Can the breakthrough thinking
enabled by scenario analysis
used for over 15 years in the energy industry
be applied to S&OP?
Portfolio Decisions is a management consulting firm specializing in strategic planning, integrated business planning, and scenario analysis. We have deep expertise and a time-tested toolset developed over 15 years working with 100+ clients in the energy industry.
Working with Ling Coldrick, thought-leaders in aligning S&OP with business and strategic agendas, we are applying our methods to manufacturing and distribution. We believe these methods can help you streamline existing planning processes and facilitate breakthrough thinking about your business.
If you’d like to learn more, read on and/or request a schedule of our Webinars by sending an e-mail to info@portfoliodecisions.com
INTEGRATED RECONCILIATION IS THE MOST CRUCIAL STEP
IN SUCCESSFUL S&OP
Dick Ling and Andy Coldrick pioneered the conceptual model for the S&OP process to include portfolio management, new activities and Integrated Reconciliation. This ensures that executives can spend their time in the Senior Business Management Review / Executive S&OP focused on a business agenda such as increasing profits and improving cash flow. Our tools and expertise enable a pragmatic, hard number implementation of Ling and Coldrick’s ideas to an extent that has never been possible before.
Integrated Reconciliation is the process by which executives resolve issues related to their strategic agenda. They make some decisions and highlight other issues that need to be elevated to senior executives in the Senior Business Management Review / Executive S&OP. A properly run Integrated Reconciliation will highlight, for example, potential difficulties in meeting this year’s targets or in executing the long term strategy. Companies can use Integrated Reconciliation to evaluate new opportunities for profit and to explore options for making the business sustainable.
Integrated Reconciliation is an iterative process run by a senior team in the business. It is collaborative. It is a process by which the business functions share knowledge that impacts what other groups do.
When implementing successful S&OP, a critical first step is to understand what issues are creating the greatest difficulty for the executives or what opportunities have the potential to strengthen the company. This is at the heart of our approach. The issues voiced by the senior executives during this step will guide the design and implementation of the Integrated Reconciliation process. This approach simplifies data collection, and focuses the configuration of the Integrated Reconciliation model so that it meets the needs of senior management.
Ling Coldrick and Portfolio Decisions have joined forces to make the ideal of Integrated Reconciliation, and all the value it can provide, into a reality.
BUILDING THE INTEGRATED PICTURE
Collecting, aggregating and integrating all the necessary information for the Integrated Reconciliation process can be difficult. We have extensive experience in other industries helping clients automate the collection of disparate data and aggregating that data to an appropriate level of detail without losing the information needed to address business issues. Once data has been gathered we can assist in integrating a total picture of rough cut capacity, sales demand, new activities, and the resulting financial implications so that a collaborative conversation can begin.
SCENARIO ANALYSIS
You can take this integrated picture to the next level. Step into a world of exploring alternatives and developing actionable analysis. Quickly re-evaluate your situation any time circumstances change.
- Evaluate the impact of changes on the demand side (sales, price, promotions, new products, etc.), or the supply side (changes in capacity or supply).
- Integrate portfolio management and new activities into your S&OP process.
- Balance short term profit and the long term goals of the strategic plan.
- Evaluate risk and uncertainty and its impact on financial and operational outcomes. The more you experience supply side volatility, demand uncertainty, or both, the more you need to understand their impact.
INTEGRATED RECONCILIATION REQUIRES A ROBUST TOOLSET
Our toolset can ease the collection and aggregation of disparate data and integrate different points of view across the company. It supports rough cut capacity and supply planning and adapts to the metrics, timeframes and operational complexities that are important to you. It is flexible, fast and visual. Output is customized for each client. Once the model is configured and the monthly data imported, output is generated in minutes. Often, new ‘what if’ questions can be tested just as quickly.
We don’t simply provide a static report with a useful display; we provide an integrated analysis model. All functions can be evaluated simultaneously: marketing, sales, operations and finance.Change the demand forecast and you can see the cascade effect from capacity needed next month through to end of year profit margin by region for this year and next year.
You know your business. We know how to model the complex interactions of strategy, operational realities, demand volatility, and financial goals. Ling and Coldrick are leaders in breakthrough Sales & Operations Planning. Together we can build an Integrated Reconciliation model tailored to your company that provides you a dynamic cross functional picture of your business and the ability to perform ‘what-if’ scenario analysis in minutes.
