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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

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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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    Comprehensive demand management enables companiesto anticipate and shape demand based on near-real-timevisibility to demand signals. Furthermore, it provides themeans for these companies to incorporate demand-baseddecisions and planning into core business processes.

    Organizations with disparate demandmanagement approaches struggle with demandsignal visibility and poor forecast performance.However, they can overcome these challengeswith a comprehensive, holistic demand sensingand shaping approach that enables them tosense demand patterns and respond to themmore quickly and accurately.

    Demand sensing and shaping includes theability to capture and harmonize demand into asingle demand picture to understand changingpatterns quickly. These demand signals areintegrated into core demand managementresponse processes, such as short-termplanning to drive fulfillment and manufacturingexecution, and demand planning to adjust

    forecasts and new product launches.Promotional plans also benefit from more-accurate adjustments that increase theireffectiveness and feed better inventory andsupply planning decisions.

    Effective demand sensing and shapingprocesses are driven across the organization,

    providing insight from all departments within thecompany. Items like sales forecasts and newproduct plans are incorporated into the demandmanagement process with full understanding ofthe context.

    Sense and Shape Demand

    12 % Lower order-fulfillment leadtime for organizations that aredriven by comprehensivedemand signals

    Source: SAP PerformanceBenchmarking

    Manufacturing and SupplyOrchestration

    Demand Sensing and Shaping

    Demand-Driven Supply

    Response Orchestration

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Service Parts Management

    Demand-DrivenSupply Network

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    Experience teaches supply chain professionals that eventhe best forecasts can be wrong. For this reason, leadingcompanies focus on responsive management to dynam-ically fulfill and match supply to demand. This approachensures that priorities are followed, commitments are met,and customer loyalty is maintained.

    Demand is volatile. Customers order from thesource they think offers the best price andavailability, as they respond to frequentpromotions and new-product introductions.Changing orders can disrupt the supply picture,affecting existing commitments. Compromiseddelivery performance can result in sizablepenalties.

    To meet todays customer expectations,companies recognize that large order volumesrequire same-day disposition. They also seethat to meet upside opportunities whilesatisfying existing commitments, priority orderscannot rely on slow manual activities, such asblocking orders or holding stocks.

    Todays organizations must maintain superiorcustomer service with minimal inventoriesacross a variety of fulfillment processes,including discrete order-centric processes,make-to-stock processes, or a combination ofboth.

    Given the volatility of demand and supply,

    integrated response orchestration enables amore stable plan. It protects commitments whileallowing stock deployment according tobusiness rules that are aligned with customerservice and revenue priorities.

    Integrated Response Orchestration

    Manufacturing and SupplyOrchestration

    Demand Sensing and Shaping

    Demand-Driven Supply

    Response Orchestration

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Service Parts Management

    Demand-DrivenSupply Network

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    Organizations can improve their global manufacturingand supply orchestration capabilities and processes byincreasing the flexibility needed to respond to the entiresupply chain across both internal and externalmanufacturing sites all while maintaining efficienciesand minimizing costs.

    To improve supply chain metrics, includingcustomer service, revenue, inventory, cash,and margin, companies must operate amanufacturing global network as a singlealigned entity with minimum latency. They mustplan the network as one, with a holistic networkmodel that allows visibility to key demand andsupply information from both internal andexternal sources. This approach facilitatesincorporation of lean supply chain disciplinesdirectly into planning processes and helpscompanies model realistic constraints.

    Internal manufacturing operations need tosupport fast, responsive manufacturing, usingboth pull and push techniques to drive plansquickly down to the plant floor.

    Integration of outsourced manufacturing pro-cesses allows for fast turnaround of publishedplans and orders. Companies should be able tocommunicate flexibly with contract manufacturingby supporting different transaction types, suchas discrete purchase orders, blanket agreements,and work orders, and by supporting a rangeof communication mechanisms. Leadingorganizations have inventory availability andorder visibility across multiple t iers of the supplynetwork, allowing them to orchestrate amaterial flow to meet their service objectives.

    Flexible Manufacturing and Supply Orchestration

    Manufacturing and SupplyOrchestration

    Demand Sensing and Shaping

    Demand-Driven Supply

    Response Orchestration

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Service Parts Management

    Demand-DrivenSupply Network

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    Organizations that establish an efficient, integrated supplychain using planning, execution, and collaboration fortheir service parts business respond quickly to meetcustomer requirements.

    Todays service parts customers demandhigher performance. They dont want to wait fora part to be ordered and delivered; they expectto have it right here, right now.

    To meet customers high expectations,companies must manage inventory costs andthe complexity of their global supply chain to

    help ensure the right parts are in the rightplaces at the right times at the right cost.

    Also, companies must coordinate andcollaborate across all service parts processes,including planning, procurement, transportation,

    warehousing, and fulfillment not just for asingle location but globally, across the entireservice supply network, in real time.

    In the past, companies cobbled point solutionsand homegrown systems into a conglomerationof not-quite-integrated data sources that werereal time as of the previous week's batch job .

    The unfortunate results left many companieswith escalating costs, inefficient operations,poor customer service, and no visibility ofservice parts inventory.

    Provide Excellent Customer Service

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Manufacturing and SupplyOrchestration

    Demand Sensing and Shaping

    Demand-Driven Supply

    Response Orchestration

    Service Parts Management

    Higher inventory turns forspare parts reported by thetop 25% of organizations thanby average organizations

    Source: SAP PerformanceBenchmarking

    1.6 x

    Demand-DrivenSupply Network

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    Demand-Driven Supply Network Value MapSAP solutions address key requirements for the demand-driven supplynetwork.

    Demand Sensing and Shaping

    SAP Solutions

    Manufacturing andSupply Orchestration

    Response Orchestration

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand-DrivenSupply Network

    ResponseOrchestration

    Demand Sensingand Shaping

    Manufacturingand SupplyOrchestration

    Service PartsManagement

    Service Parts Management

    Demand Sensing Analyze and ShapeDemandDemand Signal Capture

    Order Promising andResponse

    Distribution Networkand CustomerReplenishment

    Production Planningand Scheduling

    Material Supply andReplenishment

    OutsourcedManufacturing

    Service Parts Fulfillment Service PartsWarehousingService Parts Planningand Procurement

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    Sense and Shape DemandEnable a holistic view of what customers want and why.Demand sensing and shaping is a holistic solution approach thatincludes a full process, from demand signal capture to long- and short-term forecasting. This solution utilizes new sources of demandintelligence, directly impacting forecast accuracy and providing theability to sense short-term changes. Signals can be integrated todevelop a unified demand plan; collaboration allows all to contribute.

    23 % Lower inventory carryingcosts where forecasts aredynamic and are updatedfrequently

    Source: SAP PerformanceBenchmarking

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand SensingProject demand through best fit and automatic forecast generation. Improveaccuracy by integrating data from multiple sources, with continuous updates fromkey forecast input providers.

    Demand SignalCapture

    Streamline the acquisition of demand signals with tools to transfer and monitor thecollection of downstream signals. Cleanse, enrich, and harmonize demand signals,including market research, social data, and information from the Web.

    Analyze andShape Demand

    Perform robust analysis against huge amounts of demand signals. Use root causeanalysis for out-of-stock events and increased insight into consumer behavior.Integrate into response mechanisms, such as fulfillment or promotions.

    Demand Sensing and Shaping

    SAP Solutions

    Manufacturing andSupply Orchestration

    Response Orchestration

    Service Parts Management

    Demand-DrivenSupply Network

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    Collaborative Response OrchestrationPerform responsive fulfillment, order promising, andcustomer replenishment.Leading companies focus on responsive fulfillment to match supplyto demand dynamically, make commitments and replenish stocks,maintain customer loyalty, and achieve competitive advantage. Theyachieve this through order promising, distribution planning, andcustomer replenishment.

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Order Promisingand Response

    Quickly and accurately match supply and demand while supporting companybusiness goals. Managing order commitments in real time, and periodically assupply and demand changes, while respecting corporate goals and priorities.

    DistributionNetwork andCustomerReplenishment

    Plan stock levels and replenish goods in both distribution centers and customerstocking locations. Calculate stock levels and replenishments to meet customerservice levels with efficient full truckload replenishments and minimum inventorycarrying costs.

    Demand Sensing and Shaping

    SAP Solutions

    Manufacturing andSupply Orchestration

    Response Orchestration

    Service Parts Management

    Demand-DrivenSupply Network

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    Flexible Manufacturing and Supply OrchestrationGain network visibility for production andprocurement planning.Manufacturing and supply orchestration solutions from SAP enablequick, harmonized responses to demand and supply changes usingintegrated planning from internal and outsourced manufacturingsites to minimize supply disruptions. The result is highly flexiblemanufacturing processes without increased costs.

    Demand Sensing and Shaping

    SAP Solutions

    Manufacturing andSupply Orchestration

    Response Orchestration

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    ProductionPlanning andScheduling

    Improve manufacturing responsiveness through visibility, faster f inite capacityscheduling, and real-time visibility of orders.

    OutsourcedManufacturing

    Orchestrate responsive execution of outsourced manufacturing to shorten lead timeswith electronic work orders and accurate tracking.

    Material SupplyandReplenishment

    Manage materials availability flexibly while reducing costs through scalable supplierconnectivity and optimal materials management at each tier of the supply chain.

    Service Parts Management

    Demand-DrivenSupply Network

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    Service Parts ManagementFind the right service parts at the right time andplace.Establish an efficient, integrated supply chain for your service partsbusiness. Respond swiftly to meet customer requirements andperform parts fulfillment, planning, procurement, and warehousingusing a single, integrated solution.

    29 % Of companies have visibilityinto spare parts inventoryacross the organization andcan conduct regular inventoryanalysis to minimize cost.

    Source: SAP PerformanceBenchmarking

    Service PartsFulfillment Realize improved parts planning, fulfillment, and customer service.

    Service PartsPlanning andProcurement

    Plan inventory across the service supply network based on parts volumes, velocity,and segments.

    Service PartsWarehousing

    Drive efficient warehousing processes, including inbound and outbound processing,distribution, and storage.

    Demand Sensing and Shaping

    SAP Solutions

    Manufacturing andSupply Orchestration

    Response Orchestration

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Service Parts Management

    Demand-DrivenSupply Network

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    Using applications powered by the SAP HANA platform,companies can take advantage of Big Data to analyzemassive amounts of highly granular data. Mobile solutionsusing a variety of devices extend the reach of this infor-mation, facilitating input from more participants in thesupply chain process.

    SAP Innovations

    SAP HANAHandle large data volumes, including demand signals. Harmonize downstream, social, and Webdata. Perform analysis in memory at zero latency to drive better decisions.

    MobileUnwire employees and supply chain participants and empower business processes to make agileand informed decisions closer to the customer.

    AnalyticsGain targeted insights on essential business success factors. Perform easier simulation and what-ifanalysis across all response and manufacturing processes.

    CloudFast, flexible deployment of business processes can transform and optimize global supply networksand provide new levels of collaboration and process monitoring with other key stakeholders.

    SAP Innovations

    SAP HANA

    Mobile

    Analytics

    Cloud

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand-DrivenSupply Network

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    SAP Business Suite powered by SAP HANATodays unprecedented availability of end -customer anddemand data offers significant opportunities for doingbusiness as never before. Using the SAP HANA platform,best-run companies are able to benefit from Big Data todrive landslide competitive advantage, both today andtomorrow.

    Supply ChainMonitoring

    Perform high-speed analysis and track key performance indicators (KPIs) againstcurrent supply chain information. Spend less t ime compiling, generating, and waitingfor information. Use in-memory supply chain monitoring to make high-speed deci-sions. Connect better operational decisions to KPIs to ensure improving supplychain performance.

    Demand Signal

    Management

    Collect, store, manage, and analyze large volumes of demand data without latency. Anticipate demand changes and react to dynamic customer behavior. Includeholistic downstream, social, W eb, and other demand data. Enrich and harmonizedemand signals for high-speed analysis, and use in-memory functionality to driveanalysis.

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    SAP Innovations

    SAP HANA

    Mobile

    Analytics

    Cloud

    Demand-DrivenSupply Network

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    MobileManufacturing and supply chain organizations canconnect sales, service, and operations teams to companyback-office business processes through mobile solutionsthat are convenient and easy to use and manage. With fullaccessibility to information at any time and from anywhere,users can perform business functions on the fly.

    22 % Less days in inventorywhen a high percentageof warehouse or inventorymanagement employeeshave mobile access

    Source: SAP PerformanceBenchmarking

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Mobile SupplyChain Analysis

    Companies can gain immediate insights and decision-making power when they havethe ability to access real-time global planning and KPI data and also the ability toperform root cause analysis, anytime and anywhere, through a mobile device.

    Mobile Planningand Forecasting

    Companies can enable consensus forecasting and planning capabilities through theentry of mobile data directly into business processes. They can also see key infor-mation updates and receive notifications and alerts to new or changing processrequirements.

    Mobile Demandand CustomerInsights

    Supply chain professionals can access detailed demand signal information frommultiple sources, including both internal and external manufacturing sites. This dataand information can illuminate downstream sales, inventory availability, customerprocess and status, and promotion performance.

    SAP Innovations

    SAP HANA

    Mobile

    Analytics

    Cloud

    Demand-DrivenSupply Network

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    AnalyticsOrganizations can now provide up-to-the-minute visibilityto KPIs across the enterprise, illuminating every facet ofbusiness operations. With this capability, companies canenable real-time monitoring for root cause analysis, riskmitigation, predictive modeling, and optimization.

    20 % Higher availability of real-timeand predictive insights when ahigher percentage of strategicKPIs are tracked usingbusiness intelligence tools

    Source: SAP PerformanceBenchmarking

    Supply ChainMonitoring

    Technology has now made it possible for companies to measure key supply chaindrivers in real time across planning, collaboration, and execution processes, utilizinglive operational data. Organizations can also perform context analysis tocomplement their core supply chain processes.

    Demand Signal Analytics

    Demand signal analytics includes a set of highly efficient analysis tools that canquickly analyze massive amounts of demand signals for market insights and better,faster decision making. Analytics tools help planners measure out-of-stock and out-of-shelf situations, detailed sales, and the effectiveness of promotions and new-product launches.

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    SAP Innovations

    SAP HANA

    Mobile

    Analytics

    Cloud

    Demand-DrivenSupply Network

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    CloudCompanies that want a quick, low-cost, low-risk way tominimize their IT footprint choose cloud-based solutionsand on-demand technology. Fast, flexible deployment ofcritical solutions is essential for on-demand technology.Best-run supply chains deploy cloud solutions to createglobal sales and supply networks that scale quickly.

    85 % Of business professionalsbelieve cloud technologywill have a major impact ontheir organization throughefficiencies, innovation, orcompetitive differentiation

    Source: SAP PerformanceBenchmarking

    Cloud-BasedInformation Hub

    A cloud-based information hub enables companies to establish scalable connectionswith business partners. Critical supply chain data, based on a common informationstandard, is exchanged securely back and forth.

    Cloud-BasedCollaboration

    Integration of demand-driven supply chains with cloud-based solutions, such assales and operations planning, provides immediate access to analysis, facilitatesnew levels of business partner collaboration, and aligns supply chain informationwith input from other key stakeholders.

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    SAP Innovations

    SAP HANA

    Mobile

    Analytics

    Cloud

    Demand-DrivenSupply Network

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    Best-Run Customers63% of the worlds transaction revenue is handled by an SAP system.

    SAP is the #1 provider of overall supply chain management solutions (and gaining).

    SAP is the #1 supply chain planning solution provider.

    17 of the top 25 Gartner-recognized companies use supply chain solutions from SAP.

    85 % Of the top 100 most valuedbrands in the world are SAPcustomers

    Source: SAP Fast Facts

    apetito

    Best-Run Customers

    Braskem

    Arla

    Why SAP?

    Mibelle

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand-DrivenSupply Network

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    Whether involving Big Data, mobile, analytics, or cloud, shared innovations usingthe SAP Supply Chain Management (SAP SCM) application are integral to everynew discovery and step forward in demand-driven supply chain technology. Thesecontinual innovations help to steer SAPs strategic road map for supply chainmanagement.

    Customer Co-Innovation

    SAP actively performs co-innovation in the areas of new solution definition, in-memory computing,analytics, usability, and enterprise mobility through executive councils and formal co-innovation.

    Past co-innovation partners have included the following: Arla, BASF, Colgate, Coca-Cola, andProcter & Gamble.

    79 % Of Global Fortune 500companie are SAP customers

    Source: SAP Fast Facts

    apetito

    Best-Run Customers

    Braskem

    Arla

    Why SAP?

    Mibelle

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand-DrivenSupply Network

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    apetito gains transparency of market demand with theSAP Advanced Planning and Optimization component.The company needed scalable software to support business growth.Specifically, it was looking for a configurable application to supportenterprise integration and workflow automation.

    Key Benefits Ability to gather market demand data and provide central access to itfor planning and reporting staffFocus on demand-planning exceptionsSupport for consistent global processesHigher data qualityDirect access to planning data for all departments

    apetito

    Best-Run Customers

    Braskem

    Arla

    Why SAP?

    Mibelle

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Harmonizedprocesses at twosites

    Integrated softwarewith the existingSAP NetWeaverBusinessWarehouseapplication

    With the demand planning software in SAP Advanced Planning andOptimization, we at apetito have found a forward-looking solution thathelps us to forecast demand for our products.

    Ludger Sasse, Head of Production Planning, apetito AG

    Demand-DrivenSupply Network

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    Theres less noise in our business now. Everyone knows what to do, how muchsurplus there is, and how we can sell what and when. We can show there isrevenue out there to be made if we do things in a proper and structured way.

    Ren Gaarde-Vahlberg, Director GCO Planning and Allocation BSM/Powder, Arla Foods amba

    Arla uses SAP software to increase margin with bettermatching of supply and demand.

    Arla sought to increase the contribution margin for powdered milk throughbetter matching of supply and demand. The firm wanted to optimize fore-casting for powdered milk products to maximize sales while implementingproper processes for sales and operations planning.

    Key BenefitsFully uniform view of sales plan, financial plan, and production planDecrease in lead times from data to overview from 21 days to 10 daysIncrease in data available for planning personnelImprovement in forecast accuracy by 10%Increase in annual earnings by 2 million

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    apetito

    Best-Run Customers

    Braskem

    Arla

    Why SAP?

    Mibelle

    10 %Improvement inforecast accuracy

    Accessibility tofinancial, supply,and demand dataonline throughintegrated SAPsoftware

    6 monthsNeeded to go livewith full functionality

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    The SAP software implementation has had a strong impact on howBraskem fulfills customer demands, thanks to improved inventorymanagement. The return on investment has been extremely fast.

    Roger Ueno, Processes and Systems, Braskem

    Braskem increases sales forecast accuracy and reduces costsby optimizing its supply chain.Braskem chose global available-to-promise functionality from the SAP

    Advanced Planning and Optimization component to better understandinventory levels across several plants and to plan how orders would befulfilled. The companys objectives were to integrate operational areas,improve planning, and gain real-time visibility over inventories of finished

    goods. The firm also sought to establish a process to prioritize salesorders, considering volume and quota restraint.

    Key BenefitsIncreased accuracy of sales forecasts through better inventorymanagementEnhanced customer satisfaction through faster fulfillment of ordersReduced costs in logistics and supply chain management

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    apetito

    Best-Run Customers

    Braskem

    Arla

    Why SAP?

    Mibelle

    90 %Reduction ininefficiency-relatedlogistics costs

    18 %Increase in salesforecast accuracy

    $3 millionOf value generatedin the first year afterimplementation

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    With SAP Advanced Planning and Optimization , weve been able to set thestage for a networked mind-set both within and outside of our company to thebenefit of everyone involved all while conserving our natural resources.

    Peter Hrdi, Director of Supply Chain Management and Executive BoardMember, Mibelle AG Cosmetics

    Mibelle gains transparency in stock and demand planningwith SAP Advanced Planning and Optimization.Mibelle sought to reduce stock on hand, increase service levels, andmitigate risks in warehousing.

    Key Benefits

    Improved planning and warehouse transparency and precisionStreamlined processes in purchasing planningNew partners in Switzerland and abroadImprovement in forecast accuracy by 10%Increased annual earnings by 2 million

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    apetito

    Best-Run Customers

    Braskem

    Arla

    Why SAP?

    Mibelle

    98 %Service level acrossall customers, animprovement from anaverage of 75%

    30 %Cut in inventory daysof supply

    90 %Increased accuracy inforecasts, an improve-ment from 38%

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    SAP solutions empower todays supply chain professionals by enabling a demand -driven approach to supply chain management. Such an approach enables fastresponse to market dynamics, real-time visibility to customer demand, and low-costyet flexible deployment options, all while leveraging the latest innovations.

    Why SAP?

    Enable Tightly Integrated, Comprehensive Solutions

    SAP offers the most comprehensive portfolio of solutions for supply chain management, enablinga responsive supply network from strategic supply chain planning to tactical fulfillment. It isintegrated and collaborative by design.

    Leverage Key Breakthrough InnovationsSAP solutions are based on the industrys most innovative technology foundation. This foundationcombines solutions for database and technology, enterprise mobility, analytics, and cloud-baseddeployment options to enable supply chain optimization and efficiency at the lowest possible cost.

    Achieve Fast Time to ValueThe worlds leading manufacturing companies, across every major segment of the industrythroughout the world, continue to rely on SAP to enable them to build a real-time supply chain.

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    apetito

    Best-Run Customers

    Braskem

    Arla

    Why SAP?

    Mibelle

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    Benchmark Your Performance

    Position your organization for dominance in this new economy with the business performancebenchmarking program from SAP available free to SAP customers and select prospects.The SAP benchmarking program has helped more than 3,000 organizations assess theirstrengths, uncover areas for improvement, and identify best practices and IT strategies that

    generate clear, tangible value not someday, but today.

    Go Live in Weeks

    Heres the fastest way to run your business better: our rapid -deployment solutions. In onepackage, you get everything you need to be up and running quickly including preconfiguredsoftware and implementation services in just weeks. With a defined scope and predictablecosts, there are no surprises.

    Join Your Community of Practices

    Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work.It lets members help one another solve problems, learn, and invent new ways to get thingsdone faster. Find out how to connect with people, content, and resources.

    Find Out More About How Your Organization CanBecome Best-Run

    Visit valuemanagement.sap.com >>

    Visit sap.com/solutions/rds >>

    Visit scn.sap.com >>

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    Demand-DrivenSupply Network

    https://valuemanagement.sap.com/http://www.sap.com/solutions/rdshttp://www.sdn.sap.com/irj/scnhttp://www.sdn.sap.com/irj/scnhttp://www.sap.com/solutions/rdshttps://valuemanagement.sap.com/https://websmp105.sap-ag.de/solutionpackages
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    Solution Overview

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

    www.sap.com/SCM

    www.facebook.com/pages/Lean-Operations/76156926556

    Supply Chain

    CMP 28876 (14/01)

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

    Demand-DrivenSupply Network

    ExecutiveSummary

    SAP Solutions SAP Innovations ReferencesContact Us

    http://www.sap.com/SCMhttp://www.facebook.com/pages/Lean-Operations/76156926556http://www.facebook.com/pages/Lean-Operations/76156926556http://www.facebook.com/pages/Lean-Operations/76156926556http://www.facebook.com/pages/Lean-Operations/76156926556http://www.sap.com/SCM
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