!Newman 2011 Fall Focus Sustainable Supply Chain V Fx


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This presentation made at the ASUG 2011 Fall Focus introduces the SAP Sustainability Executive Advisory Council (EAC) and announces the limited ramp-up of the Sustainability Business Network (SBN) solution from SAP Research.

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!Newman 2011 Fall Focus Sustainable Supply Chain V Fx

  1. 1. Use SAP Tools and Green Purchasing[ to Create a Sustainable Supply Chain William Newman, CMC, MBA, SA Managing Principal – Newport Consulting Group Twitter @william_newman #ASUGFOCUS
  2. 2. [ Agenda  Introductions  Learning Points  Sustainability Executive Advisory Council  SAP’s Sustainability Solution Map  One Example: Embedded Procurement Processes  Another Example: Sustainable Business Networks  Planned Demonstration  Key Take-away’s and Resources  Q&AReal Experience. Real Advantage. 2
  3. 3. [ About the Speaker William D. Newman, CMC, MBA, SA  ASUG Recognized Influencer  EPM, GRC, Sustainability  Member, SAP Sustainability Executive Advisory Council  Certified Management Consultant (since 1995)  Over 25 years in industry,15 years working with SAP customers and management  Public Speaker (ASUG, Insider, TEDx, others)  SAP Press Author (Understanding SAP BOBJ EPM)  Numerous articles on program oversight, stakeholder engagement  Twitter (william_newman)Real Experience. Real Advantage. 3
  4. 4. [ About the Firm  Newport Consulting Group is an independent consulting firm founded in 2005 and managed by several leading directors from DMR Consulting Group and strategy firm Booz & Company  Our clients enjoy working with our experienced professionals who deliver large firm capabilities with a boutique firm culture  We function as top-end, high-touch advisors to our F500, Inc 5000 and GT25 clients  We help SAP partners RUN BETTER www.newportconsgroup.comReal Experience. Real Advantage. 4
  5. 5. [ If you learn nothing else …Real Experience. Real Advantage. 5
  6. 6. [ Emerging Sustainable Frameworks The University of Oregon Sustainability Leadership Program is tracking over 50 emerging standards, guidelines andframeworks in the area of sustainability.Real Experience. Real Advantage. 6
  7. 7. [ What is SAP Doing? Exemplar EnablerReal Experience. Real Advantage. 7
  8. 8. [Real Experience. Real Advantage. 8
  9. 9. [ What is the Sustainability Executive Advisory Council? Mission The SAP Sustainability Executive Council brings together leading global executives and sustainability practitioners to learn and share best practices for utilizing SAP technology in order to realize the vision of sustainability. Objectives/Outcomes • Share best practices in a global community focused by industry & region • Enable customer input for solution development • Help customers design their own roadmap to sustainability Real Experience. Real Advantage.
  10. 10. [ Benefits of the Sustainability Executive Advisory Council Membership Benefits • Share best practices in a thought leadership community focused on using IT to solve sustainability problems  become your industry’s thought leader • Engage with fellow executives, academics, analysts and consultants from similar and different industries Direct access to SAP top executives and industry influencers • Participate in Wharton Executive Education Course for Sustainability Execs • Become a SAP sustainability reference and industry leader • Design your own roadmap to solve your organization’s sustainability challenges • VIP special treatment at SAP programs, conferences & events Real Experience. Real Advantage.
  11. 11. [ Sustainability EAC Member Structure Chief Sustainability Officer Executive Council or Senior Executive ■ Most senior business leaders ■ SAP’s Leading customer Executives in ■ SAP’s most recognized customers North America, Latin America, EMEA & ■ Thought leadership APJ Regions ■ Measurable impact Line of Business Working Groups Line of Business ■ Sustainability Reporting ■ Operational RiskStrategic ExecutivesDirection & Analytics Management & ■ VP Council around select topicsPriorities ■ Energy and ■ Sustainable Supply ■ ~25 executives per topic area Environmental Resource Chain & Products ■ SAP’s most recognized customers Management ■ Measurable impact Line of Business Community Building Participation via SAP User Group ■ Broad community of SAP customers with Engagement and Communities; technology / solution focus by local country Special Interest Groups; ■ Alignment with SAP User Groups (e.g. ASUG) Industry Councils and Industry Councils Global Portfolio Real Experience. Real Advantage.
  12. 12. [ EAC Key Issue Map (extract)Topic Hypothesis / Questions ImpactEnergy Management Successful businesses in the future will use onsite, renewable energy management in their Decision on SAP manufacturing processes, maximizing energy efficiency while tracking emissions reductions. How prioritization for can these concepts be integrated into the enterprise today for future deployment? solution coverage • How can we identify specific energy saving strategies with immediate benefits? • How can we create hedges against rising costs and leverage smart energy usage for competitive advantage? • Discuss government tax incentives and utility rebate programsWater What are the challenges of managing water scarcity and costs? What is the global perspective on Decision on SAP best practices and business strategy with regard to water management in the enterprise? prioritization for Discussions will explore specific opportunities for innovation related to development of new solution coverage management tools, policy formation and business opportunities.Risk Management How do you manage energy and weather based disaster scenarios [e.g. Fukishima]? What are the Understanding contingencies for on-boarding new energy sources, changes in disaster-related supplier disruptions market tolerance for [e.g. the Toyota example]? What can you do to mitigate disclosure areas and binding statements risk management made in executive reporting? How will you manage FASB proposals for consolidated financial and solutions sustainable reporting?Sustainable Supply How do you structure a sustainable supply chain program? How do you onboard suppliers Decision on SAPChain effectively? What communication guidelines should you use? How do you structure IT systems to prioritization for support? What are best practices for managing SSC programs? solution coverageSustainable How do you define sustainable procurement in your organization? What are some of the TBL Determine anyProcurement approaches to “balanced procurement” versus “low-cost” practices? How do you transition to missing areas of TBL based procurement? How do you communicate and track supplier compliance? Green coverage for SAP impacts? How can companies embed sustainability into their procurement processes across their organization? What are the challenges and barriers procurement officers face? What is the potential for whole-life costing to drive sustainable procurement processes?Real Experience. Real Advantage. 12
  13. 13. [ SAP’s Sustainability Map Source: www.sap.com/solutions/executiveview/sustainability/sustainability-map/index.epx Real Experience. Real Advantage. 13
  14. 14. [ Best Practices in “Green Procurement”Real Experience. Real Advantage. 14
  15. 15. [ One Example: Sustainable Procurement Functions  The roadmap for sustainable procurement will contain elements of business practices in SAP SRM- based applications, as opposed to unique solutions that will address sustainability  Tie-in to performance management and reporting (e.g., SAP BusinessObjects Sustainability Performance Management)  Frameworks for online sourcing and supply chain compliance assessments  Address both on-premises and OnDemand solutions  Availability is tiered through CY 2011 with subsequent evolutions to include more standardsSource: SAP Sustainability Executive Advisory Council, 2011.Real Experience. Real Advantage. 15
  16. 16. [ Target Milestones for Sustainable Procurement Functions • SAP ERP  Establish master data for vendor, purchasing process • SAP SRM  Enable sustainable purchasing  Enterprise-level Supplier Information Management (SIM)  Network-level supplier information collection and assessment Note: Mock-ups • Ability to conduct life cycle and provided are for conceptual total cost of ownership discussion only assessmentReal Experience. Real Advantage. 16
  17. 17. [ Another Example – Mobile SRM Applications  SAP Supplier Search - look-up for field, mobile use via SRMSource: SAP, 2011Real Experience. Real Advantage. 17
  18. 18. [ Rendering for iPhone / iPad Different renderings for different app environments based on similar process / look-up flows. Reduces look- up times, clerical work, any paper output, increases response efficiency and employee flexibility.Source: SAP, 2011Real Experience. Real Advantage.
  19. 19. [ Working with Multiple Suppliers Manufacturer Reporting Internet Database Internet Supplier A Internet Supplier B Local Solution Material Plant / Shop SAP ERP PLM / PDM Planning FloorSource: Newman, William. Increase Supplier Compliance with Sustainable Business Networks, GRC Expert, July 18, 2011Real Experience. Real Advantage. 19
  20. 20. [ Concept of a Sustainable Business NetworkSource: Newman, William. Increase Supplier Compliance with Sustainable Business Networks, GRC Expert, July 18, 2011Real Experience. Real Advantage. 20
  21. 21. [ Benefits of a Sustainable Business Network What is a Sustainable Business Network?  A Sustainable Business Network consists of supply chains that provide financial, environmental and social value. It thus 1. returns profit, or at least does not run unprofitable, 2. enhances the lives of people involved in it, or at least does not create disadvantages for them, 3. enhances environmental health, or at least does not harm the environmentSource: SAP ResearchReal Experience. Real Advantage. 21
  22. 22. [ Building a Community Network  A sustainable supplier management capability as part of the network on-demand model will help generate community actionReal Experience. Real Advantage. 22
  23. 23. [ Another Example: Project “Glasshouse” Addressing the need for Sustainable Business Networks  SAP Research believes that only sustainable supply chains can succeed in the long run.  Sustainable supply chains have a competitive advantage that can only be enabled and sustained through collaboration between the partners of the network and transparency towards customers and investors. The intended approach  SAP Research will provide customers with an understanding of their supply chain, its sustainability performance, and alerts on sustainability risks within the supply chainSource: SAP ResearchReal Experience. Real Advantage. 23
  24. 24. [ Early Imagery – Platform Look and FeelSource: SAP ResearchReal Experience. Real Advantage. 24
  25. 25. [ Planned Demonstration – SAP Research  Demonstration by Dr. Alexander Dreiling, SAP ResearchReal Experience. Real Advantage. 25
  26. 26. [ Wrap-up / More ReferencesSource: SAPReal Experience. Real Advantage. 26
  27. 27. [ Wrap-up / Initiatives and ProgramsSource: SAPReal Experience. Real Advantage. 27
  28. 28. [ Key Learnings  Sustainable purchasing can have many forms and uses  Simple supplier look-up and coordination  Deep embedded use of master data management  Broad business network compliance and reporting  Determine what is needed by your organization  Focus on what “collection of 50” guidelines apply  Align to the strategy of your organization, not just compliance  Look for support groups, case studies, active customers  SAP Sustainability EAC excellent community forum for discussion  Leverage existing on-premises and on-demand models  Look for rapid, 1-year (or less) paybackReal Experience. Real Advantage. 28
  29. 29. [ References  Increase Supplier Compliance with Sustainable Business Networks , GRC Expert (July 18, 2011)  Sneak Peek: Sustainable Procurement as an Embedded Process in Supplier Management Activities , GRC Expert (December 1, 2010)  Comply with the EPA’s MRR Standard with SAP Carbon Impact OnDemand, GRC Expert (January 7, 2011)  Best practices for managing sustainable supply chains, searchManufacturingERP.com (July 14, 2011)  Mastering the IT demands of a sustainable supply chain, searchManufacturingERP.com (July 7, 2011)Real Experience. Real Advantage. 29
  30. 30. [ Your turn!Real Experience. Real Advantage. 30
  31. 31. [  Thank you for participating. Please remember to complete and return your evaluation form following this session. For ongoing education on this area of focus, visit the Year-Round Community page at www.asug.com/yrc ] [ SESSION CODE: #ASUGFOCUS November 16, 2011 / 330PM (Avila A)Real Experience. Real Advantage. 31