Integrated Business Planning Process
Integrated Business Planning Process
Integrated Business Planning Process
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21 October 2012
Our company
Improving the safety, cost and productivity of patient care
Market leadership positions in:
Generic injectable pharmaceuticals globally
Biosimilars in Europe
Medication management systems globally
Pioneer in innovation and safety
70+ years experience;
public independent company since 2004
2011 annual revenues of $4.1B
15,000 employees
~15,000 employees, 13+ manufacturing facilities
Headquartered in Lake Forest, Ill., USA
Generic injectables
Proprietary drugs
Biosimilars
12%
Medication
Management
Systems
24%
63%
Other Pharma
Large volume solutions
One2One contract manufacturing services
EMEA
APAC
7%
of 2010 sales
80%
of 2010 sales
13%
of 2010 sales
Regional presence denoted by colors
6
Objectives
1. Explain why IBP is important, urgent even, for
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21 October 2012
An urgent matter:
The global drug shortage crisis
makes Integrated Business Planning
a critical imperative.
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21 October 2012
Dozens of common drugs are in such short supply in the NHS that the health of patients with
life-threatening conditions such as cancer is in peril, an inquiry into the problem has revealed.
About 80% of 60 health trusts in England and Wales are experiencing "unacceptable" delays in
obtaining drugs
- The Guardian, June 2012
One of the most serious problems in
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21 October 2012
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21 October 2012
Demand Planning
Inventory Policy & Management
Master Scheduling
Capacity Planning
Third Party Manufacturing
Raw Material Planning
Product Lifecycle Management
When rumors surface of an impending shortage, some pharmacies rush to buy up more than they need,
likely leading to bigger shortages, analysts and other pharmacists said
Some distributors and manufacturers prevent hoarding by allocating drugs based on historical demand.
- Reuters, June 2012
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21 October 2012
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21 October 2012
The broader strategic mandate for S&OP is key to superior returns. S&OP leaders are aggressively
converting S&OP from an operations level demand-and-supply balancing process to the mechanism of
choice for integrated business planning and strategy deployment
- Next Generation S&OP: The Path to Bottom-Line Value, Stephen Hochman
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21 October 2012
Operations Review
Business Review
Business Planning
Operations Planning
Consensus Demand Planning
ES&OP
Statistical Models
Production
Inventory
Latest
Financial
Plans
Geographies
Channels
2010 Supply Chain Council. ALL RIGHTS RESERVED. |
Warehouse &
Transportation
Portfolios
< filename >
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21 October 2012
Pre-S&OP /
S&OP
Operations Review
Business Review
Business Planning
Operations Planning
Supply
Planning
Demand
Review
Pre-S&OP
S&OP
Operations
Review
The same time-tested Sales & Operations Planning steps are at the heart of IBP
IBP is a cyclical process, with each cycle feeding assumptions and guidance to the next
The process is driven by exception and focuses on decision making
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21 October 2012
Simple by design
But process deals with complex integrations and
interactions
Demand Review
Operations Review
Business Review
Business Planning
Operations Planning
Consensus Demand Planning
ES&OP
Portfolios
(US)
Regional Demand
Review (US)
Ops Reviews
Markets
(Global)
Regional Demand
Review (CND/LA)
Markets
(Global)
Regional Demand
Review (EMEA)
Markets
(Global)
Regional Demand
Review (APAC)
Device
Supply
Planning
Third Party
US
Pre-S&OP
US
S&OP
CND/LA
Pre-S&OP
CND/LA
S&OP
EMEA
Pre-S&OP
EMEA
S&OP
APAC
Pre-S&OP
APAC
S&OP
US Pharma
Intl Pharma
India Pharma
UnConstrained
Demand Plan
Regional
Global
S&OP Output
Week Three
Constrained
Supply Plan
Constrained
Sales Plan
Un-Constrained
Demand Plan
PreS&OP
Constrained
Supply Plan
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Approved
Regional Plan
Constrained
Sales Plan
Week Two
Integrated
Business
Plan / LBE
ES&OP
Demand
Review
Week One
Product
Supply
Review
Supply Planning /
RCCP
Consensus Demand
Planning
Week Four
21 October 2012
S&OP
S&OP / LBE
Decisions
Deployed to
Next IBP
Cycle
Monday
Tuesday
May 29
Wednesday
30
31
Note: Job descriptions with
gray/italicized text are design
placeholders and will be in
effect post-June 20th go-live.
Thursday
Friday
Saturday
June 1
June
1
WD1
WD2
Statistical
WD3
Model Run (SW)
10
WD4
WD5
WD6
WD7
WD8
11
Demand Forecasting
12
13
14
15
16
WD9
WD10
WD11
WD12
Regional
Demand
Review
17
Demand Pass
(SW >>APO)
WD13
20
21
22
23
24
WD14
WD15
WD16
WD17
WD18
26
Global Product
Supply Reviews
Pre-PS Reviews
28
28
29
30
WD19
Constrained
Supply Reviews
w/ Regions
WD20
WD20
WD21
WD22
HOLIDAY (US)
WD2
Regional
S&OP
Meetings
WD3
July 1
Cycle Roll (SW)
WD4
WD5
WWD6
12
13
14
15
WD9
WD10
WD11
16
July LBE
Deadline
18
19
20
21
22
WD12
WD13
WD14
WD15
WD16
Business
Review (SLT)
Global
ES&OP
Meeting
WD8
11
17
25
Constrained
DRP Run (APO)
WD1
18
Planning Batch
Jobs (APO)
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21 October 2012
23
Gap to Budget
Objective Assigned
Top Down Plans
Execution-able
plans only
Total
Consensus
Demand
Execution
0-3 months
2010 Supply Chain Council. ALL RIGHTS RESERVED. |
Tactical
4-12 months
< filename >
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Strategic
12-18 months
Predict & shape future demand to give the most profitable sales plan
Formulate the most cost effective supply chain response
Provide the forum for alignment and decision making
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21 October 2012
Demand Review
Most Profitable Sales Plan
Innovation
Strategy
Operations Review
Most Cost Effective Supply
Expansion
Strategy
Channel
Strategy
Strategic Planning
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21 October 2012
Business Review
Aligned Decision Making
Procurement
Strategy
Operations
Strategy
Business Planning
Pre-S&OP
Operations
Review
Demand
Review
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21 October 2012
S&OP /
ES&OP
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21 October 2012
Strengths
Opportunities
Longer term focus / continue driving strategic purpose
Consolidate other redundant processes into IBP
Improve supply modeling capabilities & systems integration
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Collaborative
Forecasting
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All
All
Type
Region
TC_DC
DC_DT
Sub-Region
Channel
Country
List #
Weekly process
Monthly process
From
To
Aggregate forecasting
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Collaborative
Forecast
Rough Cut
Capacity
Planning
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21 October 2012
From
To
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Collaborative Inventory
Forecasting Optimization
Rough Cut
Capacity
Planning
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21 October 2012
Service
Investment
From
To
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21 October 2012
Collaborative Inventory
Forecast Optimization
DRP
Driven
MPS
Rough Cut
Capacity
Planning
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21 October 2012
From
To
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21 October 2012
Thank you!
Process Evaluation
Technology Selection
Business Process Design
Solution Architecture
Process Facilitation
Change Management
IBP2 Contact:
Bill Nienburg
Executive Director
+1-630-881-5002
[email protected]
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21 October 2012