Benchmarks and Value Management for a value chain transformation


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Benchmarks and Value Management for a value chain transformation

Presented at the SAP Procurement & Logistics Day 2012.

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Benchmarks and Value Management for a value chain transformation

  1. 1. SAP Procurement & Logistics Day 201230 augustus
  2. 2. Benchmarks and Value Managementfor a value chain transformation
  3. 3. The Business Case for Value Management 2009 Value Management (VM) Survey Results 300+ Global Companies Surveyed 1.6x 2.4x 4x 2.4x HIGHER HIGHER MORE MORE percentage of return on investment companies with high companies with high benefit realization for companies with best practice best practice achieved through high best practice adoption attain value adoption deliver high best practice adoption “on” or “ahead” of projects “on” or adoption time “below” budget L 39% L 72% L 11% L 29% M 57% M 119% M 27% M 48% H 65% H 173% H 43% H 71%© 2012 SAP AG. All rights reserved. SAP/AMR Value Management Survey Results 2009 3
  4. 4. SAP Value Engineering: SAP investment to help thecustomers to deliver on time, on budget and on value! Assess and prioritize opportunities with benchmarking Build the decision case and set success KPIs Define the target architecture & roadmap SECURE SUCCESS Value Partnership Services Optimize TCO Establish Value Management Office Assess delivered benefits Build value based architecture and roadmap Optimize value for the business Define and agree optimized business processes© 2012 SAP AG. All rights reserved. 4
  5. 5. SAP Value PropositionHow to uncover the full potential of a business transformation? What do we 1 improve? Performance Benchmarking How do we 2 make the Value Discovery Workshop change? What is the 3 business Business Case / Roadmap value?© 2012 SAP AG. All rights reserved. 5
  6. 6. SAP Benchmarking+25 business process and +10.000 surveys R&D Planning Operations Distribution Sales & Marketing Service Enterprise Health Check NPDI Marketing Sales Effectiveness Supply Chain Management SRM/ Procurement Customer Service & Support Customer Contact Centers Manufacturing Trade Promotion Management Warehouse Mgmt Transportation Mgmt Order to Cash Finance and Analytics Financial & Compliance Business Intelligence/ Analytics High Perf. Analytics Corporate Services EH&S Compliance Enterprise Asset ManagementHuman Resources Talent Management Human Capital Management Operations Support Total Cost of Ownership (TCO) MobilityDb Geographic Coverage Main Industries NA  Automotive EMEA  Oil & Gas APJ  CP & High Tech Other  Industrial & Mill Products© 2012 SAP AG. All rights reserved. 6
  7. 7. SAP benchmarking for supply chain helps customersidentify and achieve best-in-class performanceA detailed KPI and Best Practice analysis On-Time Delivery Performance Forecast Accuracy Order Fulfillment Lead Time Days in Inventory© 2012 SAP AG. All rights reserved. 7
  8. 8. Personalized report is available for you:KPIs, improvement areas, best practices and suggested SAP solutions Value/ High-Impact Enabling Best Enabling Performance Strategies Practices Solutions  What defines  What are  What best  How do SAP “Value”? proven practices solutions  What are the improvement should be put enable high- most critical strategies? in place to impact performance  What are support a strategies and indicators? actionable sub given ultimately strategies? strategy? value? © 2012 SAP AG. All rights reserved. 8
  9. 9. Strategy Report ExampleInventory Reduction High-ImpactValue/KPI Strategies Actionable Sub Strategies Enabling Best Practices • Customer data captured directly Reduce Variability from external feed e.g. EDI in Execution • Dynamic and frequently updated forecasts • Gain visibility into customer • Forecasting at SKUs / inventory demand and actual sales location granularity level Implement a Collaborative • Build forecast collaborationInventory Days Demand Planning capabilities with sales & finance of Supply Process Enabling Solutions • Incorporate new product introductions, promotions and sales force judgment into forecast Align Supply to Demand • Manage inventory and replenishments for key customers Forecast Granularity / Integrate Supplier Inventory Days of Supply* Network Low High - 25% 88 66© 2012 SAP AG. All rights reserved. Note: *Consumer Products, North America and EMEA 9
  10. 10. SAP proposes an Innovation Discovery Workshop Big Deal 2.0 Innovatio Propose one or two days “innovative n Va lue ! Oct 2011 Industry Tr ends workshop” with your stakeholders facilitated Ga m e Ch angers Te chnology by SAP Mo bility Vi sion ! The aim of the workshop is to help client Re al Ti me On -Deman d identify opportunities for innovation Sp eed Fle xibility and growth Participants from customer side are stakeholders from business & IT This approach is based on design thinking, graphically facilitated by SAP Value Engineering team Business Case and / or Value Roadmap © 2012 SAP AG. All rights reserved. 10
  11. 11. What is Leading Performance?Impact of Best Practice Adoption on Procurement KPIsOrganizations Today Improvement Potential Examples Less than 50% operate a single,  … but those who do achieve integrated procurement system … on average over 40% higher  Purchase requisition to order -98%  reduced PO pricing errors -20% annual savings More than 50% have no system  … but those who do have on controls in place to mandate average 40% lower maverick  Employee productivity +20% contract compliance … spending Less than 40% have full visibility  … but those who do have on  Reduced expenses -19% into global supplier spend data … average 35% higher annual  Headcount -31% savings Less than 45% allow their  … but those who do have on suppliers to maintain their own average 20% lower  Time to create purchase orders - 80% data and invoices for approval … procurement process costs  Purchasing dept productivity +30%Source: SAP Benchmarking database“This information is provided by SAP on an "as-is" basis without warranty of any kind, and subject to the "General Disclaimer" and other terms of use stated at Any results or comparisons shown are for general information purposes only and any particular data or analysis should not be interpreted asdemonstrating a cause and effect relationship. Comparable performance on one given key performance indicator does not guaranty comparable performance on another key performanceindicator.” © 2012 SAP AG. All rights reserved. 11
  12. 12. Call to Action: Benchmark@ SAP Value Management: End-to-end benchmarking support: from Enrollment to Insight 1st Step: Performance Benchmarking Value Discovery Workshop Business Case / Roadmap© 2012 SAP AG. All rights reserved. 12
  13. 13. Thank you!