sap information interchange ondemand with molson coors

CONFIDENTIAL

A New Way to Improve Communications with Suppliers to Streamline B2B Transactions & Business Processes

Frank Ruland, Solutions GTM, LOB Business Networks and B2B, SAP AGCorey Marshall, MolsonCoorsMay 2012

© 2011 SAP AG. All rights reserved. 2Confidential

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Agenda

Key Trends and Issues

SAP Solution Overview

Top Reasons Why SAP

SAP Customers – MolsonCoors

Key Trends and Issues


SAP B2B Solution History (1990 - 2012)A long History of Business Network Direction and Expertise

SAP R/3 IDOCfor EDI Communication

EDI Communication

SAP NetWeaver XI for B2B communication

SAP NetWeaver Platform

SAP BusinessPackages for B2B

Industry Standard Support from SAP

SAP SOAEnterprise ServiceEnablement

SOA Enablement

SAP Information Interchange by Crossgate

Solution ExtensionB2B offering

Goal: Change Status Quo: B2B Integration,Dietmar Hopp asCo-Founder

Crossgate Founded

SAP BecomesShareholder,Jim Snabe member ofSupervisory Board

SAP Shareholder

Awarded SAP highestpartner honor:2011 Pinnacle Award

SAP Global B2B Partner

Rated in “LeaderQuadrant” byAnalyst Firm

Global Leader

“On the behalf of all our clients, SAP will continue to invest in innovative services [Crossgate] to develop business networks. We offer solutions which allow companies to realign their business networks, increase their flexibility, and be able to react better to changes and opportunities in the market. Our partners help us to accelerate innovation cycles and help clients to shorten the amortisation of their investments.”

Jim Hagemann Snabe, Co-CEO

Member of the Board, SAP AG

SAP Information Interchange OnDemandfor all B2BCommunication

ComprehensiveB2B offering by SAP

Acquisition and integration of Crossgate by SAP

OnDemand offering


“…thanks to an ever-more-globalized business environment, more large companies now see attractive market opportunities beyond their borders, further highlighting the need to establish an efficient B2B infrastructure with local subsidiaries and suppliers.

Gartner, 12 October 2010, Market Trends: Application Infrastructure and Middleware Software, Worldwide, 2009-2014

”

Businesses Are More Reliant on Their Network of Partners than Ever Before

Trend #1: Increasing Complexity of Network New markets, mergers and acquisitions,

global supply chain Increasing number of business partners and

subsidiaries

Trend #2: Accelerated Speed of Business New product and services introductions; new

suppliers and partners Rapid partner on-/off-boarding due to

changing market conditions

Forrester Consulting, Joint Industry EDI/B2B Survey, March 2010

Series10

5,000

10,000

15,000

20,000

25,000

1,000+

Interfaces

Partners

500250 750


Why the Slow Pace of B2B Adoption?

Business Challenges

20-37days to enable a single partner

$15,000 internal cost per partner interface

90% had ERP project delays dueto B2B integration issues

57% experienced production outage due to lack of B2B connectivity

65% performed inadequate testing of B2B prior to new ERP launches

37% said B2B integration staff were supporting ERP related projects

AMR Research, Aberdeen Group


Missing B2B Integration between Business Partners Hinders Success and Collaboration in Business Networks

Accounting/Finance

Supply Chain/Logistics

PurchasingCustomers

Suppliers

Suppliers

Customers

LogisticsService

Providers

LogisticsService

Providers


But Did You Know?

“80% of SAP customers utilize the Standard SAP interface for B2B which is known as IDOCs.SAPs Enterprise Services allow direct connectivity to the backend application.

The new B2B Portfolio builds business partner connections in no time and fully integrated with the SAP Suite.

”

SAP Solution Overview


Solutions for specific business needs

Error prone, time and labor intensive paper based solutions

In a dynamic environment, there is high cost of on boarding and managing technical connectivity with multiple partners.

Multiple technologies must be mastered and maintained to provide technical connectivity and data mapping to send electronic documents from customers business systems to various business partners

High costs and effort to monitor and secure business network messages due to a lack of centralization of connections to multiple business systems.

Business challenges


What Does This Mean for Your Business?

Operational benefits

Collaborate with any partner, anywhere in the world, regardless of data standards

Rapid response to market changes and unpredictable situations

End-to-end visibility of your business processes with monitoring capabilities

Technological benefits

Connectivity through standard interfaces

Highly scalable and flexible solution

Easy and fast on-boarding scenarios due to predefined content profiles

Financial benefits

Lightweight solution with multiple deployment options -> lower TCO

Predictable costs due to fixed price models

Replace legacy solutions and save money

No change or transaction fees

Top Executive Issues

External


Current Point-to-Point Approach Central B2B Content Repository – Integrate Once

The Content Repository of SAP Information Interchange OnDemand

The content repository allows SAP customers to integrate once and re-use standard interfaces across the Business Partner Network.

B2B/EDI Integration 1.0 B2B/EDI Integration 2.0

SAP Information Interchange OnDemand

• Faster Implementation. • Bigger Flexibility. • Lower TCO

• 3rd party application for EDI• Not scalable• Need for internal resources



Pre-defined content

Out of the box connectivity

Any format or industry standard

End-to-end visibility

SAP Information Interchange OnDemandSolution Details

SAP Solution

Collaborate with any partner, anywhere in the world, regardless of data standards and compliance

Easy and fast on-boarding scenarios due to predefined content profiles

Lightweight solution -> lower TCO

SAP Differentiators

Integration: Integrates seamless with all SAP systems

Support: Solution is covered with SAP Enterprise Support

Customer base: Gain access to more than 40,000 potential trading partners inside SAP’s Business Ready Network

External


SAP Information Interchange OnDemand Process overview

Process Steps

Initial on-boarding

Partneron-boarding

Message exchange

On-boarding of your Business Partners, including profile creation.

Sent and receive business messages via the SAP Information Interchange engine.

Become a part of SAP’s Business Ready Network by on-boarding yourself to SAP Information Interchange.

Search for already connected and potentially new business partners and leverage the network effect.

Extend your Network

Automate and standardize your end-to-end B2B communication to improve productivity, reduce error rates and save maintenance costs related to maintaining and updating your interfaces manually

External


3rd Party Solutions

SAP Netweaver Process Integration

SAP ERP

SAP SAP BusinessByDesign

SAP Procurement

SAP Supply Chain Management

SAP and Non-SAP Solutions

Warehouse

End customer

…

Financial Services, Government

Logistics Service Providersand Carriers

Retailer

SAP and Non-SAP Solutions

Financial Services, Government

Productionsites

Suppliers

LogisticsServiceProvidersand Carriers

Outsourced Manufacturers

Orders In-/Outbound

Orders Ack. In-/Outbound

Invoice In-/Outbound

ASN In-/Outbound

Delivery Forecast In-/Outbound

Remittance Advice In-/Outbound

Delivery JIT In-/Outbound

Inventory Report In-/Outbound

Self Billing Invoice In-/Outbound

Shipment In-/Outbound

Enterprise Service

Other Processes, Docs, etc.


…

Leverage Ready-to-run B2B content maintained over lifecycle

Deep B2B Pre-integration within SAP’s Portfolio for Mission Critical Processes


SAP Information Interchange OnDemand Enables your Business to RUN BETTER Along the Entire Value Chain

Integrate with your logistics service providers or carriers directly

Sent or receive business messages via EDI directly from or to your systems

Enable collaboration between all participants in your supply chain

Pre-defined Integration Scenarios for shippers and LSP around freight tendering, and carrier booking

Collaborative Booking Processes supported with integrated event notification for tracking purposed

Digital message processing to eliminate paper and postage and avoid manual data entry errors

Speed compliance with customer format mandates and shorten customer-to-cash cycle times

Enable real-time data exchange with your Business Partners

Pre-defined Integration Scenarios for supplier and customer collaboration, e.g. Purchase Order Collaboration with Replenishment Order and Dispatch Delivery

Efficient On-boarding – Adding new Business Partners easily over time

B2B Integration for Transportation

B2B Customer and Supplier Integration

(Order-to-Cash, Procure-to-Pay)

B2B Integration for Supply Network

Collaboration


External


You

SAP Network

Connect Your Business Network

Your Partners

Direct link(e.g. VPN)

Mapping & delivery as a service

Multi channel access

Connected B2B Process

SA

P N

etW

eave

r P

I(3

rd P

art

y M

idd

lew

are

)

Message concentration

Dedicated partner interaction

Multi channel access

Connect applications directlyor through your on-premise

integration hub (SAP NW PI).

Use all available access channels for integration scenarios.

Have all or parts of your B2B processes managed by SAP

Partner Repository


Using B2B Integration to Gain Visibility, Control, and Agility

Accounting/Finance

Purchasing

Supply Chain/

Logistics

1. Customers No forced standards No own B2B

landscape needed Easy on-boarding due

to predefined content Gateway to further

network solutions by SAP

3. Your Company One central solution for

B2B communication Full collaboration

enablement Based on SAP standards Flexible and scalable Easy on-boarding

2. Suppliers “Come as your are”

approach No more adapters

needed Full supply chain

integration with real-time messaging and monitoring capabilities

4. Logistics Providers End-to-end process

visibility with real-time monitoring capabilities

Full supply chain integration

External

Top Reasons Why SAP


Challenge: Manage Costs and Complexity NOW, without Compromising the FUTURE

Simplify landscape by eliminating point to point integrations; rich content repository of partners

Extend the value of your existing investments without rip/replace; Minimize exposure to risk of/process breakpoints; ensure compliance and regulations

Fast start with predictable costs

Consistent foundation that enables you to connect , transact, collaborate witha collaborative business network at the speed of business

+ +

Now Future

SAP Value Engineering and Team Analysis

Manage Complexity

Manage Change

Manage Costs

Line of BusinessTechnology CXO


Why SAP Information Interchange Is a Foundation for Overall Business Network Needs

Easy to connect: Instantly access an Open, industry-optimized global business network with 60,000 partners. Eliminate expensive point to point connections with Crossgate Content repository

Plug and Play with new partners using pre-built partner profiles; Ready-to-run B2B content maintained over lifecycle

Processes, compliance, regulation or partner interface changes updated by SAP

Reduced and predictable costs in the long term

Easy to Extend: Deep B2B pre-integration within SAP Business Suite. Automatically comply with government and customer mandates fore-commerce

Easy to Deploy: Fixed Price, Full Service alternative with hybrid (on-premise or on-demand) deployment option

+ +Manage Complexity

Manage Change

Manage Costs

1

2

3

Now Future


TransactDeploy Standardized, pre-packaged best practices for multiple line of business’s and functions that integrate to business process

CollaborateExtending Business Network into people to people centric business social collaboration

ConnectOn-board and off board partners quickly without worrying about future changes in network’s standards

Running a Business Network Goes Beyond B2BFour key aspects: connect, transact, collaborate with real-time content and insights

Real-Time Content & Insights

High quality, real-time information delivered at right time and right context to effectively drive business change

SAP Customers

Molson Coors Use Cases

http://www.molsoncoors.com/home

Communication Challenges

• High cost and complexity of creating multiple connections with each partner

• High cost and complexity of maintaining connections with all partners:– iDoc errors – Significant time and effort spent monitoring for and correcting

errors

– Firewall changes – Significant time and effort monitoring and making adjustments for partner changes

• High cost and complexity with constantly evolving SAP platform



• Small vendors being processed manually in Accounts Payable (Outsourced function)

– Vendors who do not invoice routinely and whose systems are not capable for B2B communication

– Cost of manually processing invoices was increasing 500%. Manual processing was no longer an option



• UK ERP replacement & implementation of SAP– Aggressive timeline

• M&A merger of Miller & Coors in the USA– Immediate separation of systems between Molson

Coors and Coors Brewing Company– Required replacement of all supplier connections


Addressing the Challenges

• UK - Implemented SAPII for all Customers, Supply Chain Vendors, and 3PL provider

• International - Implemented SAPII for all customers serviced from the US

• USA - Implemented SAPII for all EDI suppliers

• Canada and USA - Implemented SAP eInvoicing for all small manually processed suppliers


UK Benefits Experienced

• Rapid replacement of all Supply chain EDI connections with SAP ERP launch – Allowed for faster SAP implementation

• On-going simplicity of partner additions & Changes


USA & Canada Benefits Experienced

• USA - Largest vendors implemented on SAPII rapidly to allow for M&A timeline

• USA & Canada eInvoicing: – Eliminated high cost of manual invoices for 200

suppliers

– Opportunity to include hundreds of additional manually processed suppliers


Roadmap Going Forward

• UK – Expansion of SAP II to all suppliers

• Canada – Replacement of current B2B connections with SAP II

• USA – Expansion of SAP II to all suppliers

• USA & Canada – Expansion of eInvoicing to all manual invoice suppliers



Speed

3–5xAutomatic Adjustment to Change, Integration or Exclusion of Business Partners

Flexibility

+20–60%Simple Adoption of new processes and with Change to existing processes

Efficiency

+20%Reduced integration effort Standardize Business Processes for B2B

Minimize Risk

+-0Professional B2B On Demand Service

Fulfill global Compliance Requirements

Summary: SAP Enables You to Make Your Business Network Best Run

Thank You!Visit SAP Information Interchange OnDemand at http://b2b.ondemand.com/

Contact information:

Frank Ruland Corey MarshallSolutions GTM MolsonCoorsLOB Business Networks and B2B [email protected] [email protected]

http://b2b.ondemand.com/

mailto:[email protected]

© 2011 SAP AG. All rights reserved. 35Confidential 35

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sap information interchange ondemand with molson coors

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