Digital Response and Supply...

INTERNAL

Patrick Crampton-Thomas, SAP

Digital Response and Supply Management Overview

1INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

1. Understand the Digital Supply Chain strategy and the

Business Drivers for Response and Supply Management

2. Learn which SAP innovation areas customers should

prioritize as they look to become more responsive

3. Learn about the three pillars of SAP’s solution strategy for

Digital Response and Supply Management, and hear case

studies and examples of customer value

4. Learn where to go for additional information

Session Objectives


• Digital Supply Chain Solution Strategy for 2017

• Business Drivers for Digital Response and Supply Management

• Solution Portfolio Overview and Customer Value

• Roadmap

• Wrap-up

Agenda


The Digital Transformation

is forcing companies to

compete in response to

customer demand

• Customer Experience

• Distributed Manufacturing

• Networked Economy

• Urbanization

SAP Digital Supply Chain Strategy

Connected

Products Connected Assets Connected PeopleConnected MarketsConnected

FleetConnected Infrastructure


Agenda




• Roadmap

• Wrap-Up


Connectivity


http://www.nike.com/gb/en_gb/c/nikeid

Personalization


Speed


Everyone has a plan 'till they get punched in the

mouth’.


Speed

Responsive Manufacturing


Collaboration


Agenda




• Roadmap

• Wrap-up


Innovations for Digital Supply Chains

Distributed Manufacturing

Responsive & Connected

Urbanization

Connected People & Things

Customer Experience

Personalization & Speed

Networked Economy

Collaboration

SAP IntegratedBusiness Planning

Inventory

Demand Response and Supply

Sales & Operations

Enhanced User Experience

Supply Chain Control Tower

SAP HANA Platform

Discover Connect Collaborate

Ariba Network

BUY SELL

MANAGE

CASH

Plan

Produce

Deliver

Design

Respond

Operate


SAP Leonardo

Announcement January 2017

http://news.sap.com/jump-start-enablement-program-sap-leonardo-iot-portfolio/

https://www.theguardian.com/sap-partner-zone/2017/jan/11/sap-leonardo-empowering-live-business

http://www.forbes.com/sites/sap/2017/01/11/the-da-vinci-code-to-the-internet-of-things/#3166ffd256b6


Digital

BusinessPlanning

Digital

Logistics

Digital

ProductInnovation

Digital

Manufacturing

Digital

Operations

Connected

Products

Connected

Assets

Connected

People

Connected

FleetConnected

Infrastructure

Connected

Markets

Digital Supply Chain

SAP Leonardo

SAP Leonardo Bridge

Digital

Response& Supply

Digital Supply Chain, powered by SAP Leonardo


How can SAP® solutions enable you to change the game?

What do SAP solutions help customers do?

What are the benefits?

Why SAP? Learn more

Digital Response and Supply Management

*SAP Performance Benchmarking

Key facts

Business Priority Summary

Digital Supply Chain

SAP® solutions help businesses respond promptly to volatile demand in competitive

global markets across complex supply chains ...

Response orchestration

Improve production planning &

scheduling; Access advanced

order promising & allocations

Response and supply planning

Respond to demand in real time.

Plan supply across the network

to meet business priorities.

Digital operations center for response

Enhance visibility, performance

management, and collaboration

with suppliers and customers.

Lead time-15%

When material and

capacity constraint plans

are integrated*

Average on-time

plant delivery+5.6%

When material and

manufacturing availability

are integrated*

•Higher revenue through accurate response to customer demand

•Lower costs due to better resource allocation across the network

•Enhanced competitiveness and revenue with a lean and agile supply

chain

•Increased service levels through innovative supply chain collaboration

https://valuemanagement.sap.com/disclaimer/


Response and Supply Management

Enable companies to re-plan supply

and match supply to demand across

the network quickly and responsively.

Tactical and Strategic Supply Optimization

Add advanced cost/Profit optimization to

the S&OP process.

Response Planning

Respond quickly with fast, rules-driven

planning, re-planning, and simulation.

Replenishment & Deployment Planning

Enable intelligent staging of inventory

across all locations and automate

replenishment and deployment.

Manufacturing Network Planning

Plan capacity and procurement across

the extended supply network.

* Source: SAP ASUG Benchmarking Survey

Higher on-time delivery5.6%With integrated material and capacity order promising*

Shorter lead times40%With flexible, rules-driven, supply-demand matching*

Key facts


Inventory


Sales & Operations



SAP HANA Platform


SAP Integrated Business Planning for response & supply

Fast, flexible supply planning supporting a variety of approaches,

suitable for many industries, including:

• Support of tactical (time-series) supply optimization in conjunction

with S&OP

• Unconstrained or constrained cost/profit optimization

• What-if analysis of actual or hypothetical changes to demand and/or

supply

• Support of operational (order-based) supply planning

• Generates supply orders (production, procurement, distribution).

• Unconstrained planning, constrained priority rules-driven heuristic planning,

optimization-based planning (roadmap)

• What-if analysis of actual or hypothetical changes to demand and/or supply,

with pegging and gating-factor analysis

• Optionally generate and provide allocations to ATP and reschedule sales

orders

• New order data model and near-real-time replication from ERP


Account Planner: View Prioritized Demand Confirmations


Supply Planner: Manage supply and inventory


Account Planner: Pegging, with Order Network & Gating Factor


Response Orchestration

Integrate supply and allocations with

prioritized order confirmations

Enable agile and responsive

manufacturing networks Real time order confirmation and priority

based back order processingPromise orders based on real supply

ability, and re-schedule based on priority

rules.

Allocation Management

Flexibly manage allocations for Omni-

channel demand management.

Detailed Production Scheduling

Enable agile production operations

considering detailed sequencing and

scheduling constraints

Higher on-time delivery

With integrated material and capacity order promising

5,6%



Constraint-based manufacturing

planning the supply network

Plan

ProduceDeliver

Design

Respond

Operate

Days in inventory-25%

With integrated material and capacity constraint planning*

Benefits


S/4 HANA Unified Functionality in the CoreAdvanced Available to Promise

CURRENT FUNCTIONAL MODEL

ACROSS TWO SYSTEMS

1610 RELEASE, ONE SOLUTION

1. Basic Availability Check

2. Manual Allocations

3. Re-Scheduling

SAP ERP

Basic ATP

SAP APO –

ATP

Core Interface CIF

Two separate systems with Integration

1. Network Availability Check

2. Advanced Allocations

3. Advanced Re-scheduling

4. Rules based ATP, Substitution

1. Basic ATP Capabilities

2. Multi-Location Availability Check

3. Advanced Hierarchical Allocations

4. Priority based Re-scheduling

5. (Planned) Rules based ATP,

Substitution

Enhanced

Backorder Processing

New concept for

requirement prioritization

Enhanced

Product Allocation

Synchronous,

consistent data

Immediate error handling

Release for Delivery

App

React to short term supply

and demand changes

Value: Manage prioritized omni-

channel demands and allocations

in one system


S/4HANA innovations – Q4/2016 (1610)

Advanced ATP backorder processing (BOP) with priority concept

Grow revenue and margin with improved

customer service and on-time delivery for

important sales orders & channels.

• High performance mass ATP check

• New FIORI-UIs to set-up BOP runs,

review confirmations and issues and

drill into details to resolve.

• New concept for priority classification

and supply re-allocation:

• Winner

• Gainer

• Redistributor

• Filler

• Looser

• Interactive “Release for Delivery” Fiori

app to re-schedule orders responding to

short term supply & demand changes.


S/4HANA innovations – released Q4/2016 (1610)

advanced ATP – Characteristics-based product Allocation

Ensuring best customer service and profitability

when demand exceeds supply or important

customers and channels need allocation plans

• Order confirmation algorithm considering

‘allocation’ constraints.

• Highly Flexible allocation management based

on attributes of the sales order, material,

plant or customer.

• Grouping- and aggregation capabilities

(collective allocations) for simplification and

ease of maintenance.

• Allocation Plans can be fed from IBP for

Response and Supply and managed via

interactive Fiori app


Response Orchestration

Integrate supply and allocations with

prioritized order confirmations

Enable agile and responsive

manufacturing networks Real time order confirmation and priority

based back order processingPromise orders based on real supply

ability, and re-schedule based on priority

rules.

Allocation Management

Flexibly manage allocations for Omni-

channel demand management.

Detailed Production Scheduling

Enable agile production operations

considering detailed sequencing and

scheduling constraints

Higher On-time Delivery

With integrated material and capacity order promising

5,6%



Constraint based manufacturing

planning the supply network.

Plan

ProduceDeliver

Design

Respond

Operate

Days in inventory-25%

With integrated material and capacity constraint planning*

Benefits


S/4HANA Unified Functionality in the CoreProduction Planning and Detailed Scheduling

ERP + PP/DS

1. Run planning in SAP S/4HANA (constrained + unconstrained)

Costly and

complex architecture

Latency

and error prone

Complex

for the user

Easy and simple

for the userFaster and responsive

production planning

Reduced total

cost of ownership

CURRENT FUNCTIONAL MODEL

ACROSS 2 SYSTEMS

1610 RELEASE, ONE SOLUTION

1. Run infinite unconstrained planning in ERP (Frame + Gearbox)

2. Run finite and constrained planning (Wheels)

3. Review results in ERP

4. Review results in APO PP/DS

5. Consolidate and reconcile finite and infinite production plans

SAP ERP

Complex planning processes across two

systems, with some parts managed in each

SAP APO

PP/DS

Core Interface

CIF

Value: One system with constraint-

based planning and scheduling,

easy adoption and lower TCO


Network collaboration and insights to pro-actively monitor the supply chain, resolve issues and drive continuous improvement

Performance Management and Analytics

Standard and Definable KPIs to monitor performance and drove improvement

Enable all users in the supply chain network visibility and decision support

Event Management and Resolution

Configurable event management, with task and case management for resolution

Collaboration

Digital Operations Center for Response

Efficiency+50%

Through real-time, automated

collaboration with suppliers*

Stock-20%

By collaborating with customers

to deliver at optimal times*

Benefits


Inventory


Sales & Operations



SAP HANA Platform


Ariba Network

BUY SELL

MANAGE

CASH


SAP Supply Chain Control Tower: Obtain Instant Insights into Demand, Inventory,

Supply and Logistics Across the Entire Supply Chain

Global visibility


SAP Solutions for Supply Chain Collaboration & Networks:

3 building blocks for customers

Response network

End-to-end visibility,

Response planning,

process automation,

and Network

Connectivity

• For customers looking for a “Channel Master” private

planning & orchestration hub to manage supply chain

including planning, simulation

and analytics

SAP IBP and Supply Chain Control Tower • Collaborative hub for Integrated Business

planning

• End-to-End analytics and performance mgt

across planning and execution

• Smart alerts and Case Mgt for SC

monitoring and event resolution

Solutions Key Capabilities

Ariba Collaborative Supply Chain

• SAP‘s solution for Public Network

with many:many connectivity and

easy on-boarding. Supports supplier

collaboration processes for orders,

finance and forecast/commit with

plans to integrate with IBP

• Collaborate via many-to-many Network

• Business Network for standardized

processes for direct materials

• Also supports indirect procurement

• “Connect once” easy on-boarding, including

Ariba on-boarding services

• SAP’s solution for customer

replenishment collaboration and

those that want a “private” network

portal with advanced SCM

collaboration processes

SAP Supply Network Collaboration

Subcontractor

• Collaborative applications with Suppliers

Sub-Contractors and Customers

• Advanced SCM use cases

• 400+ customers in many industries

• Roadmap with S/4, supported to end 2025CustomerSupplier

Inventory


Sales & Operations

Planning



SAP HANA Platform


Collaboration Strategy with SAP IBP and Ariba Network


Inventory


Sales & Operations



SAP HANA Platform


Ariba Network

BUY SELL

MANAGE

CASH

“Channel master” at the center of their network, orchestrates

demand and supply with complete “network” model

Plan with partner supply, demand and capacity data

Advanced Planning, Optimization and Simulation

Manage operational, tactical, and strategic time horizons

Exception Monitoring and Resolution for all users

Channel Master Collaborative Planning

Collaborate across all procurement segments

and processes

Efficient onboarding and ease of connectivity

Collaborating on order, inventory and time series

planning data

Multi-Level network, many to many

Supplier Network and Connectivity

Demand

Inventory

Supply


SAP IBP Collaboration with external and internal partners IBP Collaborative Control Tower and integration to Ariba Network

FUTURE PLANS:

Subject to change


Ariba Network

BUY SELL

MANAGE

CASH

Ariba Supply Chain

CollaborationIBP Interactive Partner

Workspaces

My

Company

Any System

Connectivity

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Multi-Tier Supply Chain Planning

and E2E Visibility

Open IBP Collaboration

Data Exchange

• Demand

• Supply

• Capacity

• Inventory,

• …

Standard

Ariba

Network

Integration

Open API Connect

Once with

Industry

Standard

Support

LELLight

Enablement

Cloud Integration Gateway

Connect Once & Industry Standard Support

Portal /Web UI

PartnerEnablement


IBP Collaboration: A “Collaborative Control Tower” to manage collaboration

process, status, and supplier performance


This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is providedwithout a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.

Collaboration with SAP Supply Chain Control Tower & IBP

Flexible Collaboration and reporting for all users and roles


Overview IBP Collaboration: Web Workspace for External

Collaboration Partners to Access IBP Directly

https://standard.build.me/api/projects/1e4ea8456e4c07960c5e9b0f/prototype/snapshot/latest/index.html#/1469829796265_S0


Integration with Ariba Network to share planning data automatically and for easy

connectivity/onboarding


Agenda




• Roadmap

• Wrap-up


S/4 HANA

Production

Planning &

Scheduling

Embedded Capacity constrained

planning & scheduling in S/4 HANA

Partner Industry extensions i.e.,

life-sciences and automotive

New Planning Fiori UI, including new Gantt

chart

CD offerings to expand use

cases and Industry Coverage

Constraint Planning in

S/4HANA Cloud

S/4 HANA

advanced ATP

Priority based back order

processing and re-scheduling

Hierarchical allocation Mgt based

on Characteristics

aATP as an option in S/4 HANA Cloud for

manufacturing

Rules based aATP (substitutions, sourcing,

etc.)

CTP workflows with S/4 HANA

PPDS

Integration with S/4 HANA

Transport Management

Industry Scenarios like batch

characteristics ATP matching

S/4 HANA New

Innovations

S/4 HANA 1610 with heavy focus

on ‘Live MRP’; Embedded PPDS &

new aATP

S/4 HANA Cloud for Manufacturers

Demand-Driven Replenishment

Predictive MRP Simulation

Response &

Supply

Core response management &

constrained and unconstrained

supply simulation

Enhanced integration (net change & 2 way)

Deployment planning and lot sizing,

Optimizer for broader use cases, Usability

and performance

Extended Industry Support i.e.,

characteristics planning and

shelf life

Near real time integration

Control

Tower

Cross application visibility, alerting

and exception management

processes

Enhancements to exception management,

performance management and analytics

Flexible user-defined

segmentation and exception

handling with machine learning

Business Network

Collaboration including

integration into SAP Ariba

Network

Collaboration

in IBP with

Ariba Network

Jam Internal collaboration

Models extendable to partner

locations to create requirements

External Supply Side Collaboration

Collaboration Foundation for Data and

Process Management

Open Message Foundation & Ariba

Integration

Interactive Collaboration

Workspaces

Customer/Sell Side

Collaboration

Further Enhanced Workflows

& Collaboration process and

security foundation

Today Future DirectionPlanned Innovations

This is the current state of planning and may be changed by SAP at any time.

Digital Response and Supply Management

Innovations by product area


Agenda




• Roadmap

• Wrap-up


Where can I get more information?

Communities @SCMatSAP

Solution Explorer

Customer Reference

Platform (CRP)

Value Lifecycle

Manager

SAP Community Wiki

https://www.sap.com/community.html

https://twitter.com/scmatsap

https://rapid.sap.com/se/executive#!/vlm/default/vlm-default-lob~~.~~99?lobs=lob-default-99

https://crpa4c19efc4.hana.ondemand.com/cat/ci/cip/

https://valuemanagement.sap.com/vlm/

https://wiki.scn.sap.com/wiki/display/SCM/SAP+SCM


Key Takeaways

• Companies have to adapt to new customer demands, and differentiate

through shorter lead times and higher service

• SAP Response and Supply solutions enable a more agile responsive

supply chain to manage market variability

▪ Faster Planning Cycles

▪ Re-planning and simulation

▪ Integrating order response with the supply chain in real time

▪ Considering channel and customer priorities and allocations

▪ Providing a Collaborative Control Tower to manage the supply network

Thank you.

Contact information:

Patrick Crampton-Thomas

[email protected]

Head of Digital Response and Supply Management

mailto:[email protected]

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companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are

set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release

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and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The

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