k1 sap procurement logistics day 2012-martin schirmer

Extended Supply Chain Management

2012 DECIDE BETTER, COLLABORATE BETTER, OPERATE BETTER

Martin Schirmer

VP Supply Chain Management

© 2012 SAP AG. All rights reserved. 2

Focus on the extended supply chain processes - Integrated, Comprehensive Solutions from Idea to Delivery -

Buy Design MAKE STORE MOVE SELL

Supply Chain Planning

• Demand & Supply Planning • Production Scheduling • Inventory Optimization • Response Management

Supply Chain Execution

• Warehouse Management • Transportation Management • Event Management/RFID

Manufacturing

• Manufacturing Execution • Manufacturing Intelligence • Manufacturing Integration

Supply Chain Performance Management

PLM

• Innovation Mgt. • Product Development • Portfolio management

PLAN

Procurement • Spend Analysis • Strategic Sourcing • Contract Lifecycle

• Supplier Lifecycle • Operational Procurement


Balancing Supply and

Demand

Inventory Management

Supply Market Intelligence

Need to Control

Visibility & Collaboration

Supplier Lifecycle

Management

Global Sourcing

Distribution Strategy

Efficient Logistics

How to Mitigate Risk

Supplier Risk

Financial Risk

Logistics Risk

Impact

Economic Turmoil Economic Turmoil Economic Turmoil

Global Networks Risk Outsourcing

Economic Turmoil

Economic situation

Global Trends and their Impact on Supply Chain and Procurement


Procurement Executives What does this mean for your business?

How do we continue to identify opportunities to

manage and reduce costs?

How do we maximize spend under management, for

all categories of spend?

How do we optimize contract terms and enforce

compliance?

How do we manage suppliers’ performance and

supply-based risk?

How do we improve our sourcing, procurement and

invoice management processes?

How do we align our activities to best support the End

to End Supply Chain strategy?


SAP Spend

Performance

Management

SAP Data Enrichment

& Classification

(OnDemand) New!

SAP SRM & SAP

ERP

SAP Invoice Mgmt

by OpenText

Supplier Connectivity via SUS and Crossgate /

Hubwoo

SAP Commodity Procurement New!

SAP Sourcing / SAP

Sourcing

OnDemand

SAP

Contract Lifecycle

Mgmt

SAP Procurement Portfolio Integrated Solutions Enable the End-to-End Source-to-Pay Process

Spend Analytics

Supplier Management

Sourcing Contract

Management

Operational

Procurement

Invoice

Management

SAP Supplier

Lifecycle Mgmt

SAP Supplier

InfoNet

(OnDemand)

New!

New!


The SAP Procurement Portfolio Is Rapidly Innovating in Many

Dimensions

Sustainability Cloud / On Demand

Mobile

On-Premise Rapid

Deployment

3rd Party Partner

Solutions

In-Memory

Computing

Usability

Embedded Analytics


Data Enrichment and Classification Process (DEC)

UI-based data management, tracking and classification management

Improved speed, simplicity and clarity

SOURCE_AA

SOURCE_BB


End-to-end supplier lifecycle management Manage the entire supplier lifecycle and mitigate supplier risk

Delivers the complete supplier management process

Centralizes supplier information and increases transparency of

supplier decisions

Ensures selection of most qualified suppliers

Reduces costs through superior supplier effectiveness and

performance

Successfully drives ROI through low-TCO deployment options

Mitigates supplier risk

Eliminates paper-based supplier collaboration efforts

On-board and register new potential suppliers

Flexibly create questionnaires for supplier qualification

Classify suppliers to create a focused procurement

strategy

Evaluate and monitor ongoing development of suppliers

Distribute suppliers to multiple back-end systems

Flexible deployment options

Predict supplier risk and manage operational

performance

Supplier collaboration through flexible network

connectivity options


SAP Supplier InfoNet New solution - Minimizing Supplier Disruption in a Complex World

Is There a Problem With One

of The Suppliers Hidden

Below Them?

Leverage Social Networking Models

to understand risk with your

supplier’s connected suppliers

React to problems that were

unforeseen before

Will They Behave The Same

in The Future?

We track news alerts, government

data & financial information to

predict future behavior

We leverage cutting-edge

machine learning tools to improve

on these predictions

Do They Perform Well for

Others?

Compare your experience with

others in your industry, across a

multitude of KPI’s

-Delivery, Quality, Financial

Track a Supplier’s Global KPI

performance over time

Views into your sub-tier supply base

Pooled KPI Benchmarks Strong Predictions of Operational Risk

A cloud-based business social network to predict supplier risk and manage operational performance


SAP Commodity Procurement

Application overview

SAP Confidential Source: Commerzbank, enterprises’ trusted banking partner for risk management, in their Commodity Radar Screen for 3rd Quarter 2012,

www.commerzbank.com/commodities

SAP’s solutions for procurement will be enhanced to cater for commodity specific functionality that enables companies to capture

commodity contracts with commodity price definitions based on market quotes, logistics execution processes, quality management

and settlement.

Key Needs Key Innovations

Capture commodity contracts with commodity

price definitions based on market quotes like

index-based commodity pricing

Increased people efficiency through fully

automated price calculation rather than complex

manual calculation

No overpayment of vendor invoices due to

miscalculations

Complete audit support

Basis for Hedge & Risk Management

Commodity Purchasing processes will be enhanced in SAP’s standard ERP solution

Includes new Commodity Pricing Engine (CPE), ABAP based, with improved functionality and continuous improvements across commodity types

Differential invoice verification capabilities in standard ERP

Solution enhancements for invoice forecasting

SAP Commodity

Procurement

http://www.commerzbank.com/commodities


Supply Chain Challenges DECIDE BETTER, OPERATE BETTER, COLLABORATE BETTER

DEMAND

Store Social Networks Smart Phones

Fluctuating Demand

Inconsistent Response

Supply Delays

Sustainable Execution

Increased Supply Chain Risk

RESPONSE

Customer Satisfaction Strategies, Priorities, Rules

SUPPLY

In-house Production Outsourcing, Suppliers

ORDER FULFILLMENT

Full Truck Loads Value Added Services Traceability

INTEGRATED PLANNING

Product Portfolio Supply Chain Strategies Financial Plans


The 5 Elements of the New Supply Chain DECIDE BETTER, OPERATE BETTER, COLLABORATE BETTER

Integrated Sales and Operations Planning

Manufacturing and Supply

Planning

Collaborative Response

Management Demand Management



“… 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/


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


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


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


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

Enticing User Experience

Consistent Supply Chain Data Model

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

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


How to get there? Non-Disruptive Innovation Road Map

Breakthrough

Evolution

More Innovation Less Disruption Long-Term Predictability

December

2020 2015


SAP Sales & Operations Planning Powered by SAP HANA

SAP Sales and Operations Planning powered by

SAP HANA

Breakthrough

Unified Data Model

Real-time Planning

Simulations and Scenarios

Rich, Contextual

Social Collaboration

Lab Preview


SAP Demand Signal Management powered by SAP HANA

SAP Demand Signal Management powered by

SAP HANA

Breakthrough

Sense Demand Analyze Demand

Respond to changes in Demand

Lab Preview

DDSC_demo_v24_final/DDSC_demo_v24.htm

Thank You!


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k1 sap procurement logistics day 2012-martin schirmer

Technology

sap ag

supplier information

supplier disruption

supplier qualification

supplier risk onboard

entire supplier lifecycle

sap commodity procurement

commodity commodity