A general overview (executive summary) of what SCEM is and why use SCEM.

1. SCEM Overview
© Paresh Bhagwatkar, 2010
May be used without permission with proper attribution

2. SCEM Overview
What is it? Event Management (EM) and Supply Chain EM (SCEM)
Why SCEM?
High-level SCEM process philosophy
High-level SCEM landscape
SAP SCEM Features
Pre-configured Visibility Scenarios (SAP delivered functionality)
Case Study

3. What is SCEM
Event Management
• Monitoring of a business process based on expected and actual events
Supply Chain Event Management
• Monitoring of supply chain processes for visibility into the process
• Alerting relevant users for taking action
• SAP SCEM is SAP’s SCEM product

4. Why SCEM?
We all know this scenario…
Husband (on phone): Honey, I am “about to leave” work now. I am
just printing this report and will be on my way. I will see you in half
an hour! We can leave for Billy’s game as soon as I get home.
Paper jam in printer …. + 5 min
Utility work on the way….+10 min
Had to fill gas (light came on)…+5 min
Reached home 20 min late

5. Result?

6. Why SCEM?
Alternative scenario…
Husband (on phone): Honey, I am “about to leave” work now. I am just
printing this report and will be on my way. I will see you in half an hour! We
can leave for Billy’s game as soon as I get home.
Paper jam in printer …. + 5 min
Husband calls wife: Looks like it will be a few more minutes
Wife: OK…anyways…that game always starts a few minutes late. Keep me
posted.
Utility work on the way….+10 min
Husband calls wife: More snags…they have stopped the traffic…
Wife: Well…you should have left a little bit earlier. May be we will leave and
you come to the ball park directly. At least it is good that you let me know
Had to fill gas (light came on)…+5 min
Result?
• Some irritation with customer
• Customer is thankful for being informed
• Customer able to make adjustments
• Overall process is not negatively impacted

7. So, why SCEM?
Because “stuff happens”!
Drivers for tracking of supply chain processes and alerting
• Increasing speed of business
• Leaner process chains
• Shrinking customer inventories (raw materials and intermediates)
• Fragmented tracking methods
• Expectations of customers
• Need to leverage advance notifications from upstream to adjust
downstream processes
• Contractual/ Legal Implications
• Efficient tracking KPIs - On-time performance

8. SCEM High-level Process Philosophy
Supply Chain Process (or any Business Process)
Generate
Tracking
Reports
On-screen/
Printed
Identify Critical Identify
Capture Actual Monitor Generate
Points in Expected
Events Process Alerts SMS
Process Events
What and when What and when
Order entered, System does this Email
e.g. ETA for e.g. Delivered at
order picked, Compare actual to
Delivery at customer on 4th
order goods expected
customer 3 days day from GI
issued, delivered Trigger
from Goods Issue All actual events
at customer predetermined
are recorded
action(s)
(planned and
Trigger
unplanned)
Workflows

9. High-level SCEM Landscape
SAP SCEM is an SAP application
Can be hosted within the SCM system
or as separate SCEM system
SAP SCM Multiple messaging/
integration
technologies
SAP
SCEM Supply Chain Partners
Internal Customers
Non-SAP WCL
Systems ERP (Web Communication
(SAP R/3)
In-house Layer)
External Customers

10. SAP SCEM Features
Operates behind the scenes
• Usually transparent to operational users
- Usually no additional transactions
- Usually business process continues even in case of SCEM malfunctions
Flexibility of integration
• SAP SCEM can be connected to SAP ERP and non-SAP systems
• Accepts external messages (e.g. from carrier) in multiple formats/ technologies e.g. EDI, RFC, etc.
• Integration with handheld devices
• Integration with RFID technologies (through SAP AutoID Infrastructure – AII)
Scalability and Flexibility with “depth” of implementation
• SAP delivered “Visibility Scenarios” – Quick implementation for at least proof of concept
• Ability to define own visibility scenarios
• Can use in any process area – Any transaction can be an event
Web Communication Layer
• Portal for access by internal and external customers e.g. scem.mccormick.com
Role based access to tracking information
• Users see what they “need” to see
Ability to use SAP BI (BW) and SAP Analytics
• Monitor KPIs
• Dashboarding with SAP Analytics

11. Pre-configured Visibility Scenarios
Procurement
Production (malfunction)
Fulfillment
Transportation
Outbound/ Inbound Delivery
RFID Enabled Returnables
Seasonal Procurement
Rail Car Management

12. Case Study
Customer Profile
Customer Profile
Major chemical company
Major chemical company
Global Sales: ~$72M
Global Sales: ~$72M
Operational presence in North America, South America, EU, Africa, Mid East, South Asia, Far East
Operational presence in North America, South America, EU, Africa, Mid East, South Asia, Far East
Domestic and global (affiliate and customer) shipments
Domestic and global (affiliate and customer) shipments
SAP Application Footprint: SAP ERP (R/3), Supply Chain Management/ APO (SCM 5.0), SCEM, GTS
SAP Application Footprint: SAP ERP (R/3), Supply Chain Management/ APO (SCM 5.0), SCEM, GTS
Challenges Solutions Implemented
Challenges Solutions Implemented
International front Container tracking in SCEM - Affiliate and
International front Container tracking in SCEM - Affiliate and
• High volume of international shipments - Affiliate and Customer Shipments - - Global template
Customer Shipments Global template
• High volume of international shipments - Affiliate and
customer export shipments Yard management implemented using On-site
customer export shipments Yard management implemented using On-site
• Three SAP instances (being consolidated) Event Manager (OSEM)
• Three SAP instances (being consolidated) Event Manager (OSEM)
• Uncertainties with export shipments (making the
• Uncertainties with export shipments (making the Rail Car Extension (RCX) for rail car tracking
vessel, vessel delays, customs clearance, etc.) Rail Car Extension (RCX) for rail car tracking
vessel, vessel delays, customs clearance, etc.) outside site
• Visibility for receiving companies – Needed to adjust outside site
• Visibility for receiving companies – Needed to adjust
production schedules, customer communication, etc.
production schedules, customer communication, etc.
Capture of events from outside the organization - -
Capture of events from outside the organization
Domestic front Carriers, freight forwarders, messaging hubs
Domestic front Carriers, freight forwarders, messaging hubs
• Need for tracking rail cars, trailers, containers within Capture of events from ERP system
• Need for tracking rail cars, trailers, containers within
site - Yard Management Capture of events from ERP system
site - Yard Management Capture of events from handheld devices
• Need for tracking rail cars outside site Capture of events from handheld devices
• Need for tracking rail cars outside site On the path to integrate GPS for tracking rail cars
•
•
Need for tracking domestic and cross-border truck
Need for tracking domestic and cross-border truck
On the path to integrate GPS for tracking rail cars
shipments
shipments

13. Inquiries and Information
Please send an email to info@pareshbhagwatkar.com for more
information or for permission to use without attribution of credit
Author’s web-site: www.pareshbhagwatkar.com
LinkedIn: http://www.linkedin.com/in/pareshbhagwatkar
Permissions
• This presentation may be used in whole or part without permission for
uses including commercial gain with proper attribution to the author
(including name of author and link to web-site)
(SAP, SAP SCEM, and other terms related to specific SAP products are
trademarks owned by SAP AG)