Supply Chain Management
A change agent for
Business Network
Transformation



           Vivek C. Sinkar
                 ...
Powerful Trends Re-Shaping Business
Environment for Global Supply Chains

                                     Increasingt...
Leading to Transformation of Companies
and their Business Networks
      Shift in Supply Bases                            ...
Business Network Transformation force
Supply Chains into the “Zone of Complexity”

              Unstructured
   Supply


...
Next Generation Supply Chains:
Need for Combining Efficiency and Responsiveness



                                       ...
The Need for New Strategies


                  From “build to last”…                    …To “build to adapt”




        ...
Combining Efficiency
and Responsiveness
The Supply Chain Network evolution:
From Linear Supply Chains to Supply Chain Network




        From Linear supply chain...
The Supply Chain Network Evolution:
From Linear Supply Chains to Supply Chain Network




         Supply Network
        ...
Combining Efficiency & Responsiveness
Develop and Leverage core capabilities in the network


                            ...
Solution: SAP Business Process Platform
Flexibility and Stability enabled in the Platform



                    Collabora...
So what does this mean to me?


What are we doing in SCM to enable this

Business

Network               SCM
Transformatio...
The Roadmap
The Goals for SCM in 2007

  Provide new, innovative Solutions
     nSales  and Operations Planning
     nTransportation M...
Releases in 2007

                     Business Process Area                                      Shipment    Deployment O...
Duet: Demand Planning
Expand user community for comprehensive planning

    Utilize the full capabilities of Microsoft Exc...
Sales & Operations Planning
SAP SOP

     Tool that consolidates data, provides pre-defined
  analytics and assists with m...
SAP APO
The central planning application

      Synchronize supply with demand by balancing
       push and pull network-p...
Supply Network Collaboration
SAP SNC
     Orchestrate multi enterprise processes across
    suppliers, contract manufactur...
SAP Extended Warehouse Management
SAP EWM

      Enable dynamic movement of goods and value
                    added serv...
SAP Transportation Management
SAP TM
       Transportation planning and execution for
      Manufacturers and Logistic Ser...
SAP Event Management:
In transit Visibility and Track and Trace
  Enables process visibility, monitoring and control by
  ...
SAP Auto-ID Infrastructure
Visibility, Traceability and Automation
   Platform to enables business processes to leverage
 ...
Conclusions

 §      Companies need to balance efficiency & responsiveness to
        compete in today's global economy

 ...
Your Turn!
    Q&A

   Vivek C. Sinkar


v.sinkar@sap.com
Customer
Success
 Stories
Success in Supply Chain Planning

           n   Improved service level
           n   Reduced cycle times
           n   ...
Success in Supply Network Collaboration



             More than 85% of purchase orders exchanged in
                    ...
Copyright 2007 SAP AG
 All rights reserved
 No part of this publication may be reproduced or transmitted in any form or fo...
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Supply Chain Management

  1. 1. Supply Chain Management A change agent for Business Network Transformation Vivek C. Sinkar Solution Management SCM March 2008 SCM Product Strategy
  2. 2. Powerful Trends Re-Shaping Business Environment for Global Supply Chains Increasingth Phone Sold 1 Billion use launches of Sensory Deregulation Oil crosses $100 / Barrel 1TATA MotorsCapitalists Billion New New Container Shipped: Increasing Numbers of Technology in cell phones Supply Every selling2008 January 2, and Consumers How Nokia is0.1Recalls $2500 CarSecond Product “Nano” Opening up of protected Chains to the developing world markets Globalization Stretching Supply Chains May 2007 to new levels Disruptive - Technology Connectivity, Digitization Commoditization Increased market consumption, but challenged margins
  3. 3. Leading to Transformation of Companies and their Business Networks Shift in Supply Bases Shift in Demand Bases 45% 40% China 35% US Mexico 30% India 25% 20% 15% 10% 5% 0% Shifting M anufacturing Base Shifting Supply Base “ 40% of Companies “ Emerging Economies will Outsource a Large Part of exceed 50% of the world’s Fulfillment Process ” Economic Output by 2010 ” Source: AMR Research Source: World Economic Forum
  4. 4. Business Network Transformation force Supply Chains into the “Zone of Complexity” Unstructured Supply ild New Bu Partners New Products New Customers Structured e at m to Au Stable Unstable Demand
  5. 5. Next Generation Supply Chains: Need for Combining Efficiency and Responsiveness Increase Responsiveness Unstructured Across the Responsive Supply Network Supply Network Supply Network Supply Integrate Processes ild Bu Vi and s ib ilit ate y Information IT m to Structured Au Operational Automate Efficient Excellence Supply Chain Processes Enterprise Stable Unstable Demand
  6. 6. The Need for New Strategies From “build to last”… …To “build to adapt” Push Based Hybrid Push/Pull Command & Control Connect & Collaborate Intermediate Customer Value End Customer Value Efficiency Efficiency & Responsiveness èFrom Linear Supply Chains to Responsive Supply Networks…. © SAP 2007 / 5
  7. 7. Combining Efficiency and Responsiveness
  8. 8. The Supply Chain Network evolution: From Linear Supply Chains to Supply Chain Network From Linear supply chains, optimization within 4 walls, standard response …
  9. 9. The Supply Chain Network Evolution: From Linear Supply Chains to Supply Chain Network Supply Network From Linear Supply = Competitive AdvantageEnd to End To Global Chains, Optimization Collaborative within 4 walls,Goal = Common Standard Serve the Customer Processes response …
  10. 10. Combining Efficiency & Responsiveness Develop and Leverage core capabilities in the network Collaborative Demand and Supply Planning Streamline Logistics and Fulfillment Increase Supply Network Visibility & Collaboration Manage Risk and Ensure Increase Real World Compliance Awareness Success depends each Enterprise becoming Best in Class itself and leveraging the Best in Class capabilities of the Network
  11. 11. Solution: SAP Business Process Platform Flexibility and Stability enabled in the Platform Collaborative Processes Responsive Supply Network Extended across Network PLAN MAKE DELIVER Supply Network Supply Chain Composition Environment Business Process Platform Reusable Components Process Integrity and Composition IT Analytics / Optimization Planning and Execution Operational Excellence Demand Driven Execution Enterprise
  12. 12. So what does this mean to me? What are we doing in SCM to enable this Business Network SCM Transformation Composites Enterprise Service Repository EhP SRM PLM ERP SCM CRM IS SAP NetWeaver
  13. 13. The Roadmap
  14. 14. The Goals for SCM in 2007 Provide new, innovative Solutions nSales and Operations Planning nTransportation Management nExtended Warehouse Management nObject Event Repository and Product Tracking and Authentication nDistributed Manufacturing as part of Supply Network Collaboration nEnhanced Planning functionality in SNP and PPDS Provide an improved User Experience n Duet for Demand Planning n NetWeaver Business Client for Sales and Operations Planning n WebDynpro for Supply Network Collaboration Enable focused Implementations with fast ROI n Componentized SAP SCM & complete SAP SCM Server n Add-Ons to SAP ERP
  15. 15. Releases in 2007 Business Process Area Shipment Deployment Option Date Duet for Demand Planning March Add-On for SAP SCM 5.0 SAP Sales and Operations Planning May Standalone* SAP Auto-ID Infrastructure June Standalone* SAP Object Event Repository SAP Event Management June Standalone* SAP Supply Network Collaboration July Standalone* SAP Extended Warehouse Management July Add-On for SAP ERP 2005 SAP Supply Chain Management August Standalone* SAP Transportation Management November Standalone* *Standalone includes Integration to SAP ERP 2005 and SAP SCM 5.0 (and higher)
  16. 16. Duet: Demand Planning Expand user community for comprehensive planning Utilize the full capabilities of Microsoft Excel as a intuitive planning front-end for SAP SCM § Align plans with customer demand § Presents an intuitive interface with minimum training § Improved user acceptance, usage and productivity
  17. 17. Sales & Operations Planning SAP SOP Tool that consolidates data, provides pre-defined analytics and assists with managing the S&OP process § Monitor and manage S&OP process § Balance demand and supply within financial boundaries § Cross departmental plan - agreed, communice & measure § Identify impact of changing market conditions Sales and Operations Planning SAP SAP SAP ERP SCM BI
  18. 18. SAP APO The central planning application Synchronize supply with demand by balancing push and pull network-planning processes § Improve planning quality and visibility across the network § Optimize supply chain activities to reduce inventory and costs § Secure customer service through state-of-the art sales order confirmation § Integrate with SAP ERP & R/3 - real time planning and execution VMI APO
  19. 19. Supply Network Collaboration SAP SNC Orchestrate multi enterprise processes across suppliers, contract manufacturers and customers § Out-of-the-Box Collaborative Business Processes § Improve Inventory and Requirements Visibility for Accurate Replenishment & Invoicing § Intuitive, Easy to Learn, and Easy to Use Web-User Interface § Standards based & Service enabled Connectivity between your SAP ERP and partner systems Suppliers My Company Customers Contract Mfg
  20. 20. SAP Extended Warehouse Management SAP EWM Enable dynamic movement of goods and value added services § Scalability for constantly increasing warehouse sizes & complexity § Dynamic pull - push principles § Designed to support needs of complex industries - retail, spare parts (e.g. complex return logistics) § Leverage data collection technologies § Improve visibility through analytics and Labor Management § Increase automation by connection to material flow system
  21. 21. SAP Transportation Management SAP TM Transportation planning and execution for Manufacturers and Logistic Service Providers § Support all modes and means of transport § Provides integration and global visibility of transportation process steps § Based on Enterprise Service Object Architecture (eSOA) § Multi-backend system support § Transparency on profitability - buying and selling side
  22. 22. SAP Event Management: In transit Visibility and Track and Trace Enables process visibility, monitoring and control by managing events within and between companies § Track planned vs. actual events at various levels § Automated exception resolution by notification and workflow § Extended process metrics and analytics for performance analysis and compliance § Pre-configured business scenarios
  23. 23. SAP Auto-ID Infrastructure Visibility, Traceability and Automation Platform to enables business processes to leverage real-time RFID and sensor data § Provides business context to RFID & Sensor data § Addresses industry and regulatory compliance requirements § Increase automation, efficiency & visibility, and reduce costs & discrepancies § Local implementation and automated execution of business processes
  24. 24. Conclusions § Companies need to balance efficiency & responsiveness to compete in today's global economy § Leverage your investment in SAP by extended use of components on a unique technology & platform § Make use of Enhancement Package strategy to lower costs and increase flexibility § Invest in new technologies to support growth targets § SAP has the platform and solutions to help you on this business network transformation © SAP 2007-2008 / Page 23
  25. 25. Your Turn! Q&A Vivek C. Sinkar v.sinkar@sap.com
  26. 26. Customer Success Stories
  27. 27. Success in Supply Chain Planning n Improved service level n Reduced cycle times n Improved visibility of planned orders and capacity n Increased automation n Early detection of bottlenecks and their impact on sales orders n Improved transparency of planning processes n “ Reduced lead times, and interface & monitoring efforts n Optimized production planning n Increased collaboration among production areas n Enabled flexible planning - both self-contained and interactive options
  28. 28. Success in Supply Network Collaboration More than 85% of purchase orders exchanged in collaborative environment Reduced inventory by 17% and increased efficiency Reduced inventory by 50 – 70% Improved on-time delivery by 70% Live in 4 Months, 150 Total Suppliers
  29. 29. Copyright 2007 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 permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. 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 shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durch SAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden. Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Services sowie die dazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Alle anderen in diesem Dokument erwähnten Namen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zu Informationszwecken. Produkte können länderspezifische Unterschiede aufweisen. Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. Dieses Dokument ist eine Vorabversion und unterliegt nicht Ihrer Lizenzvereinbarung oder einer anderen Vereinbarung mit SAP. Dieses Dokument enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP®-Produkts und ist für SAP nicht bindend, einen bestimmten Geschäftsweg, eine Produktstrategie bzw. -entwicklung einzuschlagen. SAP übernimmt keine Verantwortung für Fehler oder Auslassungen in diesen Materialien. SAP garantiert nicht die Richtigkeit oder Vollständigkeit der Informationen, Texte, Grafiken, Links oder anderer in diesen Materialien enthaltenen Elemente. Diese Publikation wird ohne jegliche Gewähr, weder ausdrücklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschließlich, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zweck sowie für die Gewährleistung der Nichtverletzung geltenden Rechts. SAP übernimmt keine Haftung für Schäden jeglicher Art, einschließlich und ohne Einschränkung für direkte, spezielle, indirekte oder Folgeschäden im Zusammenhang mit der Verwendung dieser Unterlagen. Diese Einschränkung gilt nicht bei Vorsatz oder grober Fahrlässigkeit. Die gesetzliche Haftung bei Personenschäden oder die Produkthaftung bleibt unberührt. Die Informationen, auf die Sie möglicherweise über die in diesem Material enthaltenen Hotlinks zugreifen, unterliegen nicht dem Einfluss von SAP, und SAP unterstützt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewährleistungen oder Zusagen über Internetseiten Dritter ab. Alle Rechte vorbehalten. © SAP 2007 / SCM Roadmap Page 28
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