gxs managed services for sap

Mark Morley, Industry Marketing Director

SAP-B2B Integration: Your Secret Weapon for Business Benefits and ROI

© Copyright 2011, GXS

Today’s Agenda

• Introduction

• AMR ERP Integration Research Study

• Introduction to GXS Managed Services

• How GXS Managed Services Helps SAP

Implementations

• Customer Examples

• Conclusion & Questions

+


Introduction


Introduction

• Managing the integration of SAP and

B2B systems is a complex process

• SAP and B2B projects are implemented

across internal and external users

• Integrated SAP and B2B systems can

help introduce significant operational

efficiencies

• SAP B2B integration provides improved

visibility into cross enterprise business

processes


Why Do Companies Have a Requirement to

Integrate Their SAP and B2B Systems?

• Companies integrate SAP and

B2B systems for various

reasons

– Standardize business processes

– Reduce time to integrate

acquisitions

– Provide a consistent customer

experience

– Improve supply chain efficiencies

– Lower operational costs


Today’s SAP Systems Need to Support Global Operations

Global companies must manage a network of manufacturing, sales,

marketing, engineering and finance centers

Manufacturing

Back Office

Sales

Global

HQ

Regional

Marketing &

Finance

Engineering

R&D

Manufacturing

Sales

Sales

Manufacturing

Regional

Marketing &

Finance

Back Office

Manufacturing

Sales

Engineering

R&D

Engineering

R&D


Companies Undertake Many Different Types of SAP Related Projects

Retire Legacy

Mainframes

Rapid Company

Growth

New

InstallationsConsolidations

Upgrades Extensions

Mergers &

Acquisitions

Shared Services

for Back Office

Vendor End-of-

Life Support

Expanded

Feature Set

Supply Chain

Planning

Treasury or Bank

Relationship

Management


SAP Data Originates Outside the EnterpriseBut Is the External Data Quality Conforming to Corporate Standards?

Sales Financials ServiceSupply ChainManufacturing

Forecast

Point of Sale

Sales Order

Inbound Materials

Inventory

Work In Progress

Shipment Status

Proof of Delivery

Product Catalogs

Bank Statements

Remittance Advice

Trade Confirmations

Repair Order

Work Order Status

Warranty Claim

Customers

Distributors

Contract

Manufacturers

Direct

Suppliers

Freight

Forwarders

Ocean

Carriers

Financial

Institutions

Commercial

Insurers

3rd Party

Logistics


AMR Research Study


Third Party Research Institutions Validate

the Value of B2B Outsourcing


Key Findings from ERP/B2B Study

• 48 percent of respondents said they had lost B2B

connectivity

• 34 percent of respondents said B2B integration staff were

supporting ERP related projects

• 34 percent of the data feeding ERP systems is generated

externally

• 29 percent of respondents said that they had to prematurely

terminate B2B testing programs relating to external trading

partners

• 79 percent of respondents have exceptions or problems on

more than one percent of inbound B2B transactions

• 80 percent of respondents plan to move to highly

consolidated ERP environments


The Need for ERP to B2B Integration

• According to AMR Research there

are a number of key drivers for

integrating ERP and B2B systems

– Significant amount of ERP data is

sourced from outside a company

– Poor data quality can compromise the

value on an ERP implementation

– Poor B2B integration limits visibility into

key business processes

– High availability of external B2B

communications is critical


• SAP uses information from

various external sources

• Information can be sourced from

customers, logistics providers

and financial service institutions

• Information derived from different

global standards can be difficult

to manage

• Integrating trading partners to

remote manufacturing plants can

be a complex process

Externally Sourced SAP Data

On average 34% of data

feeding an ERP system

comes from outside the

enterprise


Data Quality Compromises SAP Value

• Externally sourced data is rarely

checked before it enters an SAP

system

• Once the information is within

SAP, it will quickly spread across

the enterprise

• Inaccurate data can affect

downstream business processes

• Inaccurate data leads to incorrect

electronic documents being

created

79% of respondents said

that more than 1% of

transactions needed

reworking


High Availability in B2B Is Critical

• Ensuring that B2B information is

available 24/7 is crucial to the

operation of an SAP environment

• B2B platforms ensure that

externally sourced information

can be used by internal business

applications

• Lack of B2B information could

lead to production line stoppages

• Business critical decisions need

to be made in real time

48% of respondents said

they had lost connectivity

with their B2B system


Program Management

• Integrating SAP and B2B requires

constant monitoring to ensure that

any problems are resolved

efficiently

• Changes made to an SAP system

may need to be incorporated into

the B2B platform as well, or vice

versa

• Must ensure that the SAP/B2B

integration platforms are tested

and deployed correctly

84% of respondents had

experienced delays with

their ERP B2B integration

projects


Introduction to GXS Managed Services


GXS Managed ServicesPeople, Process, and Technology


GXS Managed Services Experience

Areas of Expertise• Infrastructure

• Operations

• Implementation

• Support

• Recognized as Number One Transaction

Outsourcing Vendor

– Over 500 customers utilizing GXS Managed

Services today

• Extensive Transformation Capabilities

– Capacity to develop 10,000 maps annually

– Over 30,000 maps and 200 document types

currently in production

• Areas of Expertise:

– Program management

– Global network infrastructure

– e-Commerce operations management

– 24x7 support, visibility and alerts


GXS Managed Services OverviewPeople, Processes, & Technology for success


SAP Expertise

• Significant Expertise – GXS has

worked with many companies to

integrate their SAP and B2B

systems

• Extensive Experience with SAP

Integration – Financials, Supply

Chain Management, Advanced

Planning and Optimization modules

• Connectivity Options – FTP over

VPN or SAP ALE (certified)

• IDOC Status Messaging –

Provides immediate verification or

error status

SHPMNT03

INVOIC01

PEXR2001

PEXR2002

FINSTA01

DELVRY01

ORDERS01

PROACT01

PRICAT01

TRXSTA01

Example SAP IDOCs Supported


GXS SAP ALE Integration Today

Managed

Services

EnterpriseA

LE

GXS

Application

Integrator

Customer

VPN/Private IPFlat

IDOC

RFC/Socket

GXS Managed Services Environment

SAP Status

Messages

5/6,11/12,16/17

http://www.sap.com/index.epx


GXS SAP PI Integration Today

GXSCustomer

VPN/Private IP

RFC/SocketPIManaged

Services

EnterpriseA

LE

Application

IntegratorFlat

IDOC

GXS Managed Services Environment

SAP Status

Messages

5/6,11/12,16/17






Applications

Split

Orders

Consolidate

Invoices

Confirm

Required

Fields

Translate

Customer

Data

Confirm

Valid

Data

Split by

Payment

Types

Aggregate

Account

Balances

Units of

Measure

Transform

Carrier

Codes

Out of

Sequence

Documents

Conform to

Business

Rules

Check

within

Tolerances

Confirm

Required

Fields

Confirm

Valid Data

Customers and Distributors

Direct and Indirect Material Suppliers

Lo

gis

tics P

rovid

ers

Fin

an

cia

l In

sti

tuti

on

s

Link

Invoice

to Payment

B2B Helps to Establish an “ERP Firewall”


GXS Data Quality & ComplianceProtecting Mission Critical Transaction Data

IDENTIFY

Rejectable Document

REAL-TIME ERROR

Hold in Exception Queue

WARNING

Pass through and Log

FIX

Correct then Retransmit

1 2

34


How GXS Managed Services

Helps SAP Implementations


How Can GXS Managed Services Help?

• Ensure projects remain on time and under budget with

scalable resourcing and SAP best practices

• Achieve faster ROI from new modules and transaction

types with rapid on-boarding of trading partners

• Less risk of connectivity loss impacting manufacturing

operations with high availability architecture

• Improve data quality for the 1/3 of externally originated

information via ERP firewall


Provide a Highly Available Platform

• GXS Managed Services operates across a highly

available, 99.95%, B2B infrastructure with two data

centers with built in redundancy, disaster recovery

and fail-over capabilities

SAP systems need to be able

to receive information from

external trading partners on a

24/7 basis.


Implementing Document Maps

• GXS Managed Services provides extensive any-to-any

mapping services and can provide support for many

different types of SAP IDOCs

SAP/B2B integration projects

can require numerous

document maps to be created

and maintained on an ongoing

basis.


Connectivity with SAP

• GXS Managed Services can mediate between any

communications standard and provide direct SAP

connectivity via SAP ALE and SAP PI

SAP systems need to be

connected to numerous

trading partners using many

different global connectivity

standards.


Managing Trading Partner Communities

• GXS Managed Services provides a comprehensive

community on-boarding service to allow trading partners

of any size or technical capability to be able to connect to

a B2B platform


require fast on-boarding of

trading partners, anywhere in

the world.


Proactively Monitoring Data Quality

• GXS Managed Services provides proactive monitoring

of all transactions so that if a problem is detected it can

be resolved before the customer or supplier is impacted

All external data needs to be

checked for accuracy and

conformance before entering

an SAP system.


Program Management

• GXS Managed Services offers dedicated program

managers who monitor the progress of the SAP/B2B

projects and address any integration issues as they

arise

The complex nature of


requires skilled resources to

keep these projects on

schedule.


Provide Global Support

• GXS Managed Services offers a 24/7 multi-lingual

support service so that problems can be addressed as

quickly as possible, anywhere in the world

Today’s SAP environments

cover multiple plants located

in many different regions of

the world.


Customer Examples


Automotive Tier 1 Supplier Customer Case Study – GXS Managed Services

Company Overview

This Tier 1 Automotive

supplier is one of the largest

in the industry, they supply all

the major OEMs and have

nearly 3000 trading partners

around the world. After being

divested from their parent

company they had a

requirement to establish their

own B2B environment as

soon as possible.

Business Issues

Solution Deployed

• GXS Managed Services offering included the implementation of over

600 maps and connectivity to 3000 trading partners

• Full integration with SAP to allow publication of IDOCs

• Provision of Program Managers to co-ordinate the expected 150

change requests per quarter

• Required a flexible B2B platform that would allow for growth of 30%

year on year

• Needed to reduce operational costs across their global business due

to being divested

• Needed to fully integrate their B2B platform to a new e-payments

solution and an ERP system which was being deployed globally

• Needed to connect their EMEA plants to their global B2B platform


Clothing Manufacturer Customer Case Study – GXS Managed Services

Company Overview Business Issues

Solution Deployed

• GXS Managed Services helped manage the B2B integration with

SAP ERP across six divisions of their business

• Creation of 280 maps and they also had a requirement to convert a

number of EDI documents into SAP IDOC format

• Implement AS2 connectivity to major customers and manage the

migration of EDI transactions from their incumbent VAN provider

• This company had limited resources to manage the implementation

of a new global SAP environment and at the same time manage their

existing B2B platform

• They were working with a diverse range of leading global retailers

and as a result they wanted to try and improve the integration and

efficiency of their global supply chain

This company is one of the

world’s leading apparel

manufacturers. They design,

source and manufacture a

range of leading clothing

brands.

Their company consists of six

major apparel divisions and

their products are distributed

and sold via a network of over

200 leading retailers around

the world.


Aftermarket Parts Provider Customer Case Study – GXS Managed Services

Company Overview Business Issues

Solution Deployed

• GXS Managed Services implemented to manage 700 suppliers and

GXS Intelligent Web Forms services will help to reduce manual

processes

• Integration with their SAP environment allows them to transmit

purchase orders and other forms of IDOC documents. The IDOC are

then translated to XML for transmission to Chinese shipping agents

• They needed to find a cost effective way to manage their ever

expanding supply chain and product offerings

• They wanted all documents to be transmitted electronically across

their supply chain

This company is a non-

franchised retailer of national

and private label automotive

products. They operate 200

retail stores in Australia and

New Zealand, offering nearly

10,000 products. They have

nearly 700 suppliers and ten

agents in China representing

300 factories.


Conclusions


SAP Integration Requirements GXS Solution Value Business Value to Customer

• Provides extensive ‘any to any’

mapping skills and allows

consolidation/seamless creation of new

maps to suit the integrated SAP/B2B

environment

Document Mapping

• Expertise in wide variety of cross

industry and regional standards

• Network based translation using GXS

award winning translator technology

• Supports the industry’s broadest range

of communications protocols

• B2B environment runs on a highly

available infrastructure

• Trading Partners can be connected

irrespective of their technical capability

• Ensures that B2B transactions can

flow smoothly 24/7

• Provides a number of methods to

interrogate externally sourced data and

check for accuracy against known data

analysis rules and criteria

Data Cleansing

• Ensures that information sourced

from external trading partners is

checked and cleaned before entering

an ERP system

• Multi-lingual 24/7 ‘follow the sun’

helpdesk support

• Proactive event monitoring and tailored

escalation processes

• Provision of a program manager for

the duration of outsourcing project

Global Support /

Program Management

• Users across the extended enterprise

can be supported and monitored much

more easily

• Change requests can be dealt with

more efficiently and SAP & B2B

systems remain synchronized

• Full education, communication and

testing of trading partners

• Local on-boarding in 30 countries with

20 languages

Community Management

• Trading partners, in any region of the

world, can be managed effectively both

during and after the SAP/B2B

integration has taken place

Global Connectivity/

High Availability

GXS Differentiation


For Further Information

www.b2bforsap.com

www.gxs.com/resources/insights/3rd_edition/

http://www.b2bforsap.com/

http://www.b2bforsap.com/

http://www.gxs.com/resources/insights/3rd_edition/


Thank You for Your Participation

For More Information

Phones

US: 1-800-334-5669, option 3

EMEA: +44 (0) 1932 776047

ASPAC: +852 2884 6088

Japan: +81-3-5574-7545

GXS web sites

US: www.gxs.com

EMEA: www.gxs.eu

ASPAC: www.gxs.asia.com

Japan: www.gxs.co.jp

Presenter:

Mark Morley, [email protected]

http://www.gxs.com/

http://www.gxs.eu/

http://www.gxs.asia.com/

http://www.gxs.co.jp/

mailto:[email protected]