SNC 70 Solution Overview

SAP SNC 7.0Supply Network Collaboration

SAP SNCSolution Overview

SAP SNC – Supply Network Collaboration

1. SAP SNC Fundamentals2. Customer Collaboration3. Supplier Collaboration & Contract Manufacturing4. SAP SNC 7.0 Architecture & Integration5. SAP SNC Customer & Market situation6. SAP SNC Roadmap

© SAP 2007-2008 /

Lack of VisibilityBeyond the FourWalls

Poor CustomerService

Globalization andOutsourcing

Positioning: Customer Challenges and TrendsDrive Strategy for Supply Chain Collaboration

Positioning: Evolution of Supply ChainNetworks

Collaborative Demand andSupply Planning

Increase Supply NetworkVisibility & Collaboration

Manage Risk and EnsureCompliance

Streamline Logistics andFulfillment

Increase Real WorldAwareness

Positioning: SAP SNC - A 360° View OnCollaboration

Extend Your Enterprise to Encompass Suppliers,Contract Manufacturers and Customers

SAP’s Collaboration Engine: Out-of-the-Box Collaborative Business Processes

Innovative: Intuitive, Easy to Learn, and Easy to Use Web-User Interface

Utilizes SAP NetWeaver Platform: Open and Real Time Communication BetweenYour Internal Systems and Customers & Suppliers

Suppliers

Contract Mfg

CustomersMy Company“360° Collaboration”

© SAP 2007-2008 /

Powered by SAP NetWeaverXML Message Exchange

SAP SNC 7.0

The Enabler:SAP Supply Network Collaboration (SAP SNC 7.0)

Drive your Business Vision andStrategy

The Focus of SAP’s Strategic Supply ChainCollaboration EffortsReal-Time Collaboration with Suppliers andCustomersOut-of-the-Box CollaborativeBusiness Processes

Execute your Collaborative BusinessProcesses

Automated End-to-End ProcessesEnable Inventory and Requirements VisibilityImprove Data Quality and Accuracy

Empower your Employees andNetworkPartners

Intuitive, Easy to Learn, and Easy to UseMultiple Alert and Notification MethodsNative Web User Interface

SupplierManagedInventory

Master Data DataValidation

ReleaseProcess

ExceptionManagement

SupplyNetworkInventory

PurchaseOrder

Process

DynamicReplenish-

ment

Web-Based User Interface

Business Processes

Basic Services

User Interaction

KanbanProcess

DeliveryControlMonitor

ResponsiveReplenish-

ment

ContractManufacturing

Purchasing

DemandCollaboration

Work OrderCollaboration

Min/Max VMI

Major Industries and their Requirements:SAP SNC

CP:• Customer Collaboration: Responsive Replenishment, Demand

Management and In-Context AnalyticsHigh Tech:• Supplier Collaboration: Contract Mfg (batch traceability, quality

collaboration)• Customer Collaboration: Demand-side process “Customer Program”

managementMill Products:• Supplier Collaboration (and Customer Collaboration) Variant Configuration

supportChemicals/Pharma:• Supplier Collaboration: Contract Mfg with batch handlingA&D:• Supplier Collaboration: Contract Mfg (with batch, serial number handling)IM&C:• Supplier Collaboration: General

My Company

Customers

Demand Collaboration

Forecast

(Baseline/Promotion)

Revised Forecast

(Baseline/Promotion)

SAP SNC Customer CollaborationDemand Collaboration

Sales(Baseline/Promotion)

Demand Forecast Collaboration allows comparison andconsensus between consumption data and customertransmitted forecast

My Company

Customers

ASNs

InventoryNumberRanges

BaselineOrders

OrderForecast

PromotionOrders

PromotionPlans

Responsive Replenishment

Sales

SAP SNC Customer CollaborationResponsive Replenishment

Forecast

Responsive Replenishment represents the next generation inDemand driven Replenishment

My Company

Customers

ASNs

Inventory

NumberRanges

Orders

OrderForecast

Min/Max Replenishment

SAP Supply Network CollaborationCustomer Collaboration Functionalities

SalesForecast

Min-Max replenishment is a simple stock level basedreplenishment process

© SAP 2007-2008 /

Main Features: Supplier Collaboration withSAP SNC: Raw Material/Component Supply

My Company

PO Process

Release Process

SMI Process

Kanban Process

DCM (Reorder Point) Process

Additional Process Features:Confirmations (Date & Qty Changes by Supplier) on Purchase OrdersASNs (Ship Notifications) On All Processes (Packaging Capability with Bar Code/Label Printing)Invoices (Supplier Creates Invoices via the Web), Includes Regular and ERS Invoices (Self-Billing)Alerts for Exceptions (Includes e-mail notifications)BW Reporting Content for Alerts and Supplier Performance based on Alerts

DR (Forecast) Process

© SAP 2007-2008 /

Main Features: Supplier Collaboration withSAP SNC: Contract Manufacturing Supply

My Company

CMP (Subcon PO) Process

Work Order Process

SNI Process

Additional Process Features:Contract Manufacturing Purchasing (CMP) equals Subcontracting PO’s in ERP (PO’s with a BOM)

Changes to the components in BOM possible along with approval procedure

Work Order Process offers the most granular functionality for tracking production progress at CMIncludes BOM and “Phases (routing) collaboration with approvals/reject procedure

Advanced features calculate projected end date and finished goods qty in mid production

WO exists only in SNC. It is initiated via a subcon PO or regular PO from SAP ERP

Supply Network Inventory (SNI) is a time-bucketed supply and demand monitoring capabilityOn-hand stock, supply, demand and a calculated future stock per time bucket with min/max limits for monitoring

Cross-plant, cross business partner views on supply and demand including aggregation capabilities

CUSTOMER

Main Features: Supplier Collaboration withSAP SNC: Collaboration methods

WebBrowser

WebBrowser

SAP NetWeaver

Low

Vol

ume

–W

eb B

row

ser O

nly

SAPXI

Hig

h Vo

lum

e –

B2B

Inte

grat

ed

BackendSystem

BackendSystem

BackendSystems

Up/DownLoad FilesUp/Down

Load FilesMid

Vol

ume

–W

eb &

File

Up/

Dow

n Lo

ads

SUPP

LIER

S &

CO

NTR

AC

T M

FG’S

Browser

XML

File Up/Down Load

SNC

Architecture SNC 7.0

SNC Server

RDBMS

SAP SCM Basis 7.0

SAP SNC 7.0

Application /Database Server

SCM Server

RDBMSApplication /Database Server

SAP SNC as Add-on SAP SNC as part of SCM

SAP NW 7.01SAP NW 7.01

liveCache

SAP SCM 7.0 ServerSCM, EWM, SNC, EM

SAP SCM Basis 7.0

Advantages

It is possible to use other SCM components onthe instance

Mandatory for some functionalities (i.e.extended planning features)

Supported Upgrade from a existing SAPICH/SNC 5.0 / 4.1

AdvantagesLess support package implicationsmaller system and hardware requirementsSeparation SNC vs. SCM-Planning for a DMZ

RisksNo supported upgrade path to a full SCM serverNo full functionality

Architecture SNC 7.0

Example: SAP SNC as stand alone SNC for a Supplier Collaboration

SNC Server

SAP SCM Basis 7.0

SAP SNC 7.0

SAP NW 7.01

ERP Server

SAP ERP 6.0

SAP NW 7.01

Masterdata

Transactional data

SAP NW 7.01 usage type PI

Supplier

Supplier(Webinterface)

Landscape example SNC 7.0

SAP SNC is available for many platforms*

SCM Server

RDBMS

SAP SCM 7.0SCM Server

Application /Database Server

Frontend SAPGui 7.1NW Business Client V1.0

Web BrowserMS IE, Firefox

MS Server2003

MS XPProf.

MS Vista32/64

MS SQLDB2OracleMax DB

WindowsAIXHP-UXSolarisLinux Suse

* For details please refer to the product availability matrix The availability is limited fromthe NW platform

SAP NW 7.01

liveCacheWindowsAIXHP-UXSolarisLinux Suse

TransactionalData

Integration Aspects: SAP SNC

ERP

Master

Data

TransactionalData

CIF

SNC

PI

cFolders

BW

EP

APO - DPAPO - CMDS

EM

APO - gATP

APO - Dplymt

APO – Alloc.

EM

PI

BW

SNC SUPPLIERCOLLABORATION

SNC CUSTOMERCOLLABORATION

TransactionalData

Extractor

UI

UI

Extractor

Internal

Internal

Via ERP SO

Internal/RFC

Internal/RFC

Internal

Key Trends Impact On Business/ Technology Agenda

Impact of Shifting Emphasis Toward “Network of Business Partners“

Connecting business partners faster, easier and cheaper is a growth industrySoftware and technology providers have to offer a menu of ways to connect business partners„Connectivity“ and on-boarding methods will likely become standardized over time

Increased need forcollaboration with partnersSynchronization and datasharing more intensePartner on/off boarding

Our customer‘s tend to focus oncore capabilities, like design andmarketing, and outsource things likemanufacturing, distribution andwarehousing

Outsourcing of non-coreactivities is an everincreasing trend...

Globalization is everincreasing, both on thesales of finished goodsand sourcing of rawmaterials...

Innovation and coming up with newproducts faster, is a clear trend inmost manufacturing industries

Competition is drivingproduct life cycles tobecome shorter andshorter...

Market Trends and Opportunities – SAP SNCCollaboration and the emergence of the “network of business partners”are becoming competitive advantages for most companies

1

2

3

Collaborationbecomes key

Operate in a 360global world

Product InnovationBecomes key

Increased need for real-timeand accurate communication ofdataTechnology and standards everincreasing

Shorter life cycles drive theneed for better collaborationwith partners involved in theprocess

© SAP 2007 /

Both small, medium and largeenterprises are becomingincreasingly global, managing bothsupplier and customer relationshipacross continents

Main Features: Example: $2 Billion IM&CCompany (from VE study)

Reduced manual labor for suppliercommunication

Reduced errors in suppliercommunication

Reduced call volume from suppliersabout PO, GR, etc.

Quicker communication with suppliers

Enabling proactive exception-basedmanagement via alerts

Reduced inventory levels

Reduced expediting

Reduced planning efforts via an SMIprocess

$1.5 million (annual)

$2.5 million (one-time)

$0.9 million (annual)

Total Savings:

$2.5 million one-time savings$2.4 million annual savings

SAP SNC (ICH) Reference Customers

Customer Snapshot:400 + Global Customers200 + Active CustomersAppr.75 Live CustomersAppr.25 Reference Customers

Roadmap: Functional Growth – SAP SNC

SAP ICH 4.0

Initial Supplier-Side Capabilities

2003 2004 2005 2007

SAP ICH 4.1

SAP ICH 5.0

SAP SNC 5.1

SAP SNC 7.0

2008

Addition ofCustomerCollaboration

InitialOutsourced MfgCapabilities

EnhancedCustomerCollaboration &Outsourced Mfg

Outsourced Mfg& UsabilityFocus

Roadmap: SAP SNC (1)

SAP ICH 4.0Supplier Collaboration:

Supplier-side CollaborationProcesses:

• SMI

• Release Process

• ASN Maintenance

• Alert Monitor

SAP ICH 4.1Supplier Collaboration:

• Basic Purchase Order Process

• Forecast Visibility Collaboration

• SMI Process enhanced w/ PO

• ASN Enhancements (Packing)

• Release Process Comparison

• BW Reporting – KPI’s

Customer Collaboration:

• Responsive ReplenishmentProcess – New VMI Solution

SAP ICH 5.0Supplier Collaboration:• Supply, Demand & Inv.

Visibility at Contract Mfg.• Subcontract PO’s w/ comp.• Kanban Replenishment• PO Process Improvements• SMI Process For Multiple

Suppliers• Delivery Control Monitor –

Reorder PointCustomer Collaboration:• Responsive ReplenishmentEnhancements for SAP AFS

SAP SNC 5.1Supplier Collaboration:• Work Order Collaboration forContract Mfg – Milestone Tracking& Component Consumption• Supply, Demand & Inv Monitoringfor Contract Mfg – MultipleBusiness Partner Visibility• Invoice and Credit Memo• PO Process – User ProductivityWork List• SMI Process – ReplenishmentAutomation & AlgorithmsCustomer Collaboration:• Min/Max Replenishment• ATP, gATP Checks• Demand Collaboration• Configurable Process Flows

2003 200720052004


SAP SNC 7.0

Supplier Collaboration:

• Manufacturer Part Number Extension

• File Transfer functionality

• PO Enhancements

• Supplier Self-Service User Management & Activity Monitoring

• Quick View “In-Context” Dashboard w/ Business KPI’s and Drill-Down

• User Roles by Business Process, incl. Role-Based Menus

• Displaying of Product Configuration data and Batch Classification data

• SOA Enablement - Continued

• Improved Integration with ERP to come with ECC 6.0 (various EHP’s)

• Various Incremental Process Enhancements

2008


SAP SNC 7.0

Outsourced Manufacturing:• New stock categories in SAP SNI and new SNI Inventory Overview screen• SAP ERP and SAP SNC Integration Enhancements in Outsourced Manufacturing• External Processing with WO• Batch tracebility in SAP SNC• Introduction of Work Order Worklist in SAP SNC

Customer Collaboration:

• Decision Support Enhancement of RR Overview Monitor, added key figures

• Additional Mass Maintenance of Location Products Added

• Additional Rounding Logic for Replenishment Orders and TLB

• Added selection criteria, safety stock calculations and improved promotionhandling

2008

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SNC 70 Solution Overview

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