solution overview scm supply chain monitoring
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Solution Overview
2014 SAP AG or an SAP affiliate company. All rights reserved.
Supply Chain
Management
Supply Chain
Supply Chain Monitoring
Executive
Summary
SAP Solutions SAP Innovations References
Contact Us
2014 SAP AG or an SAP affiliate company. All rights reserved.
-
2014 SAP AG or an SAP affiliate company.
All rights reserved. 2 / 24
Today, companies are looking for better ways to monitor ongoing activities in their
supply chains. Being able to respond to significant events in a timely fashion can
be the difference between pulling ahead of, or falling behind, the competition.
Supply chain monitoring requires data from all
parts of an enterprise, sometimes from all parts
of the globe. On one hand, businesses need to
review past performance against industry-
specific key performance indicators (KPIs) to
benchmark how different areas of the business
are performing. If they cannot see the current
view, they may miss potential roadblocks and
be unable to change course quickly enough. On
the other hand, mechanisms must be put in place
to ensure operational supply chain integrity.
Time and money can be wasted when a
business cannot identify the cause of problems
quickly and respond to them in a timely
manner. To act on information effectively, the
appropriate decision makers need access to
the data almost in real time.
Access to relevant data from different areas of
the supply chain also allows the relevant
parties to collaborate. When all those involved
can share the same information and see what
is being reviewed, they are more likely to drive
toward the same goal.
To respond with agility to supply chain needs,
users need to be able to link directly back to the
planning and execution applications. Only this
kind of insight to action will enable faster
responses.
Keeping Track of the Supply Chain
Use Real-Time Analytics
Track Relevant Events
SAP Innovations
Gain Visibility to Data
Executive
Summary
SAP Solutions SAP Innovations References
Contact Us
Supply Chain
Management
-
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Having relevant information readily available in one place is a key to managing
and making the best supply chain decisions. With a high standard of analysis
and insights, companies can move from manage by exception to manage by information.
Managing by Information
Companies can use information updates made
available through alerts to make time-sensitive
decisions about their supply chains. They can
track and report on any area of the business from raw material purchasing all the way
through to sales of finished goods.
Companies can also use collaboration to
leverage processes across organizational units.
Collaboration provides visibility into the
processes and makes information about the
status of work in progress available to everyone
involved. The analysis and insights that this
makes possible allows companies to leave
managing by exception behind and move forward to managing by information.
Use of mobile applications provides supply
chain professionals with instant access to the
required information when they are on the go.
Without being connected to the office, they can
get informational updates wherever they are.
Mobile applications also allow for a direct
connection to the relevant information; users
can target specifically what they want, while
reducing the distractions created by other
ongoing events and activities.
Use Real-Time Analytics
Track Relevant Events
SAP Innovations
Gain Visibility to Data
Executive
Summary
SAP Solutions SAP Innovations References
Contact Us
Supply Chain
Management
-
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Advanced track and trace information combined with dashboards or customer-specific
analytics allows insight into supply chain situations that require special attention. Supply
chain integrity metrics can be applied to improve operations and protect the companys brand. Furthermore, forward-looking reporting mechanisms enable insight for antici-
pating issues before they become critical. Measuring KPIs, based on the supply chain
operations reference model, allows comparison with globally accepted benchmarks.
Gaining Better Insight
Visibility into product creation and movement of
goods and assets without regard to system or
company boundaries, rounded off by capabili-
ties for efficient issue handling, helps protect
your brand. It also helps minimize costs due to
loss, damage, or delays and deliver safe, high-
quality products to the consumer.
Track and improve forecast accuracy through
increased demand visibility. Users can see the
bias and forecast accuracy on multiple levels of
aggregation with on-the-fly calculations. There
is no need to predetermine the levels at which
users can see data. Instead, they navigate on
their own to the desired areas.
Determine supply coverage and conformance
to the supply plan, easily identifying where
shortfalls occurred and seeing how they can be
corrected. By viewing aggregate inventory and
then drilling down into the details, users can
accurately allocate inventory to those locations in
need. With KPIs that track plan against demand,
users get the most up-to-date information.
Understand the impact of existing stock and the
coverage it provides. Use metrics provided by
SAP solutions such as stock variance, stock projected, demand under coverage, and days of
coverage to help ascertain the quality of stock in order to cover existing demands. Use this
information to make informed decisions on how
to best satisfy demands with existing inventory.
26% Lower revenue loss due to
stock-outs where forecasting
incorporates demand history
and automatic adjustments for
bad data and past promotions
Source: SAP Performance
Benchmarking
Use Real-Time Analytics
Track Relevant Events
SAP Innovations
Gain Visibility to Data
Executive
Summary
SAP Solutions SAP Innovations References
Contact Us
Supply Chain
Management
-
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analytical tools can look toward the future and
analyze the current state, providing flexibility
for determining any required adjustments.
Mobile solutions allow supply chain profession-
als who are out of the office to obtain live
connectivity to status. This is highly useful to
colleagues in the field who are working with
customers on a regular basis.
Collaboration can provide internal and external
partners with the ability to track specific topics
and get progress updates. In an ever-expanding
supply chain world, coordination is critical, and
collaboration enables it.
SAP software for supply chain monitoring uses the latest technologies to enable a
near-real-time view of the most relevant supply chain planning and execution data.
Low cost, low risk, yet highly scalable applications empower supply chain
professionals company-wide. Mobile applications can keep users connected
anywhere, anytime.
Database and technology solutions from SAP,
including those powered by the SAP HANA
platform, enable supply chain management
professionals to monitor changes in demand,
supply, customer orders, manufacturing
constraints, supply chain disruptions, and other
activities in a shorter time frame. Near-real-time
technology allows supply chain professionals
the ability to respond to these events more
quickly.
Analytics solutions allow insight into past
events; for example, measuring those events
against predefined benchmarks to determine
how well a company is performing. Other
SAP Innovations
Use Real-Time Analytics
Track Relevant Events
SAP Innovations
Gain Visibility to Data
Executive
Summary
SAP Solutions SAP Innovations References
Contact Us
Supply Chain
Management
-
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The supply chain is a dynamic entity that must have the ability to respond. In
todays economy, reacting quickly to supply chain disruptions and changes in customers needs is vital to business success.
Monitoring the Supply Chain
Monitoring supply chain activities enables an up-to-date view of every situation.
The ability to respond and react to events promptly leads to better decisions.
Managing Information
Having relevant information readily available in one place is key to making supply
chain decisions. Such analysis and insights provide a better understanding of
whats happening.
Gaining Better Insight
SAP solutions help analyze large volumes of data quickly. Whether based on past
indicators or future projections, there is a complete view of the supply chain.
Building a Responsive Supply Chain
Monitoring Supply Chain
Responsive Supply Chain
Gaining Better Insight
Managing Information
Executive
Summary
SAP Solutions SAP Innovations References
Contact Us
Supply Chain
Management
-
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Finding a way to monitor all ongoing activities in the
supply chain allows for a more up-to-date view of the
current situation. The ability to respond and react to
supply chain events in a timely matter leads to better
decisions.
More than one billion people are engaged in
social networks today, and more than 15 billion
devices are capable of connecting to the
Internet. These factors are contributing to an
explosion in the amount of data available creating a phenomenon called Big Data. It is a
real challenge to monitor the activities in a
global supply chain with many different parties.
Successful companies master this while
unsuccessful ones do not.
Companies need to be able to monitor supply
chain activities in an end-to-end process, from
planning to production execution to the final
delivery made to consumers. In this aspect,
a key success factor is the focus on relevant
events and information. Companies unable to
separate important issues from minor ones will
not succeed.
In a connected world, there should be no
information delays. It is crucial that companies
work on effective ways to resolve exceptions.
The earlier a critical incident becomes
apparent, the more time there is to resolve it for
a lower impact on supply chain cost, customer
service levels, and, ultimately, the brand.
Monitoring the Supply Chain
40% Greater ability to use Big Data
to gain insights with a well-
established analytics and data
modeling center of excellence
Source: SAP Performance
Benchmarking
Monitoring Supply Chain
Responsive Supply Chain
Gaining Better Insight
Managing Information
Executive
Summary
SAP Solutions SAP Innovations References
Contact Us
Supply Chain
Management
-
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Having relevant information readily available in one place
is a key to managing and making sound decisions for the
supply chain. With a high standard of analysis and
insights, companies gain a better understanding of what
is happening in the business.
With todays connected and complex supply chains, it is not possible to make a decision
without context. It is necessary to know which
objects are affected by certain exceptions, what
the root causes are of those exceptions, and
what implications decision making has on other
dependent objects. For instance, if you detect a
quality issue with a raw material or a supplier
cannot deliver in time, it is important to know
which end customers are affected. It is also
important to understand the root cause of the
issue, so it can be resolved. When the root
cause becomes clear, the business needs to
understand the effects on overall performance
as well as on other customers.
Having access to information is one thing, but
being able to decipher it is another. Companies
today can gather massive amounts of data,
sometimes too much. Insights that help pinpoint
existing or potential issues make it possible to
sift through these mountains of data, in order to
focus on the points that are relevant here and
now. This enables users to manage by
information instead of just by exception.
Managing Information
48% Lower customer complaints
where organizations analyze
key order management metrics
across various dimensions
such as customer, order,
geography, and product line
Source: SAP Performance
Benchmarking
Monitoring Supply Chain
Responsive Supply Chain
Gaining Better Insight
Managing Information
Executive
Summary
SAP Solutions SAP Innovations References
Contact Us
Supply Chain
Management
-
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Data is everywhere, and SAP solutions help companies
to analyze it quickly and easily via many different tech-
niques. With the ability to zero in on the relevant pieces
of information, users gain better insight quickly. That then
leads to the ultimate goal of better decision making.
Providing accurate information throughout the
organization leads to better visibility, which leads
to users able to make more informed decisions
that help mitigate supply chain risks and drive
the business forward toward profitability.
Companies unable to react quickly to supply
chain disruptions, such as quality issue recalls,
counterfeits, or delays in a product launch, are
instantly faced with a loss of trust. That loss of
trust often affects shareholder value and
corporate profitability significantly.
Companies with perfect order fulfillment have more satisfied customers and shorter cash-to-
cash cycle times. This also leads to lower
inventory levels that improve working capital
and cash flow.
The ability to see inventory shortfalls or
surpluses allows fast response to correct the
problems. The appropriate actions can be
taken quickly, whether that means reallocating
products or changing the mixes of the
production runs.
Gaining Better Insight
12% Lower days in inventory for
companies where forecasts
are dynamic and updated
frequently
Source: SAP Performance
Benchmarking
Monitoring Supply Chain
Responsive Supply Chain
Gaining Better Insight
Managing Information
Executive
Summary
SAP Solutions SAP Innovations References
Contact Us
Supply Chain
Management
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Supply Chain Value Map
SAP solutions address key necessities of supply chain management.
Supply Chain Control Tower
SAP Solutions
Supply Chain Integrity
Executive
Summary
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Supply Chain
Management
Integrated Business Planning
Sales, Inventory, and
Operations Planning
Demand and Supply Planning
Logistics and Order Fulfillment
Transportation Management
Warehouse Management
Demand-Driven
Supply Network
Demand Sensing and Shaping
Response Orchestration
Manufacturing and Supply
Orchestration
Service Parts Management
Supply Chain Monitoring Supply Chain Control Tower Supply Chain Integrity
-
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Supply Chain Control Tower
Enable companies to segment, analyze, and simulate
the supply chain in real time.
Segmenting the supply chain means breaking it up into logical parts
for easier viewing and understanding. Alerts and simulations identify
areas of interest and places for improvement. Analytics enables
easy access to information, and collaboration among interested
parties allows clear communication of that information.
7% Higher forecast accuracy for
organizations that collaborate
with external business
partners
Source: SAP Performance
Benchmarking
Collaboration Broadcast activities among common parties, enabling users to stay up-to-date and
share the current state of planning activities.
Supply Chain
Analytics
Analytics is at the heart of the supply chain monitoring process. It allows planners to
analyze data via dashboards and KPIs and obtain clear insight into plans.
Supply Chain
Segmenting
Divide the supply chain into smaller pieces for easier management of issues; for
example, dealing with compliance and master data control.
Alert Management Conduct root cause analysis of problems and acquire the capability to simulate
solutions.
Supply Chain Control Tower
SAP Solutions
Supply Chain Integrity
Executive
Summary
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Supply Chain
Management
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Supply Chain Integrity
Keep your supply chain from being compromised or
interrupted to ensure quality products to the end
consumer and protect your brand.
Establishing full visibility and built-in compliance into a complex
supply chain is a challenge for any business, but the right tools make
it possible. Track parts and products from raw material to the point of
consumption, have visibility of goods and assets from start to finish,
ensure process compliance, and efficiently manage quality issues.
90% Improvement potential for
tracking product diversions
and verifying that a product is
genuine by introducing an
appropriate serialization
solution
Source: SAP Performance
Benchmarking
Fulfillment and
Procurement Manage order-to-cash and procure-to-pay cycles by exception.
Goods and
Assets in-Transit Manage in-transit inventory by exception.
Item Serialization
and Product
Traceability
Help ensure secure distribution and traceability of serialized products by getting full
visibility of end-product location and condition over the entire lifecycle.
Product Genealogy Obtain comprehensive tracing of batch-managed products and components across
the supply network.
Quality Issue
Handling Efficiently manage quality issues to mitigate supply chain risks quickly.
Supply Chain Control Tower
SAP Solutions
Supply Chain Integrity
Executive
Summary
SAP Solutions SAP Innovations References
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Supply Chain
Management
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New breakthrough technology is providing organizations
with the possibility of extending their reach through
enterprise mobility and more easily and quickly analyzing
massive amounts of data. They are then able to involve
more participants in the supply chain process through a
variety of devices.
SAP Innovations
Big Data
Handle large volumes of highly granular data. Allow organizations to enrich a variety of demand
information including downstream demand, social, and Web data. Offer increased decision support
with on-the-fly complex analysis of up-to-date track and trace data.
Mobile
Unwire employees, provide access to new supply chain participants, and equip the companys business processes to make agile and informed decisions closer to the customer.
Analytics
Perform easier simulation and side-by-side what-if analysis across all response and manufacturing
processes with targeted and relevant insights that matter most. Get tools at hand that offer insights
on up-to-date, decisive, event-based KPIs and queries.
68% Greater ability to use Big Data
for organizations with a well-
defined enterprise-wide high-
performance analytics
strategy
Source: SAP Performance
Benchmarking
The SAP HANA Platform
SAP Innovations
Mobile
Analytics
Executive
Summary
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Supply Chain
Management
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The SAP HANA Platform
Unprecedented availability of end-customer demand and
supply data, combined with in-house data for supply chain
planning and execution, offers significant opportunity for
doing business like never before. Best-run companies of
tomorrow will be able to benefit from Big Data to drive
landslide competitive advantage.
8 out of 10 Decision makers think access
to the right information at the
right time is critical to their
business
Source: SAP Performance
Benchmarking
Real-Time Supply
Chain Monitoring
Enable supply chain professionals to perform high-speed analysis and KPI tracking
against information in context with the current process view. Remove the need to
perform traditional report handling, with less time spent compiling, generating, and
waiting for information. In-memory supply chain monitoring functionality enables
supply chain professionals to make high-speed decisions. Organizations can better
connect operational decisions to KPIs to help ensure continual supply chain
performance.
The SAP HANA Platform
SAP Innovations
Mobile
Analytics
Executive
Summary
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Supply Chain
Management
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Mobile
Connect sales, service, and operations teams to back-
office processes through convenient and easy-to-use
mobile solutions so they are never disconnected from
information. Perform business functions on the fly and
have full access to information at any time. Manage data
integration both live and offline.
40% Higher employee productivity
where mobile access is
provided to employees
across all levels
Source: SAP Performance
Benchmarking
Mobile Supply
Chain Analysis
Access real-time insights into the organizations global planning and execution data and KPIs and perform root cause analysis through mobile devices.
Mobile Supply
Chain Input
Update relevant customer demand and status information remotely. Have direct
connectivity to back-end planning as well as track and trace systems through secure
connections through which data is immediately updated.
The SAP HANA Platform
SAP Innovations
Mobile
Analytics
Executive
Summary
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Supply Chain
Management
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Analytics
Providing up-to-the-minute visibility to KPIs across
every facet of business operations, enabling real-time
monitoring, root cause analysis, risk mitigation, predictive
modeling, and optimization. This analytical functionality
contributes to companies becoming more responsive in
their supply chain planning.
5% Higher on-time delivery
performance where organiza-
tions monitor production and
supply in real time across
supplier networks
Source: SAP Performance
Benchmarking
Supply Chain
Monitoring
Measure key drivers of the supply chain in real time across planning, collaboration,
and execution, using live operational data. Perform context analysis with drill-down
functionality to complement core supply chain processes and determine root cause
analysis. An array of analytics and KPIs provide insight into relevant supply chain
data.
Supply Chain Data
Access to relevant data from different areas of the supply chain enables
collaborative activities among relevant parties. By collaborating, all interested parties
can share the same information, know what is being reviewed, and drive toward the
same goal.
Supply Chain
Analysis
With access to updates via alerting and issue management, companies have
information they can use to make time-sensitive decisions about their supply chains.
The SAP HANA Platform
SAP Innovations
Mobile
Analytics
Executive
Summary
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Supply Chain
Management
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Best-Run Customers
Our customers represent 85% of the top 100 most valued brands in the world.
Our customers represent 79% of Global Fortune 500 companies.
Our customers distribute more than 71% of the worlds food.
SAP holds the Guinness World Record for powering the largest data warehouse.
SAP touches $12 trillion in consumer purchases around the world.
79% Of SAP customers are Global
Fortune 500 companies
Source: SAP Fast Fact
Novus
Best-Run Customers
DeLaval
Boehringer Ingelheim
Why SAP?
Executive
Summary
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Supply Chain
Management
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SAP co-innovates in many different ways across various industries and solutions
for supply chain management. These ideas and concepts are taken into
consideration for future product enhancements and are included in the standard
releases most of the time.
Customer Co-Innovation
SAP collaborates on supply chain processes in various ways with about 100 customers in multiple
industries around the world. SAP participates in influence councils at various events, helping to
shape the future direction of the product. Customer Engagement Initiative (CEI) is a formal
program in which customers can sign up to learn about special topics that are part of a current
development plan. Open communication between customers and SAP helps shape the features
and functions under development.
In many different customer engagement initiatives, best practices, current challenges, ideas, and
changing requirements are shared and discussed in an open and honest way.
A growing number of customers and partners now benefit from early insight into product strategy
and design, direct lines of communication to SAP product developers, and early product validation
and adoption.
17 of the top 25
Gartner supply chains
extensively use supply chain
management solutions from
SAP
Source: SAP Fast Fact
Novus
Best-Run Customers
DeLaval
Boehringer Ingelheim
Why SAP?
Executive
Summary
SAP Solutions SAP Innovations References
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Supply Chain
Management
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The ultimate way to create value is to identify and deliver key initiatives that improve corporate performance by improving the performance of our KPIs.
SAP Supply Chain Performance Management helps our organization focus
on managing our core business KPIs versus looking at reports all day.
Alex Pierroutsakos, Global Chief Information Officer, Novus International Inc.
Novus International Inc. is a leader in the animal health and
nutrition industry.
Novus wanted to utilize an industry-standard metrics model to enable
consistent performance reporting.
Why SAP
Visibility into operational, financial, and enterprise performance metrics to drive corporate goals and improve business processes
16 KPIs tracked to improve organic growth, product profitability, resource efficiency, and customer satisfaction while managing working capital
Constant and standardized metrics reporting and industry-standard supply chain operations reference (SCOR) model
Key Benefits
Standardized business processes and improved performance globally
Higher customer satisfaction from fewer supply chain bottlenecks
Fewer stock-outs and greater liquidity to optimize inventory levels
Greater Flexibility in KPIs for enterprise- wide performance management
Improved Decision making via faster access to clear performance metrics
Better Ability to manage operations and take timely, proactive action
Novus
Best-Run Customers
DeLaval
Boehringer Ingelheim
Why SAP?
Executive
Summary
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Supply Chain
Management
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Boehringer Ingelheim is one of the worlds top 20 pharmaceutical companies and has the largest pharmaceuticals research budget
in Germany.
A big challenge facing the pharmaceuticals industry is the upcoming intro-
duction of serialization, one good use for it being to combat product piracy.
The company needed a centralized, global track-and-trace platform that
could be used to manage and archive serial numbers for each individual
product across the entire group network.
Why SAP
SAP object event repository functions that cover almost all requirements Scalability and flexibility of software Certified, cross-industry standard interface
Key Benefits
4 month implementation Improved patient safety through increased transparency in the supply chain Globally consistent serial numbers and standardized serialization data
beyond the group and supply chain boundaries
Seamless exchange between all supply chain partners Innovation leadership on the process side
Increased Supply chain visibility
Compliance With legal requirements
SAP OER offers us just the functions we need for a global solution. Whats more, it can be completely integrated into our SAP Supply Chain Management application and is highly
scalable which constitutes a key factor for the projects global reach.
Jens Schader, Project Manager, Supply Chain Management, Boehringer Ingelheim GmbH
Novus
Best-Run Customers
DeLaval
Boehringer Ingelheim
Why SAP?
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Supply Chain
Management
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As the worlds leading full-service supplier to dairy farmers, the Swedish company DeLaval GmbH has a global presence in
more than 100 markets.
DeLaval decided it needed a new software solution for order tracking to
support order and supply processes for plant projects.
Why SAP
DeLaval wanted to roll out a standardized system to ensure transparent order
tracking right through to delivery to the customer. To identify noncompliance
with supply chain planning early on, suppliers as well as external logistics
service providers needed to be integrated. SAP Event Management provides
the information required on deliveries, consignments, and staging areas
transparently, so defined events in the logistics processes can be monitored
and measured.
Key Benefits
Go-live in just 4 months Lower costs thanks to better coordination of customer projects Improved data quality and support for continuous monitoring Faster response times in the event of disruptions in the supply chain thanks
to automatic alerts
High acceptance among users
More Transparency
Better Supply chain performance
SAP Event Management helped us improve our on-time-in-full performance significantly.
Stefan Schultz, Manager of Order Fulfillment, DeLaval GmbH
Novus
Best-Run Customers
DeLaval
Boehringer Ingelheim
Why SAP?
Executive
Summary
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Supply Chain
Management
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Supply chain management solutions from SAP empower companies by enabling
demand-driven supply chain approaches, fast response to market dynamics, real-
time visibility into demand and supply, always-on access, and low-cost highly
scalable deployment options, leveraging the latest technology innovations.
Why SAP?
Tightly Integrated, Comprehensive Solutions
SAP offers the most comprehensive portfolio of solutions for supply chain management, enabling a
responsive supply network from strategic supply chain planning to tactical fulfillment integrated and collaborative by design.
Leveraging Key Breakthrough Innovations
SAP solution portfolios use the industrys most innovative technology foundation, which combines solutions for database and technology, mobile, analytics, and cloud-based deployment options to
enable supply chain optimization and efficiency at the lowest possible cost.
Proven Time to Value in Global Implementations
The worlds leading consumer products companies, across every major segment of the industry throughout the world, continue to rely on SAP to enable them to build real-time supply chains.
Novus
Best-Run Customers
DeLaval
Boehringer Ingelheim
Why SAP?
Executive
Summary
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Supply Chain
Management
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Benchmark Your Performance
Position your organization for dominance in this new economy with the business performance
benchmarking program from SAP available free to SAP customers and select prospects. The SAP benchmarking program has helped more than 3,000 organizations assess their
strengths, uncover areas for improvement, and identify best practices and IT strategies that
generate clear, tangible value not someday, but today.
Go Live in Weeks
Heres the fastest way to run your business better: our rapid-deployment solutions. In one package, you get everything you need to be up and running quickly including preconfigured software and implementation services in just weeks. With a defined scope and predictable costs, there are no surprises.
Join Your Community of Practices
Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work.
It lets members help one another solve problems, learn, and invent new ways to get things
done faster. Find out how to connect with people, content, and resources.
Find Out More About How Your Organization Can
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Supply Chain
Management
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Solution Overview
2014 SAP AG or an SAP affiliate company. All rights reserved.
Supply Chain
Management
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Supply Chain
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