CASE STUDY: How SCA Hygiene Leveraged SAP NetWeaver for Global Consolidation

CASE STUDY: How SCA Hygiene Leveraged SAP NetWeaver for Global Consolidation Ken Tsai Director, SOA Middleware, SAP Mark Ritter IT Services, SCA Hygiene Products Stefan Hilpp Managing Consultant, SEEBURGER 2010

Legal Disclaimer This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non- infringement. SAP assumes no responsibility for errors or omissions in this document and shall have no liability for damages of any kind that may result from the use of these materials, except if such damages were caused by SAP intentionally or grossly negligent. © SAP AG 2009. All rights reserved. / Page 2

SAP’s process orchestration technologies portfolio  SAP NetWeaver Process Integration to perform application- to-application (A2A) and business-to- business (B2B) integration  SAP NetWeaver Business Process Management to create and adapt business processes  SAP Event Insights to monitor and trigger process action based on real-time events © SAP AG 2009. All rights reserved. / Page 3

Key trends impacting the business process orchestration technologies  Increased influence of business “XYZ” Project in infrastructure purchasing decisions, “instantly Wow, this is really Costs consumable” complex  Trendtowards end-to-end business processes Dept. 1 Dept. 2 Company B  Near real-time, actionable Number of technology components 7 5 3 insights Number of transaction systems  Focus on TCO and life-cycle 2 3 6 management © SAP AG 2009. All rights reserved. / Page 4

SAP Business Process Orchestration Portfolio and Vision Orchestrated End-to-End Process New SAP BusinessObjects Operational BI Business Intelligence Business Insight SAP NetWeaver Event Insight Closed loop from BPM insight to action Event Integration and Process Management Processing SAP NetWeaver NetWeaver PI Enterprise BRM Pre-packaged Services process and event Repository & templates Registry SAP’s Business Process Orchestration portfolio will reflect the synergistic use of traditionally separate solutions to link insight and action, and drive relevance to business users © SAP AG 2009. All rights reserved. / Page 5

SAP NetWeaver Process Integration

Deploy a Process Integration Solution that Quickly Delivers Business Value  Choose an integration solution that is part of a business process platform that can evolve with business requirements  Take advantage of pre-defined business content to implement best practices for all business processes  Use ONE process integration middleware that can meet your A2A, B2B, EDI, SOA, and SAP integration needs  Build on a flexible architecture to ensure that integration projects are on time, on budget, meet business requirements, and adapt for future needs © SAP AG 2009. All rights reserved. / Page 8

SAP NetWeaver Process Integration Combining Multiple Integration Technologies into 1 Process Solution  EDI exchange and B2B Integration  EAI, ESB, SOA for system to system integration  Application server-based integration for custom web applications Partner Business Applications Partners SOA B2B EDI SAP NetWeaver Process Service Bus Integration App SAP EAI & Server Adaptors Adaptors Custom Web Applications Applications Legacy © SAP AG 2009. All rights reserved. / Page 9 Application

SAP NetWeaver Process Integration (NW PI) Customer Adoption – Use Cases – References Customer Adoption  2.4 NEW customers / average working day*  Majority (80%) for SAP-2-nonSAP Integration Customer References  300+ Active Customer References  28 Industries Usage Scenarios  In-house application integration (A2A)  Electronic Business Partner integration (B2B) *Latest Numbers: -Total Licensed Customers: 3,500+  Enterprise/Web Services Provisioning (ESB) - Productive Customers: 2,000+ User Group Survey (DSAG, ASUG, SDN)  89% use it for business-critical processes  75% automate processes with BPEL  70% implement high availability  69% use it alongside another infrastructure  45% plan migration from another infrastructure © SAP AG 2009. All rights reserved. / Page 10

SAP NetWeaver Process Integration 7.3 Planned Timeline* Repository and Governance 2009 2010  Improved design governance  Unified event provisioning and EHP 1 for SAP NetWeaver CE 7.1 subscription Unrestricted shipment since 05 / 2009 EHP 1 for SAP NetWeaver PI 7.1 ESB Unrestricted shipment since 07 / 2009  Single stack ESB capabilities via AAE  Eclipse-based design time for service provisioning  Increased productivity & richer SAP NetWeaver CE 7.2 connectivity on AAE Ramp up started in Q4 / 2009**  Adoption of standards (SOAP 1.2, WS Policy 1.2, WS Trust 1.3, …) SAP NetWeaver CE 7.3, SAP NetWeaver PI 7.3, …  Support of joint shop floor integration and Start of ramp up scheduled for 2nd half of 2010** A2A/SOA use cases *Future dates are subject to change. Unified Lifecycle Management ** Ramp ups are in general scheduled for 6 months –  Central monitoring via SAP Solution might be closed earlier depending on fulfillment of KPIs. Manager (PI Workcenter)  Improved upgrade and fault tolerance This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. © SAP AG 2009. All rights reserved. / Page 11

SAP NetWeaver BPM & SAP NetWeaver BRM

Leverage Industry Best Practices And Define Your Own SAP NetWeaver BPM (delivered with SAP NetWeaver CE) Create own practices with SAP NetWeaver BPM Enhancement Leverage best Packages 3rd party SOA-enabled SAP Business Suite practices with SAP NetWeaver SOA-enabled SAP Business Suite © SAP AG 2009. All rights reserved. / Page 13

SAP NetWeaver Business Process Management Direct path from business view to process execution  Model, deploy and execute rule-based composite business processes  Business-friendly graphical modeler based on business process modeling notation (BPMN)  Combine human interaction and system integration in one model © SAP AG 2009. All rights reserved. / Page 14

SAP Event Insights

Key Technologies SAP Application Unified Event Semantics SAP BI Intelligent Routing Event Database Federation Data Mapping &Transforms Web Service Complex Business Events Heterogeneous Data Event Pattern Sources Parallel Processing Minimize Bandwidth Event Processing Network Maximize Scalability & Extensibility Ensure Availability SAP EDBI Nodes forming a Business Network Infer and Identify Complex Complex Event Patterns & Conditions Processing Track Operational KPIs (CEP) Statistics: • 50,000 Event Correlations / sec Real-time or CEP Engine Events, Trends, • 300,000 Event Filterings / sec Historical Data Risks, Alerts, Streams Exceptions, etc. © SAP AG 2009. All rights reserved. / Page 16

Federated Event Execution Supplier Mfg Plant Heterogenous SAP EDBI Event Pattern Data Sources SAP EDBI DSD Gather Raw Distribution Federate Center Events Event Queries A Retailer Distribution Center SAP EDBI Distribute Custom SAP EDBI SAP EDBI Distribution DB Center Servers Kraft SAP EDBI Mixing Center Detect Raw Events CEP Grid: SAP EDBI SAP EDBI Network Across Locations and BW Companies Retail Retail Store B Store A © SAP AG 2009. All rights reserved. / Page 17

CASE STUDY: How SCA Hygiene Leveraged SAP NetWeaver for Global Consolidation May 25, 2010

Global Consolidation of B2B at SCA HyGiene  SAP NetWeaver Present & Future  About SCA  Background – Reasons for B2B consolidation  Project Phases  Challenges  Successes  Future Outlook for B2B at SCA  Key Learning Points  SEEBURGER Adapter Library Updates  End / Questions 19

SCA A global consumer goods and paper company

SCA – a global consumer goods and paper company Forest 15% 23% Personal Care  Publication papers  Incontinence care  Solid-wood  Baby diapers and products skincare  Pulp and timber  Feminine care 25% Packaging Tissue  Transport and  Toilet paper, kitchen rolls, consumer packaging 37% facial tissue and napkins  Industrial packaging  AFH (Away-From-Home)  Containerboard hygiene concepts Total sales 2009: 10.5 billion EUR 21 SCA Personal Care Europe

Essentials for everyday life  Millions of people use our products, every day  Our 50,000 employees worldwide are committed to developing and improving our customers‟ and consumers‟ everyday lives  We operate our business in over 100 countries, with sustainable principles 22 SCA Personal Care Europe

Leading brands and businesses World‟s third Europe‟s largest World number one largest supplier of for incontinence care supplier of consumer tissue with a 26% global AFH tissue market share One of Europe‟s leading full-service suppliers of packaging solutions Europe‟s largest forest Leading regional owner positions around the world in baby diapers and feminine care 23 SCA Personal Care Europe

Sustainability matters “ Ranked among top 100 most sustainable companies. Ranked 2nd greenest company in the world. Ranked among world‟s most ethical companies. Almost all of SCA‟s products mainly contain renewable raw materials Continued shift from coal and oil to biofuel and natural gas SCA plants three trees for every one harvested 24 “ SCA is one of the world‟s largest suppliers of FSC certified products “ SCA‟s forests absorb as much carbon dioxide as emitted by the Group‟s production facilities SCA Personal Care Europe

Our environmental goal SCA will reduce its carbon dioxide emissions by 20% by the year 2020, with 2005 as a reference year 25 SCA Personal Care Europe

Legacy B2B/EDI Infrastructure Diagram Sending / Receiving via VAN (GEIS, IBM, X400), Internet (AS2), email, Trading Partners •Other platforms used : • Harbinger USA , Web- • EDIWIN (Spain) Orders • INFLUE (France) • Legacy B07 ( UK) AMTrix WinElke XI Excel Orders BizTalk CHEP SCA Mailbox Pallets SOP SAP SCA Mailbox Oracle * SCA mailbox facilitates data exchange between internal SCA Systems (Amtrix to SOP, Excel to SOP etc.) Other Also used by Packaging and Forest Products 26

Legacy B2B/EDI Environment  AmTrix (Axway) / IBM Mainframe main engine for EMEA & North America (PC). AmTrix with Oracle & IBM components (DB2/CICS/Cobol) , in-house developed system  WinElke (SEEBURGER) for selected German EDI messaging  EDIWIN used in Spain  Harbinger (Inovis) in North America (AFH/CT) 27

Background : Legacy B2B/EDI environment  Legacy software : AMTrix in conjunction with IBM Mainframe/Oracle, SCA Mailbox. SEEBURGER in Germany (Invoicing). Not in a position to satisfy all customer/business requests. Installed in 1994.  EDI interfacing with SCA application systems such as SAP, SOP, DUOLINE, PAM, SMS and Extranet Web applications.  Main messages used : Most messaging related to Orders, Ordrsp, Desadv, Invoice, Recadv, Invrpt, Slsrpt, Iftmin, Remadv.  Total connections : Approximately 300 EDI Partners  Communication : VANS (GXS(IIE), X400, FTP, OFTP, AS2 (various solutions). 28

Background existing B2B/EDI  Supported by : IT employees, external consultants, Regional IT & Customer Support.  Skill-set : Main legacy platform required knowledge of AmTrix, IBM mainframe (DB2/JCL/Cobol), Oracle. Other local solution required software specific consultants and internal support.  XML in production : Various solutions including XI or external service provider to convert XML to EDIFACT. 29

Background existing B2B/EDI Summary  Competence required on several applications / systems  Large and complex infrastructure  Many points of failure to monitor and track  Disparate platforms and fragmented business processes  Complex change management 30

Why Consolidating B2B/EDI ?  Ability to satisfy all demands from business and be a leader in Ecommerce trends  Reduce the number of systems and interfaces to make processes more uniform  Reduce the TCO of SCA Hygiene„s B2B/EDI environment and, at the same time, increase the service level  Quicker turnaround time for trouble-shooting, maintenance, enhancements and new development.  Central „end-to-end“ monitoring of internal and external processes  Increase B2B/EDI connectivity with trading partners  Reduce the number of manual processes  ALL OF THE ABOVE ARE ALIGNED WITH THE OVERALL IT STRATEGY OF “COORDINATED DEVELOPMENT / HARMONIZATION OF SYSTEM PLATFORMS” AND “AVOIDING DUPLICATION OF EFFORTS AND COSTS”. 31

Consolidation Project Phases  Define Scope  Evaluation of Products  Pilot as “Proof of Concept”  Rollout  Post-mortem * “PRIME” project management approach used (Phases, Tollgates, Common Project Language etc.) 32

Consolidation Project Phases  Define Scope Project Charter – “Improve on the current EDI environment by replacing the existing legacy platforms with new software to better position SCA Hygiene for handling all types of EDI formats. In addition, evaluate all facets of the EDI lifecycle, from development to implementation and production support, with the aim of making the overall process more efficient.” SCA Hygiene Europe + PC business North America Focus on putting the process in the application as well as Improved monitoring and support capabilities 33

Consolidation Project Phases Evaluation of Products PI compared against non-SAP software and PI and the SEEBURGER EDI adapter software selected because:  It was a very big advantage in terms of cost and effort, that we already had PI in-house (and an exist group with knowledge and experience supporting it). SAP-centric Integrated solution. SEEBURGER certified by SAP, and its adapters are sold by SAP worldwide. SEEBURGER solutions are 100% compatible with the entire SAP product portfolio Large pool of IT professionals available to support XI & SEEBURGER EDI processes Good feedback from Gartner analysts and companies already using PI. SCA IT Team did a comparison study and we saw no advantages in using another integration product at SCA. In addition, we did not want to create a second integration platform. 34

Consolidation Project Phases  Pilot as “Proof of Concept” The pilot should define, configure and test the new EDI platform to ensure SCA Hygiene is positioned to meet the criteria defined in the project charter *. “Improve on the current EDI environment by replacing the existing legacy platforms with new software to better position SCA Hygiene for handling all types of EDI formats. In addition, evaluate all facets of the EDI lifecycle, from development to implementation and production support, with the aim of making the overall process more efficient.” 35

Pilot Execution Plan  Decision and approval to start development  Basic Installation and configuration + Implementation of pilot partner scenarios  SEEBURGER EDI Adapter / MT Testing/ Monitoring configuration  Go-live & Pre-study for rollout projects 36

Rollout Plan  Sub-projects by Region : Nordic, Central (DE-AT-CH), South (ES-IT-PT) etc. Each region has its own special requirements and Regional IS personnel to support.  Same standards used for all regions - Naming conventions, mapping functions etc.  The rollout team consisted of internal and external developers, local IT, SAP specialists (for ABAP user-exit programming for example). PI support from the Infrastructure Team as required.  Challenge was to keep the momentum going on the migration while supporting existing EDI production environment and new development such as new partner connections, supporting other projects (R3 migration, P&G acquisition, SAP upgrade)  No "Big-Bang“, but a partner by partner migration. Less Risk / Higher quality , but longer to complete migration. 37

Message Tracker Search 38

Challenges  Difficult for some to give up legacy platforms (strong central support from senior mgmt key to push the project)  Other project activity where the B2B team as well as regional support was also involved, took away time and resources  Waiting on external customers. For example if a communication switch was required waiting for weeks or months on partner. Testing externally was avoided. We had the results from the legacy systems to compare against.  SAP and SEEBURGER upgrades during the project required regression testing and support for installation and production monitoring. 39

Success List Summary  Migration was completed without any major incidents. Incidents encountered were handled quickly by the team.  Flexibility - Other project activity was successfully completed (even unexpected work, such as new business acquisition and subsequent IT integration).  Good cooperation within the B2B team (internals and externals) as well as local IT and customer support.  M&S personnel from the legacy systems contributed to the development of the new platform and resumed their production control roles in the new environment.  Reduced overall FTE in the B2B team. This helped to justify (along with the other aforementioned benefits) the cost for the consolidation project  Documentation was greatly improved. Partner documentation. 40

Key Learning Points  Pilot followed by migration  Opportunities for improvement to the process were discovered early on  Moving the Global Location Number determination process to SAP  Reduces redundancies and allows customer service to have real-time changes in the customer master with minimal map or table updates  Communication  Sitting together with RIS and customer service representatives throughout Europe is always beneficial. Periodic EDI reviews held with different countries 41

Benefits & Conclusions By moving SCA Hygiene‟s legacy B2B/EDI systems to an SAP XI with SEEBURGER‟s embedded B2B/EDI solution SCA Hygiene can: Satisfy all business demands from one platform Have simplified & more efficient operations Have Higher Business Process Visibility Be well-positioned for future market demands By consolidating SCA can meet the goals of reduced TCO and at the same time increase the quality of service 42

Future possibilities for B2B at SCA Global Harmonization: Australasia, Americas, Europe New technical Target EDI with solutions suppliers 43

SAP’s Strategic B2B & EDI Partner  SEEBURGER‟s solutions are certified  28 certified adapters  OEM-partnership for SAP GTS & Global Customs Integration 44

SEEBURGER SAP NetWeaver PI Offering The 3 C’s of the Adapter Framework  Conversion – Transformation Agent (BIC)  Communication  Components Add-On’s  Message Tracking an Operational Dashboard for PI  Trading Partner Management  B2B Gateway for PI  Manage even the most challenging B2B integration scenarios with SEEBURGER‟s BIS 45

SAP NetWeaver Process Integration Single integrated product for comprehensive business SOA Enterprise Services Software Repository & Registry Business Lifecycle Process BAM Task Security User Orchestration Management SOA Management Management Administration Configuration Pre-packaged Integration Content Service Bus Monitoring Services Registry Optimization Connectivity Security Scalability, (3rd Party Reliable Dynamic Protocol Trans- High Applications, Message & Routing / Technologies, Switching formation Availability Queuing Mediation Middleware, Archiving B2B…etc)  Integrated process development for total business context and complete visibility  High performance and secure end-to-end transactions  Pre-integrated repository and registry for centralized service provisioning and governance

SEEBURGER adapter solutions on SAP NetWeaver SAP NetWeaver Process Integration SAP NetWeaver PI + SAP Solution Manager - Monitoring and Alerting Integrated within SAP NetWeaver XIPI monitoring and CCMS SAP NW PI Adapter Framework SAP NetWeaver PI Integration EDI components Engine module SAP Adapter syntax library protocols conversion for compress/ OFTP, AS2, EDI <-> decompress, Backend SEEBURGER Business Content XML-EDI split/analyze, VAN FTP, P7/X.400, Integration XML-EDI <-> XML-IDOC Mappings converter encryption, .. ... SAP NetWeaver PI Repository and Directory support of acknowledgement processing (997, CONTRL, APERACK), mass data handling and configuration, … SEEBURGER Industry Adapters for SAP NetWeaver PI are industry specific business packages 47

Key Benefits: SEEBURGER & SAP NetWeaver  Reduce costs for licensing, support, monitoring, hardware, software, etc.  Utilize same skill set for all integration requirements  Need of consolidated integration approach in growing landscapes  Replace isolated integration systems  Improve business transparency  Improve business agility  Use SAP NetWeaver PI as a central Enterprise Service BUS (ESB) integration platform for all internal or external integration needs  Leverage pre-configured solutions that are based on open standards and provide business processes, mappings, etc.  Establish SAP NetWeaver PI as SOA middleware providing ONE platform for central design, configuration, monitoring, alerting

Message Tracking  Customizable Operational & Payload search on B2B daily activity 49

SAP PI –Partner Management (Envelope Management)  Centralized Trading Partner Management for PI  Support of all common EDI standards  Store detailed contact information by Trading Partners  Manage SAP envelope information 50

Questions & Answers Mark Ritter Ken Tsai Stefan Hilpp IT Services Director, Managing Consultant SCA Hygiene Products SAP NetWeaver Platform SEEBURGER www.sca.com SAP s.hilpp@seeburger.com ken.tsai@sap.com

For More Information For more roadmap and product related information, check out: http://www.sap.com/platform/netweaver/components/pi/index.epx

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CASE STUDY: How SCA Hygiene Leveraged SAP NetWeaver for Global Consolidation

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