SNC Workshop Presentation

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<p>SAP SNCSupply Network CollaborationKirsten Loegering &amp; Ganesh Vellore Solution Manager SAP SNC</p> <p>AgendaSAP SNC Overview SAP SNC Supplier Collaboration SAP SNC Outsourced Manufacturing SAP SNC Quality Collaboration SAP SNC Customer Collaboration SAP SNC Summary</p> <p> 2011 SAP AG. All rights reserved.</p> <p>2</p> <p>AgendaSAP SNC OverviewCustomer Pain points Collaboration Challenges SAP SNC Value Proposition SAP SNC Solution Growth SAP SNC Customer References</p> <p>SAP SNC Supplier Collaboration SAP SNC Outsourced Manufacturing SAP SNC Quality Collaboration SAP SNC Customer Collaboration SAP SNC Summary</p> <p> 2011 SAP AG. All rights reserved.</p> <p>3</p> <p>Collaboration Customer Pain points</p> <p>Customer Pain PointsReduced business visibility in multi-tier supply networks Increased supply risks Delayed response to shifts in demand Pressure to ensure customer satisfaction Pressure to ensure return on assets Need to minimize inventory and decrease cost Need to consolidate heterogeneous IT landscapes Pressure to synchronize data, people and processes internally and with external business partners</p> <p>How can I address:Business needs Minimize TCO Efficient operation</p> <p> 2011 SAP AG. All rights reserved.</p> <p>4</p> <p>Collaboration Six challenges to Your SuccessNetworking: Can Isynchronize my business with all involved partners?</p> <p>Expertise: Can my businesspartners and my employees work effectively with the solution?</p> <p>Investment: Does the solutionhelp me get a quick ROI?</p> <p>Visibility: Can I manage mywhite spots?</p> <p>Response time: Can Iincrease the speed of my business and order cycles?</p> <p>On-boarding: Can I add newBusiness Partners easily over time?</p> <p> 2011 SAP AG. All rights reserved.</p> <p>5</p> <p>Collaboration SAP Supply Network CollaborationHighlightsCollaboration and visualization layer for external partners Enabler of new business processes Enable of multimode communication (B2B, WEB UI, Upand Download)</p> <p>Networking: Can I synchronize my business with all involved partners?</p> <p> 2011 SAP AG. All rights reserved.</p> <p>6</p> <p>Collaboration SAP Supply Network CollaborationHighlightsQuick view and Micro Blog File Transfer and Worklists Exception management through Alerts</p> <p>Expertise: Can my business partners and employees work effectively with the solution?</p> <p> 2011 SAP AG. All rights reserved.</p> <p>7</p> <p>Collaboration SAP Supply Network CollaborationHighlightsShort Implementation time for Supplier Collaboration Pre-defined processes Rapid Deployment Solution (RDS) SAP SNC for Customer Collaboration</p> <p>Investment: Does the solution help me get a quick ROI?</p> <p>BenefitsLow implementation costs Lower Total Cost of Ownership (TCO) Quick and immediate business effects to achieve cost reduction, customer service optimization and process automation</p> <p> 2011 SAP AG. All rights reserved.</p> <p>8</p> <p>Collaboration SAP Supply Network CollaborationHighlightsSupply Network Visibility (multi-tier subcontracting) Suppler Managed Inventory (SMI) Sales Forecast Collaboration (Demand Collaboration)</p> <p>Visibility: Can I manage my white spots?</p> <p> 2011 SAP AG. All rights reserved.</p> <p>9</p> <p>Collaboration SAP Supply Network CollaborationHighlightsEfficient operation via Worklists Event-driven via Alert Management Automation through pre-delivered backend integration</p> <p>Response time: Can I increase the speed of my business and order cycles?</p> <p> 2011 SAP AG. All rights reserved.</p> <p>10</p> <p>Collaboration SAP Supply Network CollaborationHighlightsSupplier Connectivity &amp; Administration File transfer Capabilities (up/download) Multi-mode communication</p> <p>On-boarding: Can I add new Business Partners easily over time?</p> <p> 2011 SAP AG. All rights reserved.</p> <p>11</p> <p>SAP SNC is Enterprise-Wide Strategic Platform forAll Supply Chain Collaboration NeedsSuppliers Supplier s Customers My Subsidiary My Division</p> <p>SuppliersSuppliers</p> <p>My CompanyCustomers</p> <p>SNC SNC3PL/DC</p> <p>Customers / DCCustomers</p> <p>Contract Manufacturers</p> <p>SNC can be used for internal collaboration between divisions or lines of business and subsidiaries SNC can be modeled to allow for visibility and collaboration between suppliers suppliers and customers customers, as well as 3PL warehouses participating in the supply chain</p> <p>Contract Mfg:ers</p> <p>Contract Mfg:ers</p> <p> 2011 SAP AG. All rights reserved.</p> <p>12</p> <p>SAP SNC is Enterprise-Wide Strategic Platform forAll Supply Chain Collaboration NeedsSAP SNC is a central supply chain platform for real-time collaboration with internal and external business partnersCustomers</p> <p>Suppliers</p> <p>Supplier Collaboration SMI Forecasts Purchase Orders SA Releases Kanban ASNs Invoices Shipments</p> <p>Supplier Collaboration</p> <p>My Company</p> <p>Customer Collaboration</p> <p>Customer Collaboration VMI Forecasts Promotions Replenishment ASNs</p> <p>Contract Manufacturers</p> <p>SNCQuality CollaborationQuality Collaboration Quality Notifications</p> <p>Outsourced ManufacturingOutsourced Manufacturing Sub Con POs ASNs Invoices Shipments Work Order WIP Multi-tier Visibility</p> <p> 2011 SAP AG. All rights reserved.</p> <p>13</p> <p>SAP SNC Collaborative Business Process enablementResponsive Replenishment Min/Max VMI Demand Collaboration</p> <p>Customer Collaboration</p> <p>My CompanySupplier CollaborationQuality PO Process Release Process Kanban Process SMI Process DCM (Reorder) Process DR (Forecast) Process 2011 SAP AG. All rights reserved. SMI = Supplier Managed Inventory CMP = Contract Manufacturing Purchasing DCM = Delivery Control Monitor DR = Dynamic Replenishment</p> <p>Manufacturing CollaborationCollaboration CMP (Subcon PO) Process Work Order Process SNI (Inv Monitoring) Process</p> <p>14</p> <p>SAP SNC Value Proposition</p> <p>Value Proposition: What are the benefits of this Collaboration solution?</p> <p>Improvements in accuracy and velocity of your Supply Chain Provides global inventory, supply and demand visibility reducing the need for large inventory buffers while increasing inventory turnover Enables higher customer service levels Reduces cost by eliminating need for manual data re-entry allowing for improved data accuracy and consolidation of data through one system Reduces operational costs by allowing for faster order to cash cycle and enabling exception based interaction Supplements structured collaboration with unstructured information Allows for reduction in administrative costs Enables consolidation of multiple systems into a unified frontend for all supply chain partners</p> <p> 2011 SAP AG. All rights reserved.</p> <p>15</p> <p>SAP Supply Network Collaboration Current releaseOutsourced Manufacturing &amp; Integration Focus Extensions, Outsourced Mfg &amp; Usability Focus</p> <p>SNC 7.0 EhP1</p> <p>Initial SupplierSide Capabilities</p> <p>ICH 4.0</p> <p>Supplier Collaboration: Quality Collaboration Shipment Collaboration SNC 7.0 APO integration (Planning Supplier Collaboration: Collaboration) Invoice and Credit Memo Initial Customer Collaboration: Enhancements to SMI, PO Outsourced Enhancements to Responsive (FTR, Quickviews) Manufacturing SNC 5.1 Replenishment Capabilities Customer Collaboration: Supplier Collaboration: Outsourced Manufacturing: Forecast Collaboration Invoice and Credit Memo ICH 5.0 Enhancements to Outsourced Enhancements to Enhancements to SMI, PO Manufacturing Responsive Replenishment Supplier Collaboration: Addition of Customer Collaboration: (Batch Traceability) Kanban Replenishment Customer Outsourced Manufacturing: Collaborative Forecasting Delivery Control Monitor Hosting Enhancements Collaboration Enhancements to Work Order Collaboration Reorder Point Enhancements to Responsive Replenishment Enhancements to SMI, PO ICH 4.1 Outsourced Manufacturing Outsourced Manufacturing: Customer Collaboration: Supplier Collaboration: SCM 7.0 Stable Core Work Order Collaboration Responsive Replenishment Purchase Order Enhancements to Forecast Visibility Enhancements for SAP AFS Demand Combination Outsourced Manufacturing Enhancements to SMI, SNC Standalone Release Process, ASN Outsourced Manufacturing: Enhanced Customer Collaboration &amp; Outsourced Manufacturing</p> <p> Supply, Demand &amp; Inv. Sevice Enablement BW Reporting KPIs Supplier Collaboration: Visibility at Contract Mfg. Customer Collaboration: SMI Subcontract POs Release Process Responsive ASN Maintenance Replenishment Alert Monitor 2003 2011 SAP AG. All rights reserved.</p> <p>2004</p> <p>2005</p> <p>2007</p> <p>2009</p> <p>201016</p> <p>Rapidly Expanding Customer Base750 Customers, 50 Reference CustomersSAP 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 HardingCIO Conair Corporation</p> <p>High Tech</p> <p>Consumer Products</p> <p>We have already seen significant benefits, and we expect more in the future. Gary BotineVP Information Technology Sauer Danfoss</p> <p>IM&amp;C</p> <p>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 DaddettoSenior Manager Colgate- Palmolive Company</p> <p>Life Science , A&amp;D, Auto</p> <p>SOLUTION TODAY 2011 SAP AG. All rights reserved. SAP AG 2010. All rights reserved. / Page 17</p> <p>17</p> <p>SAP SNCTangible Benefits Gained by Customers66% reduction in early shipments 100% improvement in errors associated with direct material invoice discrepancies</p> <p>Acknowledgement rate increased from 40 80 % Inbound decreasing for Stock/JIT : - 30 %</p> <p>Reduced inventory levels by 20% Reduced number orders placed by 30% Improved avg. wt. per order by 50%</p> <p>Purchase order processing productivity gains 35 times Reduction in nonqualified returns 20%</p> <p>Live in 4 Months 10-15% stock reduction in the chain using supplier managed inventory 50% FTE reduction at GR processing</p> <p> 2011 SAP AG. All rights reserved.</p> <p>18</p> <p>AgendaSAP SNC Overview SAP SNC Supplier CollaborationEssentials Purchase Order Collaboration Release Processing Web-based Kanban Supplier Managed Inventory Delivery Control Monitor Dynamic Replenishment</p> <p>SAP SNC Outsourced Manufacturing SAP SNC Quality Collaboration SAP SNC Customer Collaboration SAP SNC Summary 2011 SAP AG. All rights reserved. 19</p> <p>SAP SNC Supplier CollaborationBusiness Challenge</p> <p>Customer Pain PointsLack of visibility beyond four walls Manual partner interaction, expensive too many errors and slow Supplier on/off boarding Globalization (faster &amp; more complex &amp; multiple partners) Lack of compliance in Supply Network Heterogeneous IT landscapes How do I align a vastly distributed supply chain across multiple partners and geographies to increase responsiveness while effectively managing costs?</p> <p>Customer Goals/NeedsEnhanced Visibility through the Supply Network to anticipate supply delays and respond to demand changes Improved collaboration in real-time and automated Increased cash-flow through reduced inventory and faster order cycle times while increasing service levels</p> <p> 2011 SAP AG. All rights reserved.</p> <p>20</p> <p>SAP Supply Network SolutionSupplier Collaboration Landscape ExampleLow Volume Web Browser Only</p> <p>SUPPLIERS &amp; CONTRACT MFGS</p> <p>My CompanyWeb Browser</p> <p>SAP SNC</p> <p>SAP NetWeaver</p> <p>Mid Volume File Up/Down Loads</p> <p>Up/Down Load Files</p> <p>Crossgate Business-Ready Content (1)Community Platform Business Partner Profiles</p> <p>SAP PI</p> <p>Backend Systems</p> <p>High Volume B2B Integrated</p> <p>Item</p> <p>Party</p> <p>Location</p> <p>SAP Information Interchange by Crossgate</p> <p>Backend SystemSAP PI Only (2)</p> <p> 2011 SAP AG. All rights reserved.</p> <p>21</p> <p>SAP SNCSAP Information Interchange by Crossgate</p> <p>Solution EnhancementsIntegrate SAP SNC with SAP Information Interchange by Crossgate First bundle focus covers Purchase Order ASN Invoice</p> <p>Key BenefitsProvides a simpler, more affordable way to connect with customers and suppliers for business-to-business Reduce supplier on boarding time, IT complexity, and cost Suppliers can view data from their customers directly in their Back-End system and respond accordingly with SNC still acting as the central source of data for all suppliers (small, medium, high volume)</p> <p>EssentialsSAP Information Interchange has two focuses: Out of the box and pre-integrated interfaces to SAP applications, focus of first deliverables is SAP ERP. Partner Profiles fixed fee B2B Content.</p> <p> 2011 SAP AG. All rights reserved.</p> <p>22</p> <p>Usability and On-BoardingQuick ViewsThe</p> <p>Micro blog SAP SNC Micro Blog allows users to collaborate on unstructured data Short 140-character twitterlike messages can be exchanged between suppliers and customers and between users within an organization</p> <p>On-BoardingSAP SNC</p> <p>Quick view is a tactical dashboard that serves as an entry screen for the business partner It provides an at-a-glance view of the users work through a prioritized list of work items</p> <p>allows reduction of administrative workloads through delegation of user administration to external business partnersEnhanced File</p> <p>Transfer capabilities to support offline supplier collaboration</p> <p> 2011 SAP AG. All rights reserved.</p> <p>23</p> <p>SAP Supply Network Collaboration MicroblogWEB 2.0 enabled solutionMicroblog allows unstructured twitter-like collaboration between users and companies</p> <p>Use preferred Workspaces Outlook MS Sharepoint Jive SBS Mobile devicesRSS = Really Simple Syndication 2011 SAP AG. All rights reserved. 24</p> <p>SAP SNC Supplier Collaboration Raw Material/Component ReplenishmentPO Process Release Process Kanban Process SMI Process DCM (Reorder Point) Process DR (Forecast) Process</p> <p>Suppliers</p> <p>My Company</p> <p>Additional Process Features:Confirmations (Date &amp; Qty Changes by Supplier) on Purchase Orders ASNs (Ship Notifications) On All Processes (Packaging Capability with Bar Code/Label Printing) &amp; Shipment Collaboration Invoices (Supplier Creates Invoices via the Web), Includes Regular and ERS Invoices (Self-Billing) Alerts for Exceptions (Includes e-mail notifications) BW Reporting Content for Alerts and Supplier Performance based on Alerts cFolders Integration APO Integration for SMI and Release Processing 2011 SAP AG. All rights reserved. 25</p> <p>SAP SNC Purchase Order ProcessReal-time, synchronized, collaboration on POs enable more accurate execution between a customer and a supplierCustomer can change or cancel POs and PO items, and suppliers can reject PO items Approval process based on rules such as quantity and date deviations can be done via web UI ASN can combine many PO items into one communicated to the customers ERP in advance of receiving goods Several ASNs can be grouped to shipments Quality Collaboration is enabled based upon the Quality Notification Includes supplier invoice creation based on shipments, or ERS handling of invoices, and payment status updates</p> <p>CustomerPO</p> <p>Supplier</p> <p>Create/Change PO Confirmation Update Receive ASN Receive Shipment Goods receipt Receive Invoice Payment status update</p> <p>Receive PO PO Confirmation Create ASN Create Shipment</p> <p>POD</p> <p>ASN &amp; Shipment update Create Invoice Invoice update</p> <p>Q...</p>