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K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
K1 sap procurement  logistics day 2012-martin schirmer
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K1 sap procurement logistics day 2012-martin schirmer

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Extended Supply Chain Management …

Extended Supply Chain Management

Martin Schirmer, VP Supply Chain Management

Presented at the SAP Procurement & Logistics Day 2012.

Published in: Technology, Business
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  • 1. Extended Supply Chain Management2012DECIDE BETTER, COLLABORATE BETTER, OPERATE BETTER Martin Schirmer VP Supply Chain Management
  • 2. Focus on the extended supply chain processes - Integrated, Comprehensive Solutions from Idea to Delivery - PLAN Design Buy MAKE STORE MOVE SELL PLM Supply Chain Planning • Innovation Mgt. • Demand & Supply Planning • Product Development • Production Scheduling • Portfolio management • Inventory Optimization • Response Management Procurement • Spend Analysis • Supplier Lifecycle • Strategic Sourcing • Operational Procurement • Contract Lifecycle Manufacturing • Manufacturing Execution • Manufacturing Intelligence • Manufacturing Integration Supply Chain Execution • Warehouse Management • Transportation Management • Event Management/RFID Supply Chain Performance Management© 2012 SAP AG. All rights reserved. 2
  • 3. Global Trends and their Impact on Supply Chain and Procurement Economic situation Global Networks Outsourcing Risk Economic Turmoil Economic Turmoil Economic Turmoil Economic Turmoil Impact Balancing Supply and Global Sourcing Need to Control How to Mitigate Risk Demand  Distribution Strategy  Visibility & Collaboration  Supplier Risk  Inventory Management  Financial Risk  Efficient Logistics  Supplier Lifecycle  Supply Market Intelligence Management  Logistics Risk© 2012 SAP AG. All rights reserved. 3
  • 4. Procurement ExecutivesWhat does this mean for your business?  How do we continue to identify opportunities to manage and reduce costs?  How do we maximize spend under management, for all categories of spend?  How do we optimize contract terms and enforce compliance?  How do we manage suppliers’ performance and supply-based risk?  How do we improve our sourcing, procurement and invoice management processes?  How do we align our activities to best support the End to End Supply Chain strategy?© 2012 SAP AG. All rights reserved. 4
  • 5. SAP Procurement Portfolio Integrated Solutions Enable the End-to-End Source-to-Pay Process Spend Analytics Contract Operational Invoice Sourcing Management Procurement Management New! Supplier Management SAP Supplier Lifecycle Mgmt SAP Supplier InfoNet (OnDemand) SAP Spend SAP Sourcing / SAP SAP New! SAP SRM & SAP SAP Invoice Mgmt Performance Sourcing Contract Lifecycle ERP by OpenText Management OnDemand MgmtSAP Data Enrichment Supplier Connectivity via SUS and Crossgate / & Classification Hubwoo (OnDemand) New! SAP Commodity Procurement New! © 2012 SAP AG. All rights reserved. 5
  • 6. The SAP Procurement Portfolio Is Rapidly Innovating in ManyDimensions Cloud / On Demand Sustainability Usability In-Memory Computing Embedded Analytics Mobile On-Premise Rapid 3rd Party Partner Deployment Solutions© 2012 SAP AG. All rights reserved. 6
  • 7. Data Enrichment and Classification Process (DEC) UI-based data management, tracking and classification management Improved speed, simplicity and clarity SOURCE_AA SOURCE_BB© 2012 SAP AG. All rights reserved. 7
  • 8. End-to-end supplier lifecycle managementManage the entire supplier lifecycle and mitigate supplier risk On-board and register new potential suppliers  Delivers the complete supplier management process Flexibly create questionnaires for supplier qualification  Centralizes supplier information and increases transparency of supplier decisions Classify suppliers to create a focused procurement strategy  Ensures selection of most qualified suppliers Evaluate and monitor ongoing development of suppliers  Reduces costs through superior supplier effectiveness and performance Distribute suppliers to multiple back-end systems  Successfully drives ROI through low-TCO deployment options Flexible deployment options  Mitigates supplier risk Predict supplier risk and manage operational performance  Eliminates paper-based supplier collaboration efforts Supplier collaboration through flexible network connectivity options© 2012 SAP AG. All rights reserved. 8
  • 9. SAP Supplier InfoNetNew solution - Minimizing Supplier Disruption in a Complex World A cloud-based business social network to predict supplier risk and manage operational performance Pooled KPI Benchmarks Strong Predictions of Views into your sub-tier Operational Risk supply base Do They Perform Well for Will They Behave The Same Is There a Problem With One Others? in The Future? of The Suppliers Hidden Below Them?  Compare your experience with  We track news alerts, government others in your industry, across a data & financial information to  Leverage Social Networking Models multitude of KPI’s predict future behavior to understand risk with your -Delivery, Quality, Financial  We leverage cutting-edge supplier’s connected suppliers machine learning tools to improve  React to problems that were  Track a Supplier’s Global KPI on these predictions unforeseen before performance over time© 2012 SAP AG. All rights reserved. 9
  • 10. SAP Commodity ProcurementApplication overview SAP’s solutions for procurement will be enhanced to cater for commodity specific functionality that enables companies to capture commodity contracts with commodity price definitions based on market quotes, logistics execution processes, quality management and settlement. Key Needs Key Innovations SAP Commodity  Capture commodity contracts with commodity  Commodity Purchasing processes will be price definitions based on market quotes like enhanced in SAP’s standard ERP solution Procurement index-based commodity pricing  Includes new Commodity Pricing Engine (CPE),  Increased people efficiency through fully ABAP based, with improved functionality and continuous improvements across commodity automated price calculation rather than complex types manual calculation  Differential invoice verification capabilities in  No overpayment of vendor invoices due to standard ERP miscalculations  Solution enhancements for invoice forecasting  Complete audit support  Basis for Hedge & Risk Management Source: Commerzbank, enterprises’ trusted banking partner for risk management, in their Commodity Radar Screen for 3 rd Quarter 2012, SAP Confidential www.commerzbank.com/commodities© 2012 SAP AG. All rights reserved. 10
  • 11. Supply Chain ChallengesDECIDE BETTER, OPERATE BETTER, COLLABORATE BETTER Fluctuating Demand ORDER FULFILLMENT INTEGRATED PLANNING SUPPLY RESPONSE DEMAND Inconsistent Response Supply Delays Sustainable Execution FullCustomer Satisfaction Networks Store Loads Truck Product Portfolio Social Added Strategies Suppliers Plans Supply Chain Services Smart Phones Value Strategies, Priorities, Rules In-house Production Traceability Outsourcing, Financial Increased Supply Chain Risk© 2012 SAP AG. All rights reserved. 11
  • 12. The 5 Elements of the New Supply ChainDECIDE BETTER, OPERATE BETTER, COLLABORATE BETTER Integrated Sales and Operations Planning Collaborative Response Manufacturing and Supply Demand Management Management Planning Supply Chain Execution© 2012 SAP AG. All rights reserved. 12
  • 13. Integrated Sales and Operations PlanningEstablish the supply network and create feasible demand and supply plans with lowest inventory levelsand highest service levels“… S&OP on HANA combines the Real-Time simulation& analysis capabilities of HANA with contextual SocialCollaboration capabilities to provide a truly uniquesolution in the marketplace. ...”Chris Walker, Unilever© 2012 SAP AG. All rights reserved. 13
  • 14. Demand ManagementGet highest visibility into demand and enable real-time demand analytics to avoid out-of-stock/out-of-shelf situations to increase revenue Demand Social Networks ResponseDemand Signal Management POS Data (SAP HANA) Demand B2B Networks Sensing (SAP Information Interchange) Market Research Data Demand Analysis© 2012 SAP AG. All rights reserved. 14
  • 15. Collaborative Response ManagementCreate highest level of flexibility to respond to demand in considering demand and supply prioritiessimultaneously Performance Management Simulation Collaboration“Supply chain response management by ICON-SCM Responsivedramatically accelerates Planning the decision-making processand gives us the insight we need to make smarter Demand & VMIbusiness decisions”, SupplyEd Tymick Vice President of Supply Chain Execution,Tellabs Inc.© 2012 SAP AG. All rights reserved. 15
  • 16. Manufacturing and Supply PlanningIntegrated planning and collaboration across internal and outsourced manufacturing Outsourced Internal Manufacturing Manufacturing 500+ OM’s in Far East Visibility In Process… Complete …. Inspection … At Performance Port … Past Customs … Shipped Management Supplier Reduced inventory, operating costs and expedited Collaboration orders Quality Control© 2012 SAP AG. All rights reserved. 16
  • 17. Supply Chain ExecutionEnable the most efficient and sustainable transportation and warehouse management processes withthe highest level of visibility Performance Management Warehouse Transportation Management Management 30% Increase in goods moved per hour 10% Reduction in transportation costs & CO2 emissions Event Batch Traceability Management© 2012 SAP AG. All rights reserved. 17
  • 18. SAP Solutions for LoB Supply ChainDECIDE BETTER, OPERATE BETTER, COLLABORATE BETTER Enticing User Experience Supply Chain Mobility Integrated Sales and Operations Planning Supply Chain Connectivity Social Networks Manufacturing & Supply Demand Management Response Management Planning SAP SYBASE SAP INFORMATION UNWIRED INTERCHANGE PLATFORM Supply Chain Execution (Crossgate) POS Data Consistent Supply Chain Data Model Locations Business Partners Products/Materials Supply Network Bill of Materials Routings & Resources Market Research (Examples) IRI Leverage In-Memory Technology Deployment SAP HANA Option in the Cloud© 2012 SAP AG. All rights reserved. 18
  • 19. How to get there?Non-Disruptive Innovation Road Map Evolution December 2015 2020 Breakthrough More Innovation Less Disruption Long-Term Predictability© 2012 SAP AG. All rights reserved. 19
  • 20. SAP Sales & Operations PlanningPowered by SAP HANA Breakthrough Lab Preview SAP Sales and Operations Planning powered by SAP HANA Unified Data Model Rich, Contextual Real-time Planning Social Collaboration Simulations and Scenarios© 2012 SAP AG. All rights reserved. 20
  • 21. SAP Demand Signal Managementpowered by SAP HANA Breakthrough Lab Preview SAP Demand Signal Management powered by SAP HANA Analyze Demand Sense Demand Respond to changes in Demand© 2012 SAP AG. All rights reserved. 21
  • 22. Thank You!
  • 23. © 2012 SAP AG. All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any purpose without the express Google App Engine, Google Apps, Google Checkout, Google Data API, Google Maps, Google Mobile Ads,permission of SAP AG. The information contained herein may be changed without prior notice. Google Mobile Updater, Google Mobile, Google Store, Google Sync, Google Updater, Google Voice, Google Mail, Gmail, YouTube, Dalvik and Android are trademarks or registered trademarks of Google Inc.Some software products marketed by SAP AG and its distributors contain proprietary software components ofother software vendors. INTERMEC is a registered trademark of Intermec Technologies Corporation.Microsoft, Windows, Excel, Outlook, PowerPoint, Silverlight, and Visual Studio are registered trademarks of Wi-Fi is a registered trademark of Wi-Fi Alliance.Microsoft Corporation. Bluetooth is a registered trademark of Bluetooth SIG Inc.IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System Motorola is a registered trademark of Motorola Trademark Holdings LLC.z10, z10, z/VM, z/OS, OS/390, zEnterprise, PowerVM, Power Architecture, Power Systems, POWER7,POWER6+, POWER6, POWER, PowerHA, pureScale, PowerPC, BladeCenter, System Storage, Storwize, Computop is a registered trademark of Computop Wirtschaftsinformatik GmbH.XIV, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, AIX, Intelligent Miner, WebSphere,Tivoli, Informix, and Smarter Planet are trademarks or registered trademarks of IBM Corporation. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, SAP HANA, and other SAP products and services mentioned herein as well as their respective logos areLinux is the registered trademark of Linus Torvalds in the United States and other countries. trademarks or registered trademarks of SAP AG in Germany and other countries.Adobe, the Adobe logo, Acrobat, PostScript, and Reader are trademarks or registered trademarks of Adobe Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, WebSystems Incorporated in the United States and other countries. Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business ObjectsOracle and Java are registered trademarks of Oracle and its affiliates. is an SAP company.UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and servicesCitrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase Inc.registered trademarks of Citrix Systems Inc. Sybase is an SAP company.HTML, XML, XHTML, and W3C are trademarks or registered trademarks of W3C®, World Wide Web Crossgate, m@gic EDDY, B2B 360°, and B2B 360° Services are registered trademarks of Crossgate AGConsortium, Massachusetts Institute of Technology. in Germany and other countries. Crossgate is an SAP company.Apple, App Store, iBooks, iPad, iPhone, iPhoto, iPod, iTunes, Multi-Touch, Objective-C, Retina, Safari, Siri, All other product and service names mentioned are the trademarks of their respective companies. Dataand Xcode are trademarks or registered trademarks of Apple Inc. contained in this document serves informational purposes only. National product specifications may vary.IOS is a registered trademark of Cisco Systems Inc. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.RIM, BlackBerry, BBM, BlackBerry Curve, BlackBerry Bold, BlackBerry Pearl, BlackBerry Torch, BlackBerryStorm, BlackBerry Storm2, BlackBerry PlayBook, and BlackBerry App World are trademarks or registeredtrademarks of Research in Motion Limited. © 2012 SAP AG. All rights reserved. 23

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