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Achieving Superior Logistics and Fulfillment Management for your Global Supply Network
 

Achieving Superior Logistics and Fulfillment Management for your Global Supply Network

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'LFM solution helps companies execute a seamless integrated end-to-end process across the SAP suite of products thereby reducing risk and manual intervention while ensuring the “Perfect Order”. ...

'LFM solution helps companies execute a seamless integrated end-to-end process across the SAP suite of products thereby reducing risk and manual intervention while ensuring the “Perfect Order”. Cognizant has been strategically aligned with LFM solution development as the sole partner in helping SAP build out their LFM Value Scenario.

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  • 2008In addition to investing in building the end to end scenario in terms of breadth, we are also investing heavily on depth of functionality in key areas like TM and EWM. We launched a new TM solution late 2007 and continue to enhance its capabilities and industry specific requirements.GTS is a key differentiator for SAP and together with TM and EWM provides an end to end solution for shippers and service providers.

Achieving Superior Logistics and Fulfillment Management for your Global Supply Network Achieving Superior Logistics and Fulfillment Management for your Global Supply Network Presentation Transcript

  • Anjan Sen
    Director, SAP Practice – Cognizant
    Logistics & Fulfillment Management
  • 1
    Brent Crude Oil
    Price
    Time
    Enable a
    Supply network highly responsive to fluctuations inDemand…
    Business networks
    . . Supply. .
    . . and Product Conditions
    The common themeResponsiveness and Efficiency
    “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change”
    Charles Darwin (1809 – 1882)
  • 2
    Manage Performance & Risk
    End to End Visibility & Collaboration
    Minimize Inventory
    Synchronize Supply to Demand
    Manage Cost & Sustainability
    Enable a
    Supply network highly responsive to fluctuations inDemand…
    Demand
    Supply
    Business networks
    . . Supply. .
    . . and Product Conditions
    Strategy: Manage for downturn; Position for upturnRelentless Focus on Customers, Costs, and Cash
  • 3
    Manage Performance & Risk
    End to End Visibility & Collaboration
    Minimize Inventory
    Synchronize Supply to Demand
    Manage Cost & Compliance
    Demand
    Supply
    Roadmap to a Responsive Supply NetworkManage for downturn; Position for upturn
    Supply Network Strategy and Design
    SOURCE
    SUPPLY
    SELL
    MOVE
    SERVICE
    CUSTOMER
    MAKE
    Collaborative Demand and Supply Planning
    Service Parts Planning and Logistics
    Manufacturing Network
    Planning & Execution
    Customer Demand
    Response & Execution
    Logistics and
    Fulfillment Management
    Supply Network Traceability
  • 4
    Enabling Responsive Supply NetworksManage collaborative business processes end to end

    Responsive Supply Networks enable companies with fluctuating demand and high product complexity to sense and respond faster and smarter to demand, supply and compliance dynamics across a globally distributed environment.
    End-to-End Processes
    Supply Network Strategy and Design
    Strategic
    SOURCE
    SUPPLY
    SELL
    MOVE
    SERVICE
    CUSTOMER
    MAKE
    Collaborative Demand and Supply Planning
    Tactical
    Service Parts Planning and Logistics
    Manufacturing Network
    Planning & Execution
    VP Supply Chain
    Customer Demand
    Response & Execution
    Logistics and
    Fulfillment Management
    VP Manufacturing
    Execution
    Supply Network Traceability
    VP Logistics
    Future Value Scenarios
    Delivered in 2008
  • 5
    Logistics and Fulfillment Management

    Logistics and Fulfillment Management is an end to end process that provides visibility across all transportation and distribution activities reducing risk and manual intervention while ensuring the right product is the at the right place and time for the right cost.
    End-to-End Processes
    Supply Network Strategy and Design
    Strategic
    SOURCE
    SUPPLY
    SELL
    MOVE
    SERVICE
    CUSTOMER
    MAKE
    Collaborative Demand and Supply Planning
    Tactical
    Service Parts Planning and Logistics
    Manufacturing Network
    Planning & Execution
    VP Supply Chain
    Customer Demand
    Response & Execution
    Logistics and
    Fulfillment Management
    VP Manufacturing
    Execution
    Supply Network Traceability
    VP Logistics
    Future Value Scenarios
    Delivered in 2008
  • RAW MATERIAL
    SUPPLIERS
    RAW MATERIAL
    SUPPLIERS
    PACKAGING
    SUPPLIERS
    PACKAGING
    SUPPLIERS
    DISTRIBUTOR OR
    WHOLESALER
    DISTRIBUTOR OR
    WHOLESALER
    MANUFACTURING
    MANUFACTURING
    DISTRIBUTION
    CENTERS
    DISTRIBUTION
    CENTERS
    RETAIL
    CUSTOMERS
    RETAIL
    CUSTOMERS
    CONSUMERS
    CONSUMERS
    Displaced Inventory, Inflated Logistics Costs and Poor Customer Service in the Logistics & Distribution Network
    Increased risk throughout the supply chain
    • Increasing Export, Import Compliance regulations
    • Fluctuating Fuel, Oil prices
    Poor customer service
    • Inability to make accurate commitments to delivery dates leads to lost opportunities and finally loss in market share
    • Poor responsiveness to unexpected supply chain events
    Inflated Transport Costs
    Increased Inventory and Warehousing costs
    • Expedited shipments/increased transportation spend from lack of visibility and collaboration
    • Poor visibility into the supply network and inability to apply transport resources in a holistic fashion, missing significant saving potentials
    • Increased inventory buffers and suboptimal asset utilization
    • Timely, costly and error prone manual exception handling
    6
  • 7
    VP of Supply Chain
    Aligning Stakeholders to Enable Logistics and Fulfillment Management
    Effective Logistics and Fulfillment Management requires alignment between several stakeholders with differing objectives:
    Logistics
    Logistics
    Sales
    Distribution
    Outbound Transportation Management
    Inbound Transportation Management
    Customer Commitment
    Storage and Fulfillment
    How do I achieve holistic visibility to orchestrate alignment across the network to increase customer service and minimize costs?
    How do I ensure high customer service levels, maximizing warehouse throughput and minimizing transportation spend?
    How do I obtain upstream visibility to optimally manage incoming freight, spend, and streamline downstream operations?
    How do I initiate the “perfect order” ensuring a realistic promise in light of increasing customer demands, shorter lead times and reduced inventory?
    How do I maximize asset utilization, minimize costs, and respond to changes still ensuring the “perfect order”?
    • Inventory Turns
    • Inventory Accuracy
    • Inventory Holding Costs
    • Delivery Service Levels
    • Customer Claims/ Month
    • Transportation Costs
    • On-Time Arrival
    • Carrier/Supplier Performance
    • Transportation Costs
    • Revenue
    • Customer Service Levels
    • Cost to Serve
    • Revenue
    • Customer Service Levels
    • Costs
  • 8
    VP of Supply Chain
    Logistics and Fulfillment Management Is an End-to-End, Cross-Functional Process
    Effective Logistics and Fulfillment Management requires alignment between several stakeholders with differing objectives
    Logistics
    Customer Service
    Inbound Transportation Management
    Logistics
    Distribution
    Customer Commitment
    Outbound Transportation Management
    Storage and Fulfillment
    Sales
    Delivery Commitment
    Order Capture
    Finance
    Customer Invoice Processing
    A/R Processes
    Supplier Invoice Processing
    A/P Processes
    Procurement
    PO Mgt / Stock Transfer
    Logistics
    Distribution
    Outbound Delivery Creation
    ASN/Inbound Delivery Creation
    Inv Mgt (GR, Batch Mgt)
    Order Ful. (Co-Packing, Cross-Dock)
    Transportation Execution
    Inbound Trans. Planning/ Optimization
    Transportation Execution
    Outbound Trans. Planning /Optimization
    Logistics
    Freight Settlement
    Freight Settlement
    Risk / Compliance
    Import Management
    Export Management
    Cross-Dept
    Supply Chain Mgt
    Global Supply Chain Visibility, Event Management, Alerting, Reporting
  • Logistics and Fulfillment Management SAP Solution Roadmap
    2008
    • Transportation Management:
    • Increased planner efficiency by process enhancements, analytics and workflow management, Industry specific enhancements
    • Extended Warehouse Management:
    • Increased visibility via graphical warehouse layouts and new monitoring capabilities, Improved integration b/w warehouse and production processes
    • Global Trade Management:
    • Sanctioned party list, REACH compliance, IM & EHS integration, TM-GTS integration for export controls
    • Real World Awareness:
    • EPCIS support, e-Pedigree integration, ESOA
    • Supply Chain Performance Management
    2009:
    • Transportation Management:
    • Tighter integration with ERP, Driver planning and compliance, Customer/supplier freight invoicing integration, LCL planning, Visualization
    • Extended Warehouse Management:
    • Integrated scenarios with TM and GTS
    • Global Trade Management:
    • Tighter integration with TM, Increased compliance support (e.g. 10+2), Multi-leg screening
    • Real World Awareness:
    • Sensor integration, Cold chain tracking and management, ESOA enablement
    9
  • Customers drive value with Logistics and Fulfilment Management
    • Increased Order Fulfillment
    • 65% less Manual Handling – only one out of five orders has to be handled manually anymore
    • Reduction of supply problems by prioritizing stock in short supply
    • Improved inventory accuracy to greater than 99%
    • Streamlined put-away and picking processes
    • Optimized equipment use
    • Increased volumes for pallet and case picking
    • 30% improvement in fleet productivity at food business unit
    • 40% reduction in time needed to create transportation plan
    • Enterprise-wide visibility of transportation and scheduling plans

    “ We can focus on problem areas rather than working to keep pace with the volume of orders. We’ve really improved the quality of our delivery to customers.”
    Klaus Peter BrickweddeSupply Chain Director for Nestlé Germany
    10
  • 7 Key Points to Take Home
    Logistics and Fulfillment are key drivers of today's supply chain trends
    It is critical to streamline internal organizations and processes to maximize assets (labor, inventory, etc.) while minimizing costs
    It is critical to align the enterprise with your trading partners and share information seamlessly, allowing for more effective and cost conscious decisions to be made and executed
    SAP has the key business processes on a single platform to deliver an integrated supply chain from the point of origin to the point of consumption
    SAP’s customers are leveraging these solutions to execute an integrated supply chain with successful results they achieved
    Your supply network can have significant impact on providing the ultimate customer experience
    Companies can either use their supply chain as a differentiator from the competition or not – it’s up to you!
    11
  • Cognizant - The Right PartnerComplimentary Vision, Scale and Ability to Deliver
    Mission: To co-source perfectly engineered solutions that add competitive advantage to our clients, through long-term partnerships
    With the ability to deliver
    • $2.81 Billion (2008)
    • Employees: 61,700+ (2008)
    • Customers: 500+
    • Global operations
    • Headquartered in Teaneck, New Jersey
    • Traded on NASDAQ (CTSH)
    • Part of S&P 500 & NASDAQ 100 Index
    • A Fortune 1000 & Forbes Global 2000 Company
    Leading global services provider
    • Universally recognized as Tier I IT Services provider
    • Fastest growing firm in the industry
    • Born global - US-based with proven global delivery model
    • Customer-intimate model
    • Strong Transportation & Logistics business unit
    Our single-minded passion
    dedicating our global resources, industry intelligence and systems expertise to working with our clients to make their businesses stronger.
    12
  • The Right PartnerComprehensive SAP Services
    • Global SAP Services Partners with deep relationship at various levels
    • 4600+ SAP Consultants with wide ranging SAP skills and experience levels
    • Vertical focused services and solutions
    • All projects executed with GDM (Global Delivery Model)
    • Robust methodologies using Cognizant 2.0
    • 100 + marquee global clients
    • Dedicated SAP COEs
    • One stop shop for all SAP services
    • Experienced in Global Rollouts and managing mission critical solutions
    • Shared services model for added flexibility
    • Comprehensive Testing Practice
    13
  • The Right PartnerStrong Supply Chain Experience
    14
  • SAP Customer
    • Acquired licenses for all major SAP apps
    • Based on most recent IDES releases
    • Leveraging SAP internal landscape for prototypes, POCs, training etc.
    SAP Partner
    • Global SAP Services Partner
    • Presence in Partner Port at Waldorf, Germany
    • Joint development and GTM strategy for LS solutions
    • Continuous contributions by Cognizant on SAP Developer Network (SDN) – Ranked 3rd worldwide
    • Set up The SAP TouchStone Center at Cognizant – the innovation center to facilitate demos, PoCs and pilots across solutions
    Board-level relationship
    with SAP
    • Working jointly with SAP to pursue opportunities
    • Strategic product evaluation teams
    • Strong relationship with SAP board
    • Presence in Partner Port at Waldorf, Germany
    Strong Relationship with SAP Labs
    • Engaged with SAP Labs in development and testing of next-generation SAP products and components
    • 250+ consultants currently engaged with SAP Labs
    Focused Solutions Portfolio
    • Ready-to-Run (R2R) CRM for Banking, an on-premise ‘ready-to-deploy’ SAP CRM template for the BFS industry
    • Proprietary PBNW (Powered by NetWeaver) solutions: ePDM, YardelligentTM and WasteTraceTM
    • iLEMS, Cognizant’s integrated licensing and entitlement management solution for SAP
    • The only software services provider with a certified ePedigree solution (ePDM)
    • Close Collaboration with SAP for new product development, TM and ramp-up for LFM, TM 6.0 and 7.0
    • NetWeaver OTC: First global “Trusted Partner” to develop & test SAP NW solutions outside SAP facilities in an OTC (Offshore Testing Center) model
    • OTC Test Beds for testing client’s business scenarios
    The Right PartnerRelationship with SAP
    15
  • The Right ExperienceInvestments in SAP LFM
    Cognizant brings deep process manufacturing and SAP TMS experience.Cognizant Technology Solutions has a deep relationship with SAP, assisting with transportation management development and testing, and being engaged early in implementation training activities.
    TEANECK, NJ, and CHICAGO, May 7, 2009 – Cognizant (NASDAQ: CTSH) and Rexam today announced that the implementation of the SAP® Transportation Management (SAP TM) solution was successfully completed at Rexam Beverage Can North America. Cognizant, a global provider of consulting, technology and business process outsourcing services, partnered closely with SAP AG on the implementation.
    Rexam chose to partner with Cognizant because of its transportation domain competency, expertise with SAP TM, and partnership with SAP. In close collaboration with SAP Consulting and the SAP TM development team, Cognizant’s experienced consultants rapidly developed and delivered the solution from project initiation to "go-live" implementation.
    Forrester Research, Inc., “Which Service Provider Is Right For Your Supply Chain Project?” by Patrick Connaughton, January 2008
    • Global LFM Center of Excellence
    • Increase product adoption
    • Rapid prototyping
    • Composite development
    • Implementation and Migration Toolkits
    • LES or TP/VS to TM
    • TM in a Box
    • Accelerators for TM on non SAP platform
    • Integration adapters for other SAP modules and external systems
    • Highly experienced Supply Chain industry resources
    • Participation in LFM/TM 6.0 / TM 7.0 acceptance testing and development through SAP Labs
    16
  • Costs
    Revenues
    Global Available to Promise
    Global Trade Mgmt / Services
    Extended Warehouse Mgmt
    Transportation Mgmt / Event Mgmt
    Supplier Network Collaboration
    Raw Material Suppliers
    SAP
    Retailers
    Distributor
    End Consumers
    Logistics
    Service Providers
    Logistics
    Service
    Providers
    Distribution
    Center
    Packaging Suppliers
    Customer Warehouse
    The Right PartnerCognizant is strategically aligned with LFM
    Supply Chain Performance Management
    Integrated, end-to-end logistics and fulfillment processes
    Manufacturer
    17
  • THANK YOU
    18