Solution Overview Supply Chain Demand Driven Supply Chain

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  • 8/10/2019 Solution Overview Supply Chain Demand Driven Supply Chain

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    Solution Overview

    2014 SAP AG or an SAP affiliate company. All rights reserved.

    Supply Chain

    Demand-Driven Supply Network

    2014 SAP AG or an SAP affiliate company. All rights reserved.

    Demand-DrivenSupply Network

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

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    In a volatile supply chain, revenues are lost if companies underfulfill and inventorywrite-offs result if they overplan . Companies need to be demand driven in allaspects from sensing customer demand to responding to change quickly and bybetter aligning internal and external supply chains.

    The empowered customers of today have morechoices than they have ever had before. Stock-keeping units (SKUs) continue to proliferate,with competition on a global scale. The Internetbombards the world with product reviews,trends, and likes that influence marketsvirtually overnight. Around the world, newproduct introductions and promotions drivedemand constantly.

    Moreover, the supply situation faces unprece-dented complexity. Todays advanced, distrib-uted supply networks include remote contractmanufacturers and suppliers, often offshore.

    This complexity has led to long lead times andsupply constraints, forcing commitments todecisions before demands are well known.Furthermore, distances and organizationalboundaries raise visibility and transparencychallenges that make it difficult and time-consuming to change a plan once its made.

    To address these critical supply chain issues,todays best -run companies use an integrated,demand-driven approach to reduce and avoidlatencies across the entire supply chain.

    Advanced planning functions that can sensechanges in demand and supply enable thesecompanies to respond more quickly andprecisely.

    Sense and Respond to Demand and Supply

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand-DrivenSupply Network

    Demand-Driven Imperative

    Balanced Supply, Demand

    SAP Innovations

    Competitive Supply Chain

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    Customer demand continues to be unpredictable. To succeed, companies mustrespond with agility and speed to changes and new opportunities by sensing,anticipating, and shaping demand with extraordinary visibility and insight intodemand signals across a global supply chain.

    The Demand -Driven Imperative

    The speed and volatility of business todaypoints to the reality that it is no longer com-petitive or profitable to push product to marketbased on long frozen periods and productioncycles.

    Using near-real-time visibility into demand,companies must anticipate and shape demandby capturing, cleansing, harmonizing, and miningdemand signals with speed and intelligence.

    For companies also to meet demand respon-sively, they need the ability to commit to ordersaccurately and adjust plans to capture upsideopportunities while protecting commitments.They also need to make continuous, fine-tunedadjustments to shipments and supply.

    A transformation of production and procure-ment processes is also required to reducefrozen periods with suppliers, and to replanand reallocate supply on a daily or morefrequent basis.

    SAP software for demand sensing and shaping,response orchestration, manufacturing andsupply orchestration, and service parts manage-ment provides these essential functions to drivespeed and responsiveness in any supply chain.

    Best-Run Supply Chain

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand-Driven Imperative

    Balanced Supply, Demand

    SAP Innovations

    Competitive Supply Chain

    Demand-DrivenSupply Network

    http://www.youtube.com/watch?v=MWtB74-MUOQ%3E
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    The new supply chain is demand driven at the speed of real time. With theability to sense and adjust current plans based on market and demand data,you gain immediate benefits that include competitive differentiation and targetedimprovement on your organizational key performance indicators (KPIs).

    Supply Chain As a Competitive Advantage

    The operational and strategic business benefitsof a fast, transparent, and intelligent supplychain are huge. So too are the opportunitycosts and real costs of missing a market signalor not having your supply chain aligned tochanging conditions.

    SAP solutions facilitate all aspects of a com-petitive, demand-driven supply chain, resultingin the following benefits.

    Forecast accuracy is improved through moreprecise demand visibility tied directly intoforecasting and planning processes.

    Bull whip effects are reduced through reducedlatency and capture of demand signals at thesource, plus a more intelligent and stabilizedresponse.

    Higher delivery performance is achieved at thelowest cost through intelligent allocation ofscarce product demand and more intelligentinventory availability.

    Inventory and working capital are reducedthrough optimized inventory placement at eachnode in the supply chain and better inventoryutilization to meet customer demand.

    Collaborative processes drive speed and

    accuracy with suppliers, contract manu-facturers, third-party logistics providers, andcustomers, as well as channel partners.

    8% Higher on-time deliveryperformance reported by thetop 25% of organizations ascompared to average

    Source: SAP PerformanceBenchmarking

    Demand-Driven Imperative

    Balanced Supply, Demand

    SAP Innovations

    Competitive Supply Chain

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand-DrivenSupply Network

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    Mobile solutions provide always-on access tostatus reporting and exceptions, better decisionmaking, and improved customer service. Enter-prise mobility for the supply chain creates anew collaborative process that lets users seeand respond to the supply chain on the go.

    Cloud-based solutions are a fast, low-risk wayto minimize an IT footprint while unlockingimmediate access to analysis, facilitating newlevels of business partner collaboration, andproviding quick access to supply chaininformation for all key stakeholders.

    A demand-driven supply chain leverages technology innovations for greatervisibility and speed. Scalable, flexible deployment options help empower supplychain professionals throughout the enterprise with faster response, real-timedemand visibility, and full-time information accessibility.

    Database and technology solutions poweredby the SAP HANA platform help supply chainprofessionals to achieve these objectives bymonitoring high volumes of variable internaland external demand signals in real time. Thisincludes orders, shipments, syndicated data,point-of-sale data, loyalty data, and social datato enrich analytics, enable predictive forecast-ing, and spot exceptions to mitigate demandand supply risk.

    Analytics solutions enable immediate visibilityand predictive insights through every aspect ofthe demand-driven supply chain, from assess-ing current downstream demand to improvingforecasts to monitoring detailed stocking infor-mation and measuring partner performance.

    SAP Innovations

    Demand-Driven Imperative

    Balanced Supply, Demand

    SAP Innovations

    Competitive Supply Chain

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand-DrivenSupply Network

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    Manufacturing and SupplyOrchestration

    A demand-driven supply chain senses current demand, enables a quick responsethat incorporates business rules and priorities, and effectively aligns globalmanufacturing and supply chain processes.

    Comprehensive Demand Sensing and ShapingThis approach provides complete demand process capabilities, including directinsight into demand signals, customer sentiments, and market research data.

    Integrated Response OrchestrationThis approach drives supply and demand fulfillment while executing companypolicies and protecting prior commitments.

    Flexible Manufacturing and Supply OrchestrationThe best practice optimizes demand with integrated supply modeling, drivesmanufacturing planning flexibility, and automates production and scheduling.

    Responsive Service Parts ManagementEstablish an efficient, integrated supply chain for your service parts business,and respond swiftly to meet customer requirements.

    Sense and Respond to Demand

    Demand Sensing and Shaping

    Demand-Driven Supply

    Response Orchestration

    Service Parts Management

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand-DrivenSupply Network

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    2014 SAP AG or an SAP affiliate company. All r