the ERP project forced the company to standardize organizational design, roles, and metrics.
However, the value of a single integrated ERP system with the embedded functionality and modules
did not materialize was never achieved. The reason? While the company leadership expected
everyone to follow one process, it did not happen. The Company implemented SAP Advanced
Planner and Optimizer (APO) including the standard functionality of Demand Planning (DP), Supply
Network Planning (SNP), and Production Planning and Detailed Scheduling (PPDS), yet many
planners also used Excel. What can often look like compliance in APO (SAP Supply Chain Planning)
were calculated in Excel and pasted into the SAP system.
The Demand-Driven Journey Begins
In 2010-2011 Shell partnered with a Best-of-Breed solution provider to roll-out demand sensing as a
bolt-on to SAP ERP. The implementation was successful with a steady drop in inventory resulting in a
50% reduction in working capital between 2011 and 2015.
Figure 16. Impact of Demand Sensing and Impact on Inventory Levels
The project enabled improvements in Sales and Operations Planning. To drive adoption of S&OP, the
process was renamed Integrated Business Value (IBV). The team knew Integrated Business
Planning (IBP) tools were in the market, but he couldn’t sell IBP w ithin the organization. As soon as
his sales and finance managers heard the word “Planning,” they switche d off resisting change. The
change in name improved collaboration. By emphasizing value instead of planning, the group was
able to move the conversations forward. By leveraging demand sensing and the Multi-tier Inventory
Optimization (MEIO) platform-- using machine learning and some cognitive technologies-- on top of
SAP APO, Shell successfully launched an analytics platform initiative to improve the demand signal
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