HP’s Collaborative ManufacturingSolution™ for SAP®Speed and flexibility are critical in fast-paced High Tech ManufacturingOverviewCollaboration in a manufacturing environment is critical in the High Tech industry’s fastpaced business. OEM Manufacturers need to be able to change partners andmanufacturing locations quickly to address ever increasing cost pressures. And whilemaking these changes, they must ensure they continue to leverage their buying power withtheir key component suppliers and enable these savings regardless of the manufacturingpartner. Finally, all of this must be done taking existing and new manufacturing tax lawsinto account.To empower this, HP designed a unique solution that utilizes SAP ERP, including the SAPGlobal Trade Module (GTM), SAP Supply Network Collaboration (SNC) and SupplyNetwork Planning (SNP) of Supply Chain Management, SAP Process Integration(PI)/Exchange Infrastructure (XI), along with multiple standard EDI transactions. Collaboration –Utilizes both SAP SNC and Standard EDI transactions to collaborate and integrate with component suppliers and manufacturing partners. For smaller, less sophisticated suppliers and partners, SAP SNC is sufficient. For larger, long-term partners a standard set of EDI transactions is utilized, which allows full automation of the end-to-end processes that span enterprises. Component Buy/Sell –Utilizes SAP ERP, and more specifically the SAP Global Trade Module, to enable the central procurement of key components at leveraged prices. These components can then be sold to the manufacturing partners at different partners “masking” the OEM’s lower costs. These parts can then be delivered via different supply chain models, including Direct Ship, VMI or OEM owned models. Intercompany Processing –Employs multiple, flexible trading structures and intercompany models to enable of the optimal transaction flows for tax purposes.
The Solution - HP’s Collaborative ManufacturingSolution™ for SAP®HP’s preconfigured solution is focused on High Tech Manufacturing buy-sell processes andthe ability to execute a high volume with very low transaction costs, including pre-configuration in set-up and process of inter-company entities and flows for tax purposes.From a system perspective, the HP solution utilizes features of SAP SNC in conjunction withEDI automation. Finally, our SAP industry leaders on our projects understand how to bring itall together into one integrated solution in a model that interacts with very high volumes ofdata.Customer benefitsSupply chain cost savings through: Reduction in procurement costs utilizing leveraged buying power Fewer manual processes for both the OEM, Manufacturing Partner and Supplier Increased flexibility that enables customers to utilize lower cost partners and be able to turn on new locations more quickly Reduction in inventory positions based on enabling multiple inventory ownership modelsRisk Mitigation: Expedited on-boarding of new partners or partner locations reduces the risks of being constrained by existing partnersStandardization Enabling standardization across partners and locations, lowers on-going supply chain costs and IT operational costs