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CIBER’s Supply Chain Practice brings end to end consulting solutions that help companies improve the reliability and timeliness of their supply chain, while reducing costs, enhancing efficiency, improving customer service and increasing bottom line profitability. CIBER’s expert Supply Chain Consultants can assist any supply chain organization with the following expertise:
Supply Chain Sales and Operation Planning (S&OP)
Executives Are Challenged to Increase Revenues and Profits
All executives are tasked with similar objectives to grow market share and increase profits. Within a company, each manager is tasked with implementing improvements within each functional area to support corporate objectives. When a company does not accurately address the manufacturing, sales and operation aspects of the supply chain, several issues can occur. Functions become better and more efficient but revenues, profits and market share can decrease due to dysfunctional silos.
• Sales & Operations Planning • Supply Chain Assessments • Network Analysis, Design and
• Inventory Planning & Optimization • Demand Planning • Sourcing Optimization • Software Selections Services • WMS and TMS Implementations • Transportation Management • RFID Design and Implementation • Project and Program Management • Warehouse Performance Audit
In today’s competitive and dynamic marketplace, a company’s supply chain can be a strategic and competitive advantage. CIBER understands this and leverages proven consultants with real world experience and a set of robust tools in all of its solutions.
Profits and Revenues Decline As Each Functional Silo Improves
Each functional area is focused on improving costs and efficiencies but the end result may be in direct opposition to another department’s improvement, thus hindering the overall objectives of the executive team.
As manufacturing becomes more efficient, inventories can increase if the product being manufactured is not being purchased by consumers. Marketing creates great promotions using the latest analytic technologies and tools to communicate, but often the supply chain gets the message too late. This leaves customers frustrated when they order a promoted product and are forced to wait weeks for their order to be filled. Distribution may launch a system to reduce labor cost per unit, but they often just become more efficient at putting the wrong inventory into a more efficient warehouse. In the middle of all of this chaos, finance will focus on determining how much cost must be removed for the business to remain profitable.
because they are using the same plan as Marketing and Sales. they are only handling what is being ordered. The sales staff is more effective because what they are promising their customers is being delivered. Manufacturing will claim that they are asked to make items they don’t have the raw materials to produce because they never saw the Sales and Marketing plan. the benefits derived from following the process .SOLUTIONS CIBER follows a 5 step process to ensure all elements of the Supply Chain work together toward the same goals and objectives. CIBER Approach to S&OP CIBER uses a holistic five-step approach to implement an S&OP process within a company. This approach is based upon laying a strong foundation and fundamental acceptance that is critical for the process to endure into the future. each manager will blame another function. Sales will claim that Manufacturing cannot ship orders when the customer wants them. how it works. and the blame game continues. (see Figure 1) The key to S&OP is a single consensus plan that drives the entire business: • Manufacturing is making what the customers are ordering. • • An Effective Sales and Operations Planning (S&OP) Management Process is the Solution A proven solution to this business problem is the Sales and Operations Planning (S&OP) process. CIBER can accomplish this by educating your team about the process. Head Count and Resources Marketing Efficiency Manufacturing Implement lean strategy to reduce cost & improve efficiencies Distribution Implement new warehouse system to reduce labor cost Sales Works on improving relationships with key customers 5 Step Process • Assessment • Education and Change Management • Process Design • Implementation with a Coaching Focus • Post Implementation Assessment Promotion to increase market share Decreasin g Revenu es. It is an executive management process that ensures all functions in a business are aligned to meet overall business objectives. Profit s and Ma rket Shar e Figure 1 – Silos When the top executive asks each functional manager what is wrong. Distribution costs will decline because labor is not handling nor storing the products that customers aren’t buying. which in turn creates opportunities to open new accounts.
). CIBER understands the importance of coaching a business through the successful implementation of an S&OP process to ensure the team ends up with the necessary skills and discipline needed to sustain a Best-in-Class S&OP process. These workshops also address the key success factors needed to implement and sustain a Best-InClass S&OP management process. this will result in a true alignment of functions.Education and Change Management After CIBER has taken time to understand challenges facing the top executive and each functional manager. Step 4 .Process Design After a client has decided to implement a Best-In-Class S&OP management process.Post Implementation Assessment CIBER will assess the implementation of the S&OP management process with the use of key business metrics. CIBER has many S&OP tools that are already in place that can be tailored to meet any customer’s needs thus foregoing the time and effort needed to create new S&OP processes and tools.and coaching them through the entire process as changes occur. Step 3 . revenues and market demand on a monthly basis. Step 2 . These workshops will educate both executive management and functional departments on how the S&OP process works as well as demonstrating the benefits that a Best-In-Class S&OP process can bring to the business. inventory turns. The S&OP process can generate challenging business discussions that many companies may shy away from. CIBER consultants work side-by-side with our clients to encourage teams through the tough discussions that must take place. At the end of the assessment you should see these key metrics have improved significantly.. The monthly process should include the following steps: By following these monthly steps an effective executive communication tool can be created. Without S&OP (Silos) Finance Manufacturing Profitability Efficiency Product Demand Inventories Creates Great Promotions Supply Chain Communication Order Fill Reduce Labor Cost Per Unit Putaway C B+ D C A D C A D S&OP Process Implemented A A A A A A+ A A A Marketing • • • • • Data Gathering Demand Planning Supply Planning Pre-meeting Executive meeting Supply Chain Distribution Figure 2 – Report Card (This graph is used to explain how respective functional units can improve their functional effectiveness through the implementation of the S&OP process). CIBER’s coaching services facilitate these important discussions. with the objective of understanding.Assessment CIBER Supply Chain Consultants provide an assessment of current management processes utilized by a business to manage various functions. the challenges facing the top executive. . customer service fill rates. CIBER also discovers. The process will create one plan for all business units to be aligned to and one set of numbers to report on. extensive change management for a variety of process and systems implementations and other collaborative processes and industry accepted best practices. CIBER designs an S&OP process that is specifically customized to the business. Step 1 .g. (e. The CIBER team is experienced with S&OP design. Step 5 .Implementation with a Coaching Focus S&OP creates a culture that ensures all functions take a thorough. CIBER takes the necessary time to listen and understand the challenges facing each functional manager. implementation and improvement. CIBER provides educational and change management workshops. one of the main goals of S&OP. realistic look at costs. etc.
This identifies the changes necessary to operate at optimum efficiency.242. 25 European offices and seven offices in Asia/Pacific. Assessment: CIBER provides understanding of the overall challenges and concerns present within each silo of the supply chain. SOLUTIONS About CIBER. cost effective process.S. January 2010 www.1 billion.ciber. CIBER can help. offices. Inc. Project Design: Best-in-Class S&OP process and tools are tailored to each organization’s supply chain processes. This results in a time saving.com . Operating in 18 countries. The Benefits Throughout each Step of CIBER’s S&OP process an organization will achieve specific benefits. All Rights Reserved. Implementation with a Coaching Focus: The implementation process creates a transparent. CIBER now serves client businesses from over 40 U. Education and Change Management: An organization is provided education and change management workshops specifically designed to meet specific challenges and objectives. (NYSE: CBR) is a pure-play international IT outsourcing and software implementation and integration consultancy with superior value-priced services and reliable delivery for both private and government sector clients. and across all technology platforms.” CIBER is included in the Russell 2000 Index and the S&P Small Cap 600 Index. realistic view of an organization’s supply chain processes. Colo.Supply Chain Sales and Operation Planning (S&OP) Whether a company decides to implement or wants to improve an existing S&OP process. Inc. Inc. Overall Benefits • • • • • Increased customer satisfaction Improved customer fill rates and inventory turns Improved teamwork and collaboration Better understanding of the market and capabilities to meet market demand Overall understanding of common goals and objectives Learn more Call 800-242-3799 or visit www. CIBER and its IT specialists continuously build and upgrade clients’ systems to “competitive advantage status. operating systems and infrastructures. in both custom and enterprise resource planning (ERP) package environments. Post Assessment: CIBER provides each organization a measured. CIBER’s services are offered globally on a projector strategic-staffing basis. quantitative understanding of the improvements made in the supply chain process. Founded in 1974 and headquartered in Greenwood Village. with more than 8. CO 80111 800.ciber.3799 © 2009 CIBER. CIBER ensures a Best-in-Class S&OP process as each silo is provided the necessary skills and knowledge to perform in a cohesive effort. CIBER..com 6363 South Fiddler’s Green Circle Suite 1400 Greenwood Village.500 employees and annual revenue of $1.
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