SAP Sales and Operations Planning Software Product (xSOP) · PDF fileSales and Operations...

SAP Sales and Operations Planning

Software Product (xSOP)

Ray Adams

IBU Chemicals

March 20th, 2007

S&OP Overview

Functions in xSOP

Demonstration

Wrap-up

© SAP AG 2006, Title of Presentation / Speaker Name / 3

Why is Sales & Operations Planning needed ?

Constrained Revenue Growth

Downward Margin Pressure

Reduced Operating Efficiency

Challenges require

BalanceSales and Operations Planning is a process that enables the balancing of demand and supply within financial boundaries and astrategic plan.

CommitmentThe results of that plan are measured, communicated and mandatory for all organisations like sales, marketing, financials, procurement, manufacturing and logistic operations.

AdaptivenessIn case of changing market conditions it identifies the impacts to all areas and interdependencies of resolution strategies.


Integrated Business Management—S&OP Process

STRATEGYBUSINESS PLANPERFORMANCE

DEMANDREVIEW

PRODUCTMANAGE

REVIEW

MANAGEMENTBUSINESSREVIEW

SUPPLYREVIEW MENT

OWI 0005-02a


S&OP: Supported by Current SAP Software

1. Strategic PlanningStrategic Enterprise Management (SEM)Business Intelligence - Business Warehouse – Business Planning & Simulation (BW – BPS)BW – (CRM Analytics)Pricing and Margin Management (Vendavo®)

2. Demand PlanningAPO Demand Planning (DP)Sales Planning (BW/CRM)

3. Supply PlanningAPO Supply Network Planning (SNP)Supply Network Collaboration (Inventory Collaboration Hub – ICH)

4.Supply/Demand BalancingAPO Demand Planning (DP)APO Supply Network Planning (SNP)

5. Management Evaluation & AnalysisSupply Chain Analytics and Visibility (Supply Chain Performance Management – SCPM)APO Demand Planning (DP)Event Management (SCEM)

S&OP Overview

Functions in xSOP

Demonstration

Wrap-up


Goal of SAP xSOP

To compliment current SAP planning tools and provide an easy to implement tool that

consolidates data, provides pre-defined analytics and assists with managing the S&OP

process.


S&OP gets all stakeholders on the same page

All departments can see the same data at the same time from their own perspective.

Sales

FinanceManufacturing And logistics

Procurement Customer

Marketing

Channelsand brands

Products, sources, capacity and destinations Revenues, margins

and working capital

Products anddestinations

Products and sources

Customers andproduct families


x-SOP: Innovate the Supply Chain

Product Dev.

Operations

Sales & Marketing

C-Level

Finance

CRM SCM SCEMBW

S&OP

Enterprise Services

Repository

• ASUG S&OP Cross-industry Influence Council with Oliver Wight collaboration

• Manage S&OP Process with task/action item mgmt and e-mail notifications

• All departments see the same data at the same time in their resp. role

• Provide analysis, KPI’s and process tracking tools for demand, supply, inventory and financials

• Simple simulation and calculation of price, supply or demand changes

• Leverages current SCM 5.0 and BW implementations, but not necessary. Ramp-up customers needed for anticipated March 2007 release!!!

ERP


Key Functionality S&OP

Integration and Technology

KPIs and Analytics

Document Management

Process Management

SAP system connectivity

SCM 5.0 ERP 2005 Netweaver BI 2004SSCM 4.x (RFC)

Characteristic Mapping

Product Hierarchy Mapping

Key Figure Mapping

Ability to add additional Key figures

Change calculations for KPIs

Organize graphs and group KPIs

Separate views for each aspect of S&OP process

DemandSupplyInventory

Create tasks and assign to users

Create Action Items for follow-up in next S&OP process

Update task completion

Notify via email when tasks are assigned

Group tasks into Process Steps to model process gates or meetings

Store documents by Business Unit/Region/ Version

Document risks, assumptions, decisions

Use of cFolders technology for storing and retrieving documents



Delivered CharacteristicsBusiness UnitRegionProduct FamilyProduct Sub-FamilyLocationResource

Configuration options

Characteristic texts can be configured

Characteristics are analytic application dependent

Mapping tables are provided to derive characteristic values



S&OP Calculations and Data Mapping

ERP SCMBW

Data Storage

Analytic Applications

xSOP


Data flow – Non-SAP Supply Chain and xSOP

xSOPFinancial Data•Budget (projected)•Price•Cost

Planning Data•Demand Plan•Supply Plan

BW

Supply PlanningSystem

Planning Data•Supply Plan

Demand PlanningSystem

Planning Data•Demand Plan

Compare Scenarios

Compare Supply to Demand

Compare Supply to

Budget

Update Demand

Plan

Update Supply PlanSCM 4.1


Proposed Solution: Subject to change by SAP


Data flow – SAP SCM 5.0 and xSOP

xSOPFinancial Data•Budget (projected)•Price•Cost


BW

Compare Scenarios

Compare Supply to Demand

Compare to Budget

Update Demand

Plan

Update Supply Plan

SCM 5.0

Updates to Plans•Demand Plan

Proposed Solution: Subject to change by SAP


xSOP KPIs Delivered

Demand OrientedDemand Plan AccuracyDemand Plan Bias

Inventory orientedTotal inventory value ($)Inventory Turns ($ and Units)Days‘ Supply (DOI)

Production/Receipts OrientedProduction to ScheduleDelivery to Schedule (procurement)Delivery to Schedule (customer)Capacity Utilization

FinancialOverall MarginComparison to Budget (financial plan)

Comparisons to TargetsTarget InventoryTarget TurnsTarget MarginTarget Capacity Utilization


Key Functionality


KPIs and Analytics

Document Management

Process Management

Create tasks and assign to users

Create Action Items for follow up in next month’s S&OP process

Update task completion

Notify via email when tasks are assigned

Grouping of tasks into Process Steps to model process gates or meetings


Key Functionality


KPIs and Analytics

Document Management

Process Management

Store documents by Business Unit/Region

Document risks, assumptions, decisions

Use of cFolders technology for storing and retrieving documents

S&OP Overview

Functions in xSOP

Demonstration

Wrap-up


Version Overview for S&OP Manager


Version Detail Screen


xSOP Screenshot – Version Detail Screen with drilldown


xSOP Screenshot – Supply Plan for S&OP Planner


xSOP Screenshot – Process Management Overview

S&OP Overview

Functions in xSOP

Demonstration

Wrap-up


Key Points

1. S&OP is an integral part of SAP’s SCM vision and strategy

2. xSOP allows users to see data in a manner that is pertinent to their role in the company

3. xSOP supports not only the S&OP meetings, but the overall business process of S&OP

4. xSOP allows for configuration of screens and analytics

5. Multiple sources of data are used within the xSOP application


Copyright 2006 SAP AG. All Rights Reserved

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