Great

1. Supply Chain Transformation at Electronic
Computer Manufacturer #2 Sub #10
March 16, 2018
Deloitte Consulting LLP
<Client Specific Image Cleansed>

2. Copyright © 2017 Deloitte Development LLC. All rights reserved.
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Executive Summary
How the project
started?
• 3 ERP systems, each region communicating separately with CM/ODM and Component Suppliers
• Planning cycle took >7 days. Supply planning run took 15 hours
• Unreliable forecast signals largely ignored by CM/ODM/Tier-2. Manual processes and new business
roles created to “correct” system errors.
• Task in hand: help figure out how to send 1 single reliable procurement signal to critical component
suppliers
• Business were convinced that Kinaxis will solve all their issues; prior SAP demos poorly executed
Transformation;
what makes us
proud!!
• Simplified product structure (11+ levels, 1000+ configuration rules to 4 key components)
• One single data model for all supply chain with full network, inventory and demand/supply visibility
• We drove the E2E planning transformation with demand, supply, S&OP and supplier collaboration
• 1st IBP book with SAP and product co-development of IBP; We operated on the bleeding edge
• Most complex planning transformation using IBP and one of the best references, globally
The supply chain
is built for future
excellence
• Foundation built for characteristics based planning Ii.e. plan for modules and not parts)
• Excellent foundation for M&A – multiple ERPs does not matter – cloud based and connects to any dB
• Basic principles covered – opportunities to finetune further: inventory planning, optimizer, etc.
• Add advanced functionalities such as Response Mgmt (i.e. how to resolve supply constraint real time)
• 1 single platform, hence easier to institutionalize ‘command and control’ and planning CoE
August 2015
Jan 2016- March 2018
April 2018  Onwards

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Topics for Today
Team: Introduction
Transformation Journey: How we began and how it evolved
Solution Architecture: Before and after
Business Impact
Innovations: What we are proud of!
Lessons Learned: things we’ll repeat and those we’ll try to avoid!

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Excellent X-SL Collaboration: S&O, Technology & Data Science
Jeroen Kusters
Specialist Leader
IBP Solution Architect
Jeroen eats spicier food than
any of the Indians on the
project
Raj Sundar
Senior Manager
IBP Project Manager
Raj loves to travel and
is a movie critic
Rishi Menon
Manager
Demand Lead
Rishi has a passion for
photography
Rajesh Tol
Senior Manager
Project Manager
Akshay Oak
Manager
IBP Supply Lead (Aruba)
Ken Devriese
Senior Consultant
S&OP Lead
Ken has a very active
lifestyle and loves to
race his own car on the
race track
Anand Srinivasan
Manager
Supply Lead
Loves sports and
painting
Sanchit Chandna
Senior Consultant
IBP Technical Architect
Sanchit loves to cook
and watch TV series
Imran Dalwai
Manager
S&O Manager
Nivya Raghavan
Senior
Consultant
S&O Process Lead
Anita Viswanathan
Senior Manager
S&O Project Manager
Venkat
Veeraperumal
Senior Consultant
Aruba Architect
Amit Sinha
Specialist Leader
Supply Architect
David Steier
Managing
Director
Data Science Leader
Bahareh Vossoghi
Consultant
Demand Consultant (Aruba)
Umesh Sharma
Manager
Demand Architect
Deb Bhattacharjee
Lead Engagement
Partner
Principal
Mike Lehman
Managing
Director
Quality Assurance
Srini Bangalore
Managing Director
Co-LEP & Advisor
Suman
Bhattacharyaa
Specialist Leader
End-to-end Solution Architect/
Planning BOM Design

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… USI played an important role
Manikandan
Shanmugam
Senior Consultant
Integration Architect
Nikhil Dungarwal
Consultant
S&OP Configuration
Abhay Upadhyay
Manager
Demand Configuration
Bhavana Khapare
Manager
Demand Configuration
Dipankar Ghosh
Consultant
Integration Consultant
Shantanu Bose
Manager
Data Scientist
Sumit Kumar
Senior Consultant
Data Scientist
Raymond D Sa
Manager
Training Coordinator

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Electronic Computer Manufacturer #2 Sub #10 Business has an enormous breadth
and depth
Every 60 seconds, we ship…
Operational
Operational Excellence
Customer
100K + customers
Channel Partners &
Resellers extend
reach
15K +
Orders managed
daily
Source
200+ suppliers
Small suppliers
comprise >75% of
spend
200+ spares suppliers
150+ repair vendors
Make
Fixed SKUs
Simple & complex
solutions
Engineered to order
Regional based
Deliver
Lead-Time 2 days
to weeks
Multiple strategic
delivery partners
& services
Ship to 70+
countries
Services
Technology Services
Support &
Consulting
Supply Chain
Parts & Services
ServiceOne &
PartsOne
Plan
10k+ active SKUs
Millions of orderable
configurations
>5M units annually
100K+ spare parts
12 Network Devices… 7TB Storage… 5 Servers
Electronic Computer Manufacturer #2 Sub #10 planning transformation is one of the most complex global
supply chains we have tackled

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Planning Transformation Drivers
S&OP.
Supplier Collaboration
Demand Planning
Supply Planning
• Custom Solution around attach rates, netting
and forecast consumption
• Lack of segmentation and adoption to
business changes
• Data integration challenges and latency
• Offline process and systems
• Plan driven significantly based on financial flash and
not projected sales
• Lack of accountability throughout process with multiple
“plans”
• Informal connection points between sales, supply
chain, demand planning
• Focus on operational, reactive activities
• Poor Supplier Forecast Signal due to very complex
technical process with various errors in the day-to-day
execution which are time-consuming to assess
• Very expensive to onboard new suppliers in a peer-to-
peer onboarding process
• Limited visibility in the signal which actually goes out
(only available as XML file, hard to read and check for
errors)
• Inconsistent methods (Manual/ Automatic) for critical
global supplier base in outsourced manufacturing model
• Lack of a global consolidated Demand and Supply
Picture
• Lack of inventory visibility across 17 different
network models
• Manual Supply Demand match and exception
management
• Functions and supply chain nodes operate
sequentially and in silos – Cumbersome analysis
based on inaccurate, obsolete or inadequate data
• Decision making is slow and done with little
insight into the operational and financial impacts
Electronic Computer Manufacturer #2 Sub #10’s planning practices had several shortcomings including poor
demand management, inability to drive a single consistent supply plan, S&OP process and supplier
collaboration

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Electronic Computer Manufacturer #2 Sub #10 Transformation Journey
Building a future state planning platform
July
2016
Aug
2017
Nov
2017
SNP
Americas
SNP
EMEA
Ariba
SCC
March
2018
SNP
APJ
Sales and Operations Planning
Demand
Response & Supply
Supply Chain Control Tower
Ariba
SCC
Inventory
Scalable &
Flexible Model
Real-time Scenario
Planning
Computation
Power
Social
Collaboration
• Single data model
between demand
and supply
• Operational and
Financial Planning
…delivering an End-to-End Supply
Chain Planning Solution…
… leveraging the latest cloud based technology!
S&OP
All HLE
Nov
2017
SNP
Aruba
Feb
2018
March
2018
Demand
All Electronic
Computer
Manufacturer
#2 Sub #10
Jan
2016
Transformation
Started
IBP Data Model
S/4 HANA – Digital Core
• What-if
simulations
• Scenario
planning and
exploring
solution options
• HANA cloud based
• Scalable and
extensible
platform
• Jam collaboration
platform available
• Web-UI, Excel
front end and
Mobile enabled
Aug
2015
Strategic
Roadmap

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Solution architecture: before and after
Complex Business and IT Systems Cloud platform enabled by IBP and ARIBA
From one week to generate and share an unconstrained requirement plan to 15 minutes!
S/4 Digital Core
• Complex architecture with sequential point-to-point
connections
• A multitude of redundant paths to share information (SNC, EDI,
BW-based)
• Network based architecture with native connections between
the different applications
• Efficient publishing of data to the Ariba network without
middleware
• Onboarding possible in cost-efficient manner adding customers
and suppliers to the network

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Business value delivered
Sales & Operations Planning (S&OP)

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Statistical Forecasting.
Integrated with S&OP and Supply
Segmentation
Option Planning
• Aggregate/ Disaggregate across Product
Hierarchy levels – Product Family, Product
Line, Category, etc.
• Automated ABC Classification based on
Revenue contributions. XYZ classification
based on variability allows users to focus
manual efforts where needed most.
• Planning at individual Tier 1 customers if
needed
• Geo and Theatre roll-up aligned to Electronic
Computer Manufacturer #2 Sub #10 Next.
• Automated outlier detection and correction based on
user defined control limits.
• Super user view that shows comparison of multiple
Statistical Models at different hierarchy levels in
simulation mode. Super user can use this to fine-tune
statistical methods.
• Support for Automated Models that can select optimal
model parameters detect trend/ seasonality.
• Replaces custom developed Carnac tool
• Location Agnostic forecasting
• Demand Planning, Supply Planning and S&OP in the
same integrated solution.
• Demand Planner can see sales and finance inputs
during the demand planning process and vice-versa.
Comparison in units or dollars.
• Forecast metrics measured for various inputs of the
consensus planning process including statistical
forecast, attach rate based plan, regional demand plan,
etc.
• In future phases, DEP process will plug into the Demand
Planning solution
• Attach Rate based planning to determine demand
plan at Option level based on linked Server level
forecasts.
• Visibility to separate dependent and independent
history for Options.
• User can choose between statistical forecast and
attach rate based forecast at Option level.
Forecast accuracy measured using both methods
to guide selection.
Business value delivered
Demand Planning

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Supply
Planning
• Dashboards to provide real-time insights
into all the planning information, from
demand plans to unconstrained
requirement plans, supplier commitments
and projected inventory
• Reporting on excess inventory as an input
to the excess and obsolescence processes
• Actionable alerts which users can leverage
to perform a true management by
exception
• Interactive planning views for users to
perform supply demand matching on
commodity level, analyzing shortages and
adjusting plans.
• Supply demand matching on both
commodity level from the supplier, and
option level for ODM’s
• Automated supplier collaboration via the
IBP Ariba connection allowing suppliers to
directly log into the Ariba portal for
retrieving critical information such as
unconstrained requirement plans, and
providing commitments and inventory
levels
• Easy supplier onboarding without IT work
, as opposed to the currently heavily
customized supplier network collaboration
environment.
• Modelling the Electronic Computer
Manufacturer #2 Sub #10 supply
fulfillment models in IBP allows to have
end-to-end visibility into the steps of
propagation from consensus demand out
of Demand Planning up to the
unconstrained requirements plan for the
supplier.
• Modeling inter-regional demand flows to
establish a truly global demand picture
where intercompany flows are reflected
as dependent demand streams
• Connection to Material Requirements
Planning to generate purchase
requisitions to critical commodities
Automated supply network
propagation
Supply Demand Matching
Data Visualization &
Management by Exception
Supplier Collaboration
Business value delivered
Supply Planning

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Business value delivered
Supplier Collaboration
Point-to-Point Integration
• Processes customized per trading partner
• EDI formats and connectivity standards
• No business logic
• No aggregated data content or history
Ariba Supply Chain Collaboration
• Standardized processes
• Configurable rules and business logic
• Reduced Data Latency to 1 Minute
• Easy Tracking of what was sent to what was committed
• 1-time connect for buyer or seller
MEMORY
CONTRACT
MANUFACTURING
COMPONENT
SUPPLIERS
SUBASSEMBLY
MANUFACTURING
RAW
MATERIAL
SUPPLIERS
DISTRIBUT
ION
CENTERS
LOGISTIC
S
PROVIDER
HARD DRIVE
PROCESSOR
SSD
Deloitte’s first Deployment of IBP and SAP Ariba Native Direct Integration

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Problem Statement:
• Supply Network Planning in Electronic Computer Manufacturer #2 Sub
#10 was driven using parallel MRP Runs, one for “Long Term Planning”
exploding the full bill of material for forecasting, one for “Operational
Planning” to generate purchase orders
• This process was time consuming, and inflexible as users could not
interactively run supply planning BOM Explosions
Problem Statement:
• In order to find the relationship between severs and the options which go in to
them (Processors, HDD/SSD, Memories), users have to manually maintain the
relationship between the servers and the options on various levels (Family, Line,
SKU)
• This information was used via a custom program in APO which was perceived to
provide very inaccurate results, implying there the dependent planning results
could not be leverages in most cases
Innovations
What we are proud of!
Planning BOMS Data Science Approach to Attach Rates
Innovation:
• Build a planning BOM concept which allows to extract the flattened out bill
of material which will be used in supply planning, allowing the IBP system
to explode the bill of material in interactive planning runs.
• This reduces the complexity foundationally, and makes IBP the system of
reference to drive supplier collaboration and planning up to commodity
level without using MRP BOM explosions
Innovation:
• Team up with Deloitte’s Data Science Practice to find a machine learning
approach to this problem statement.
• While the effort is still in progress, initial results look promising and there
is strong excitement in the Electronic Computer Manufacturer #2 Sub #10
organization, especially looking forward to the new product structure

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Lessons Learned!!
What
can
be
done
better
• Data integration required more attention than we initially estimated (3 different ERPs)
• Network finalization i.e. commodity level network flow should be detailed out right in the beginning
• Due to complexity of the master data, additional time was needed for business validation
• Sprint plan worked…for design and build; but important factors were not incorporated:
• Understanding of network
• Master and transaction data changes required due to changes in the network
• Limited Resource from Electronic Computer Manufacturer #2 Sub #10 (now <Company Name>) to address
the issues
• Keeping every single decision / approval documented was very useful
• Close collaboration with the SAP Support and Development organization to efficiently resolve functionality gaps an
tickets
• Communication, communication, communication
• In Agile projects, ensure to check assumptions quickly

16. Thank you.