations planning involves a number of sequential stops. Mistakes anywhere along the way can lead to inefficient planning, says Beveridge. A new approach is needed that allows companies to become more agile in a difficult business climate.
Under the traditional approach to S&OP, it can take upwards of two weeks to compile data. “By the time you get in front of the management team, that data has already changed,” Beveridge says. Qualcomm has adapted S&OP to a weekly cycle, under which it has more frequent discussions with key decision makers. They focus on the state of the company’s supply and demand balance, with an eye toward making “immediate course changes” if necessary. The company also conducts monthly S&OP meetings that focus on longer-range issues.
This past week was the IE Group’s S&OP Innovation Summit at the beautiful venue of the Bellagio in Las Vegas. Kinaxis was well represented, especially with the wonderful keynote speech from Kathleen Geraghty from Celestica. Her keynote hit the main theme of the conference: S&OP Skills. Having attended and presented at many S&OP conferences, I was expecting the standard S&OP challenges of maturity and alignment with cross functional teams. The reason I found this conference surprisingly unique, is the focus on talent and skills.
Celestica’s keynote centered on “Planning with Predictive Power”, which is done as a managed service from Celestica. Having worked many years in the supply chain with the contract manufacturing firms, I find this managed service, sometimes called PaaS (Planning-as-a-Service), extremely intriguing. The contract manufacturer, Celestica, already manages manufacturing and inventory. They are best prepared to do the planning service. Kathleen spoke about managing demand planning and scenario modeling of the Brand’s S&OP process, with the goal of improving forecast accuracy to above 85% and modeling in minutes, not days.
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