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2010 Supply Chain Council. ALL RIGHTS RESERVED. | < filename > | Slide 1 | 18 May 2011
Sales, Inventory, & OperationsPlanning
Mercury Marines Global SIOP Journey
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Barb Bossenbroek
Director Supply Chain Process Performance
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Agenda
About Mercury Marine SIOP Journey Origins Global Supply Chain Assessment Global SIOP Expansion SIOP Journey Development
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Mercury Brands and Products
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Agenda
About Mercury Marine
SIOP Journey Origins Global Supply Chain Assessment Global SIOP Expansion SIOP Journey Development
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
SIOP Journey Origins circa 2006
Outboard Product Line
Limited global statistical forecasts and marketing intelligence Lack of process transparency Functional silos that limited execution to a shared plan Demand Planner role existed only in the US Poor customer fill rates, low inventory turns
The SIOP Journey Begins The Supply Chain Management Team
- Coach Bob Seidel VP Global Supply Chain- Professor Ranga Katti Director SC Intelligence
- Conductor Barb Bossenbroek Director SC Process Performance The Executive Sponsor
- Chief Mark Schwabero - President
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
SIOP Journey Origins Building the Foundation
SKU Rationalization
SKU Classification
Demand Planning Process
Product Family Rationalization
Volume Scheduling Guidelines
Supply Planning Process
Process Transparency
Guiding Principles
KPIs
US Outboard Results after 1st year: - Forecast Accuracy up 20 points - Fill Rate up 25 points - Inventory down 40%
Continuous Improvement
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
9/23
2011 by Mercury Marine. ALL RIGHTS RESERVED.
Agenda
About Mercury Marine
SIOP Journey Origins Global Supply Chain Assessment Global SIOP Expansion SIOP Journey Development
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Forecast To Plan Assessment
People Process
Technology
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Future State Demand Planning ProcessBy Region by Product Line
Top-down Plan
(Macro-economic info)
UnconstrainedConsensusDemand Plan
Statistical Forecasting
Financial Plan
Historical Sales,Historical Events
MarketIntelligence
SKU Classification
CustomerCollaboration
SKU Rationalization
Guiding Principle: Utilize multiple, independent views of demand in the development of unconstrained demand plans
Bottom Up, Rearview Planning
Top Down, Forward Looking Planning
Sales & MarketingPlans and Input
Horizon Based Business Planning Gap Analysis
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Future State Supply Planning Process
Global Netting (DRP)
DeploymentPlanning
SKU MixPlanning
RCCP / Supply Planning
Operational Netting(DRP)
Global UnconstrainedDemand Plans
Monthly Processacross Product Lines
Daily / Weekly Processby Product Line
Incorporates OneHolistic Model that
Considers All DemandStreams and Supply
Resources
Future State leverages an integrated solution to optimize across global demand and supply capabilities
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Future State Global SIOP Process
SupplyPlanning
Across all Plants& Product Lines
GlobalDemandPlanning
by Product Line
BME
US
BAPG
LA
CAN
BME
US
BAPG
LA
CAN
Demand Planning
Demand Planning
Demand Planning
Demand Planning
Demand Planning
Consensus
Exec SIOP
Forecasting COE
Regional Mkt Intelligence
Weeks-3 -1 +1
Finance, New Products
Month End
Synchronized Demand / Supply planning drives focused execution
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
FTP Assessment
People Process
Technology
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Organizational Effort Shift for Demand Planning
Illustrates the shift that needs to occur by proactively managing the Demand Plan rather than reacting to backorder and inventory needs
Reactive Proactive
Percent of Time Spent
25
5520
4060
5
Today Future
Manual ReplenishmentOrdering
Develop StatisticalForecast
Regional MarketIntelligence
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Establishing key roles and integrated linkages was a critical success factor
Demand Planners(Regional by Product Line)
Supply Chain Planners
(Hybrid)
Statistical Forecast COE(Central)
Global SIOP Leaders(Central by Product Line)
Key SIOP Organizational Integration
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Agenda
About Mercury Marine
SIOP Journey Origins Global Supply Chain Assessment Global SIOP Expansion SIOP Journey Development
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Global SIOP Process Steps
DemandPlanning
Demand PlanFinalization
Supply Plan
By Source
Pre-SIOP
Consensus
Exec SIOP
Review
Weeks-3 -1 +1Month End
FinalForecast
Submission
BME
Weeks
BAPG
Canada
LA
US
DemandPlanning
Demand PlanFinalization
DemandPlanning
Demand Plan
Finalization
DemandPlanning
Demand PlanFinalization
DemandPlanning Demand PlanFinalization
C on s ol i d a t i on
Each Region is a Key Participant in Global Planning
FORECA
ST
CO
E
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Global SIOP Alignment
Outboard - 2006
BAPG - 2007
BMEMEA - 2008 MerCruiser - 2008
P&A - 2009
Latin America - 2010
Canada - 2010
Executive Leadership, Global Calendar of Events,Regional Demand Planners, Common Language, Metrics
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
Agenda
About Mercury Marine
SIOP Journey Origins Global Supply Chain Assessment Global SIOP Expansion SIOP Journey Development
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8/6/2019 Bossenbroek - Mercury Marine s Global SIOP Journey
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
SIOP Journey Development
Our SIOP Journey Continues!
Process Enhancement FocusCustomer and supplier collaborationDemand sensingSynchronized opportunity development
Organizational Enhancement Focus
Expanded oversight teamEnhanced education programsExpanded global demand planner networking
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2011 by Mercury Marine. ALL RIGHTS RESERVED.
T hank You!
www.mercurymarine.com