70 sapsa scm oct 2012 final
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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
© 2012 SAP AG. All rights reserved. 3
SAP Supply Chain Solution Areas Synchronization Across Planning Domains
Consistent Supply Chain Data Model
Products/Materials Bill of Materials Routings & Resources Supply Network Locations Business Partners
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
© 2012 SAP AG. All rights reserved. 4
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)
Integrated Sales and Operations Planning
Manufacturing &
Supply Planning
Response
Management
Demand
Management
Supply Chain Execution
IRI
© 2012 SAP AG. All rights reserved. 5
“… 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
Integrated Sales and Operations Planning
Establish the supply network and create feasible demand and supply plans with lowest
inventory levels and highest service levels
© 2012 SAP AG. All rights reserved. 6
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
© 2012 SAP AG. All rights reserved. 7
SAP Sales & Operations Planning Overview
© 2012 SAP AG. All rights reserved. 8
Enable Rich, Contextual Social Collaboration
© 2012 SAP AG. All rights reserved. 9
Plan in Real-time With a Unified Data Model
© 2012 SAP AG. All rights reserved. 10
Run Simulations and Scenarios Instantly
© 2012 SAP AG. All rights reserved. 11
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
© 2012 SAP AG. All rights reserved. 12
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
© 2012 SAP AG. All rights reserved. 13
“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
© 2012 SAP AG. All rights reserved. 15
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
© 2012 SAP AG. All rights reserved. 16
Planner’s Home Page and Alert Worklist APO 7.0 EhP 2
Available now
© 2012 SAP AG. All rights reserved. 17
Where we are going from here….
Lab Preview
© 2012 SAP AG. All rights reserved. 18
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
© 2012 SAP AG. All rights reserved. 20
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
© 2012 SAP AG. All rights reserved. 21
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
© 2012 SAP AG. All rights reserved. 22
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
© 2012 SAP AG. All rights reserved. 23
SAP Enterprise Inventory Optimization Has Proven
Results Across Industries
Chemicals
Consumer
Products
Manufacturing
High Tech
Life Sciences
Distribution /
Retail
© 2012 SAP AG. All rights reserved. 25
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
© 2012 SAP AG. All rights reserved. 27
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
© 2012 SAP AG. All rights reserved. 28
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
© 2012 SAP AG. All rights reserved. 29
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
w V
olu
me
–
We
b B
row
se
r O
nly
Hig
h V
olu
me
–
B2B
In
teg
rate
d
Mid
Vo
lum
e –
Fil
e U
p/D
ow
n L
oa
ds
© 2012 SAP AG. All rights reserved. 30
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
SAP BusinessObjects
Supply Chain Performance Management Jesper Waaben
Solution Principal SCM, SAP EMEA
SAPSA, October 3rd 2012
© 2012 SAP AG. All rights reserved. 32
KPIs that matter!
Right measures drive right behavior
Right behavior drives performance
Pick metrics that matter
Tie metrics to action (and processes)
© 2012 SAP AG. All rights reserved. 33
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
© 2012 SAP AG. All rights reserved. 34
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
“ ”
© 2012 SAP AG. All rights reserved. 35
SAP SCPM Live-Demo
© 2012 SAP AG. All rights reserved. 36
© 2012 SAP AG. All rights reserved. 37
Significant Market Traction with SAP BusinessObjects Supply Chain Performance Management
© 2012 SAP AG. All rights reserved. 38
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
© 2012 SAP AG. All rights reserved. 39
30% Increase in
goods moved per hour
10% Reduction in transportation costs & CO2
emissions
Supply Chain Execution
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
Jesper Waaben Solution Principal - SCM, CoE SAP EMEA
SAPSA October 2012
SAP Transportation & Extended Warehouse Management
Logistics Excellence with SAP
© 2012 SAP AG. All rights reserved. 41
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
© 2012 SAP AG. All rights reserved. 42
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)
© 2012 SAP AG. All rights reserved. 43
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
© 2012 SAP AG. All rights reserved. 44
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
© 2012 SAP AG. All rights reserved. 45
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
© 2012 SAP AG. All rights reserved. 46
High Impact Strategy:
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)
© 2012 SAP AG. All rights reserved. 47
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)
© 2012 SAP AG. All rights reserved. 48
High Impact Strategy:
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
© 2012 SAP AG. All rights reserved. 49
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
© 2012 SAP AG. All rights reserved. 50
… some SAP TM customers
© 2012 SAP AG. All rights reserved. 51
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
© 2012 SAP AG. All rights reserved. 52
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)
Integrated Sales and Operations Planning
Manufacturing &
Supply Planning
Response
Management
Demand
Management
Supply Chain Execution
IRI
© 2012 SAP AG. All rights reserved. 53
Resources for Supply Chain Management
SAP Portal – http://www.sap.com/lines-of-business/scm/index.epx
© 2012 SAP AG. All rights reserved. 54
Thank You!
Jesper Waaben
Solution Principal SCM
EMEA SCM – Center of Excellence
SAP
M +45 2923 3552
T +45 3913 3552
E jesper.waaben@sap.com
www.sap.com
© 2012 SAP AG. All rights reserved. 55
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
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