vmi consulting service
DESCRIPTION
VMI Consulting ServiceTRANSCRIPT
Customer presentation
Vendor Managed Inventory
with APO
Service Offering
Michael Mack,
Tobias Teuber
Customer presentation© SAP 2009 / Page 2
Business problem
What’s the best practise VMI process?
How can I design and implement VMI?
What’s the right application for me?
How can I deploy the solution to my customers?
What is the best starting point for my company?
Value to Customer
Vendor Managed Inventory Processes create customer value and
offer competitive advantages.
Packaged offering can be sliced and diced to customer’s needs:
Lean VMI
VMI with Kit Process
SOA SNP Master Data Cockpit for VMI
Vendor Managed Inventory with SCM APO
Executive Summary
Goal
Evaluate SAP APO VMI for your business
Enable decisions: GO or NOT GO with APO VMI
Prototype as a foundation for the productive rollout
Discuss implementation scope and strategy based on the prototype
Target Customers
Customer reach SCM-APO customer
Internal/DC or store-level replenishment
Prerequisites ERP, SCM-APO
Target Industry Chemicals, Pharma, Telco, Life Sciences,
High Tech.
Any industry with replenishment that can be
modeled as a customer – supplier relationship
Organizational information
Success Stories edel music, Panasonic, Nokia, sonopress,
Melitta, Sony, SC Johnson ...
Contacts Tobias Teuber, Michael Mack, Christian
Boos
Customer presentation
SNP Master Data
Cockpit for VMI
APO KIT VMI
APO LEAN VMI
© SAP 2009 / Page 3
Structure of APO VMI Consulting Service
VMI Pilot Go-Live
Offer of Scoped Consulting Pack
Scoping Workshop
Customer Visit
Testing & Go-live preparation
Basis configuration
support to load
stock and sales
data via flat file or
IDoc
Additional APO
functionality (SNP)
IDoc integration to
customer system
BI & Web
Reporting
POS data monitor
Variable
component
for connectivity
Variable
components for
add. functionality
Business Assessment
Fixed-price
components
Customer presentation© SAP 2009 / Page 4
SAP APO Vendor Managed Inventory (VMI)
APO LEAN VMI
Business Problem Key Benefit
High replenishment costs for small lot
sizes or slow movers
No system integration of demand
planning and physical replenishment
No visibility of customers stocks,
bullwhip effect
Vendor managed inventory planning not
integrated with overall supply chain
planning process
Use standard EDI scenarios to integrate
inventories and daily movements on
store level
Plan replenishment for your customer
Improved collaboration with customers
Increased visibility of customer
demand
Visible in-transit inventory
Improved delivery service level, lower
safety stocks
Less stock-outs, rush orders and
supply bottlenecks
Improved transport planning
Lower transportation costs due to
efficient truck loads
Full integration with sales and logistic
execution processes in SAP ERP
Customer presentation© SAP 2009 / Page 5
Scope of Consulting Package
APO LEAN VMI
Implementation of a prototype for Vendor
Managed Inventory with the following scope:
Receive stock and sales data from a pilot store
via IDoc or flat file
Replenishment calculation running in
SCM APO on a business data
warehouse
User monitor
Lean setup of Supply Network
Planning
Create sales orders in ERP based on
replenishment calculation
Customer presentation© SAP 2009 / Page 6
Scope of Consulting Package
APO LEAN VMI
APOERP CustomerOptional Step
Mandatory Step
Replenishment
Planning
APO-SNP
Transmit up-to-date
Sales, Forecast &
Stock Information
Analyse
Customer Forecast
APO-CFM
Post Goods Issue.
Create
Outbound Delivery
Sales Order
VMI Delivery
In Transit
Demand
Planning
APO-DP
Post Goods Receipt
Purchase
Order
ASN
Customer presentation© SAP 2009 / Page 7
SNP Master Data Cockpit
Business Problem Key Benefit
Increased Master Data Quality leads
to more accurate Planning results
Supply Planner can maintain Master
Data Objects in a more efficient way.
Cockpit helps planner to see relevant
information at one user friendly
screen.
Accelerate and simplify APO-SNP
projects
Central application for maintaining
APO-SNP master data
Create APO-DP and APO-SNP
master data in one step
Not all APO relevant master data
can be created automatically by CIF
APO specific Planning Parameters
have to be maintained manually
Mass maintenance of master data
objects
Maintain transportation lanes in
APO
Customer presentation© SAP 2009 / Page 8
Scope of Consulting Package
SNP Master Data Cockpit
Create Customer Location Products
Maintain Transportation Lanes
Maintain Replenishment Parameters
Enterprise Services
Consume enterprise services
and compose new services
Flexible UI for rich user experience
Co
mp
osite
A
pp
lic
atio
n
ERP SCM
Customer presentation© SAP 2009 / Page 9
Scope of Consulting Package
APO Kit VMI
Correlation with gATP
Create and consume reservations in ECC
Fair Share for kit components
Based on APO Lean VMI or stand alone
Consider structured products in APO VMI:
APO KIT VMI
Customer presentation© SAP 2009 / Page 10
Master data handling as the basis for APO KIT VMI:
• KIT and its components are defined in R/3 BOM (Bill of Material)
• To enable Fair Share and Correlation during APO VMI process, leading item (one
component) has to be defined
• Transfer Sales BOM as DP-PPM (Production Process Model) to APO
• APO Customer location product master contains leading item flag
ECC
KIT
4 C2
1 C1
Sales BOMAPO
DP-PPM
APO KIT VMI process
BOM Transfer
4 C2
1 C1
Flag Transfer
APO KIT VMI: Kit with BOM
Transfer kit master data to APO
Customer presentation© SAP 2009 / Page 11
Further services available on request
Enhance APO Lean VMI
Bypass or enhance Supply Network Planning
Classification for products and stores (sound media
specific), synchronized with the SCM master data
process
Customer ECC integration (PO)
Collaborative planning and forecasting (CPFR)
Web reporting (in cooperation with BI
consulting)
Logistic and Sales reporting based on SAP Business
Intelligence
Internet reporting as accounting service for your
customers
POS data monitor based on BI
Enhance the scope of APO Vendor Managed
Inventory by the following:
APO KIT VMI
Customer presentation© SAP 2009 / Page 12
SAP Products
NetWeaver PI can be used as hub for message exchange with external partners
(customer‘s customers)
Supplier collaboration with SCM SNC can be a next step
SOA show cases
An existing or extended BI system can be levared to handle big volumes in reporting and
POS data
Consulting
Consulting offer as fixed price project with low risk
Additional packages will be billable on a Time & Material basis
SAP Hosting
Hosted VMI solution is possible.
Global Delivery:
Upgrade service is available.
Door-Opener for Innovations
Customer presentation© SAP 2009 / Page 13
Contacts
Dr. Tobias Teuber
SAP Deutschland AG & Co. KG
Hasso-Plattner-Ring 7
D-69190 Walldorf
F +49-6227-78-35260
M +49-160-360 33 41
S +49-6227-763458
www.sap.de
Michael Mack
SAP Deutschland AG & Co. KG
Hasso-Plattner-Ring 7
D-69190 Walldorf
F +49-6227-78-41753
M +49-151-168 10 232
www.sap.com