SAP Event Management Overview

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Business MaturityQ DATA GROUP

SAP Event Management

An Overview

April 25, 2011


Q Data SAP EM Webinar Series

4 Tuesdays at 1pm CST • 1 – EM Overview (Today)

• 2 – EM Use Cases (4/26)

• 3 – Mobile Track and Trace using the OER (5/3)

• 4 – Exception Management in the Supply Chain (5/10)

Other Webinar series on Thursdays at 11am CST • May - Reduce maintenance, shipping costs and labor costs and gain

Business Maturity

• June - Middleware Technologies

• July - SAP PI System upgrades and Performance Monitoring

• August – SAP Event Management

• September - Reduce Inventory and MTTR by finding the right part, first time, every time using an Integrated Product Catalog

• October - SAP Meets the iPhone and iPad

http://www.qdatausa.com


Agenda

What is SAP Event Management • An Overview

• The components

• What comes pre-delivered?

• Understanding events

What can SAP EM do for you?

Walking through a sample process

An SAP EM implementation • Team

Wrap-Up


Supply Chain Event Management

“Supply Chain Event Management is an application that supports control processes for managing events within and between companies. It consists of a set of integrated software functionality that supports five business processes: monitor, notify, simulate, control and measure supply chain activities.” AMR Research, January 2000


What is SAP Event Management?

SAP’s implementation of “Supply Chain Event Management”

A SAP standard tool to:

• track the status of processes

• measure compliance with process plans – Uncover & report exceptions

• give visibility of your processes to all involved

Found where?

• SAP EM as part of SCM (standalone option)

• SAP EM as add-on (using EM functionality with an existing app):

SAP AII 2007 (Auto-ID Infrastructure)

SAP SNC 2007 (Supplier Network Collaboration)

SAP TM 6.0 (Transportation Management)

SAP ERP 6.0

• SAP EM as the core component (OER)

SAP AII 2007 (Auto-ID Infrastructure)

SAP EM was released for general availability in June 2004 as part of the SCM application


Business drivers for SAP EM

Risk mitigation • Increased regulations

Track and Trace with authentication

• Real-time exception notification – Proactive notification & resolution

Visibility • Increase customer satisfaction

• Reduce costs

Minimize uncertainties

• Reduce time to action

• Transparency across dispersed supply chain

Process improvement • Analytics / KPI

• Partner performance


Components of SAP EM

ECC

Application Interface

SAP EM

Control Channel

Comms Layer

Reporting Layer

BW

SCM

Application Interface

`

Event Senders

Application System (AS) • Execute data processing in

Application system. E.g. ECC

Application Interface (AI) • Value add: Fast deployment

• Basis Plug-in

SAP Event Management (SAP EM) • React to Events / rules based

Business Warehouse (BW) • Supply data for analysis

• Value add: Tight integration

Event Senders • Create event messages


Visibility

Process

Customers

Suppliers

Internal Ops

Management

Each relevant business process is represented in SAP EM as an Event Handler (EH) • Includes attributes

Tracking IDs

Parameters

• Planned milestones and measurements

“The Plan”

Actual events posted against the EH • Measurements

• Attachments (digital signature)

• Changes to the plan

• “The actual”

A little more detail

“The Plan”

“The Actual”

Exception


Understanding Events

Regular

Event

Actual Events

Re

gu

lar

EE

Re

gu

lar

Early / Late

event

Re

gu

lar

EE

La

te E

ve

nt

Ea

rly e

Ve

nt

Unexpected

EventU

ne

xp

ecte

d

Unreported

eventU

nre

po

rte

d E

E

Planned / Expected Events

2 types of events: • Events that you

expect to happen - Milestones

• Events that actually happen

These can be broken down further: • Regular event

• Early / Late event

• Unexpected Event

• Unreported event


What comes pre-delivered?

Visibility Processes • Configuration / Development

SAP AS, SAP EM, SAP NetWeaver BI extraction

SAP Web UI (classic and standard)

• Content

SAP NetWeaver BI & SAP NetWeaver PI

• Documentation Scenario Description Configuration guide


SAP EM and TM

TM Challenges • How can I increase transparency and reduce risk?

• How can I reduce my supply chain operational costs?

• Can I respond quickly to unexpected supply chain events and ensure customer SLA is maintained?

• Are we compliant with regulations and compliance policies?

Order Management

• Receive and create transportation requirements

Freight Planning & Tendering

• Load, mode, schedule, route

• Select carrier

Freight execution / monitoring

• Documents, transport

• Track & Manage

Freight Settlement

• Charges, Pay, Invoice

Integrated SAP EM

Freight execution tracking • Freight units, orders, bookings

• Events: Loading POD

• Pre-defined shipper, carrier, consignee views

Event Notification • WebUI, Mobile, RFID

• Rules-based follow on activities

• Alert triggering – Email, SMS, Fax, B2B

• Overdue event monitoring

• Analytics SAP BW

Integrated Exception status in SAP TM cockpit


SAP TM – Ocean Carrier Booking

Book capacity on a ship for sea transportation • use SAP EM to track the

individual process steps

• Available exclusively for Transportation Management in Extended Warehouse Management (EWM).

Tracks the following events • Container loaded on vessel

• Departure of vessel

• Arrival of vessel

• Container unloaded from vessel

Visibility • View booking requests and

shipments by status

• Track transportation events

Container level

Communication with external partner

• Track receipts, confirmations, rejects from partners

• Track unexpected events

Change to booking order

Change to shipping instructions


SAP EM and SNC

SNC Challenges • How well are my suppliers

performing?

Delivery

PO management

All suppliers are not equal… • Automation

• Low performance

• Are we collaborating with our suppliers?

Exception messaging

Integration with SAP EM • Exception management

Alert framework • Direct to supplier

• Performance management

On time delivery

• Visibility Processes

Responsive Replenishment

PO Process


Object Event Repository

Track and Trace • Serialized items

• Authentication

SAP OER

SAP PI

Line Controllers

Mobile for error handling (Online UI)

Data

Center

SAP AII Local

Sites

Forklifts and other Warehouse Equipments

Mobile for Shipping / Receiving etc.

SAP AII


Current SAP EM Uses

Order to Cash (Insight, HD Supply, Siemens)

Production Order process (Eclipse Aviation)

Procurement process (Movie Studio, HD Supply)

Returnable Transport Item (Large chip manufacturer)

Ocean freight logistics (BASF)

Supply Chain (Amanco)

Track and Trace (BAT, Green Cargo, Canada Post)

If it’s a business process worth tracking at an instance level then it’s a SAP EM candidate. If regulations restrict it… If visibility and analytics on the process are key… then it can be SAP EM enabled


SAP EM vs. BPM

BPM is more aligned with ccBPM and SAP Business Workflow • SAP Business Workflow Automation of business processes within

1 SAP systems

• ccBPM Automation of business processes spanning several SAP systems

• BPM Automation of business processes spanning several disparate systems

SAP EM monitors any business process • Tight integration to extract events from SAP systems

• Tight integration with SAP NW BW for analytics

• Provides Web Services to add or query data


Agenda


• The components






Wrap-Up



Exception Management

Manage processes by exception • With full visibility to process

Planned vs. Actual Events • Planned vs. Actual Partners, Locations and Measurements

• Proactive alert management

Alert Framework integration

Workflow integration

• Reduced time to action

• Reduce costs

Minimizing uncertainties

STEP 1

STEP 2

STEP 3

Planned Sequence: Step 1,2,3

STEP 4Actual Sequence: 1,3,4 => ALERT!!!



Status Management

Monitor processes by status • With full visibility to process

Overdue, Early, Late, Unexpected events

• Proactive alert management

If an undesirable status is reached a proactive alert can be issued

• Enabler for exception management



Performance Monitoring

Analytical Reporting Capabilities • “How have my processes been performing?”

Process Improvement

• SAP NetWeaver BI integration

Measure internal and partner performance

KPI Reporting • E.g. Average delay by carrier, Order to Cash cycle time by Order Type

Operational reporting capabilities • “How is my process performing right now?”

• Directly done within SAP EM



Visibility

Standard / Custom SAP EM Report • WIMO

• Status visibility

Analytics in SAP NW BW • KPI visibility

Average cycle duration

• Partner scorecards

% on time vs. early vs. late

Deviations as a % of total count

Alert & Workflow Inbox • Exception Management


Summary

Exception management

+ Status management

+ Performance monitoring

+ Visibility

Process Improvement

Real Value!!!


Agenda


• The components






Wrap-Up


Sample process described


“The Plan” in SAP EM


“The Execution” in SAP EM


Standard event


Unreported event


Standard event


Late event


Unexpected event


Parameter exception


SAP EM reporting


Agenda


• The components






Wrap-Up


A SAP EM Implementation To Do List!!!

ECC – Application System • Set up comms to SAP EM

• Implement BAdI (AI)

• Define Event Manager

• Configure the following:

Business Process Type (BPT)

Application Object Type (AOT)

Event Types

• Code the following:

Relevance function

Extractor functions

ID extractors

Parameter extractors

Expected event extractor

Business Object extractor

BAdI for calling SAP EM

SCM – SAP EM • Set up comms to AS

• Define Application System

• Configure the following:

Event Handlers / sets

Tracking / Query Ids

Parameters

Status profiles

Expected / unexpected events

Event codes

Rules and Rule sets

Locations

Partners

WCL / Web UI layout

BW Config

Archive Config


Typical Project Team

Design: 1 x SAP EM Architect

Configure: n x SAP EM functional expert

Develop: n x ABAP developer with SAP EM knowledge

Develop: 1 x BI developer – Queries and dashboard

1 x UI developer

1 x Project Manager


Customer Implementation: Procurement Process

The Challenge • Track changes to Purchase Orders

• Track PO acknowledgements, Goods Receipts and Invoice Receipts with changes

React immediately to changes outside tolerances

• Track untimely or non-receipt of process events

Have the visibility to non-compliance of the process by supplier

• Track supplier EDI success / failure

• Understand how the procurement process is performing

Have the ability to set KPIs for the procurement process

We want to be able to track PO’s and any

subsequent discrepancies caused by suppliers

changing the PO requirements, and immediately

react to these in order to keep our PO plan on

track…


The Solution

Enhanced the standard Procurement Visibility Process

Expected events

• PO created

PO transmitted

PO mapped to 850 OK

PO 850 received at vendor

• PO acknowledged

PO created + 2days

• PO goods receipt (GR)

Based on PO schedule

• PO invoice receipt (IR)

PO GR date + 7days

Unexpected events

• PO delivery date or quantity change

Based on tolerance

• PO acknowledged, GR, or IR amount, quantity, or date change

Based on tolerance


Visibility and Status Management

SAP EM Web UI


Exception Management

Alert Framework Integration

Overdue Monitor Report


Performance Monitoring KPIs

Process cycle count

Deviations as a % of total count • PO Acknowledgements

received with changes

• PO GR not matching PO

• PO IR not matching PO

Average cycle duration • Total cycle

• PO create PO Acknowledged

• PO GR PO Invoice Receipt

% on time vs. early vs. late • PO acknowledged

• PO goods receipt

• PO invoice receipt

• Invoice received


Agenda


• The components






Wrap-Up


BUSINESS VALUE COLLABORATION PROCESS RULES DATA INTEGRITY

Real-time transactions Data cleansing Inside the system System communications Partner and system

cooperation Data accuracy Data accountability Process accountability User confidence

Plan in the system Communications with

your partners Master data rules Define service levels –

Internal and external Business measurements Define exceptions Status definition Data grouping Standard processes

Real-time operational exception management

Integrated notifications through workflow, alerts

Adaptive collaboration with partners

Proactive process realignment

Partner performance Track and Trace Status management Visibility – Process, data,

performance Analytics

Reduced risk Improved service Reduced cost Reduced time to action Improved process

compliance Visibility to performance

goals, process, data Improved collaboration Improved cycle times Fewer exceptions Improved reliability

gained through trusted processes

HOUSEKEEPING

Manage by exception,

adapt processes,

realize benefits, set new

VALUE targets

MEASURE and ADAPT

Take control of your

processes through

monitoring, collaboration

and automation

SENSE and RESPOND

Get your data (Master and Transaction) clean with

consistent processes adopted to maintain it.

Get your processes integrated and into the system.

Refine your process points , set measurement goals

PLAN and EXECUTE

FUNCTIONALITY INTEGRATION

SAP EVENT MANAGEMENT

BUSINESS VALUE

Supply Chain Maturity


Q Data Group - SAP EM Practice

Just starting out with SAP EM? • Self Assessment

Online questionnaire – Are you ready for SAP EM? (http://www.qdatausa.com/selfassessment/register.asp)

• 1 Day Readiness Assessment

Helps companies make the correct decision as to whether SAP EM matches the need. Also checks if your organization is ready for SAP EM.

• 5 Day Assessment

An Overview presentation on what SAP EM and what it can do for you (½ day)

Detailed generic training covering the configuration of SAP EM (1 ½ days)

Standard EM Scenario Implementation (requires a working SAP EM system prior to on-site arrival) (1 day)

Conducting an analysis of your business processes (1 day)

Executive presentation covering opportunities and a project plan to realize those opportunities (1 day)

http://www.qdatausa.com/selfassessment/register.asp


More Info

http://www.qdatausa.com/ Webinar series on SAP EM – Tuesdays 4/19 – 5/10

“SAP Event Management – SAP’s best kept secret” available at Amazon.com or Genie Press at http://www.geniepress.com/qdata

http://www.geniepress.com/books/sapem.htm


Questions???

Kevin Wilson SAP EM Practice Lead [email protected] 760-809 1495 www.qdatausa.com

John D. McMahon Client Services – SAP EM [email protected] 630-740 6685

A few of QData’s Clients

SAP Event Management Overview

Documents

Transcript of SAP Event Management Overview