© Paresh Bhagwatkar, 2010May be used without permission with proper attribution

SCEM Overview

SCEM Overview What is it? Event Management (EM) and Supply Chain EM (SCEM) Why SCEM? High-level SCEM process philosophy High-level SCEM landscape SAP SCEM Features Pre-configured Visibility Scenarios (SAP delivered functionality) Case Study

What is SCEM Event Management

• Monitoring of a business process based on expected and actual events

Supply Chain Event Management• Monitoring of supply chain processes for visibility into the process

• Alerting relevant users for taking action

• SAP SCEM is SAP’s SCEM product

Why SCEM?

We all know this scenario…

Husband (on phone): Honey, I am “about to leave” work now. I am just printing this report and will be on my way. I will see you in half an hour! We can leave for Billy’s game as soon as I get home.

Paper jam in printer …. + 5 min Utility work on the way….+10 min Had to fill gas (light came on)…+5 min Reached home 20 min late

Result?

Why SCEM? Alternative scenario… Husband (on phone): Honey, I am “about to leave” work now. I am just

printing this report and will be on my way. I will see you in half an hour! We can leave for Billy’s game as soon as I get home.

Paper jam in printer …. + 5 minHusband calls wife: Looks like it will be a few more minutes

Wife: OK…anyways…that game always starts a few minutes late. Keep me posted.

Utility work on the way….+10 minHusband calls wife: More snags…they have stopped the traffic…

Wife: Well…you should have left a little bit earlier. May be we will leave and you come to the ball park directly. At least it is good that you let me know

Had to fill gas (light came on)…+5 min Result?

• Some irritation with customer• Customer is thankful for being informed• Customer able to make adjustments• Overall process is not negatively impacted

So, why SCEM? Because “stuff happens”! Drivers for tracking of supply chain processes and alerting

• Increasing speed of business

• Leaner process chains

• Shrinking customer inventories (raw materials and intermediates)

• Fragmented tracking methods

• Expectations of customers

• Need to leverage advance notifications from upstream to adjust downstream processes

• Contractual/ Legal Implications

• Efficient tracking KPIs - On-time performance

SCEM High-level Process Philosophy

Generate Tracking Reports

Identify Expected

Events

Identify Critical Points in Process

Capture Actual Events

Generate Alerts

Trigger Workflows

Monitor Process

Supply Chain Process (or any Business Process)

SMS

On-screen/ Printed

EmailWhat and whene.g. ETA for Delivery at customer 3 days from Goods Issue

What and whene.g. Delivered at customer on 4th day from GIAll actual events are recorded (planned and unplanned)

System does thisCompare actual to expectedTrigger predetermined action(s)

Order entered, order picked, order goods issued, delivered at customer

High-level SCEM Landscape

SAP SCEM is an SAP application Can be hosted within the SCM system

or as separate SCEM system

ERP (SAP R/3)

SAP SCM

SAP SCEM

Non-SAP Systems

In-house

External Customers

Internal Customers

WCL(Web Communication

Layer)

Supply Chain Partners

Multiple messaging/ integration technologies

SAP SCEM Features

Operates behind the scenes• Usually transparent to operational users

- Usually no additional transactions- Usually business process continues even in case of SCEM malfunctions

Flexibility of integration• SAP SCEM can be connected to SAP ERP and non-SAP systems• Accepts external messages (e.g. from carrier) in multiple formats/ technologies e.g. EDI, RFC, etc.• Integration with handheld devices• Integration with RFID technologies (through SAP AutoID Infrastructure – AII)

Scalability and Flexibility with “depth” of implementation• SAP delivered “Visibility Scenarios” – Quick implementation for at least proof of concept• Ability to define own visibility scenarios• Can use in any process area – Any transaction can be an event

Web Communication Layer• Portal for access by internal and external customers e.g. scem.mccormick.com

Role based access to tracking information• Users see what they “need” to see

Ability to use SAP BI (BW) and SAP Analytics• Monitor KPIs• Dashboarding with SAP Analytics

Pre-configured Visibility Scenarios Procurement Production (malfunction) Fulfillment Transportation Outbound/ Inbound Delivery RFID Enabled Returnables Seasonal Procurement Rail Car Management

Case Study

Customer Profile Major chemical company Global Sales: ~$72M Operational presence in North America, South America, EU, Africa, Mid East, South Asia, Far East Domestic and global (affiliate and customer) shipments SAP Application Footprint: SAP ERP (R/3), Supply Chain Management/ APO (SCM 5.0), SCEM, GTS

Customer Profile Major chemical company Global Sales: ~$72M Operational presence in North America, South America, EU, Africa, Mid East, South Asia, Far East Domestic and global (affiliate and customer) shipments SAP Application Footprint: SAP ERP (R/3), Supply Chain Management/ APO (SCM 5.0), SCEM, GTS

Challenges International front

• High volume of international shipments - Affiliate and customer export shipments

• Three SAP instances (being consolidated)• Uncertainties with export shipments (making the

vessel, vessel delays, customs clearance, etc.)• Visibility for receiving companies – Needed to adjust

production schedules, customer communication, etc.

Domestic front• Need for tracking rail cars, trailers, containers within

site - Yard Management• Need for tracking rail cars outside site• Need for tracking domestic and cross-border truck

shipments

Challenges International front

• High volume of international shipments - Affiliate and customer export shipments

• Three SAP instances (being consolidated)• Uncertainties with export shipments (making the

vessel, vessel delays, customs clearance, etc.)• Visibility for receiving companies – Needed to adjust

production schedules, customer communication, etc.

Domestic front• Need for tracking rail cars, trailers, containers within

site - Yard Management• Need for tracking rail cars outside site• Need for tracking domestic and cross-border truck

shipments

Solutions Implemented Container tracking in SCEM - Affiliate and

Customer Shipments - Global template Yard management implemented using On-site

Event Manager (OSEM) Rail Car Extension (RCX) for rail car tracking

outside site Capture of events from outside the organization -

Carriers, freight forwarders, messaging hubs Capture of events from ERP system Capture of events from handheld devices On the path to integrate GPS for tracking rail cars

Solutions Implemented Container tracking in SCEM - Affiliate and

Customer Shipments - Global template Yard management implemented using On-site

Event Manager (OSEM) Rail Car Extension (RCX) for rail car tracking

outside site Capture of events from outside the organization -

Carriers, freight forwarders, messaging hubs Capture of events from ERP system Capture of events from handheld devices On the path to integrate GPS for tracking rail cars

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