May 7 – 9, 2019

Intelligent Demand Driven Supply Chain withSAP IBP, Ariba & Azure

Chris Sakchalathorn, Senior PM Manager, MicrosoftDhaval Desai, Principal Solution Architect, SAP

Srinivas Nemalipuri, Software Engineer, Microsoft

Session ID # 82629

About the Speakers

Chris SakchalathornSenior PM Manager, MicrosoftHead of Supply Chain PlanningEngineering group at Microsoftresponsible for E2E solution design &deployment

Srinivas NemalipuriSoftware Engineer, MicrosoftResponsible for the support of all supplychain planning application at Microsoftincluding IBP, Ariba, ECC, APO, MDG,Solution Manager

About the SpeakersDhaval Desai

Principal Solution Architect, SAPLeading successful Supply Chain transformations as a systems & solutionarchitect covering IBP, S/4 HANA, IoT, Block Chain, ML and supply chain thoughtleader at SAP MaxAttention customersAuthor of the book ‘Setting Up and Running Order-Based Planning with SAP IBP’

Watch out for:• E2E automated testing of all SAP IBP applications [Q3 2019]

Dhaval DesaiPrincipal Solution ArchitectDigital Supply Chain PlanningSAP DBS – Center of Expertise

SAP America Inc.Newtown SquareEmail: dhaval.desai@sap.com

Key Outcomes/Objectives

1. How to transition from connected (APO, legacy)to predictive, intelligent and empowered (IBP,Ariba, Azure) supply chain

2. Reference Architecture for Intelligent & DemandDriven Supply Chain

3. Partnership with SAP

Agenda

• Intelligent Supply Chain Transformation (Why)• Reference Architecture (How)• Capabilities (What)• Partnership with SAP

Surface LaptopSurface Book SurfaceStudioSurface Hub

Xbox FamilyHololensCustom Controllers

Microsoft Devices Supply Chain Portfolio

Surface Pro

6

Microsoft Devices Supply Chain Today

122Countries Served

>390Suppliers

(includes component suppliers)

~$8BAnnual Spend

1Devices Centralized Data Lake

1.3MShip To Locations

1.7M+Annual Retail and Commercial

Sales Orders

33Mfg & Distribution Operations

>42,000Active Configurations

2.0M+Annual SAP Deliveries

>~200MUnits Manufactured & Shipped

StrategicSourcing

CustomerRepairs &

Self-ServiceCare

Manufacturing

Market Opportunity &New Product Introduction

Order Mgmt,& Logistics

Transformation,Technology &

Analytics

Channel Sales &OperationsPlanning

Safety,Compliance

& Sustainability

Growing needs for an Intelligent Demand Driven Supply Chain

• More devices, each with 1-2 year life• Increasing COGS• Larger channel & promotional footprint• Increasing customer service expectations

• Build to Order• Mass Customization

Implement intelligentforecasting andreplenishment to achievescale

Connected Supply Chain todrive customer experience,efficiency and visibility

Adopt advancedtechniques to establishagile processes

Our ResponseOur ResponsePressures

Opportunities

Impacts• Stock outs -> low % of confirmed orders• Excess Inventory -> High E&O• Manual Forecasting -> Low Accuracy• Outdated Architecture -> manual

subjective & siloed supply chain

Launch Sustained EOL

Planning Method Changes During Product Lifecycle

Hybrid Approach: Machine Learning + Human Collaboration

Final Forecast = Base Forecast (ML Models) + Adjustments (e.g. Promos)

Forecasts at DC Level

SAP IBP Manufacturing

MS Sales Data Pricing Data

Data Representation Work

Azure Platform

Product Age, Seasonality,Promos

Feature Engineering

ML/Time Series Models

Model Development

Forecast Results in IBP

SAP IBP

Benefits Achieved in the initial cycles

+10%

ForecastAccuracy

-87%

Cycle Time

-50%

ManualAdjustments

-65%

Excess &Obsolescence

Intelligent Planning with SAP IBP, Ariba and Azure

Data availability inorder of curation

SAP viaBODS

Aribavia API

IBP viaAPI

DistCenter

viaAzure

Retailervia

Azure

Raw

Gold

Cooking

AzureDataLake

Supply Chain +Azure DataWarehouse

Catalog createdand published

Data published toCubes for analytics

Data available tousers via PowerBI

Connected Supply Chain

CustomerOrders SAP IBP PowerBI &

Visualizations

Connected Supply ChainDrives customer experience by

mitigating the risks due to executiondisruptions/changes

PowerBI &Visualizations

Benefits Achieved

+70%

Automation

-80%

Cycle Time

-20%

CustomerExperience

+75%

On TimePlanning

Microsoft’s journey to Supply Chain Transformation

AllocationPlanning forOrderManagement

Subsidiarylevel DemandPlanning inIBP

SupplyPlanning inIBP – Build &Ship model

Account LevelPlanning (forkeyCustomers)

Care DemandPlanning

AggregateSupplyPlanning(replacingAPO)

Care PlanningS&OPScenarioPlanningExtendControl TowerCapabilities(DriverlessSupply Chain)

Adoptedsince Mar

2017

Adoptedsince

Sep-2018

Adoptedsince May-

2018

Adoptedsince Oct-

2018Adoptionfrom Mar-

2019

Adoptionfrom Mar-

2019

Azure Platform Enables Digital Supply Chain Foundation

Fulfillment And LogisticsShop Floor Control SystemBOM Management

CommerceDevice Telemetry CRM

SubscriptionsProductCatalog

Sales

Microsoft Corporate Systems

Point of Sales EnterpriseServices

Supplier ERP

Supply Chain Cloud

Supply Chain Services

Azure APIManagement Microservices

Azure ApplicationInsights

Supply Chain Partner Systems

Data & Advanced Analytics Platform

EventHubs

Azure DataFactory HD InsightAzure Data

Lake Power BI

Care

Source Deliver CareTradePlanSupply ChainCollaboration

IntegratedBusinessPlanning

on Azure

SAP & Microsoft Partnership – Path to Success

StrengtheningECC-IBPintegration story

Microsoft influenceddevelopment ofenterprise ready,secure and robustintegration model

Programmaticpermissionsmanagement inIBP

Enabled easyintegration ofpermission filtersfrom externalsystems via API

System & ProcessMonitoring

Co-innovated on anative connectionbetween Solman andIBP to monitor end-to-end processes in ascalable manner

Alert Overview

MSFT deeplyinvolved in featurerequirements, userstudies andworkshops

IBP AribaIntegration

Co-innovated SupplyChain collaborationwith SAP IBP andSAP Ariba

Strong partnershipbetween Microsoft& SAP MaxAttention

Early involvement inCo-Design,Architecture & Build

Deep functional &technical expertise &thought leadership

Collaboration with SAP powered by MaxAttention

Co-Innovationand

alignment

Join solutiondesign • Innovative solution that bridges gaps in the standard

product and effectively meets Microsoft’s requirements

• Solution design aligned with IBP product managementand roadmap

• Functional and technical expertise in a hybrid environment• Facilitation with multiple SAP product teams

MaxAttention

Team AzureECC,APO,MDG,Solution Manager on

IntegratedBusiness Planning

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