Business Vaule of EM : Event Management

8/13/2019 Business Vaule of EM : Event Management

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SAP 2008 / Page 2

1. Bus ines s C hal l enges2. SAP Event Management solution Overview3. Benefits4. Successful Customers5. Success Stories

Agenda


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Business Problem & Drivers

1. Risk mitigationIncreased regulatory pressure EU General Food Law Reg ulation 178/2002; Bioterrorism Act 2002 (US) Real-time notification of exceptions Manage by exception

2. Supply chai n visibilitySustain and increase customer satisfaction Significant challenges in an outsourced environmentReduce costs Minimize uncertainties (buffer inventory, buffer times, fire-fighting)Reduce time to action Link unplanned events to their effect on plans & schedules

Transparency Managing across distributed processes

3. Process improvem ent (analytics)Control performance measure internal & partner performance

based on standards and actual processing data

What are the key business objectives our customers are challenged with today?

They have to comply with regulations such as the US Bioterrorism act or the Europeanfood safety regulation

The still want to ensure customer satisfaction despite outsourcing some or even all of theirsupply chain activities

They want to reduce their costs by reducing uncertainties that lead to buffer inventory andbuffer times and/or expensive fire-fighting

They want to reduce time to action by being able to recognize and react upon unplannedevents in the supply chain and their effect

They want to manage by exception rather than monitoring processes that are runningsmoothly

They have to provide transparency for themselves or for their business partnersthroughout the complete distributed process

And in the end, the want to control their and their business partners performance


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Manufactur ingManufactur ing

Historical Data

Short termplanning

Short termplanning

Mid termplanning

Mid termplanning

Long termplanning

Long t e rmplanning

ShorterProduct Life

Cycles

Faster Orderto Delivery

Cycles

High Avai lab i li ty

as Needed

HigherServiceLevels

FasterProductDevelopment

Cycles

Suppl iers Dis t r ibut ion Centers Stores

Sense and Respondto Demand Customers

andConsumers

Linear View

WarehouseManagementWarehouse

Management

Transpor ta t ionManagement

Transpor ta t ionManagement

ReplenishmentReplenishment

TradingPartners

The Scope of Supply Chain Has Increased

Traditional supply chain planning only looks inside the company boundaries


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The Importance of Real-World Awareness

Time Delay

Data Accu racyand Volume

Ability to Sense Time to Respond

Real-world awareness is the capability to sense information in real-timefrom people, IT sources, and physical objects using technologies such as

RFID, sensors , etc. and respond to certain business situations accordingly.


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1. Business Challenges2. SAP Event Managemen t Solu tio n Overvi ew3. Benefits4. Successful Customers5. Success Stories

Agenda


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SAP 2008 / Page 7

Definition

Supply Chain Event Management (SCEM)An application that supports control processes for managing events

within and between companies.

- AMR Research, January 2000

S U P P L I E R

P R O C E S S E S

Visibi l i ty and Col laborat ion

Sense and Respon d

Supply

Demand

C U S

T OME R

P R O

C E S S E S

Manufactur ing

Integrat ion of business p rocess , people , informat ion, andappl icat ions

Supply Chain Event Management was defined by AMR as an application supportingcontrol processes for managing events within and between companies.

As per this definition, this application supports the ability to monitor what is happeningwithin the supply chain, to notify the right person in case of a delay or critical event,simulate activities, control your processes and eventually measure your supply chainactivities so that you can adapt your business process and make it more effective andefficient.


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Event P ossibilities

Actual events refer to certain milestones in the process. Usually these milestones areplanned with the help of an application and are stored within the ERP system, but you alsomay want to define additional milestones.

If an actual event occurs within a given tolerance, you call it a regular event.

Besides that an event that you expect to happen within a particular time frame can happenoutside of that time frame. This is an early/late event and could cause a subsequent eventto be rescheduled, or it could simply be recorded.

An unexpected event is one that you dont plan, because you dont want it to happen. Still,it might have a big impact on your processFourth is an unreported event. Here, you expect an event to occur within a particular timeframe, it is not reported. Something still needs to happen following this event whether ornot it is reported, so you could set a time limit that sends a message or causes somethingto happen when the event is unreported in a certain time period.

Supply Chain Event Management is dealing with all those different event types.


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How SAP Event Management works

The Business process is represented by an event handler , including relevantattributes (IDs, parame ters) and status information

Milestones and expected measurements contain information about what isplanned to happen in the process

Actual even ts and measurements are posted manually or from systems (B2Bexchange, Web, handheld)

Attach me nts (for example, digital signature) can be posted with an event.

SAP EM allows responses, according to definable rules

EventHandler

EventHandler

EventHandler

EventHandler

EventHandler

EventHandler

EventHandler

Pack item


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SAP 2008 / Page 10

SAP EM: Understand, Adapt, Respond

2. notify

3. adjust

Learn

Al er ts

1. monitor

Partner PerformanceCol laborate

4. analyze

ADAPTIVEADAPTIVEControl

Supply chain object

event 2 event 4

actual events

expected events

event 3

event 1

event 2event 1

SimulatePlan/Schedule

These are the four corner stones of SCEM. They contribute to providing an adaptivesolution, and will be explained more detailed on the next slides


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SAP Event Ma nagem ent Flexibility

Suppor ts com pany speci f ic scenar ios /processesHighly conf igurableFlexible ru le processor and event control

Events Objects

Al er ts Responses Performance

Event C ontroller

Rule Processor

Logging & Arch iv ing

Core Services

Event Processor

SAP EventManagement

Expected Event Monitor

SAP Event Management manages events, receives updates to events, and providesproactive alerts and responses to events throughout the supply chain. SAP EventManagement also collects data and sends it to SAP Business Information Warehouse(SAP BW) for Performance Analysis.


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SAP 2008 / Page 12

SAP Event ManagementTrade Partne r Integration

End-to-end coverageRisk identification

Risk Management

Risk evaluation Risk sense & respond

SA PEvent

Management


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SAP 2008 / Page 13

Visibility Processe s

SAP Bu siness Intel l igence (CPIs, KPIs)

SAP Appl ica t ion System /

3 r d Party System s

SAP Event Management

Config ured interfaces toSAP and 3 rd party systems

Data extraction and KPIs/CPIsfor analytics in SAP NW BI andBusiness Object

A p p

l i c a

t i o n

I n t e r f a c e

D a

t a

E x

t r a c t

i o n

Configured Customizing inSAP Event Management

Web

Front End

Visibility Processes allow us to add business content to the SAP EM tool.

A Visibility Process is a template that makes SAP EM implementation easier for thecustomer. SAP provides pre-configured templates that a customer can either implement asis or adapt to his specific business process so that he does not need to start from scratch.


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SAP 2008 / Page 14

Visibility Processes in SAP Event Man agem ent

Supply Network CollaborationSupply Network CollaborationTransportation Man agementTransportation Manage ment

Order Taking

Transpor ta t ion Execut ion Responsive Replenishment

Purchase Order

Resource

Tender ing

Auto IDAuto ID

RFID-Enabled Outboun d / Inbou ndDelivery

Product Tracking & Authent icat ion

RFID-Enabled Retur nableTransport Item

ER PER P

Ocean Carrier Booking (with TM Ad d-O n)

Seasonal Procurement (Retail)Fulf i l lment

Railcar Management (Custom Dev)

Procurement

Product ion Malfunct ion

Outboun d / Inbou nd Del ivery

Transpor ta t ion

These are the standard visibility processes that are delivered with SAP EM 7.0.


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SAP Event Management Overview of newDevelopments in SAP EM 7.0

New Web UI Enhanc ementsMultiple event sendingReport all expected eventsSend and display measurements & attachmentsDocument flow presentation in graphical and tabular formatsCapability to add logos and branding

Usabi l i ty Impro vementsImproved Screen flow & interactionSpeaking Browser window titles


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SAP EM Enterprise SOA

SAP EM E SA Services allow:

Querying of SAP EM objects fromexternal applications

enhanced monitoring of collaborativebusiness processes in the supplychain.

Custom user interfaces, building ofxApps, etc.

Query TrackedProcess EventNotificationIn

Query TrackedProcess In

TrackedProcess EventNotificationProcessing In

Manage Tracked Process In

TrackedProcess

approved

TrackedProcess Event Notification

approved

Manage TrackedProcess EventNotificationIn

Tracked Process By IDQuery ReadTrackedProcess

TrackedProcess By IDResponse approved

Tracked Process Simple by Elements Query FindTracked Process byelements

Tracked Process Simple by Elements Response approved

TrackedProcess Event Notification By IDQuery ReadTrackedProcessEvent Notification

TrackedProcess Event Notification By ID Response approved

TrackedProcess Event NotificationSimpleby Elements Query FindTracked Process EventNotificationby elements

TrackedProcess Event Notification Simpleby Elements Response approved

TrackedProcess Event NotificationCreate Request CreateTrackedProcessEvent Notification

approved

RelatedTrackedProcess Simpleby IDQ uery Find Related TrackedProcess by ID

Related Tracked Process Simple by IDResponse approved

Process TrackingoutsideCompany

TrackedProcessProcessingIn

TrackedProcess Request MaintainTrackedProcess

approved



Tracked Process Event NotificationProcessingOut

TrackedProcess Event NotificationCreate Confirmation Confirm Creation TrackedProcess Event Notification

approved

Tracked Process ProcessingOut


TrackedProcess Confirmation Confirm TrackedProcess

approved


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1. Business Challenges2. SAP Event Management Overview3. B en ef it s4. Successful Customers5. Success Stories

Agenda


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SAP 2008 / Page 18

Track planned v s. actualevents at various l evels

Auto mat ed exceptionresolut ion by not i f icat ionand workf low

Extended process metricsand analytic s forperform ance analysis andcompl iance

Pre-conf igured businessprocesses

Enables proc ess visibi l i ty,mo ni to r ing and con t ro l bymanaging events wi thinand between co mp anies

SAP Event Managem ent -In Transit Visibility, Track and Trace

Track planned vs. actual events at various levels

Automated exception resolution by notification and workflow triggering

Extended process metrics and analytics for performance analysis and compliance

Pre-configured business scenarios


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Ben efits : Visibility Actionability

Visibility: processTrack processes across multiple company/partner boundaries

Visibility: asset and planningDistribute inventory, capacity, and schedule-sharing am ong sup ply chain partners,SAP and non-SAP environments.

Visibility: performanceManage goals such as service agreement, delivery times

End-to-end process improvements, enhanced by RFID an d other emergingtechnologies, are delivering visibility across global networks to help organizationsmanage risk and create value .

This requires visibility not only on a process level, which means to track a process fromone end to the other and across company boundaries, but also on an object level, if you forexample are a company that distributes its goods with the help of items that are moreexpensive than the goods they carry. Last but not least, you need visibility on agreedperformance goals to be able to measure yourself and your business partners.


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SAP 2008 / Page 20

Quality cost

Transpor ta t ionTranspor ta t ion

InventoryInventory

Handl ingHandl ing

Risk PremiumRisk Premium

+

+

Fire-f ight ing

Los t oppor tun i t ie s

La te paymen t s

S hr i n k ag e

Dissat is f ied cus tom ers

Obvious Cost

Total Cost of Limited Vis ibi l i tyTotal Cost of Limited Vis ibi l i ty

Example: Fulf i l lment Process F rei g h t Exped i t es Demur rage cos t s

Inven to ry car ry ing cos t s Secur i ty s tock Obso lescence

Manua l t r ack ing o fshipments

Car r i er coord inat ion

Hidden Cost

+

myS AP Supply Chain Visibility: DeliveringValue


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Hard Dollar Benefits Include

Source: Transentr ic LLC & Compet i t ive Logis i tcs LLC

Decreasing expeditedtransportation by 22%

78 %

Decreasing plann edtranspor t and

demurrage costs

80 %

Reducing on-handinventory

90 %-22% -20% -10%


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SAP 2008 / Page 22

Value of SAP Event Management in K$*Example CPG Comp any(Model Company)*

Reven ue (in K$) $1.000.000

Pro f it Marg in 5%

Value of Produ ct $4

Aver ag e Or der Si ze 500 Pi ec es

An n u al # o f Or der s t o Be Tr ac ked 500.000

# of Even ts 10

Even t Volu me p er Year 5.000.000

Reduced Operating Costs $ 950

Reduced Expeditin g Costs $ 449

Reduced Demurrage Costs $ 245

FG Carrying Costs Reductio n $ 459

Reduced Obso lete Inventor y $ 216

Red u ced Cas h t o Cas h Cy cl e Ti me $ 658

Increased Prof i t Due to Revenue Upl i f t $ 125

An n ual Sa vi ng s (i n K$) $3 .101

* Simpl i f ied model , taxes , and other levers not inclu ded in th is example

Solut ion: SAP Event Management wi th Fulf i l lment Vis ibi l i ty Process

Example: CPG Company


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SAP 2008 / Page 23

0

0.5

1

1.5

2

2.5

3

3.5

S a v i n g s

S o f t w

a r e C o s t s

S e r v i

c e C o s t s

O p e r a

t i n g C

o s t s

V a l u e

A d d e d

Value of SAP Solution to Prospect3D Value Proposit ion

Value = $ 1,4 M* / $ 2,8 M**

ROI = 281%= annual cost savings / one-off costs x 100

Payback = 4,2 mo nths= one-off costs x 12 months

annual cost savings year

3,1

0,30,2

0,6

Company Model CPG

[in M$]

*

1,4

* **

*Only recurr ing savings , no on e-off savings** Based on SA P Hosting Servic es

*Net value in first year after go-live** Annual net value in fol lowing years

Solut ion: SAP Event Management wi th Fulf i l lment Vis ibi l i ty Process

3D Value Proposition Value, ROI, andPayback


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1. Business Challenges2. SAP Event Management Overview3. Benefits4. Succ es s ful Cus t omer s5. Success Stories

Agenda


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SAP 2008 / Page 25

Successful Customers


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Reference Customers

Monitors transportation tendering processTracks carrier response time and determines alternate carrierswhen needed

Tracks and mo nitors delivery shipments and alerts customers ofchanges/pending arrivals.

Tracks parcels from shipper to final delivery

Tracks the shipping process to payment

Tracks international OEM shipments and outbound shipments

Our Event Management solution is creating some highly satisfied customers.

For example, Colgate monitors the transportation tendering process with its carriers. Inaddition they monitor delivery shipments and alert customers of changes or pendingarrivals.

Texas Instruments monitors the production process and materials moving between plants.Similar to Colgate, they also monitor delivery shipments and alerts customers of changesor pending arrivals.

Canada Post has their SAP Event Management solution completely connected to third-party systems and tracks parcels as they move from the shipper to their final deliverypoints.


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1. Business Challenges2. SAP Event Management Overview3. Benefits4. Successful Customers5. Succ es s Sto ri es

Agenda


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SAP 2008 / Page 28

Colgate Palmolive Comp any

Provides visibility for the transportation tendering and execution process

Monitors transportation tenderingTracks carrier response time and determines alternate carriers when neede d

Reduced administrative costs for collaboration (carrierposts events by himself instead of calling, less paper-basedwork)Better customer serviceMore accurate delivery information leads to a reduction ofshipment status error codes by 10%


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SAP 2008 / Page 29

Texas Instruments

The need:

Better visibility for situations where a shipment is notgoing to arrive at a customer on timeBetter data for managing the carriers as suppliersShipment leaves

TI Dock

Shipment ar r ivesat airport

Shipment c lears cus tomsand is loaded onto

an aircraft Shipment arrives atintermediate destination

Shipment i s loaded ontoanother aircraft

Shipment arrives atdes t inat ion a i rpor t

Shipment c lears cus tomsand is loaded onto a t ruck

Shipment reachesfinal destination

Texas Ins t ruments Inc , 2005


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SAP 2008 / Page 30

Texas Instruments

Provide door-to-door shipping visibility for an outbound transportation process,including customs processing

Leverage B2 B standards to receive the information from the carriersRosettaNet: 3B3

ANSI X12: 214, 240EDIFACT: IFTSTA

Better visibility into where a shipm ent isMove to managing the exceptions rather than the rule

Ability to measure shipping performance of the carriers

Better business process control


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SAP 2008 / Page 31

Order Receipt Process ing

Transportat ion

D el i v er y t o C u st o m er

When custo mers and service providers can add inform at ion to the sup ply

chain sys tem, the overal l suppl y chain performanc e and value improv es .

A New Vis ibi l i ty Par ad ig m

Canada Post - Solut ion


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SAP 2008 / Page 32

Canada Post

Results achieved over the period June2003 to July 2004 include

Improved process co mpliance:

Improved delivery option recording compliance by65.2% for Saturday delivery, and to 95.8% for Proof ofage option

Improved e-signature capture success by 5.2% for retailcustomers and 3.2% for com mercial customers

Reduced customer complaints associated with retail delivery by16 %

Reduced cycle time to capture and return a signature from a

range of 4-15 days to 1 day, and reduced costs from C$6 millionto C$2.5 million

Recovered C$8.5 million through the use of in-line packagemeasurement

[SAP Event Management] couldt rack movement , moni torcom pl iance to [var ious] opt ion s ,and pr ovid e real-t ime alerts if offtrack. The opportunities that wewould h ave wi th the newinformat ion was s tagger ing.Peter Duncan, Director ofResearch and Development

The new SAP Event Managem entcapabi l i ty al lowed us to dream ina way that we coul dnt havedreamt before .

Louis OBrien, SVP of BusinessTransformation and SourcingManagement


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SAP 2008 / Page 33

SAP Event Management

Scenario:

A c us to m er ord er s a m at er i al an d Arvato per fo rm s the d is t r ibut ion .

Outsourcer Ar vat o

Customer

Order EH created

Customer Order Plan Shipm ent

Carrier Delivery and HUsEHs created

PO D

PO DInvoic ing

Tender ing

Ship

Shipment

PickPalletize

Load/GI

Arvato Services


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SAP 2008 / Page 34

Arvato Services

Online track and trace with real-time access to shipment informationWeb-based online reporting functions for strategic and o perational managem ent

Strong and effective carrier management resulting in highercustomer satisfaction

By providing fulfillment services with high quality and highperformance you have the possibility to win new custom ersand enlarge the business model


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SAP 2008 / Page 35

Whirlpool

International OEM s hipmentsTracking and tracing of container shipments (sea, including customs + rail) that are importedinto the United States, events reported both via EDI (carrier/broker communication) andthrough SAP R/3.

Outbound shipmentsMonitor customer shipments and stock transfers from factory distribution centers

Reduced in-transit inventory requirements and improved ability togive/hit a date for impo rted finished goods.

Automated process enables logistics personnel to focus onmanaging the exceptions rather than gathering data to trackcontainers.

Enables reduction in days of supply.


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SAP 2008 / Page 36

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