Antonella Squadrito – SCM Business SolutionEngineer
SAP Business Suite 7
© SAP AG 2009. All rights reserved. / Page 2
Today’s Trends and New BusinessReality
ErodingCustomerTrust
PoorDecisions
Lack ofCustomerConfidence
CostPressure
Operations inUncertainty
UnexpectedOpportunities
The Key: Convert Insight into ActionThe Problem: Disconnects within Business, IT
Business
Operations
Strategy and Execution Disconnects
Function and Process Disconnects
PLM SRM ERP SCM CRM
IT
Application DisconnectsCIO
Head, HR CFOCEO COO
VPProducts
DESIGN
VPProcurement
SOURCE
VPSupply Chain
SUPPLY MAKE
VPMfg
SELL
VPSales
SERVICE
VPService
Converting Insight into ActionProcess Excellence Vision:IT & Business aligned around processes
Strategy and Execution Aligned
Head, HR CFOCEO COO
Functions and Processes Streamlined
Applications Harmonized
CRMCRMERPERPPLMPLM SRMSRM SCMSCM
VPProducts
VPProcurement
MAKE
VPMfg
SERVICE
VPService
SELL
VPSales
VPSupply Chain
DESIGN SOURCE SUPPLY
SAP Business Suite7Insight to Action through Process Excellence
© SAP 2008 / Jim Hagemann Snabe/ Page 5
SAP Business Suite
NetWeaverIntegration
NetWeaver CompositionBusiness Objects
EhP
SRM PLMSCMCRM ERP
EhP
Application Lifecycle Management, Identity Management
SAP Business Suite7Insight to Action through Process Excellence
SAP Business Suite
NetWeaverIntegration
NetWeaver CompositionBusiness Objects
EhP
EhP
© SAP 2008 / Jim Hagemann Snabe/ Page 6
Application Lifecycle Management, Identity Management
IndustryAdd-OnCRM SRM SCM PLM ERP
SAP Business Suite7Insight to Action through Process Excellence
SAP Business Suite
NetWeaverIntegration
NetWeaver CompositionBusiness Objects
EhP
EhP
Pre-integratedIndustry specificProcesses
Flexible, ModularUpgrades to minimizedisruption
Continuous Innovationfor Line of Business InYour Industry
Continued SOAenablement andinnovation
© SAP 2008 / Jim Hagemann Snabe/ Page 7
More HarmonizedUI’s AcrossApplications andprocesses
Embedded analyticsfor contextualizedInsight
Best-Run NOWpackages tosolve immediatepain
Application Lifecycle Management, Identity Management
For IncreasedUser
Productivity
IndustryAdd-On
For IncreasedBusiness andIT Efficiency
For ValueFocused FastDeployments
For informeddecision making
and Control
For flexible processand business agility
For faster, focusedsolution evolutionwith lower costs
For performanceadvancement in coreindustry processes
CRM SRM SCM PLM ERP
Global Industry Value
Industry Context
Spec
ific
Indu
stry
Add
ition
s Industry Aligned Processes
Intgrated ProductDevelopment
Advanced MeteringInfrastructure
CustomerService
Insurance ClaimsManagement
End-to-End Processes On One Platform Supporting Industry
SAP Business Suite7Insight to Action through Process Excellence
SAP Business Suite
NetWeaverIntegration
NetWeaver CompositionBusiness Objects
EhP
EhP
Pre-integratedIndustry specificProcesses
Flexible, ModularUpgrades to minimizedisruption
Continuous Innovationfor Line of Business InYour Industry
Continued SOAenablement andinnovation
© SAP 2008 / Jim Hagemann Snabe/ Page 8
More HarmonizedUI’s AcrossApplications andprocesses
Embedded analyticsfor contextualizedInsight
Best-Run NOWpackages tosolve immediatepain
Application Lifecycle Management, Identity Management
For IncreasedUser
Productivity
IndustryAdd-On
For IncreasedBusiness andIT Efficiency
For ValueFocused FastDeployments
For informeddecision making
and Control
For flexible processand business agility
For faster, focusedsolution evolutionwith lower costs
For performanceadvancement in coreindustry processes
CRM SRM SCM PLM ERP
Lack of visibility beyond the four walls
Rising energy costs and increased regulations
Fear of poor customer service
Managing Change in Your Supply ChainGlobalization stretches supply chains and increases risks
Stock Price Behaviorin Days
Source: Prof. Vinod Singhal, GeorgiaInstitute of Technology
0
-10%
-20%
-30%
-125 0 125
SupplyChainGlitch
The Cost of a Supply Chain GlitchExecutives lack visibility and adaptability to respond tochange
Best-in-class supply chainshave 65% higher profitability
Supply chain glitcheswipe ~30% market cap
Profitability bySupply Chain Maturity
Immature Mature Best-in-class
1x
1.38x1.65x
Source: PRTM
Leverage Change as aCompetitive AdvantageIt is all about adaptability and managing the network
Improve collaborationTreat suppliers, customers and partnersas an extension of your organization
Increase efficiencyMaximize energy efficiency and minimizetransportation costs
Manage / control riskAnalyze each events operational andfinancial impact to both cost and revenue
Increase adaptabilityShorten planning cycles to increaseresponsiveness to supply chain events
Improve customer serviceSense and respond to real time supplyand demand signals
Leverage real-time dataObtain supply and demand data from RFID,POS and other sensory technologies
SAP SCMEnabling adaptive supply chain networks
Demand-drivensynchronization ofsupply to demand
Network-wide visibility,collaboration andanalytics
Sense and respondthrough an adaptivefulfillment network
Demand Driven Synchronization ofSupply to DemandImprove customer service by balancing push and pull planning processes
Sales and Operations PlanningCross departmental plan to balance demand and supply plan withinfinancial and strategic boundaries
Demand and Supply PlanningModel and set supply chain goals to ensure a profitable match of supply anddemand
Responsive ReplenishmentReal time visibility and replenishment processes driven by actual demand
APO DP (Demand Planning)
Comprehensive forecasting tool-setStatistical forecasting with causaland time-series methodsSelection of best-fit modelAutomatic outlier detection availableHighly configurable planning bookswith macro functionalitySupporting aggregation /disaggregation logicLifecycle planningPlan promotions separately from therest of your forecastTrack & monitor forecast accuracySeasonal planningCollaborative demand planning
Improved forecast qualityOne tool for power and business userConsolidated demand plan (differentregions, countries, departments, …)
Key BenefitsFeatures
Calculate and determine future demand to improve demand qualityand accuracy
VMI
APO
Integrate purchasing, manufacturing,distribution, and transportationConsider constraints and penalties toplan the product flow along thesupply chainAdvanced safety stock methodsconsidering multilevel supply chainnetworks and demand variabilitySupports system wide inventorymodeling and planningEnable planning on different levels ofdetail (aggregated planning)Choice of heuristic-, rule- oroptimization-based algorithm
Increased visibility over the overallsupply chainOptimized sourcing and capacityutilizationReduced inventory levelsImproved customer service
APO SNP (Supply Network Planning)
Key BenefitsFeatures
Calculates quantities to be produced and delivered to the locationsto match customer demand and maintain desired service levels.
APO PP/DS: Production Planning
Production PlanningDelivers a short term production plan that matches overall supply todemand, given available resources and production methodology.
Multi-level production planningCapable-to-PromiseUse existing or own developed
heuristicsSupports lot quantity calculations
and sourcingSupport the following Models:
Make to StockMake to OrderMake to Order with Order BOMEngineer to OrderProject ManufacturingFlow Manufacturing
Order PeggingIntegrated with the APO Alert Monitor
Determines how, when, and whereresources and materials should bedeployed to accomplish the productiongoalsMaster planning for materialsand capacity (resource loads)Realistic delivery date confirmations…
Key BenefitsFeatures
APO PP/DS: Detailed Scheduling
Detailed Production SchedulingDetermines optimal production sequence for execution, to meet deliverycommitments based on actual constraints on the shop floor.
Capacity-Load OptimizationOptimal SequencingFlexible & Graphical Activity
SchedulingBacklog Resolution PlanningWhat-if Analysis & SimulationForward & Backward SchedulingConfigurable Exception Alert MonitorPlan MonitorProduction Order ReleaseIntegrated with the APO Alert Monitor…
Optimal production sequence that isfeasible and can be executedAllows simulation of various planningscenarios to determine optimal scheduleOptimization based on actual constraintsensures reliable delivery due datepromises
Key BenefitsFeatures
Sense & Respond in anAdaptive Fulfillment NetworkDistribution, transportation, and logistics driven by real-time planning
Order Fulfillment (ATP)Track and monitor the entire fulfillment process
Promise based on availability in DC’s, production, warehouses and in-transit
Transportation ManagementPlan, optimize and execute the complete transportation process
Warehouse ManagementManage all warehouse activities to maximize process efficiencies
RFID enable sense and respond processes
APO TP/VS: Transportation Planning &Vehicle SchedulingDynamic Route Determination (Routing Guide)
Interactive and powerful decision support Order by OrderPrepare complex shipment execution
Vehicle Scheduling and RoutingConsolidate Orders, optimize routing and sequencing of deliveriesOptimize resource utilization and minimize workloadPlan and revise – focus on exceptions
Carrier OptimizationOptimize Carrier assignment for selected ordersIdentify continuous moves across multiple shipmentsRevise and reconsider continuously
Collaborative Capacity Planning with CarriersExchange expected daily number of shipments with CarriersGive Carriers access to your mid-term planning via the WebInformation used during Carrier Optimization
Collaborative Tendering of shipmentsTender via the Internet or via EDI or via….Carrier to adjust pick-up times and delivery times of shipments
APO gATP (global Available-to-Promise)
Rule-based ATP (alternativelocations, alternative products)Multilevel ATP (check oncomponents)Backorder processingIntegrated with PP/DS (checksagainst actual production plan andconsiders capacity constraints)Integration with Demand Planning(product allocation)Fast response through liveCache*use for ATP check
Meet the demand communicatedthroughout the supply chainBest sourcing for the availableinventories in the supply chainSell what you can actually sellIncrease customer satisfactionthrough reliable delivery datesHigher Requirements Visibility
Key BenefitsFeatures
* high performance, memory resident data processor to perform planning and optimization
Online information about the most recent state of plan allows orderpromising that will execute after the customers’ expectation
Network Wide Visibility,Collaboration and AnalyticsMinimize Supply Chain Risk within and beyond the Four Walls
Supply Chain AnalyticsMonitor and analyze the performance of your network in real time with pre-defined KPI’s
Supply Network CollaborationTreat suppliers, outsourcing partners, customers and service providers as anextension of your organization
Real World AwarenessLeverage sensory technologies to capture and turn real time data intoinformation
APO VMI (Vendor Managed Inventory)
Embed customers’ warehouses in theplanning processUse sophisticated SAP APO planningcapabilitiesBuilt efficient truck loadsCreate sales orders automatically inERP based on confirmed SAP APOstock transfer ordersDisplay in-transit inventoryUse standard IDOCs to integrate yourcustomer data (e.g. stock, demand)
Increased visibility of real customerdemandImproved usage of stock along thesupply chain and better transportplanningReduction of stock-outs, rush ordersand supply bottlenecksImproved cooperation to thecustomersImproved delivery service levelLower safety stocks
Key BenefitsFeatures
Allows efficient management of the supply chain by managing customerinentory replenishment with automated collaboration
APO Alert Monitor
First task of the day for aplanner: Check the existingalerts
Drill-down from the alertmonitor to the application tosolve the issue.
Powerful exception message system integrated in all SAP APOplanning modules
Embrace Change with SAP SCMImprove collaboration, win customer loyalty and operatemore profitably
LS Cable calculated P&L by product in 5 days instead of 20
Colgate-Palmolive improved on-time delivery from 70% to 98%
SI Corporation reduced finished goods inventory by 60%
Dow Corning reduced inventory by almost 20%
CM Forestry achieved 10% annual savings by improved planning
BDF Beiersdorf increased sales by 4% while cutting inventory 60%
Adaptive Supply Chain NetworksEnabling companies to compete profitably in a globaleconomy
Integration – Planning and Execution integrated bydesign to each other and your back-end systems
Innovation - Leverage Enterprise SOA to enable theadaptability to respond to ever changing supply chainchallenges and opportunities
Collaboration – Business processes that spandepartmental and company boundaries
Select SAP SupplyChain Management References
Avoided damage to million-dollar shipments
Reduced planning cycle time by 50%
Automated 90% of supplier orders
10% annual cost savings due to improved planningand distribution efficiency
Improved customer service by 5% (on time delivery)
Improved planning cycle times from 10days to 2 or 3 days
33% reduction in planning time and effort
¹Direct upgrade from these source releases to the go-to releases of SAP Business Suite 7 is supported by SAP.²If you upgrade from SAP CRM 4.0 or 5.0 to SAP CRM 7.0, customer-specific UIs (including the underlying UI-related coding) have to be migratedseparately.³Most industry and supplementary applications are shipped with the SAP Business Suite applications and are included in the respective upgrade. For theversions of industry and supplementary applications that are part of SAP Business Suite 7, but not shipped as part of SAP ERP, SAP SCM, SAP PLM,SAP SRM, or SAP CRM refer to "SAP Release Strategy for Large Enterprises“ on http://service.sap.com/releasestrategy.
So How do You Get toSAP Business Suite 7 if You’re Running …
Install SAP enhancement package 4 for SAPERP
SAP ERP 6.0
Upgrade and include SAP enhancementpackage 4 for SAP ERP
SAP R/3 4.0B¹and above
UpgradeSAP CRM 4.0¹,²and above
SAP SRM 3.0¹and above
Upgrade
SAP SCM 4.1¹and above
Upgrade
SAP PLM 4.0¹and above
Upgrade to SAP ERP 6.0 and include SAPenhancement package 4 for SAP ERP
SAP ERP 6.0 plusSAP enhancementpackage 4 forSAP ERP
SAP CRM 7.0
SAP SRM 7.0
SAP SCM 7.0
SAP Business S
uite 7³
SAP PLM 7.0
Questions
Thank You for Your Time
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