SAP GTS implementation (Krypt Inc.) -- case study for life science global trade solution deployment

2. AbbVie Streamlined Its Supply Chain with SAP GTS
Globally to Replace Various Trade Legacy Solutions
and Exited TSA Within Tight Time Constraints
Jacki Dioguardi – Vice President, Enterprise Applications
Mike Stadler – Director, Global Trade Compliance
Rajesh Malle – Krypt Inc.
SESSION CODE: CP1603

3. § Who
are
we?
§ AbbVie
Global
Trade
Footprint
§ Project
Background,
Scope
&
Schedule
§ Key
Features
§ Challenges
&
Key
Learnings
§ Q
&
A
Agenda

4. A
niche
systems
integrator
in
the
Supply
Chain
space
providing
unique
and
high-­‐value
soluJons
using
SAP
technologies
like
GTS,
WM/EWM,
TM,
GRC,
BI
and
HANA
Corporate
§ Founded
in
2008
§ Team:
80+
in
the
US
and
25+
in
India
§ Presence
throughout
U.S.
and
in
India;
HQ
in
Santa
Clara,
CA
Customers
§ Serve
companies
in
35
countries,
mostly
Fortune
Global
500
§ Over
95%
of
customers
have
been
repeat
customers
Financials
§ Privately
held;
100%
(YoY)
revenue
growth
in
2013;
annualized
rate
of
260%
revenue
growth
over
past
three
years
Thought
Leadership
§ Authored
6
books
and
65+
white
papers
published
by
SAP
Press
§ Invited
to
speak
at
business,
industry,
and
SAP
conferences,
and
expert
round-­‐tables
§ ConJnuous
investment
in
R&D;
co-­‐innovaJon
with
SAP
on
GRC,
SCM
and
AnalyJcs
suite
About Krypt Inc.

5. AbbVie – A Broad and Strong Foundation
Medicines available in 170+ countries
19 R&D and manufacturing facilities
Portfolio of market-leading medicines
Compelling new product pipeline
$19.9 billion in 2014 sales

6. 6
How we achieve Performance
TOP-­‐TIER
PERFORMANCE

7. Project Objectives

8. AbbVie was a new company
Key
ComplicaAons
Recent
SituaAon
§ We
were
reliant
on
a
host
of
Abboh
transiJon
service
agreements
(TSAs)
for
our
IT
systems
and
infrastructure,
and
we
needed
to
move
away
from
these
by
the
end
of
2014
§ There
were
several
in
process
Abboh
iniJaJves
that
will
conJnue
to
impact
AbbVie
post-­‐
separaJon
§ Complex
environment
–
we
are
uJlizing
>50
legacy
Enterprise
Resource
Planning
(ERP)
systems
globally,
which
is
unsustainable
§ CompeJng
prioriJes
–
we
are
simultaneously
undertaking
mulJple
strategic
programs
across
the
organizaJon
§ Difficult
road
ahead
–
success
rate
of
large
scale
transformaJon
programs
is
low,
but
the
typical
hurdles
are
known
and
can
be
managed
We
have
an
opportunity
to
posiAon
AbbVie
for
long-­‐term
growth
and
success

9. A Global Template was Deployed
Leverage
our
Investment
Enhance
Business
Flexibility
Reduce
Future
Deployment
Costs
/
Time
§ Enable
major
business
benefits
globally
(e.g.
Shared
Services)
§ Standardize
&
harmonize
AbbVie
business
processes
§ Enable
governance
to
maintain
integrity
and
evolve
funcJonality
§ Reduce
maintenance
cost
by
maintaining
a
single
soluJon
§ Drive
inter-­‐company
and
business
unit
collaboraJon
§ Enable
Enterprise-­‐wide
visibility
to
data
§ Provide
a
common
planorm
for
future
opJmizaJon
projects
§ Establish
planorm
for
mergers
and
acquisiJons
§ Accelerate
design,
build,
test
and
cutover
§ Standardize
AbbVie
Project
Management
and
SAP
deployment
processes

10. The FOUNDATION program provides the full solution
that is needed to achieve our goals
People & Process
§ Target
OperaAng
Model
for
Finance
and
OperaJons
§ Standardized
end-­‐to-­‐end
processes
§ Leveraged
in-­‐house
and
outsourced
capabiliJes
§ Balance
of
global,
local
and
regional
resources
§ Clear
governance,
roles
and
accountabiliJes
Technology
§ Single
instance
SAP
environment
§ Standard
global
template
§ Other
common
applicaJons
and
technologies
§ Common
data,
tools
and
capabiliJes
§ Flexibility
for
innovaJon
and
growth

11. Project Schedule
§ SupporJng
11,000
users
in:
§ 114
countries
§ 6
manufacturing
sites
§ >12
languages
§
New
organizaJonal
model
roll
out
BPO,
Financial
Services
and
SAP
Shared
Services

12. AbbVie
Future
ERP
Landscape
(by
2015)
AbbVie
ExisAng
ERP
Landscape
(Current)
This Program allowed for the decommissioning of many
systems
AbbVie
ERP
Landscape
(Current
-­‐
2015)
AbbVie
Global
ERP
BPCS
Gold
(22)
SAP
P31
SAP
(Atrium)
BPCS
/
AP41
(8)
iScala
(8)
JDE
SAP
R/3
(2)Region
System
(5)
SAP
ECC6
(Non-­‐Symphony
or
P30)
Local
BPCS
/
AS400
ERP
(7)
AbbVie
Global
ERP
SAP
AES

13. AbbVie Global Trade Compliance
R&D
Commercial
Manuf.
Corporate
Center
of
Excellence
Global
Trade
Compliance
Manuf.
Corporate
R&D
Commercial
1. Inconsistent
processes
/
controls
2. Lack
of
a
structured
trade
strategy
or
technology
roadmap
3. Trade
resources
operated
in
silos
4. Operated
mainly
in
a
reacJve
mode
5. Limited
organizaJonal
growth
and
ability
to
leverage
talent
across
sites
1. Centralized
and/or
funcJonally
aligned
resources
2. Established
a
global
and
regional
organizaJonal
structure
3. Implemented
a
formalized
target
operaJng
model
(TOM)
which
includes
the
COE
concept
4. Roll
out
of
standard
processes
and
training
5. Centralized
experJse
to
beher
idenJfy
opportuniJes
Legacy
Trade
Environment
Current
GTC
FuncAon
TOM/COE
Deployment
Inconsistent
Approach
w/Siloed
Resources
Aligned
FuncAon
w/Focused
Professionals

14. AbbVie’s Global Trade Footprints
~43
Impor*ng/Expor*ng
Countries

15. § TransiJon
from
legacy
non-­‐AbbVie
systems
that
supported
trade
operaJons
§ Deploy
a
global
trade
planorm
that
meets
AbbVie’s
current
and
future
needs.
§ Access
to
a
single
tool
that
would
provide
visibility
to
all
AbbVie
trade
acJvity
globally
§ Standardize
key
processes
(e.g.
master
data)
and
import/
export
documentaJon
SAP GTS – Our Goal

16. Solution Overview

17. GTS Functionality
FuncAonality
implemented
in
four
disAnct
phases:
Phase
I
Phase
II
Phase
III
Phase
IV
• Restricted
Party
Screening
• Embargo
Check
• Product
ClassificaJon
• Import/Export
Documents
• Legal
Control
• U.S.
Export
Self
Filing
• Web-­‐Based
Screening
Tool
• Netherlands
Import/
Export
Self
Filing
• Import
Permit
&
Market
AuthorizaJon
• Germany
Import/Export
Self
Filing
2013
2014
FuncAonality
Deployed
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
Compliance
SPL
Screening
(DPL)
Embargo
Screening
Licensing
/
Legal
Control
Adhoc
SPL
Screening
Export
Processing
Export
DocumentaJon
Electronic
Self
Filing
Import
Processing
Import
DocumentaJon
Electronic
Self
Filing
Deployment
Phase
Schedule
§ Number
of
countries
impacted
in
each
phase
was
dependent
on
trade
acJvity
§ Total
of
37
countries
on
the
GTS
planorm

18. Key GTS Features of AbbVie’s
Deployment

19. § CombinaJon
of
standard
and
custom
funcJonality
to
support
compliance
screening
at
Customer
/
Vendor
and
TransacJon
level
(manual
&
ECC
shipments)
§ Adhoc
restricted
party
screening
in
web
based
tool
Key Features – Compliance Module
Screening Occurs
GTS Screening Process

20. § ClassificaJon
&
Regulatory
Data
§ Export
Control
ClassificaJon
Number
§ Tariff
codes
for
53+
Countries
§ FDA
Product
Code
§ OGA
/Regulatory
Data
for
US
and
EU
§ Measures
and
AddiJonal
Codes
for
EU
§ GTS
established
as
primary
source
for
commodity
codes
§ Custom
frontend
tool
to
manage
OGA
/
Regulatory
Data
for
US
and
EU
Key Features - Classification &Trade Data Module
ClassificaAon
&Trade
Data
Module

21. § Standard
export
documentaJon
templates
for
30+
countries
§ Pro-­‐Forma
Invoice
§ Shipper
Leher
of
InstrucJons
§ CerJficate
of
Origin
(XML
and
PDF)
§ EU
Specific
Documents
(EXA/EUA,
T1/T2,
EUR1
and
A.TR)
§ Pre
Pro-­‐Forma
Invoice
in
GTS
for
import
permits/
pre-­‐approval
§ Export
Customs
e-­‐Filing
§ US
Export
with
AES
System
§ NL
Exports
with
SAGITTA/AGS
System
§ NL
Transits
with
NCTS
§ DE
Exports
with
ATLAS
§ DE
Transits
with
NCTS
Key Features - Export Module
21

22. § Global broker clearance instruction template
§ Import Customs
§ Netherlands
§ Local clearance procedures and
transit discharge with NCTS
§ Periodic Monthly Declaration & GPA
Report with AGS
§ Germany
§ E-filing with ATLAS and transits
discharge with NCTS
§ Monthly Duty Statement
Key Features – Import Module
22
12345678
1234567890
SAMPLE
COMPANY
1234-­‐5678-­‐9011
AbbVie,
Inc.
1
N
Waukegan
Road
North
Chicago
IL
Sample Product Sample 12345 1,000 1 1 1,000 1,000

23. § New
funcJon
at
AbbVie
deploying
a
new
technology
§ HarmonizaJon
of
master
data
§ Onboarding
of
twenty
new
GTC
team
members
§ Complex
financial
flows
and
impact
on
GTS
§ Change
management
of
both
internal
and
external
partners
§ IntegraJon
of
GTC
and
GTS
into
the
larger
ERP
project
Challenges in Deployment

24. § Many
moving
parts
§ IntegraJon
of
SAP
GTS
with
SAP
ECC,
SAP
SRM
and
other
legacy
systems
§ Complex
cutover
and
synchronizaJon
with
SAP
ECC
Master
data
/
TransacJon
data
§ CustomizaJons
to
meet
business
requirements
–
41
WRICEF
objects
Challenges in Deployment

25. § New
GTC
resource
focused
primarily
on
enhancing
our
GTS
planorm
and
processes
while
raJonalizing
our
trade
system
pornolio
§ IntegraJon
of
AbbVie’s
non-­‐commercial
shipping
system
into
GTS
§ Deployment
of
a
comprehensive
reporJng
tool
§ Maximize
our
Investment
in
GTS
by
funcJonality
expansion:
The Future: Expanding our Technology Footprint
§ US
and
IE
self
filing
§ EU
trade
programs
–
Inward
Processing
Relief
(IPR)
and
Processing
under
Customs
Control
(PCC)

26. § IntegraJon
across
People,
Process
and
Technology
§ Partnership
across
IT,
Business
and
System
Integrator/s
§ Leveraged
accelerators
and
Krypt’s
experience
to
implement
SAP
GTS
§ AdopJon
of
common
business
process
based
on
best
pracJces
globally
to
ensure
sustainability
and
scalability
Learning Points

27. Thank You and Questions

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SESSION
CODE:
CP1603
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