70 sapsa scm oct 2012 final

SAP Supply Chain Management 2012 DECIDE BETTER, COLLABORATE BETTER, OPERATE BETTER

Jesper Waaben Solution Principal SCM, SAP EMEA Center of Excellence

SAPSA October 3rd, 2012

© 2012 SAP AG. All rights reserved. 2

SAP Supply Chain Solution Areas Complete Coverage Across Planning Horizons

Consistent Supply Chain Data Model

Products/Materials Bill of Materials Routings & Resources Supply Network Locations Business Partners

Sales and Operations Planning

Collaborative Response Management

Manufacturing & Supply

Planning Demand Management

Supply Chain Execution

Financial Performance Management Strategic

Tactical

Operational

Execution


SAP Supply Chain Solution Areas Synchronization Across Planning Domains



Sales and Operations Planning – S&OP

Collaborative Response Management - SCRM

Manufacturing & Supply Plan-

ning – APO PPDS, SNP, EIO

Demand Management – APO

DP, DSiM

Supply Chain Execution – EWM, TM, Track&Trace, GBT

Financial Performance Management - BPC, COPA Revenue &

Margin Targets

Aggregate

Demand & Supply

Plans

Monetized

Operating Plans

Detailed Demand &

Supply Plans,

Inventory Targets

Detailed Demand &

Supply Plans,

Inventory Targets

Replenishment

Signals, Supply

Proposals, Customer

Forecasts

Replenishment &

Fulfillment Orders Transfers &

Confirmations

Supply

Chain

Perf

orm

ance M

anagem

ent

Supply

Chain

Analy

tics


SAP Solutions for LoB Supply Chain DECIDE BETTER, OPERATE BETTER, COLLABORATE BETTER

Enticing User Experience



Leverage In-Memory Technology

SAP HANA

Supply Chain Mobility

SAP

SYBASE

UNWIRED

PLATFORM

Deployment

Option in the

Cloud

POS Data

Market Research

(Examples)

Social Networks

Supply Chain Connectivity

SAP

INFORMATION

INTERCHANGE

(Crossgate)

Integrated Sales and Operations Planning

Manufacturing &

Supply Planning

Response

Management

Demand

Management


IRI


“… S&OP on HANA combines the Real-Time

simulation & analysis capabilities of HANA with

contextual Social Collaboration capabilities to

provide a truly unique solution in the marketplace.

...”

Chris Walker, Unilever


Establish the supply network and create feasible demand and supply plans with lowest

inventory levels and highest service levels

http://www.unilever.com/


What is S&OP?

Tom Wallace Definition

Sales & Operations Planning (S&OP) is a set of decision-making processes to:

Balance demand and supply

Integrate financial planning and operational planning

Link high-level strategic plans with day-to-day operations


SAP Sales & Operations Planning Overview


Enable Rich, Contextual Social Collaboration


Plan in Real-time With a Unified Data Model


Run Simulations and Scenarios Instantly


Customer Testimonial: Unilever

“Sales and Operations planning (S&OP) is a critical business process for

Unilever to deliver competitive growth and our strategic ambitions. We have

engaged with SAP as an co-innovation partner and collaborator for their

upcoming SAP S&OP on HANA solution in which we have modeled part of

this key business process for our Food & Beverage business.

S&OP on HANA combines the real-time simulation and analysis capabilities

of HANA with contextual social collaboration capabilities to provide a truly

unique solution in the marketplace. It offers the opportunity to significantly

increase the speed of decision making throughout the process and streamline

collaboration across distributed teams. What can take days of preparation,

with meetings and information exchange, now has the possibility to be

done all in one tool and in real-time enabling seamless synchronization

across the business functions.”

Chris Walker

Director Global S&OP, Unilever


Demand Management

Get highest visibility into demand and enable real-time demand analytics to avoid out-of-

stock/out-of-shelf situations to increase revenue

Demand Signal

Management

(SAP HANA)

Social Networks

POS Data

Market Research

Data

B2B Networks (SAP Information

Interchange)

Demand

Sensing

Demand

Analysis

Demand

Response


“Supply chain response management by ICON-

SCM dramatically accelerates the decision-

making process and gives us the insight we need

to make smarter business decisions”,

Ed Tymick Vice President of Supply Chain

Execution, Tellabs Inc.

Collaborative Response Management

Create highest level of flexibility to respond to demand in considering demand and supply

priorities simultaneously

Demand &

Supply

Collaboration

VMI

Responsive

Planning

Simulation

Performance

Management

SAP APO User Experience – an Update


SAP SCM-APO Usability Roadmap

Solution Enhancements

Start on a roadmap to re-design the most

relevant interactive screens in APO based on

latest UI technology and user experience

research

SCM 7.0 EhP2 delivers the first step of a new APO user experience

Key Benefits

Improved usability and user efficiency

Based on latest SAP UI technology

Homogeneous end user experience between

APO applications

Enhanced built-in personalization features


Planner’s Home Page and Alert Worklist APO 7.0 EhP 2

Available now


Where we are going from here….

Lab Preview


Embedded Analytics in APO Customer Engagement Initiative

Real-time, flexible reporting and analytics in

Supply Chain Planning with emphasis on role-

based content and navigation/use pattern

Predefined Reports in the areas of demand,

supply and production planning in APO

For example:

Demand planning

– Analyze how forecast is developing over time

– Visualize deviations between planned and budgeted sales for Products,

Segments etc.

Supply Planning

– Analyze projected inventory levels for materials, material groups or segments at

a single or multi location level

– Determine which Products, Regions or Customers are experiencing bad service

levels etc.

Production Planning

– Analyze production schedule attainment

– Detailed insight into capacity usage by Orders, Products etc.

Project Goal:

Design, develop,

validate and release

predefined embedded

Analytics to enhance

decision making

embedded

Analytics

Lab Preview

SAP Supply Chain co-Innovation

SAP Enterprise Inventory Optimzation

SAP Supply Chain Response Management


TYPE of Inventory at each node can and should

impact inventory decisions at other nodes

How about here? Here?

How much inventory here?

These decisions, however, are based on difficult factors!

Risk, Variability, and Uncertainty

Customer Service Levels - Segmentation – and Profit Objectives

Adjusting for the Root Causes for Uncertainty and Variability

…at the item-location-time period level of granularity, while…

…inventory is a SYMPTOM, analysis is necessary to get at root-cause

improvements


With SAP EIO, Celestica mastered supply chain

complexity that others couldn’t

Business Challenges

Proactive, global inventory optimization

Replace spreadsheet-driven process with standardized solution

Transform to 100% connected, end-to-end supply chain

Objectives

Support overall strategy for supply chain transformation

Deliver industry’s most innovative supply chain solutions

Provide specific inventory optimization functionality, including

variability analytics and inventory segmentation

Why SAP EIO?

Experience in the high-tech industry

Robust strategic scenario analysis framework

Low total cost of ownership of solution

Benefits

14% inventory reduction with improved service levels

Optimized $335 million in reorder point value across 27,000

SKUs

Improved accuracy with formal, globally applicable inventory

management process

Reduced planning cycle time by 67%

Industry: High Tech

Products/Services: Serves customers in enterprise, communications, consumer, aerospace and defense,

industrial, alternative energy, and healthcare end-markets

Revenue: $6 billion

Solutions: SAP ERP and SAP EIO

Celestica’s Ranking Among Peers in Key Performance Metrics

Celestica Licenses EIO in late 2007

Source: Celestica presentation at SAP lean Summit, July 2009


SI&OP - Sales Inventory & Operations Planning

Supply ratios

Capacity

Weekly Historical & Future Forecast

Forecast error Inventory Targets

Time varying Safety Stocks

Demand

Planning

(SAP APO DP)

Supply

Planning

(SAP APO SNP)

SAP EIO

Capacity

Weekly Historical & Future Forecast

Forecast error Inventory Targets

Safety Stock Targets

Sales

Planning

(SAP R/3)

MRP

(SAP R/3) SAP EIO

Example – APO & EIO

Example – R/3 & EIO

SAP EIO Business Process Evolution

S&OP Sales, Inventory & Operations Planning

Setting optimal inventory targets across supply chain

Perfect Order Fulfillment with Minimum Inventory


SAP Enterprise Inventory Optimization Has Proven

Results Across Industries

Chemicals

Consumer

Products

Manufacturing

High Tech

Life Sciences

Distribution /

Retail

http://www.jabil.com/

http://www.celestica.com/Home/Home.aspx

http://www.honeywell.com/


500+ OM’s in Far East

Visibility In Process… Complete …. Inspection

… At Port … Past Customs … Shipped

Reduced inventory, operating costs and

expedited orders

Manufacturing and Supply Planning

Integrated planning and collaboration across internal and outsourced manufacturing

Quality Control

Outsourced

Manufacturing Internal

Manufacturing

Supplier

Collaboration

Performance

Management

SAP Supplier Network Collaboration –

Quality Collaboration


What is SNC? – At First Glance

Suppliers

Contract

Manufacturers

Customers

My Company

Central hub to share real-time supply and demand data within a company’s internal and external supply network

Flextronics: One strategic SNC system services 13 countries, 14 ERP

systems (non-SAP) and transacts with 12 000 suppliers, 16 000 users,

300K transactions/week

Philips: One central SNC instance manages collaboration for several

divisions to have a single Philip’s interface to the outside world, including

multiple tiers of suppliers.

Johnson & Johnson: A single corporate SNC platform for internal

collaboration between different regions and line of businesses

(Consumer, Pharma, Medical Devices, etc)

Enterprise-Wide Strategic Platform for All Supply Chain Collaboration Needs

Supplier

Collaboration

Outsourced

Manufacturing

Customer

Collaboration

SNC

Typical collaboration flows: VMI

Forecasting

Order sharing/acknowledgement (POs,

Releases, Kanban)

Shipping

Invoicing

Quality reporting

Work order tracking

Multi-tier supply and demand visibility

Quality

Collaboration

Quality

Collaboration

http://images.google.co.in/imgres?imgurl=http://www.ltnetwork.org/site/upload/image/philips_small_rgb.jpg&imgrefurl=http://www.ltnetwork.org/clients/case-studies.asp&h=212&w=300&sz=12&hl=en&start=10&sig2=4ma7nfQhrUiDX2tc8V5s4A&um=1&tbnid=nH10ZNHgugmC8M:&tbnh=82&tbnw=116&ei=QyRNR-DDM6aIggOfh9WlDg&prev=/images?q=Philips+logo&svnum=10&um=1&hl=en


SAP SNC – Collaborative Business Process enablement

My Company

PO Process

Release Process

SMI Process

Kanban Process

DR (Forecast) Process

Work Order Process

SNI (Inv Monitoring) Process

Supplier Collaboration Manufacturing Collaboration

DCM (Reorder) Process

CMP (Subcon PO) Process

Min/Max VMI

Demand Collaboration

Customer Collaboration

Responsive Replenishment

SMI = Supplier Managed Inventory

CMP = Contract Manufacturing Purchasing

DCM = Delivery Control Monitor

DR = Dynamic Replenishment

Quality

Collaboration


SNC Interaction Modes & Crossgate Partnership

Web

Browser

B2B / EDI

Message

File

Up/Down

Load

SNC

Crossgate

Community Platform

Item

Location

Party

Business Partner Profiles

SUPPLIER Interaction Modes

CUSTOMER

ERP

Backend

Systems

SAP PI B2B Option 1:

Direct Connection

Each Supplier

B2B Option 2:

Crossgate-Hosted

Central Connection

Lo

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olu

me

–

We

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row

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r O

nly

Hig

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olu

me

–

B2B

In

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Mid

Vo

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Fil

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p/D

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ds


Rapidly Expanding Customer Base

750 Customers, 50 Reference Customers

Life Science , A&D, Auto

“We have already seen significant benefits, and we

expect more in the future.”

Gary Botine VP Information Technology

Sauer Danfoss

“SAP is a key enabler of our corporate strategy. SAP

Supply Network Collaboration ensures we are tightly

integrated with our manufacturing partners to maintain

service, control costs, and uphold lean IT practices.”

Jon Harding CIO

Conair Corporation

“By the time the analysts start their work day, forecasts

and replenishment plans have been updated, based on

information about retailer activity that happened the

previous day. “

Nicholas Daddetto Senior Manager

Colgate- Palmolive Company

IM&C

High Tech

Consumer Products

http://www.sauer-danfoss.com/Procurement/SupplierCollaboration/SNC/index.htm

http://en.wikipedia.org/wiki/Image:BandO_logo.jpg

http://images.google.co.in/imgres?imgurl=http://www.ltnetwork.org/site/upload/image/philips_small_rgb.jpg&imgrefurl=http://www.ltnetwork.org/clients/case-studies.asp&h=212&w=300&sz=12&hl=en&start=10&sig2=4ma7nfQhrUiDX2tc8V5s4A&um=1&tbnid=nH10ZNHgugmC8M:&tbnh=82&tbnw=116&ei=QyRNR-DDM6aIggOfh9WlDg&prev=/images?q=Philips+logo&svnum=10&um=1&hl=en

SAP BusinessObjects

Supply Chain Performance Management Jesper Waaben

Solution Principal SCM, SAP EMEA

SAPSA, October 3rd 2012


KPIs that matter!

Right measures drive right behavior

Right behavior drives performance

Pick metrics that matter

Tie metrics to action (and processes)


SAP Supply Chain Performance Management

Strategy

Management

Operational

Analysis

Impact Analysis

Planning, Definition of

KPI´s, Goals,

Strategies

Management of

KPI´s, Goals,

Strategies

Are we meeting our

goals? Why are our goals

not met?

How are my goals

defined?

Transparency

Benchmarking

Control

Reports

Briefing Books

Trigger of Execution

Understanding of the

root causes

Insight into

dependencies

Investigation of Trade-

Offs

Analysis of individual

KPI´s


Best-in-class companies using SCOR outperform their median competitors with more than a 50% cost

advantage in supply chain costs.

Supply Chain Council

Improving Performance Using Standardized Metrics

(SCOR) and Common Business Practices

Key features:

Pre-built solution for quick deployment

More than 350 pre-defined KPIs

Enhanced user interface

Out-of-the-box connectivity

SCOR view

in SCPM

“ ”


SAP SCPM Live-Demo

../../../02. Solutions/1. Business Suite 7.0/01. SCM 7.0 - 2008/SCPM/SCPM_Field_offline_demo_kit/SCPM Field offline demo kit/SCPM Field Offline demo/SCPM.html


Significant Market Traction with SAP BusinessObjects Supply Chain Performance Management


Why Supply Chain Executives Choose SCPM

Standardize scorecard and metrics across

organization

Empower business users (end-to-end visibility, bottleneck diagnostics,

on-demand analytics)

Ability to map, monitor and manage your

supply chain strategy

Flexibility and scalability to manage change in

business structure (change in strategy, people, processes, structure, M&A,

divestment or addition of new category)

Drive continuous improvement through

internal/external benchmarking


30% Increase in

goods moved per hour

10% Reduction in transportation costs & CO2

emissions


Enable the most efficient and sustainable transportation and warehouse management

processes with the highest level of visibility

Batch

Traceability

Warehouse

Management Transportation

Management

Event

Management

Performance

Management

../../SCM 2011/References/Artoni TM.m4v

Jesper Waaben Solution Principal - SCM, CoE SAP EMEA

SAPSA October 2012

SAP Transportation & Extended Warehouse Management

Logistics Excellence with SAP


SAP Transportation and Logistics Mission and Strategy

The World's Best Supply Chain Execution Solution

The Thought Leader in Supply Chain Convergence Mission

Supply

Chain

Execution

Leadership

Best-in Class Solution

Best-in class functionality

Complete, comprehensive solution

Integrated & Connected

Processes

Intra & inter-enterprise solution

End-to-end process integration

Out-of-the box connectivity

Verticalized Offering

Industry-specific functionality

Multi-industry offering


2010 2011 2012

SAP T&L Release Plan Release-To-Customer Delivery Plans

EWM

7.02 Extended Warehouse Mgmt.

Transportation Management

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

EWM

7.01

EWM

9.0

TM

8.1

TM

8.0

TM

9.0

Supply Chain

Execution Platform

Synchronized delivery

First TM/EWM integration (via ERP)


SAP Extended Warehouse Mgmt. Overview A complete, integrated, best-in-class solution

Inbound Processing

Transportation Unit Processing

Goods Receipt Management & Optimization

Inbound Quality Management

Internal Routing

Outbound Processing

Outbound Planning (Route, Wave, Bin…)

Picking Optimization, Packing, Staging & Load Management

Storage & Operations

Physical Inventory

Replenishment / Rearrangement

Kit-to-Stock Management

Resource & Labor Management

Cross Docking

Yard Management

Import / Export, Dangerous Goods & Compliance

Native Technologies (RF, RFID, Voice, Material Flow System)

Analytics & Reporting

SAP Extended Warehouse Management

TCI / TCO Reduction, Optimization Tools


Analytics & Reporting

SAP Transportation Management Coverage Overview of complete solution coverage

Event Management

Import / Export, Dangerous Goods & Compliance

Document & Output Management

Integration & Connectivity

Transportation Charge Clerk

Transportation Planner

Transportation Dispatcher

Specialist (i.e.Tendering)

Order

Management

SAP ERP integration: Order-to-Cash, Procure-to-Pay

Freight Orders

Forwarding Orders

Freight Bookings

Freight

Settlement

Freight Agreement Management

Charge & Tariff Mgmt.

SAP ERP integration: Forwarding, Freight Order Settlement

Freight Execution

& Monitoring

Logistics Execution

Transportation Status Visibility & Monitoring

Capacity Monitoring

Freight Planning

& Tendering

Manual & Automated Planning & Dispatching

Routing, Resource & Carrier Selection

Order Tendering

Ocean Pre-bookings

SAP Transportation Management


High Impact Strategy:

Integrated tendering process

Mobile centric tendering Mobile transportation tracking

• Out-of-the-box mobile technology for seamless B2B processes

• Easy integration of 3PL into transportation planning and execution



Visibility into decision making and holistic planning

Delivery / Load

Building strategies

Transport Orders

Transport optimization with

best-in-class (genetic)

algorithm Vehicle Selection

Define the best-fit vehicle

depending on route conditions Map Integration

Graphical routing

Subcontracting

Supplier selection

• Interactive transportation planning holistically considers all relevant

transportation requirements to optimize trailer utilization (e.g. round-trips)

• Best-in-class transportation optimization to reduce planning cycle time

incorporating insight into planning constraints and all relevant costs

• Various planning options for different use cases (interactive, automatic,

graphical, one-by-one rush order handling, re-planning)


High Impact Strategies:

Simplified invoice verification and cost distribution

Carrier

SAP TM SAP ERP / Legacy ERP

Load

Cost

Settlement

per Load CP company

• Automated determination of all cost elements based on agreed tariffs and

conditions and handover to Finance system

• Integrated cost auditing ensures high share of correct invoices

• Support for many invoicing methods (single, self-billing, statement, EDI,

group, etc.) to minimize customization efforts

• Possibility to distribute costs on SKU and customer level

Invoice Payment

Invoice Verification

OR

Credit memo (self-billing)



Measure performance of 3PL

Adhoc Reporting on

Mobile Devices

Embedded Contextual Analytics

Role & User-specific

Worklists

• State-of-the-art reporting capabilities

• Assess the performance of 3PL providers

with integrated dashboards and analysis

tools to improve overall service quality

• Gain 3PL cost transparency and reduce

long-term transportation spend

Transportation Dashboard


Transportation management performance

KPI Description Customer

Transportation

Spend (% of

revenue)

Shipments Tendered

Electronically (in %)

Trailer Utilization

Decreased the cost of

moving 100 Kilos by 10%

Increased electronic

documentation by 100%

Increased trailer utilization

by 7%

Source: SAP reference data base


… some SAP TM customers


Top Analysts in logistics validate the depth, vision and

functionality of SAP TM 8.0

“The primary news in the TMS market may have been that SAP made

significant strides in its TMS offering. They now have an offering

with best-of-breed functionality at a high level.

Steve Banker, ARC, in interview with Modern Materials Handling, July 2011

http://www.mmh.com/article/top_20_supply_chain_management_software_providers/

http://www.mmh.com/article/top_20_supply_chain_management_software_providers/


SAP Solutions for LoB Supply Chain DECIDE BETTER, OPERATE BETTER, COLLABORATE BETTER

Enticing User Experience



Leverage In-Memory Technology

SAP HANA

Supply Chain Mobility

SAP

SYBASE

UNWIRED

PLATFORM

Deployment

Option in the

Cloud

POS Data

Market Research

(Examples)

Social Networks

Supply Chain Connectivity

SAP

INFORMATION

INTERCHANGE

(Crossgate)


Manufacturing &

Supply Planning

Response

Management

Demand

Management


IRI


Resources for Supply Chain Management

SAP Portal – http://www.sap.com/lines-of-business/scm/index.epx

http://www.sap.com/lines-of-business/scm/index.epx







Thank You!

Jesper Waaben

Solution Principal SCM

EMEA SCM – Center of Excellence

SAP

M +45 2923 3552

T +45 3913 3552

E [email protected]

www.sap.com


Consumer Electronics – Global Brand TM 8.0 Project Overview

High Tech Industry

Computer hardware, consumer

electronics, Software, Digital Distr.

Implementation: Worldwide TM Coverage: OEM; Shanghai, China

SAP TM 8.0 Project Details

Go-Live Sept 4th , 2011

• Coverage

All purchase & sales orders worldwide for products from OEM in Shanghai

Peaking at 25000 orders per hour

Implementation scope

Freight order mgmt. and carrier selection (with customer-specific logic)

International shipment of finished goods from China OEM to distribution

centers

Direct shipment of finished goods from China OEM to customers

Goals

Process automation (carrier determination process) - replacing existing

manual processes (excel spreadsheets, e-mail, telephone)

Shipment optimization to increase shipment capacity for China OEMs

Future roll-out plans

Further OEMs (increase in volume to be processed by TM)

Transportation Charge Management

Possibly SAP Event Management integration (using own system for

tracking and tracing currently) & consolidation process

Consultants GOPA

http://www.gopa-itc.de/

70 sapsa scm oct 2012 final

Documents

sap supply chain management

supply network

sap ag

lob supply chain

supply proposals

sap solutions

financial planning

balance demand