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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 Equip Sales Reps with clear and
of S&OP data 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
Monthly
CU/Territory products are reflected in various
ways we capture demand signal

Sales Input*

Customer
Marketing Supply
Response
Input
Demand Allocation
Pre-SOP SOP
Review Planning
Product
Marketing Scenario Scenario Scenario
Planning Planning Planning
Input

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, most realistic unconstrained
followed trough market drivers and forecast. Acts as process, system & data
expert.
assumptions framework

Demand Manager focus is on


delivery of the most profitable
Marketing-led process to constrained plans e.g.
ensure alignment to strategic plans,
allocation plan, volume & value base
focus on right products and
scenario planning, demand shaping.
customers strategy/tactics.

Sales qualitative inputs reflected in


process steps are adapted to local
Finance Business Partner & Pricing
organization structure and / Manager focused to manage price elasticity, projected
margins, validate profit and revenue projections,
got to market strategies validate & ensure integration with Fin System.

6 Classification: PUBLIC
3.What value Syngenta extracts from IBP powered by SAP
Processes

IBP covers standard sales We capture and manage in IBP


according to when we expect to sell/ship Samples / Free of Charge to
products to the 3rd party customers net out the Sales Revenue forecast
and inform Supply Plans.

We use IBP for consignment We forecast Standard


sales according to Supply Products, Combi-packs,
consignment fill-up , ICS ensuring E2E integration &
revenue recognition profit / COGS assignment.
according to finance phasing

We capture demand signal for B2B,


We incorporate Royalties/License Distributors, Smallholders
fees to ensure a complete Sales (small farmers), Associations
Revenue projection

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
We equip IBP&SOP management
with simulations on budget
gap exposure / closure
e.g. Demand Shaping,
In IBP we capture
uncertainty (events) Sell-to-availability.
For seeds business with short
e.g. to enable supply planning season (sometimes. 6 weeks
of long lead-time formulations window) we incorporate
and AIs related to registration or weekly operational
any other event which requires
non-demand driven production . S&OP meeting aligned to
monthly IBP SOP. It may
leverage deployed data
model and SAP IBP SOP
tool capabilities.
We define and integrate with ERP
Allocation plans to achieve most
profitable outcome and integration with
Order-to-Cash process We use product
categorization , process
measurement and plan to use
statistical forecasting to embed
We manage in IBP business
trade offs, risks & differentiated forecasting in
opportunities with Scenario Planning, IBP. It helps us to achieve step change
linked to assumptions captured in volume, value, price, in process efficiency & effectiveness
margin

8 Classification: PUBLIC
3.What value Syngenta extracts from IBP powered by SAP
System & Technology

We enable integrated & flexible data


Forecast Value-add Analysis, model (structures) across all business lines and all
geographies to execute process steps and all
6 Sigma READY. Protecting inputs
in role based templates to achieve integration requirements. (Planned size 11TB)

Hana Cloud Integration


platform used to integrate ca. Top down / bottom up,
20 data sources: Aggregate / detail
VENDAVO pricing, working level aligned to
SALESFORCE account plans,
best insights. Effective
disaggregation/aggregation
QUANTUM ex-Rates, supporting changes of level.
BI, APO, 3 x ECC,
local CRMs .

Cross process steps Data load and work


controlled data flows levels can be different

9 Classification: PUBLIC
3.HowSyngenta 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 support,
- documentation standards,
- knowledge transfer to business, build, support, 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 IMPLEMENTED


Response &
PLANNED 2017 Demand Inventory
Supply
SAP HANA Platform IMPLEMENTED

Technology Major upgrade to 6.1 IMPLEMENTED

Fiori UI PLANNED 2016/2017

Web UI & Dashboards PLANNED 2016/2017

JAM Collaboration PLANNED 2016/2017

12 Classification: PUBLIC
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

IMPLEMENTED IN PROGRESS PLANNED 2017/18 UNDER REVIEW

Annual Weekly in-


Monthly Budgeting
Variety & Annual AI season
CU/Territory process
Formulation SOP

13 Classification: PUBLIC
Questions ?

Today, I will be available at booth.

How to manage roadmap 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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BACK UP SLIDES

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

L/M M H
S&OP Levels

Monthly Annual Variety &


Annual AI
CU/Territory Formulation

CY and CY+1 CY+2 and CY+3 CY to CY+5

As-Is degree of harmonization L S&OP SKU / month Formulation & Variety Active Ingredient
(*Control Tower SKU / week) Year Month & Year

18 Classification: PUBLIC
SAP IBP overview, IBP 6.2, mid 2016 status

E2E exception based


2 alerts, workflow,
Supply Chain Control Tower
Supports S&OP and collaboration ,
processes which reporting & analytics
require collaboration, Sales & Operations Planning 3
simulations e.g.
budgeting, financial 2 2 Response & 1
planning, long term Demand Inventory
Supply
strategic planning Supply planning and
SAP HANA Platform 3 demand response
module which may
Statistical forecasting, work on order level,
portfolio segmentation, optimizes your supply
Inventory optimisation
short term demand plans and response
tool with proven
sensing algorithms Smartops algorithms
behind

Immature to realize benefits Gradually approach Ready for realization of


1 2 realization of benefits
3 benefits

19 Classification: INTERNAL USE ONLY


What SAP IBP S&OP can be used for

Any Planning processes financial, budgeting, supply,sales, marketing and x-


functional 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
User 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*
Administrative
functions

* Functionality will be evaluated in 2016

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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 users create their own favourite planning view
specific to portfolio, geography, planning level specific to
WoW etc.

Favourite
Planning View
End user-defined or
key user-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 support variants of the
process like consignment or supporting with extra
information like Analytical view.

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Planning View
IBP Toolbar tab

End Users main


functions

Info section
Chart area

Header section

Time Horizon
Planning Level /
Data Dimensions
Planning Data
section

Multi-View tabs

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Favourite Planning View

From Global Planning View to user specific Planning View linked to


Template best insights

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

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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 supported. IBP master data tables are exposed as read-only.
Agent provides access to HCI from Syngenta.

On-Premise Systems

Hana Cloud Integration


OASIS

MDM SFTP
(PI)

HCI
AGENT https IBP S&OP
ERP FI
RFC

APO EBI

Syngenta Environment SAP Cloud Environment


Firewall

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26 Classification: PUBLIC