solution overview scm supply chain monitoring

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

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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

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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.



SAP Innovations


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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



SAP Innovations


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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



SAP Innovations


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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.


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



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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


Benchmarking





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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.


48% Lower customer complaints

where organizations analyze

key order management metrics

across various dimensions

such as customer, order,

geography, and product line


Benchmarking





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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.


12% Lower days in inventory for

companies where forecasts

are dynamic and updated

frequently


Benchmarking





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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

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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




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


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.


SAP Solutions


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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


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.


SAP Solutions


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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


Benchmarking

The SAP HANA Platform

SAP Innovations

Mobile

Analytics

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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


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.


SAP Innovations

Mobile

Analytics

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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


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.


SAP Innovations

Mobile

Analytics

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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


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.


SAP Innovations

Mobile

Analytics

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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?

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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


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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


Why SAP?

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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


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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


Why SAP?

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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


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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

Become Best-Run

Visit valuemanagement.sap.com >>

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