http://fastlane.ASCET.com

Solution Provider

The ASCET Project • 51

http://seebeyond.ASCET.com

mySAP™ Supply Chain Management empowersyou to build fault-tolerant supply networks. You can see a shortage before it happens, andintegrate a new partner or supplier in time to avoid delay.

SAP AG Corporate OverviewSAP AG is the leading provider of collabo-

rative e-business software solutions that

create value within enterprises and across

their business ecosystems. Founded in 1972

by five former IBM systems engineers, SAP

now employs more than 30,000 people in

more than 50 countries and is the world’s

third largest software company. SAP soft-

ware is deployed at more than 30,000 busi-

ness installations in more than 120 coun-

tries and is currently used by companies of

all sizes, including more than half of the

world's top 500 companies.

In today’s Internet economy, inter-

enterprise integration has evolved into a

new world of e-business, involving multi-

ple companies and enterprises in diverse

market segments. Each participant in

the networked business value chain can

share information with others. With the

growth of network access, bandwidth, and

coverage there is an increasing need for

Internet e-business solutions that can

leverage data from the enterprise and foster

collaboration across multiple business

partners and customers.

The goal is no longer simply to link dis-

parate enterprises, but to remove the walls

of the enterprise. Companies can and will

participate in a larger collaborative commu-

nity of customers, suppliers, and partners.

This collaborative community, or virtual

ecosystem, allows customers, suppliers,

and partners to shift functions and respon-

sibilities as needed. It also transforms the

sequential supplier-to-customer value chain

into a collaborative dialog, allowing com-

panies to work in parallel with their cus-

tomers, suppliers, and business partners,

each defining their needs in the transaction.

As SAP customers achieved higher and

higher levels of enterprise integration, they

began to look for ways they could extend

these optimized processes across multiple

enterprises. These emerging customer

needs led SAP to create several key

products designed to foster cross-enterprise

cooperation. These products, which

ultimately became the seeds of SAP’s e-

business platform, mySAP.com™, included

solutions for extended supply chains,

procurement, sophisticated analysis and

modeling, employee self-service, and more.

SAP’s ability to deliver customer-centric,

open, personalized, and collaborative

e-business solutions is the foundation of

mySAP.com. The mySAP.com e-business

platform is a family of software and serv-

ices that empowers customers, partners,

and employees to collaborate successfully –

anywhere, anytime. With an ecosystem

that includes more than 900 partners,

industry-specific functions for 22 indus-

tries, and the experience gained by working

with a customer base of more than 13,500

companies and more than 10 million

licensed users around the world, SAP is in

a unique position to help businesses gain

competitive advantages in the Internet

economy.

mySAP.com: Reflecting theModern EnterpriseFrom role-based portals to mobile business

solutions, mySAP.com provides all of the

solutions and services companies need to

eliminate traditional enterprise boundaries

and to participate in a global marketplace.

mySAP.com e-business solutions are open,

scalable and flexible, supporting databases,

applications, operating systems, and hard-

ware platforms from almost every major

vendor. Companies can use mySAP.com

collaborative e-business platform to:• Put Web access and the power of

business-to-business solutions in thehands of every user

• Buy and sell all types of products andservices online

• Participate in multiple marketplacesand exchanges by forming ad hoc partnerships

• Collaborate with partners and cus-tomers to extend the supply chain andto make it more efficient, shorten prod-uct development times, and improveplanning, optimization, and execution

• Gain new customers at unprecedentedrates while satisfying higher percent-ages of current clients

• Integrate business-to-business transac-tions with back-office and enterprisesystems

• Speed access to reliable, low-costhosted solutions

• Analyze business information andturn vision into action

The mySAP.com e-business platform

encompasses all SAP solutions, technolo-

gies, and services, including:• my SAP Workplace Enterprise Portal• mySAP Customer Relationship

Management (mySAP CRM)• mySAP Marketplace by SAPMarkets • mySAP Supply Chain Management

(mySAP SCM)• Industry solutions • mySAP Product Lifecycle Management

(mySAP PLM)• mySAP Business Intelligence

(mySAP BI)• mySAP Financials• mySAP Human Resources (mySAP HR)• mySAP Hosted Solutions• mySAP E-Procurement• mySAP Mobile Business• mySAP Services• mySAP Technology

mySAP SCM: Creating Valuethrough Collaborative E-Business Solutions

➤

52 • The ASCET Project

Solution Provider

mySAP Supply ChainManagementAs international trading communities and

Internet trading processes make markets

more global, transparent, and competitive,

the need to identify and capitalize on

dynamic market opportunities becomes

more critical to market success. Now more

than ever, companies need to understand

their customers and to develop multiple

go-to-market

strategies with

customized

value proposi-

tions. To achieve

this, companies

must be agile,

optimize their

business

processes, and

deliver quality

products on time

and with the

highest value-

cost ratio for cus-

tomized goods

and services. mySAP SCM provides the

tools, best business practices, and content

companies need to plan and execute intra-

and inter-enterprise supply chain processes

in the new, New Economy.

Supply Chain Management in the

twenty-first century is

about networks of supply

chain partners operating

as one entity to deliver

superior customer service

with minimum invest-

ments in capacity and

inventory. Traditional,

siloed supply chains of the

past resulted in long lead

times, high levels of

uncertainty, excessive

inventories, and poor

service – the bullwhip effect. mySAP SCM

breaks down these functional silos and

drives consistent information and process

flows across the entire supply chain, allow-

ing companies and their supply chain part-

SAP Open and Flexible SolutionsThe technological foundation for SAP’s

collaborative e-business solutions is based

on openness and flexibility that supports

a company’s abilityto create an agile

e-business environment that enables fast

responses to new business demands. It pro-

vides a comprehensive, scalable platform

for e-business. Strengths in SAP technology

that facilitate e-business collaboration

include an Internet design with more than

1,500 open interface definitions openly

published on the Web; and an open and

flexible component-based architecture.

Platform support for parallel application

and database servers provides for high scal-

ability. SAP offers world-class reliability

and security as well as the reassurance of

accepted industry standards, such as the

extensible markup language (XML).

The mySAP.com platform supports more

than 1,000 predefined best-practice busi-

ness processes spanning broad functional

requirements. These processes are assem-

bled to create a solution tailored to users’

exact requirements; new business processes

and technologies regularly become available

through partnership with customers,

enabling SAP customers to respond quickly

to ever-changing business demands.

ners to optimize planning and execution

across enterprise boundaries. Entire supply

chains can now react quickly to changing

market conditions and customer require-

ments, resulting in higher value for all sup-

ply chain participants. In short, mySAP

SCM transforms Supply Chain Management

from a linear, sequential process into a new

collaborative community that enables cus-

tomers, partners, and suppliers to synchro-

nize their supply chain activities.

mySAP SCM provides companies and

their supply chain partners with visibility

across supplier and customer allocations,

inventory levels, orders, forecasts, produc-

tion plans, and key performance indicators.

Besides improving visibility, collaboration

facilitates an open, interactive, Internet-

based dialog between supply chain part-

ners that increases service and reduces

investments in inventory. mySAP SCM pro-

vides a holistic solution across the collabo-

rative supply chain process.

Supply Chain StrategyThe Supply Chain Design component of

mySAP SCM allows organizations to react

quickly and purposefully to changing mar-

ket condition, such as the introduction of

new products, and to adapt their supply

chain accordingly. Production locations and

distribution strategies are among the cen-

tral issues for Supply Chain

Design. The component’s net-

work design facilities add strate-

gic planning capabilities to

mySAP SCM. It supports strate-

gic decisions in finding and

selecting locations and assign-

ment decisions, including coor-

dination of transportation lanes

and supply relationships and of

product to location. The solu-

tion optimizes geographical dis-

tances and costs and taking

account of demand structures and

resources. You can compare planning

results and perform what-if analyses in

graphical and tabular views.

➤

LiveExchange full-service solutions focus ondynamic commerce needs. These best of breedsolutions are LiveExchange Enterprise,LiveExchange Marketplace, and LiveExchangeASP. A full spectrum of services are offered byMoai’s Professional Services Organization andworld-class partners.

James T. DemetriadesChairman, CEO, Founder

Paul HoffmanPresident – Americas

Kathleen MitchellSenior Vice President, Marketing and BusinessDevelopment

Barry PlagaChief Financial Officer

SeeBeyond Technology CorporationGlobal Corporate Headquarters404 East Huntington DriveMonrovia, CA 91016Phone 800.425.0541Fax 626.471.6104Email info1@SeeBeyond.com

Solution Provider

The ASCET Project • 53

http://seebeyond.ASCET.comSupply Chain PlanningThe main task of the Demand and Supply

Planning component of mySAP SCM is to

forecast demand and to optimize the mate-

rial flow along the extended supply chain.

Demand and Supply Planning contains an

extensive catalog of statistical forecasting

methods and tools for causal analysis, life

cycle modeling, and promotion planning.

The system optimizes demand fulfill-

ment along the supply chain, allowing for

individual customer wishes. The calcula-

tion accounts for cost aspects (production,

transportation, storage, and so on), con-

straints (such as resources and capacities),

and rules (such as quota arrangements).

Vendor-managed inventory (VMI) technolo-

gies, safety stock planning, and simulation

complete the range of methods.

Enhance Your Supply Chain SourcingThe Direct Procurement component of

mySAP SCM monitors the replenishment of

external materials needed for production

and supports their procurement with

Internet purchasing functions.

Available goods receipt and transporta-

tion capacity are included in the scheduling

of externally procured orders at an early

stage, for example in the Production

Planning and Detailed Scheduling compo-

nent of mySAP SCM. This allows the sys-

tem to automatically select the supply

source that can deliver a sufficient quantity

of goods on time and keep to determining

factors, such as costs and other priorities.

If the usual supply sources cannot fulfill a

peak in demand, users can make a request

in an public or private Internet market-

place. The system notifies the supplier

about the demand and capacity situation

based on agreed orders.

The purchasing functions in the

Collaborative Procurement component

allow you to plan results while working

closely with suppliers. This accelerates

the flow of information about delivery

schedules, reducing lead times.

The Supplier Workplace offers easy-to-

use Internet-based functions, with which

suppliers call up and confirm information

relevant to their inbound deliveries. It

supports processes for subcontracting and

consignment as well as delivery scheduling

and purchase orders.

MakeThe manufacturing capabilities of mySAP

SCM support the various production

processes in discrete manufacturing and

process industries and integrate production

into the supply chain. This affects the defi-

nition of products and processes, their

planning and manufacture, and the analy-

sis of production.

Users can optimize production plans,

taking account of different constraints

(resources, material, dependencies, and

so on) to achieve goals, such as meeting

deadlines, utilizing resources efficiently,

reducing stocks, and providing excellent

customer service.

mySAP SCM offers tailored solutions for

manifold industries, including automotive,

high tech, aerospace and defense, chemicals

and pharmaceuticals, metal processing,

paper, and consumer goods. It also supports

their production processes, such as make-to-

order, make-to-stock, configure-to-order, and

engineer-to-order. Close integration of com-

mercial and technical applications makes

quantity and quality requirements for con-

trolling production available at the appropri-

ate time, and in return, makes information

on the progress of production available

immediately to all supply chain processes.

DeliverThe order fulfillment process starts when

an order is accepted, includes outbound

delivery to customers, and ends with the

billing document. Suppliers, customers,

and carriers can use the Internet for tender-

ing, tracking, and proof of delivery. Orders

come in by mail, Internet, or by phone via

a call center, and customers can obtain

direct information about availability and

the price of products.

Transportation planning features opti-

mize vehicle loads for ingoing and outgo-

ing shipments, exchange information with

carriers, and ensure that goods arrive on

the desired delivery date.

After paperwork and foreign trade

processing are completed, the goods are

transported to customers. Using mySAP

SCM’s tracking features, you can check at

any time where the shipment is and whether

it is on schedule. After the goods have

arrived at the customer, the customer’s

billing document is created and the

carrier receives a credit note for the

services rendered.

mySAP™ Supply Chain Management empowersyou to build fault-tolerant supply networks. Youcan see a shortage before it happens, and inte-grate a new partner or supplier in time to avoiddelay.

SAP AG Headquarters – WalldorfNeurottstrasse 1669190 WalldorfGermanyPhone +49 6227 7 47474Fax +49 6227 7 57575

SAP Global Marketing440 9th Avenue, 11th FloorNew York, NY 1002Phone 212.346.5300Fax 212.346.5326

SAP America, Inc.Strategic Planning & Support Office3999 West Chester PikeNewtown Square, PA 19073Phone 610.661.1000Fax 610.355.3106

SAP America Executive OfficersWolfgang KemnaCEO

Robert Betts, IIISVP Global Business Development SCM

SAP Executive BoardHasso PlatnerCo-CEO, Co-Chairman of Executive Board

Henning Kagermann Co-CEO, Co-Chairman of Executive Board

Claus E. HeinrichExecutive Board Member

http://sap.ascet.com

➤

54 • The ASCET Project

Solution Provider

➤ your own performance with the perform-

ance of best-in-class companies or other

industry sectors, you can estimate your

market position and set targets. You can

also identify areas for continuous improve-

ment and sustained success in line with

your current set of metrics and in combina-

tion with the analytical capabilities of

mySAP Business Intelligence.

mySAP SCM can be fully integrated with

other mySAP.com applications, including

mySAP Product Lifecycle Management,

mySAP Business Intelligence, mySAP E-

Procurement, and mySAP Customer

Relationship Management. You can also

integrate it with non-SAP systems so you can

capitalize on your back-office investment.

mySAP SCM is built around a "visibility

architecture," which is a unified e-SCM hub

that provides timely and accurate visibility

of supply and demand information within

the enterprise and between supply chain

partners. This architecture supports a broad

base of functions, comparable to the uni-

verse of stand-alone solutions, but inte-

grated by design. mySAP SCM is integrated,

yet open, through standard interfaces and

messaging to support collaboration across

the supply chain.

In order to counteract the bullwhip

effect, supply chain processes must

embrace the three core value principles:

enhanced visibility, quick response, and

synchronization. All major supply chain

suppliers offer a core set of similar func-

tions, but bolt-on, stand-alone solutions

suffer from integration issues (batch data

snapshots, model mismatches), which

directly impede visibility, responsiveness,

and synchronization. mySAP Supply Chain

Management is the only broad supply

chain solution, designed from the outset as

an integrated solution, embracing all

aspects of supply chain planning and exe-

cution, collaboration, and measurement.

mySAP SCM addresses both aspects of the

supply chain market:• Exchange-based solutions, sought

after by most major companies toimplement collaborative processes with their partners

Order TrackingSupply chain event management features

provide information at any time on the

order status at several partners on all

processes in the supply chain and initiate

suitable measures at the appropriate time if

processes do not run according to plan.

The planning function supplies the tar-

get process for processing and defines mile-

stones that are verified by processing as

alerts. The system can automatically create

these alerts from the processing steps in

XML or EDI format. They can also be sent

directly and quickly using a variety of tech-

nologies, such as wireless communication,

global positioning systems (GPS), laptops,

the telephone, or the Internet. This pro-

vides a completely integrated overview of

the processes of different partners in the

supply chain from the supplier’s supplier

through production, outbound delivery,

and transportation to the customer’s cus-

tomer. You can integrate carriers and couri-

ers, express, or parcel services into this

information flow.

Personalized information about the pro-

cessing is provided via a Web browser for

the various partners involved in the

process. After the events of a process have

been reported, cost and efficiency can be

analyzed using key performance indicators.

In addition, this record of actual processing

steps can suggest how the target process

can be improved for the future.

Measure PositionsThe Supply Chain Performance

Management component integrates supply

chain planning and execution and mySAP

Business Intelligence with real-time supply

chain performance measurement and

benchmarking using key performance indi-

cators, such as costs, assets, and objec-

tives. The system automatically sends

alerts to planners when performance devi-

ates from the plan.

Defining overall strategies and goals

based on key performance indicators

allows you to measure your supply chain

activities. By comparing and benchmarking

• Enterprise supply chain solutions,sought after by any large and mid-market companies to develop effectiveinternal supply chain processes as aprerequisite to moving into the collabo-rative world

Today organizations no longer view supply

chain management only as a mechanism to

cost containment, but also a way to

improve customer satisfaction. They under-

stand that an effective supply chain is vital

for achieving pre-eminence in the market.

Companies, small and large, embark on

projects to drastically re-structure supply

chains toward collaboration and virtual

integration. The driver of this truly monu-

mental undertaking is a big payoff for those

companies that do it right.

Founded on value creation,

Collaboration, and Visibility, mySAP SCM

Solution empowers organizations to

achieve their goals by adding true value to

their operations through improved supply

chain management, strategic enterprise

management, analytical intelligence, and

contextual knowledge.

SAP America Management TeamWolfgang Kemna, CEOWolfgang Kemna is CEO of SAP America.

He also is a member of the SAP extended

executive board, and he has been a manag-

ing director of SAP Germany, responsible

for sales and marketing. He has played a

key role in developing several SAP sub-

sidiaries into market leaders.

Robert Betts III, SVP Global Business Development SCM

Robert Betts has over 20 years experi-

ence and held various technical and man-

agement positions. Prior to SAP, Bob held

positions as National Practice Executive for

IBM Consulting, and Director Global IT for

Riverwood International. ■