transform the intelligent im&c enterprise

Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy

Transform Your Wholesale Distribution Organization

into an Intelligent Enterprise

Achieve Value with Intelligent ERP

SAP Value Paper | PUBLIC

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Enhance and Extend Next-Generation Processes with Intelligent ERPBringing SAP S/4HANA® and intelligent technologies from SAP together as Intelligent ERP results in a more flexible and intelligent enterprise. To create next-generation business processes and respond to rapid changes, companies need Intelligent ERP solutions that can be continuously enhanced and extended with innovative business services and applications built on emerging technologies, including machine learning, blockchain, and the Internet of Things (IoT). Wholesale distributors focused on innovation or early adoption have already begun this journey.

The Power of Intelligent ERP


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Leading wholesale distributors are transforming their business to provide customer-specific solutions that differentiate their companies from peers in the marketplace.

The digitalization of businesses across all industries is happening rapidly, and there is no turning back. Digital transformation fosters operational excellence within wholesale

distribution companies, providing the real-time information required to overcome market challenges and drive immediate impact for their customers. Leading wholesale

distributors are looking for new ways to deliver value to their customers through new business models and services. Intelligent technologies can enable distributors to become

proactive, insight-driven companies that can drive new revenue sources, retain customer loyalty, and increase long-term profitability.

More-demanding customers

Customers are demanding a wider range of products with shorter delivery times and

more delivery options.

Distributors can pivot to becoming a go-to partner for infinite inventory – offering anywhere,

anytime delivery to meet expectations in the age of Amazon.

Need for solution orientationCustomers are looking to distributors to collaborate and provide complete solutions for specific business needs or projects.

Effective two-way collaboration between the distributor and customer can provide project-

supporting solutions that build a long-term, valuable partnership.

New employee expectationsEmployees are burdened by work-arounds and manual tasks that negate job satisfaction and overall experience.

To combat the talent shortage, distributors can focus employees on high-value tasks based on

insights embedded in operational activities. This focus allows for improved decision-making, role

attractiveness, and employee motivation.

More-complex customer needs

Customers are seeking additional services such as light manufacturing, kitting and

assembly, and maintenance to support the products they sell.

Distributors who provide value-added services can evolve differentiating business models that

drive customer stickiness and long-term profitability.

PROMESA

30% Increase in sales due to product design improvements

5 seconds Time to run an average core process, down from 5 minutes

Through our ongoing partnership with SAP, we’ve achieved the impossible – getting into the customer’s mind using analytics and not just reading their mood of the moment with surveys.

“

Miguel Sotomayor, Technology Manager, Productos Metalúrgicos S.A. (PROMESA)

Read the business transformation study

”

Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy©

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Drive Business Value with Intelligent ERP: SAP S/4HANA Customer Stories

https://www.sap.com/documents/2019/08/8e113ce6-607d-0010-87a3-c30de2ffd8ff.html

Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy©

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Jebsen & Jessen (SEA)

70%SAP HANA® database usage

67% Improvement of memory consumption

Jebsen & Jessen established SAP S/4HANA as the digital core to streamline and optimize business processes throughout the business while improving productivity. The migration is an essential step in our group’s digital road map and will put us in the position to harness current and future business growth opportunities.

“

Chris Tan, Group Director (ITC), Jebsen & Jessen (SEA)

Read the business transformation study

”

Drive Business Value with Intelligent ERP: SAP S/4HANA Customer Stories

https://www.sap.com/documents/2018/05/8650b3ed-057d-0010-87a3-c30de2ffd8ff.html

The digital economy is disruptive. Wholesale distribution companies need strategic priorities that drive their transformation into intelligent enterprises. SAP supports a reimagined

set of end-to-end (E2E) business scenarios that are part of a digital environment.

The value-added services distributor

For years, most distributors have been providing value-added services,

many of which have been free of charge. Leading distributors take these

value-added services to the next level and use them to significantly

increase revenue and bottom-line profitability. Distributors should consider

providing customers with a menu of options such as light manufacturing,

sensor-based services, training and consulting services, or lending

services.

E2E scenario: Customized products – Think beyond the purchasing

and selling of goods. Based on customer requests, distributors can take

responsibility for customer tasks and deliver individualized products.

The “anything, anywhere, anytime” distributor

Companies everywhere face volatile customer demand and heightened

service expectations. Innovative technologies can help resolve these

issues by providing vital business information across the network,

improving real-time analysis, and enabling better collaboration across

departments and trading partners – thus transforming the supply chain

into a responsive network.

E2E scenario: Intelligent inventory investment – Transform your

traditional linear supply chain into a responsive digital supply network

supporting all aspects in the order-to-delivery value chain.

The solution-oriented distributor

With so many options in the marketplace, distributors need to establish

themselves as trusted partners. One way to do so is by working with

customers to not only understand needs but also collaborate closely

on larger products. Through this relationship, distributors can plan for

and deliver the products and services that establish themselves as a

long-term, valuable part of the customer’s success.

E2E scenario: Usage-based printing – Rethink traditional product

offerings to include services and usage-based contracts that could include

routine maintenance and replenishment.

Empowerment of the modern employee

Over time, processes can become outdated or broken, requiring

employees to spend much of their time on work-arounds and manual

tasks. Refocusing employee time on higher-value tasks with real-time

insights and automation can dramatically improve employee

experiences.

E2E scenario: Efficiency through process mining – Analyze process

breaks, highlight manual interactions, and review undocumented

deviations from assumed best practices to comprehend areas of

improvement.

Strategic Priorities in a Digital Economy

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Putting the customer’s point of view at the center of every decision is a key prerequisite for success in the digital age. Based on customer requests, wholesale distributors take

tasks over from their customers and deliver individualized products. SAP® solutions enable wholesale distributors to easily adopt value-added services while driving customer

stickiness and long-term profitability.

The Value-Added Services Distributor

Customized Products

/6 17*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA with line-of-business or cloud capabilities.

As each enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.

Top value drivers*

Traditional scenario

10%–20%Increase in customer satisfaction

29%Fewer days in inventory

IncreasedRevenue growth

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Customer orders replacement

products, often when machine

malfunctions.

Customer customizes product

according to his needs.

Buy replacement products of various

types based on past consumption data.

Keep high safety buffers to guarantee

availability of critical parts.

Carry out urgent delivery of

original products to customer.

Store products in warehouse

until they are needed.

Wholesale company: The hose is cut for the specific

machine and fitted with appropriate connectors,

enabled through real-time prioritization and capacity

planning. Demand-driven replenishment allows

safety stock to be minimized.

An integrated, holistic solution is used to

perform quality planning and inspections

for the assembled products. Results are

collected to enable informed decisions and

help ensure product quality.

Customer site: Using predictive maintenance, the

condition of hydraulic machines is monitored.

Based on the information, maintenance activities are

triggered. As a result, individual hydraulic hoses are

ordered before the machine malfunctions.

Products are delivered to the customer

using a single embedded platform for

transportation management. Goods in

transit are tracked in real time. Customer

feedback is used to validate quality and

identify future opportunities.


A new world with SAP

The “Anything, Anywhere, Anytime” Distributor

Intelligent Inventory Investment



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Top value drivers*


10%–12%Reduction in total logistics costs

10%–20%Increase in on-time delivery

Up to 10%Reduction in total inventory investment

• Look up product availability

and price.

• Call vendors to manage

items not stocked.

• Replenish inventory with material

resource planning runs in overnight

batch jobs.

• Manage stocking requests from

branches for new items.

Review inventory levels for

“dead” stock and analyze when

this stock might be transferred

and where it can be sold.

• Perform live material resource planning,

enabling insight to action in real time with

one consistent user interface.

• Create role-specific screens to speed up

the management and execution of orders.

• Conduct a product availability check

with alternative source confirmation

options in real time.

• Enable full integration with vendors for

items not stocked.

Predict slow stock movements and analyze

redeployment of inventory with intelligent

technologies that efficiently complete these

complex tasks in a timely manner.

• Monitor order and shipment status with vendors

through business networks in real time.

• Monitor overdue stock with intelligent applications

that more accurately predict stock movements.

• Check with vendors on status

of shipments.

• Check with branches on status

of stock transfers.



Providing products that fit the needs of customers at the right time and right prices has been routine in traditional wholesale distribution. Today, there are even more challenges to

doing this consistently, especially considering the alternative sources customers have today from online marketplaces. SAP solutions allow distributors to push standardization

and simplification, becoming more responsive along the supply chain to drive custom-tailored, real-time responsiveness.

The Solution-Oriented Distributor

Usage-Based PrintingTo remain competitive in today’s market, wholesale distributors must transform into solution providers that engage with customers to collaborate and work toward comprehensive

and attractive outcomes. By moving from simply selling products to providing services and adding value, new business models evolve. SAP solutions empower distributors with

the technology required to move away from a model of capturing sales orders reactively to driving proactive, solution-oriented engagements.



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Top value drivers*


27% Fewer days sales outstanding

Up to 25% Reduction in customer support calls


In case of malfunction, customer

requests repair. Until repair

technician arrives, printer is out

of order.

Sales representative visits

customer and presents new

products and offerings.

• Printer is delivered, with

installation service provided.

• Printer paper is delivered

at regular intervals without insight

into actual customer need.

Customer orders printer and printer

paper. Printers and print paper are sold

separately, without follow-up activities.


• By focusing on deals with a high propensity of closing,

sales representative uses time more productively.

• The rep offers a compelling solution for complete

print management and closes a use-based contract

for printing services.

Based on various parameters, printer is monitored

and maintenance is predicted, preventing printer

outage, enabling a high service level, and reducing

customer calls. Insights into customer experience

help improve future service.

Printer is installed using IoT

technology to connect the printer to

systems at the wholesale company.

Metering system captures number of prints.

Use is monitored and managed on an

exception basis. Use-based billing includes

thresholds and customer-specific pricing.

Empowerment of the Modern Employee

Efficiency Through Process MiningProcesses in large organizations are complex by nature, and companies often take the opportunity to standardize them with an ERP deployment. Even the most disciplined

organization notices that its control over processes tends to deteriorate over time. SAP solutions empower employees to get the real-time insights they need to cut costs,

minimize time-intensive bottlenecks, and pivot to focus on high-value tasks that build employee engagement.




IncreasedProcess transparency

and visualization

IncreasedProcess compliance

with audit standards

ReducedManual interventions

in process execution

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Shipping of goods on time

or too late without prior

notification to the customer

Manual postprocessing of

orders for delivery date

changes, price adjustments,

or out-of-stock handling

Processing of customer

service tickets to manage

requests, complaints, or claims

Isolated creation of

orders through multiple

interaction points

Postsales activities to

alleviate market

perception through

promotions or discounts

Handling and mitigation of

incidents with visibility on

social media or a Web shop

Shipping of goods with real-

time customer notifications

Chatbot-supported postprocessing of

orders for delivery date changes, price

adjustments, or out-of-stock handling

Proactive handling of incidents

with predefined mitigation

options to manage customer

expectations

Integrated interaction channels

providing a 360-degree view of

and for the customer

Active social media presence

that captures the customer

experience for continuous

improvement

OptimizedThroughput times by

identifying bottlenecks

Process mining provides insight into process breaks to identify repetitive tasks and conduct root-cause analysis.



Top value drivers*

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Intelligent ERP Is the Foundation of an

Intelligent Enterprise

Intelligent enterprises run agile, integrated business processes and

use advanced technologies such as artificial intelligence, machine

learning, and the Internet of Things.

They apply leading-edge industry best practices and work together

to build flexible value chains. They evaluate and act on customer,

partner, and employee sentiment, and they understand and manage

their environmental impact. This makes them resilient, successful,

and sustainable.


/10 17

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SAP Strategy – Deliver the Intelligent Enterprise

Intelligent suite – helps to run agile, integrated

business processes. We help manage every part

of the organization – employees, customers, products,

spend, finance, and IT. With embedded analytics, we

offer a 360-degree view of the business.

Experience management – helps organizations evaluate

and act on customer, partner, and employee sentiment.

Understanding what your stakeholders want and how they

feel is critical to making the right decisions.

Business network – helps customers digitalize

cross-company business processes. The network builds

on our procurement, travel, and contingent workforce

solutions. It helps our customers work together to build

flexible value chains.

Business Technology Platform – provides data

management and analytics and supports application

development and integration. It also allows our

customers to use intelligent technologies – such as

artificial intelligence, machine learning, and the

Internet of Things – to drive innovation.

Sustainability management – helps customers

understand and manage their impact on people and the

environment. Climate 21 is the name of our initiative behind

our new crop of sustainability management solutions. These

solutions help businesses understand and manage

greenhouse gas emissions.

Industry cloud – allows customers to discover and

deploy vertical solutions from SAP and partners.

These help customers apply leading-edge industry

best practices and extend current business processes.

BUSINESS TECHNOLOGY PLATFORM

INTELLIGENT SUITE INDUSTRY CLOUDAPPLICATIONS

TECHNOLOGY

BUSINESS

PROCESS

EXPERIENCE MANAGEMENT

SUSTAINABILITY MANAGEMENT

Across all functions

BUSINESS NETWORK


/11 17

SAP S/4HANA

Innovations

The Value-Added

Services Distributor

The “Anything,

Anywhere, Anytime”

Distributor

The Solution-

Oriented Distributor

Empowerment

of the Modern

Employee

▪ Robotic process automation

▪ Service request, order, and

contract management

▪ Service quotation

▪ Service request management

▪ Service billing

▪ Supplier rebate programs

▪ Returns and refunds

▪ Extended service-parts planning

▪ Production planning (kitting)

▪ Extended warehouse management

▪ Process mining

▪ Intuitive user interface

▪ Embedded analytics

▪ Supplier management

▪ Cost management and profitability

analysis

▪ Solution quotation and billing

▪ Subscription contracts, billing, and

revenue management

▪ Project and portfolio management

▪ Subscription contracts

▪ Efficient field service management

▪ Procurement analytics

Economic Value Added

Increased profitability (revenue and costs)

Optimized use of capital (working capital and equipment)

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SAP S/4HANA Provides New Capabilities to Enable the Strategic

Priorities of Wholesale Distribution Companies

▪ Operational purchasing

▪ Collaborative sourcing and contract

management

▪ Invoice and payables management

▪ Order and contract management

▪ Customer rebates

▪ Pricing administration

▪ Advanced available to promise

▪ Real-time inventory

▪ Predictive stock in transit

▪ Real-time inventory


SAP S/4HANA provides wholesale distribution companies with a proven framework to adopt industry next practices while attaining operational excellence across the entire

value chain.

*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA, line-of-business or cloud capabilities, and intelligent technologies from SAP.


Strategy enablement

▪ Accelerate creation of new business models

▪ Enter new markets and industries

▪ Accelerate synergy for mergers and acquisitions

▪ Run live (SAP Digital Boardroom)

▪ Reorganize on the fly

▪ Achieve greater speed and agility

▪ Run simply (master complexity)

▪ Manage risk and enable compliance

Empowered employees

▪ Higher productivity with a new, role-based way

of working through the responsive, intuitive

SAP Fiori® user experience on all devices

▪ Role-based, user-centric processes and

self-service business intelligence for user

empowerment

▪ Actionable insights into unified, real-time data,

and processes with built-in system suggestions

for decision support

IT benefits and total cost of ownership (TCO)

▪ Reduced data footprint

▪ Merger of OLAP and OLTP

▪ Elimination of many desktop clients

▪ Lower testing costs

▪ Simplified landscapes

▪ Native integration

IT benefits

and TCO

Business

benefits

Strategy

enablement

Empowered

employees

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The Value of SAP S/4HANA for Wholesale Distribution Companies

Business benefits*

▪ 10%–30% increase in on-time delivery

▪ 25%–30% reduction in inventory levels

▪ 10%–20% increase in customer satisfaction

▪ 20%–25% reduction in revenue loss due to stock-outs

▪ 10%–12% reduction in total logistics cost

▪ 3%–5% reduction in supply chain planning cost

▪ Reduction in order-fulfillment lead time


I-D Foods

Industry:

Wholesale distribution

Customer Web site:

www.idfoods.com

Click here to read the business

transformation study

I-D Foods Corporation is one of Canada’s largest imported specialty and natural

food companies. It serves around 10,000 business customers, including

restaurants, hotels, and grocery stores.

As the company experienced rapid growth, it needed to replace an outdated

legacy ERP system. To streamline operations, optimize warehouse management,

speed deliveries, and deepen customer insight, it chose SAP S/4HANA running

on IBM Power Systems.

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Customers Are Achieving Value with SAP Solutions

We are always looking to improve and win more customers. An important part of

that is delivering great service. To achieve our future ambitions, we needed to

adopt a platform that could offer deeper operational insight, greater agility,

and superb scalability.

“

Mike Issenman, CTO, I-D Foods Corporation

”


SAP solution:

SAP S/4HANA

http://www.idfoods.com/

https://www.sap.com/documents/2019/02/4e716382-3c7d-0010-87a3-c30de2ffd8ff.html

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/15 17


Jebsen & Jessen (SEA)

Industry:

Wholesale distribution;

industrial machinery

and components

SAP solution:

SAP S/4HANA and

SAP Services and Support

Customer Web site:

www.jjsea.com


transformation study.

Jebsen & Jessen (SEA) is an engineering, manufacturing, and distribution company

in Southeast Asia. To continuously adapt to the dynamics of an ever-changing

marketplace and to support business growth, the industrial company wanted to

simplify its current business processes.

Jebsen & Jessen partnered with SAP to deploy the latest version of SAP S/4HANA

as their digital core to act as a key enabler of business success for decades to come.

Jebsen & Jessen established SAP S/4HANA as the digital core to streamline

and optimize business processes throughout the business while improving

productivity. The migration is an essential step in our group’s digital road map

and will put us in the position to harness current and future business growth

opportunities.

“

Chris Tan, Group Director (ITC), Jebsen & Jessen (SEA)

”


http://www.jjsea.com/

https://www.sap.com/documents/2018/05/8650b3ed-057d-0010-87a3-c30de2ffd8ff.html

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/16 17


PROMESA

Industry:


Customer Web site:

www.promesa.com.ec (Spanish)



As a small company competing against major suppliers, Productos Metalúrgicos S.A.

(PROMESA) sought to automate aging manual processes to better meet customer

expectations for the right product at the right time.

PROMESA implemented SAP S/4HANA as its digital core and integrated

SAP SuccessFactors®, SAP Concur®, SAP Sales Cloud, and SAP Service Cloud

solutions to shape itself into an intelligent enterprise.

Through our ongoing partnership with SAP, we’ve achieved the impossible –

getting into the customer’s mind using analytics and not just reading their mood

of the moment with surveys. A service culture empowered by SAP software to

anticipate customer needs and exceed customer expectations is leading

PROMESA into a bright future.

“

Miguel Sotomayor, Technology Manager, Productos Metalúrgicos S.A.

”


SAP solution:

SAP S/4HANA

http://www.promesa.com.ec/

https://www.sap.com/documents/2019/08/8e113ce6-607d-0010-87a3-c30de2ffd8ff.html

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/17 17


AmerisourceBergen

Industry:


Customer Web site:

www.amerisource.com



We have had the unqualified and invaluable support of SAP experts from the beginning of our

co-innovation effort. Together we produced a state of the art solution that has succeeded

beyond expectations from day one and simply left competitors in the dust.

“

Jeff Denton, VP, Global Secure Supply Chain, AmerisourceBergen Corporation

”


SAP solution:

SAP S/4HANA

AmerisourceBergen ships over four million medications and medical devices across

the globe every day.

AmerisourceBergen Corporation is a leading pharmaceutical wholesale distributor

and a major player in the U.S. drug supply chain. The company provides life saving

pharmaceutical products, value driving services, and business solutions to tens of

thousands of healthcare providers, veterinary practices, and livestock producers

who trust AmerisourceBergen as their partner in the pharmaceutical supply chain.

The Drug Supply Chain Security Act (DSCSA) of 2015, regulating the tracking and

tracing of serialized pharmaceuticals in the U.S. supply chain, inspired a vast wave

of innovation at AmerisourceBergen.

http://www.amerisourcebergen.com/

https://www.sap.com/documents/2020/06/4a5e8748-a07d-0010-87a3-c30de2ffd8ff.html

Studio SAP | 60406enUS (20/10)

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