Sapphire Presentation for Review_CPG_Food.PPTX

0 Copyright 2010 Fujitsu America, Inc.
Fujitsu Capabilities' & Solutions

Introductions
John V. Counts Sr.
Vice President Enterprise Solutions
SAP years: 18 years
Manufacturing: 22 years
Certification: B.S. Industrial Engineering, MBA
Logistics, SAP Certified, Six Sigma (Black Belt),
APICS Certification, CPIM / CSCP.
Expertise: Consumer Products Food & Beverage,
Automotive, Life Science, High Tech, Industrial
Machine & Component , Mill Products and
Catchweight, Lean Manufacturing & Wholesale
Distribution.
Key Clients: Ford, Lenovo, Tyson Foods, Smithfield
Foods, Pilgrim’s Pride, Dean Foods, Perdue Farms,
Coca Cola, Pepsi Cola, Brown Forman, Southern
Wine, John Deere, Caterpillar, WR Grace, Gilbarco-
Veeder Root, Volvo, Owens Corning, Novus, DHL,
Bosch, Hearthside Foods etc.
“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”-Aristotle

Agenda
 Fujitsu Project Approach
High Level Presentation of Selected Solutions

Agenda
Fujitsu Project Approach

1. Analyze and plan
 Cost and profitability analysis
 Comprehensive sales planning
and monitoring
2. Procure
 Inventory/stock visibility
 Compare vendor quotations
5. Deliver and
service
 Complete support for
product returns
 Complaint management and
track and trace capability
3. Manufacturing
 Support for multistage
manufacturing processes
 Integrated costing and quality
management
4. Market and sell
 Capable to promise/
available to promise
 Product allocation
 Third-party sales drop-ship
Fujitsu’s Core Ability to Integrate Systems
Creates Tangible Value in All Key Areas

Macroscope® Program Methodology with ASAP Extension
• PROVEN
• PRACTICAL
• INTEGRATED
• SCALABLE
• CUSTOMIZABLE
• SUPPORTED
Processes
 What do we do? Who does it?
 When? In what sequence?
 Tailoring guidelines
Roles
 Clear roles and responsibilities
 Team dynamics
 Role perspectives on process
Deliverables
 What work products are required?
 Suggested content
 Which techniques can help me?
Techniques
 How do I do this?
 How to capture the results?
 What notation should I use?
Accelerators
 Deliverable Assistant
 Templates and examples
 Checklists and Worksheets
 Annotation and support material
 Other productivity tools
Learning Resources
 Role-based Training
 Case Studies
 Examples
 Printable Guides
5

ASAP Integrated with Macroscope
Leveraging the strength of our experience and successful approaches

Rapid Implementation Design
Design is an on-going activity
Design in Lean IT is not static – it is incremental and responds
to learning
Do the simplest thing that can possibly work at
each point:
 Passes all known tests
 Contains no duplication
 Communicates intent clearly
 Is a small as possible – fewest classes, methods, lines of code
No speculative development (YAGNI)
 Always develop things when you actually need them, never when you
just foresee that you might need them
Simple designs reduce friction and surface area
7

Globalization vs. Localization
Using the Fujitsu Global ASAP methodology, global enterprises can streamline multisite implementations through the
development and subsequent rollout of a global template. By conducting an analysis of your business processes and
requirements, you are able to define which are common to all sites and which are sites-specific. The global template
includes those processes common to all sites. Use of this template enables quick, repeatable multisite
implementations. Local requirements such as site-specific processes and local statutory requirements are then
incorporated into your global template at the appropriate local level during rollout.
Local
Elements
15-20%
Global
Elements
80-85%
Documen-
tation
Structures
and settings
Global
Configuration Org structure
Master data
documents
Language
& Currency
Statutory
Regulations
Global and inte-
grated processes
Other
STANDARD DATA
STANDARD PROCESS
STANDARD METRICS
STANDARD PERFORMANCE
Fujitsu’s
Global
Template

Agenda
Fujitsu Project Approach

3rd Party
Warehouse
Feedlots
Retailers
Consumers
Co-Packers
Distributors
Industry
Customers
Service/Maintenance
Transport
Authorities
CPG
Manufacturers
Farmers, Feed
Suppliers, etc.
Suppliers
SAP CWM-based Solution:
More Efficiency, Customer Satisfaction & Profitability
Accurate calc. of weight:
 Freight costs
 Reloading/Unloading
Accurate Prod. Planning:
 Yield
 Overstock
 Efficiencies
Relevant Unit/Quantity-
based planning:
 Overstock
 Sell-off need
Inventory visibility in
Parallel Quantities:
 Out-of-stock situations
 Re-measuring
Actual weight-based
Invoicing & Payments:
 Efficiency
Prod. Costing on dedicated
valuation unit:
 Accounting impact on
manufacturing
 Control & profitability info
 Correction of books
Actual weight-based billing:
 Customer disputes = lower costs
 Customer satisfaction
 Give-away = more profitability
Communication of
shipped goods in parallel
quantities incl. packing:
 Customer Satisfaction
 Re-weighing effort
 Efficiencies
Pre-configured Solutions

Innovative Solutions for Clients - Samples
 Poultry: Fujitsu was chosen by a major poultry company to migrate to SAP ECC
6.0 and implement Financials and Business Intelligence. Customer is the
number-one brand of premium chicken in the Eastern U.S., entered into their
SAP Upgrade’s realization phase in June 2010. The project presented both the
challenge and opportunity to build a sophisticated SAP O2C-based solution for
upgrading SAP 4.6C (IS-Oil) to SAP ERP 6.0 with EhP 4 (Catch Weight
Management).
 Wholesale Distribution Solution: Fujitsu developed an automated chargeback
management system for a Major Wholesale Distributor leveraging the Vistex
product. Fujitsu team also developed a unique Online Order Guide. This
innovative solution has provided immediate ROI by streamlining order entry and
chargeback management. Chargeback cycle reduced from 30–90 days to 14–
21 days, and eliminating loss from manual recovery of chargebacks
 Catch Weight Management (CWM) solution: Fujitsu partnered with SAP and
deployed the first successful CWM solution for a major food group allowing
them to manage their inventory and financials in multiple units of measure.
Fujitsu also partnered with SAP for the first successful deployment of
OutlookSoft (now BPC) significantly improving the company’s ability to obtain
accurate, timely and detailed financial statements.

Identify, Quantify & Reduce Catch Weight Loss
 Accurately identify and quantify catch weight loss at
various points in the supply chain where it was not
previously possible.
 Implement technologies and processes designed to
reduce catch weight loss.
 Enable more accurate reporting and accounting of catch
weight value throughout the supply chain, helping to
increase revenue realization
 Reduce product time-to-market, enhancing your
competitive advantage and revenue potential.
The special challenges in food processing operations and their supply chains have often forced companies to accept
a high degree of product loss along with accounting inaccuracies as product moves to market. Fujitsu offers deep
business expertise in delivering Enterprise Resource Planning (ERP)-platform solutions such as Catch Weight
Management. Fujitsu helps you identify and assess opportunities in your internal operations and processes, as well
as your broader supply chain where our tailored solution will drive new standards for performance.
For food companies
Manufacturing: Consumer Products Foods Solution Template
Catch Weight Management
Improve Operational Performance
 Improve revenue realization through increased reporting
and accounting accuracy of catch weight value
throughout the supply chain.
 Reduce the effort required for repeated weighing
operations by linking actual weights to handling units.
 Improve the visibility of costs and reduce the total cost of
ownership (TCO).
 Improve the visibility of margins with new flexibility in the
management of inventory prices.
 Increase channel partner and customer satisfaction
through more accurate billing of actual weight shipped.
• With CWM, the fullfilment of purchase orders can be recorded and controlled more accurate for catch-weight
materials: Goods receipt is posted in 2 units of measure (UoM) in parallel, the logistics unit of measure (e.g.
pieces) and the valuation unit of measure (e.g. kg). If the pricebase of the purchase order-item is defined using the
valuation UoM, verification of the receipt invoice is performed against the real catch-weight quantity, which is more
precise than without CWM, where only planned conversion factors are available
Procure to Pay
• With CWM, the fullfilment of customer orders can be recorded and controlled more accurate for catch-weight
materials: Goods issue is posted in 2 units of measure (UoM) in parallel, the logistics UoM (e.g. pieces) and the
valuation UoM (e.g. kg). If the pricebase of the sales order-item is defined using the valuation UoM, creation of the
sales invoice is performed based on the real catch-weight quantity, which is more precise than without CWM, where
only planned conversion factors are available.
Order to Cash
• With CWM, the goods issues and goods receipts related to PP- or PP-PI orders can be recorded and controlled
more accurate for catch-weight materials: all movements are posted in 2 units of measure (UoM) in parallel, the
logistics UoM (e.g. pieces) and the valuation UoM (e.g. kg).Manufacturing
Inbound & Outbound
Logistics
Inventory Accounting
With CWM, all material movements for catch-weight materials are posted in 2 units of measure (UoM) in parallel, the
logistics UoM (e.g. pieces) and the valuation UoM (e.g. kg). Accordingly, Inbound and outbound delivery for catch-
weight materials are also recorded in both UoMs. If handling unit management is in place, also postings related to
handling unit-items are performed in both UoMs.
In warehouse managment, transfer orders are used to report quantities in both UoMs in order to enable inventory
management to update inventory in both UoMs.
Inventory Accounting for CWM supports valuation of goods movements and material inventory based on parallel units
of measures as used with Catch Weight Management scenarios. For each CW relevant material either the logistics
unit of measure (e.g. pieces) or a parallel unit of measure (e.g. kg) can be chosen as base for the valuation. Material
movements can be valuated online with either moving average price or standard price. In addition balance sheet
valuation functionality allows the calculation of periodic prices based on different procedures like FIFO or market
price. All prices are held in the flexible price manager which supports daily or periodical prices and introduction of
additional prices types required for additional purposes. Besides material inventory also work in process is valuated
immediately with the costs incurred for the production or process order. Remaining variances after goods receipt can
be settled periodically as also remaining variances from procurement processes can be cleared periodically.
Business Processes
ECC 6.0 CWM Business Case

Fujitsu Preconfigured Solutions
 Procure to Pay
 Live Stock Procurement
 Catch Weight Management
 Production Planning
 Production Execution
 Production
 Sales Order Processing
 Indirect Sales
 Direct Store Delivery
 Empties Management
 Rebate and Bonus
Management
 Sales Returns
 Meat Sales Processing
 Traceability & Food Safety;
Quality Management
 Inventory Management
 Excise Duty
 Contribution Margin Planning
 Financials and Controlling

Industry Challenges
 Improving efficiency of purchasing activities
 Realizing savings in purchased value
 Allowing visibility into vendors’ conditions and
services
 Ensuring tracking and traceability
 Ensuring quality of all materials and
components used in manufacturing
Business Benefits
 Automate operational tasks
 Improve vendors’ selection and price
comparison through quotation handling
 Formalize agreements by introducing contract
management and relating it to quotations
 Introduce batch management for tracking and
traceability of components
 Guarantee quality check through goods receipt
inspections
Efficient purchasing is a top task for food & beverage companies today. SAP ERP supports price comparison of
vendors’ offers, incorporating flexible pricing processes for the actual value of the raw ingredients delivered. Provided
are tools to gain greater spend visibility in procurement, to automate operational tasks, and to help manage
quotations, contracts, batch handling, and quality.
For food & beverage companies
Solution
Procurement
 Request for
quotation, for
Proposal
 Price
Comparison
 Purchase
requisition,
Purchase order
 Warehouse
Management
 Quality
Inspection
 Batch
Management
 Vendor
Evaluation
 Returns
 Subcontracting
Contracts
 Contract
Management:
Vendor,
quantity, value
and validity
period
 Monitoring
contracts
 Invoice
verification
 Rebates
Sourcing and Procurement
Procure To Pay
Third-Party
Procurement
 Info records
 Scheduling
agreements
 Delivery
Schedule
 Management of
vendor
consigned stock
 Invoice receipt
from
Consignment
Withdrawel
 Outgoing
payment

Industry Challenges
 Highly volatile prices in purchasing livestock
 Extreme margin dependence based on
efficiency in procurement
 Unknown quality levels in meat
 Less transparency in payment process
 Different, complex, and individual
procurement processes
 Risk of purchasing infected meat
Business Benefits
 Improved transparency in meat procurement
 Increased procurement processing efficiency
 Raised quality standards by integrated quality
management
 Reduced operating costs and increased
efficiency by efficient procurement processes
 Enhanced communication with farmers/
suppliers
This is a focused solution for livestock procurement. The SAP® ERP packaged solution for the meat industry features
a powerful livestock procurement function that you can use to purchase efficiently, process the goods receipt, and
settle. It includes efficient procurement of livestock, compliance with high-quality standards and traceability
requirements at all process stages, calculation of payments based on quantity and quality characteristics, monitoring
of the procurement and payment processes, and release of reports to the supplier.
For meat companies.
Meat Purchasing
 Set up contracts
with supplier (e.g.,
conditions,
quantity, time
frame)
 Set up quality
criteria for
valuation
 Enter market prices
 Purchase live
animals
 Trade meat
 Manage order
Sourcing and Procurement
Livestock Procurement
Solution
 Creation of lot
number with direct
reference to PO
and supplier
 Sampling
management in
goods receipt
 Capturing weight
and quality criteria
 Monitoring of
supplier
relationship status
 Livestock settlement
calculation based on
quantity and quality
criteria
 Evaluated Receipt
Settlement (ERS) –
automatic invoice
creation
 Report with overview
of delivered livestock
and its quality
SettlementGoods Receipt

Industry Challenges
 Reducing time-to-market in CD&HA
manufacturing
 Ensuring quality checks over the entire
manufacturing process
 Improving manufacturing efficiency
Business Benefits
 Create and modify bill of materials easily
and quickly
 Identify quality-noncompliant lots by
defining product inspection lots and related
usage rules
 Calculate and monitor production costs
SAP ERP gives the flexibility to manage multistep manufacturing processes. It incorporates in-process and post-
process quality management. The solution also includes cost-object controlling, such as preliminary costing,
simultaneous costing, and period end closing.
Production
Planning
 Sales and Operation Planning
 Transferring data to Demand Management
 Planned independent requirements
 Long-term planning
 MRP run
 Generation of planned orders
 Planning table
 Capacity planning
 Conversion of planned orders into
production orders
Production Planning
Solution

Industry Challenges
 Reducing time-to-market in CP
manufacturing
 Ensuring quality checks over the entire
manufacturing process
 Improving manufacturing efficiency
Business Benefits
 Create and modify bill of materials easily
and quickly
 Identify quality-noncompliant lots by
defining product inspection lots and related
usage rules
 Calculate and monitor production costs
For food & beverage companies,
Production Execution
Production
Execution
 Production order creation
 Bill of material management
 Make-to-Stock Production – Process Industry
 Make–to–Stock Production – Discrete Industry
 Repetitive Manufacturing
 Make-to-Order Production w/o Variant Configuration
 Rework processes
 Quality management
 Batch Management
 Product costing
 Inventory update
 GMP compliance
 Lean manufacturing
 Kanban
 Heijunka (Production Leveling)
Solution

Industry Challenges
 Increasing competitive pressure from retailing/growth
of private labels
 Short-term notice of customer demand
 Variable demand due to seasonality
 Difficult management of production planning and
execution due to high product complexity
 Transparency in yield and cost on a timely base
 Multistage complex production environment
 Traceability throughout production
Business Benefits
 Improve transparency in dairy production
 React flexibly to fluctuating demand
 Realize higher demand accuracy
 Reduce operating costs and increase efficiency by
efficient production processes
 Calculate and monitor production costs seamlessly
For meat companies.
Slaughtering
Production
Segmentation
Solution
Secondary
Processing
 Secondary
processing
schedule
 Sample
management
 Post-process
quality
management
 Packaging raw
and processed
meat
 Capturing data for
traceability
 Production order
costing
 Label printing with
weight, batch,
date, etc.
 Segmentation
schedule
 In-process and
post- process
quality
management
 Material up- and
downgrading
 Shop-floor data
acquisition
through user-
friendly interface
 Capturing data
for traceability
 Segmentation
costing
 Segmentation
statistics
 Slaughtering
schedule
 Recording grade
and weight of
slaughtered
livestock
 Capturing data for
traceability
 Slaughter costing
 Source of origin

Industry Challenges
 Managing variable pricing conditions by different
customer/product combinations
 Shortening order cycle times
 Meeting customers’ requests for improved services
(such as order fulfillment, invoicing, and payments
methods)
Business Benefits
 Define standard and ad hoc price lists easily and
quickly
 Improve the sales execution timeline by implementing
a seamless process and the timely availability of key
information
 Improve order fulfillment through stock availability
checks
 Provide the customer with alternative services and
methods for invoicing and payments
SAP ERP can effectively manage the entire customer order process – variable pricing, delivery, invoicing, and
payment. You can focus on shortening order cycle times, make on-time and in-full deliveries, and provide customers
with optimal payment methods.
Extended Sales
Order
Processing
 Sales order
creation
 Third-party
sales order
 Delivery
creation
 Picking
 Goods issues
posting
 Down payment
 Billing creation
 Billing
documents
display
 Availability
checks and
batch
determination
Customer
Consignment
Processing
 Consignment
fill-up
 Consignment
issue
 Consignment
pickup
Sales Order Processing
Solution
EDI
 Inbound sales
order via EDI
 Outbound
billing
document via
EDI

Industry Challenges
 Obtaining usable and relevant data about
customers through third-party wholesalers
 Allocating promotional spend efficiently
 Securing correct rebate processing across
a complex supply chain
Business Benefits
 Understand better those customers that are
serviced by a third-party wholesaler due to
improved data quality and availability
 Allocate promotional spend more
efficiently by collecting and analyzing
valuable customer information
 Process rebates and commissions
correctly due to improved data quality and
availability
Obtaining customer information through a third-party wholesaler can be a challenge for many food companies. The
SAP™ ERP packaged solution enables food companies to gain a more complete understanding of their business
performance by allowing them to track their sell-through in different channels and to specific accounts.
Indirect Sales Data
Management
 Maintain information
about wholesalers’
customers
 Create template for
data requirements
 Create requests for
sales reports
 Receive indirect
sales data (volume,
quantity, and value)
from wholesalers
 Confirm and
validate received
data for rebates
calculation
 Analyze indirect
sales data
 Perform periodic
partial settlement
Rebate Agreements
 Define rebate
agreements
 Track rebate
obligations for
both direct and
indirect sales
 Take contractual
agreements into
consideration
 Set up reserves
based on
planned sales
 Settle indirect
agreements
Indirect Sales
Solution

Industry Challenges
 Succeeding in the face of intense
competition between brands
 Establishing direct contact with customers,
such as retailers, restaurants, and pubs
 Improving operational efficiencies in a
complex system
Business Benefits
 Improve customer service through better
service levels and multiple points of access
 Increase revenue by improving order fill
rate and reducing shrinkage
 Reduce operating costs and increase
efficiency by reducing administrative
functions
 Lower working capital by reducing
inventory carrying costs
Visit Control and
Scheduling
Picking, Packing,
and Loading
Direct Store Delivery
Solution
 Group customers
in visit plans
 Assign visit
calendar and
routes
 Schedule
deliveries
 Optimize
shipments daily
 Create visit list
 Calculate
workload
estimates
 Complete goods
issue process
 Check-in/check-out
 Balance materials
and payments
 Perform settlement
process incl. post
goods issue
receipts
 Credit or debit
customer and
driver accounts
Route
Accounting
Direct Store Delivery (DSD) is a business process that is used to distribute goods directly to the customer. It makes
materials quickly available to stores and customers (for example, food, drink, flowers, nnewspapers'). DSD ooptimizes
process settlement in sales and in distribution as well as logistics costs by using efficient visit planning .

Industry Challenges
 Tracking empties assets
 Obtaining holistic view of empties across
entire supply chain
 Revaluating of empties on customer side
This process paints a detailed picture of your entire empties situation after the manufacturing process, showing you
the location and status of your crates, kegs, or pallets, and helping you optimize your return logistics. It also lets you
quickly access each customer’s empties account as well as print delivery notes or invoices that record the empties
involved in a delivery.
Empties
Management
Empties Management
Solution
 Empties bill of materials (BoMs)
 Including of empties into credit
control
 BOM explosion in sales
processes
 Managing empties at customer
locations
 Empties on deposit
(charge and credit for
deposits)
 Empties accounts (track
running empties balance)
Business Benefits
Decrease costs by controlling high value
empties assets
Increase control by managing empties at
customers side

Industry Challenges
 Organizing numerous parties
(e.g. wholesalers, retailers)
 Maintaining potentially complex
rebate/bonus structures
 Enabling a multitude of transactions
 Paying of bonus as separate invoice is a risk due
to Russian legislation
Business Benefits
 Drive increased volume through effective bonus
programs
 Increase efficiencies by automatically managing
the entire rebate process for both direct and
indirect rebates
 Increase rebate accuracy and customer
satisfaction by collaborative agreement to indirect
sales volumes
 Control rebate costs through tight management of
the entire process
Rebate and bonus agreements, including coupon agreements, are critical to enhancing relationships between
beverage manufacturers, wholesalers, and customers. With the SAP® Beverage application, you have the tools you
need to easily and accurately manage large, complex partner constellations with any number of bonus arrangements
for direct or indirect sales.
Rebates and Bonus
Agreements
Coupon
Management
Rebate & Bonus Management
Solution
 Create internal order
 Maintain planned
costs (incl. accruals)
 Procure, distribute
and redeem coupons
 Carry out coupon
settlement with
retailer or clearing
house
 Compare actual
/planned costs
 Run profitability
analyses
 Define rebate agreements
 Track rebate obligations for
both direct and indirect
sales
 Transfer calculated sum
into SD as a discount for
future period and track
payment
 Calculate the exact scales
(interval scales) periodically
 Make multiple rebate
payments to various rebate
recipients
 Set up accruals based on
planned sales
 Use pendulum list for
indirect sales volume
update
 Settle direct and indirect
agreements

Industry Challenges
 Obtaining usable and relevant data about
customers through third-party wholesalers
 Allocating promotional spend efficiently
 Securing correct rebate processing across
a complex supply chain
Business Benefits
 Understand better those customers that are
serviced by a third-party wholesaler due to
improved data quality and availability
 Allocate promotional spend more
efficiently by collecting and analyzing
valuable customer information
 Process rebates and commissions
correctly due to improved data quality and
availability
Obtaining customer information through a third-party wholesaler can be a challenge for many beverage companies.
The SAP™ ERP packaged solution enables beverage companies to gain a more complete understanding of their
business performance by allowing them to track their sell-through in different channels and to specific accounts.
Indirect Sales Data
Management
 Maintain information
about wholesalers’
customers
 Create template for
data requirements
 Create requests for
sales reports
 Receive indirect
sales data (volume,
quantity, and value)
from wholesalers
 Confirm and
validate received
data for rebates
calculation
 Analyze indirect
sales data
 Perform periodic
partial settlement
Rebate
Agreements
 Define rebate
agreements
 Track rebate
obligations for
both direct and
indirect sales
 Take contractual
agreements into
consideration
 Set up reserves
based on
planned sales
 Settle indirect
agreements
Selling and Delivery
Sales Returns
Solution
Rebate
Agreements
 processing of credit
memos in case of
complaints
 returned goods go
through a quality
evaluation
 Centralized
processing of
subsequent
inventory and billing
activities based on
multiple analysis
results
 Generation of
settlement
documents in
background
processing

Industry Challenges
 Perishable products, spoilage in warehouse
 Order management with customer-specific criteria
 Monitoring stocks in warehouse
 Traceability through delivery to the customer
 Unplanned inventory due to short-term production schedule
 Monitoring weight losses
Business Benefits
 Improved sales order processing and distribution of meat
 Reduced effort in delivery creation and packaging by
automatic batch determination
 Detailed overview and tracking of batch information with
batch recall capability
 Increased service level for customer
 Integration of real-time financials and costing reports
 Weight loss capture from production to customer
The sales and distribution cycle encompasses sales order processing, delivery, billing, and payment. The picking and
delivery process has been specifically designed to address shelf-life management of meat products. Customer
requests such as minimum remaining shelf-life are processed within order management and during the picking
process. Additionally, overstocked meat can be easily sold using a push approach.
Selling and Delivery
Meat Sales Processing
Solution
Sales order processing
 Push-sales management
 Product substitution
 Handling unit
classification (to record
weight)
 Customer-specific batch
determination
 Shelf-life management in
finished goods
warehouse
 Prevent shipping of
suspect batches
 Transportation planning
with capacity checking
and batch split
 Batch recall
 Rebate agreements
and monitoring
 Sales order creation
 Delivery creation
 Picking and packing
 Goods issues posting
 Integrated
transportation costs
(with minimum freight)
 Billing creation

Operational End-to-End Scenarios
Traceability & Food Safety; Quality Management
Industry Challenges
 Being fully compliant with food regulations, such as EU
(Article 18 of Regulation 178/2002), U.S. (The
Bioterrorism Act of 2002), HACCP (Hazard Analysis and
Critical Control Points)
 Addressing growing food-safety concerns from
consumers
Business Benefits
 Minimize risk of losing customer trust by professionally
managing a possible recall of a defective batch
 Minimize risk of noncompliance with food regulations
 Enable effective batch-specific returns processing
 Monitor materials planning, sales and distribution,
procurement and production
Solution
Food safety requirements are becoming more stringent across the food industry, which means that food companies
must have track-and-trace capability for all products, as well as the ability to recall a defective batch. The SAP™ ERP
solution allows companies to meet the industry requirements for food safety and traceability and to reduce
operational risk significantly.
Quality
Management
Batch
Management
Handling Unit
Management
 Plan for quality
 Inspect for
quality
 Record
laboratory
analyses
 Create reports
on quality
 Improve quality
 Monitor
procurement,
production,
distribution
processes
 Manage automatic
batch creation,
determination,
status, and batch-
where-used-list
 Track defects
 Recall batches
and create follow-
up activities
 Manage batch
specific return
processing
 Manage batches
based on shelf-life
expiration and
other usability
differences
 Manage
production
processes with
HUM
 Handle Serial
Shipping
Container Code
(SSCC) numbers
 Integration with
quality
management and
batch
management
Supply Chain Traceability & Monitoring Process

Transportation
Management
 Plan transports
 Monitor
execution
 Calculate costs
 Manage
transportation
settlement
Industry Challenges
 Maintaining low inventory levels
 Avoiding out-of-stock situations at
retailer
 Establishing visibility to inventory levels
throughout the entire supply chain
Business Benefits
 Reduce working capital by keeping
inventory levels low
 Increase sales by reducing out-of-stock
situations
 Improve consumer retention due to
product availability
Managing inventory levels efficiently, that is, maintaining low inventory levels while avoiding out-of-stock situations,
is a high priority for food companies. The SAP™ ERP packaged solution enables food companies to optimize both
inventory levels and storage space based on inventory planning and turnover. At the same time, quality checks can be
performed in combination with warehouse management and transportation management.
Inventory
Management
 Achieve full
integration with
accounting
 Receive and
issue goods
 Manage
different stock
categories
(available,
blocked, in QA)
 Valuate
inventory
Warehouse
Management
 Manage goods
receipt, storage,
goods issue
 Manage and
inspect for
quality
 Manage return
of goods
 Pick goods
 Manage
materials in
batches
Inventory Management
Solution

Industry Challenges
 Meeting local legal and fiscal requirements
(chapter 22 of the Tax code of the Russian
Federation)
 Processing of several tasks in on-line
mode
 Preparation for obligatory EGAIS
implementation in near future
Business Benefits
 Integrated solution
 Full support of Russian legislation
 On-line transfer of accounting data
When alcoholic material is purchased, moved, or sold, the accompanying processes become tax-relevant with respect
to the excise duty. The SAP™ ERP packaged solution includes the excise-duty processing that provides monitoring
and reporting functions on excise-duty-relevant material movements in the vendor-manufacturer-customer
relationship.
Goods
Movements
Reporting /
Financials
 All Movements of
tax relevant
materials between
tax warehouses
are reported:
- Goods Receipt
- Goods Issue
- intercompany
- Subcontracting
- Returns
- Scrapping
 Used for trading
goods and
materials from
production
 Definition of
excise payers
 Definition of
taxation periods
 Terms of
payment
 Creation of Tax
report/declaration
 Initiating payment
Excise Duty
Solution

Industry Challenges
 Evaluate the profitability of markets, channels,
products and customer segments
 Layer on cost-of-goods-sold (COGS) from
prduct cost accounting to construct a
contribution margin model
 Multi-dimensional profitability reporting
Business Benefits
 Integration to sales, financials, controlling and
production
 Use of automatic functionality for planning
 Data can be planned in spreadsheet
 Avoid bottlenecks, over- and under-absorption
in production.
 Material requirements planning as a basis
for purchasing contracts
This scenario provides CO-PA enhancement for the consumer products and wholesale industries. The focus here is to
provide planning on contribution margins and sales figures. Furthermore the revenue and the costs are planned on
product and customer levels. The scenario is integrated in the complete planning cycle. The costs are received from
CO-PC and cost center planning and the planned quantities are transferred to SOP.
Contributin Margin
Planning
 Revenue Planning
 Material Cost
estimation transfer
 Transfer planned
overhead costs to
CO-PA
 Execute CO-PA
Report about
Contribution
Margins
 Additional master
data
(characteristics
and value fields
 Calculation of
contribution
margins based on
standard costing
and actual costing
Enterprise Management & Support
Contribution Margin Planning
Solution
Revenue Planning
 Revenue planning
on basis of
historical data
 Cost calculation
 Transfer to SOP
Quarterly plan
 Sales quantity
planning on the
basis of actual
data
 Transfer to SOP
 Create sales plan
 Sales quantities
transfer to SOP.
 Rough cut capacity
planning
to check against
bottleneck
resources
 Feed data into
Long term planning
 Generation of
production plan
 MRP run in
simulated mode
 Calculate the total
utilization of the
manufacturing
work centers
Sales &
Operations
Planning
Quarterly Plan/
Revenue Plan

Industry Challenges
 Meeting local legal and fiscal requirements
 Improving efficiency of administrative
activities
 Maintaining focus on most profitable
customers and brands
Business Benefits
 Implement an ERP solution fully compliant
and continuously updated with local legal and
fiscal requirements
 Improve efficiency in accounting activities due
to a seamless process integration across the
business which eliminates double checks and
redundancies
 Enhance company profitability analysis
through profit and loss calculation by
customer and brand
All food companies need to manage financial requirements and enterprise profitability. The SAP® ERP packaged
solution for the meat industry helps to gain insight into all aspects related to accounting and controlling and provides
streamlined functionalities that allow visibility, increase productivity, and help meat companies regain control of their
business processes.
Financials
Enterprise Management & Support
Financials and Controlling
Solution
 Standard cost and profit center
accounting
 Profitability analysis
 Product costs planning
 Product cost controlling
Controlling
 General ledger
accounting
 Accounts
payable
accounting
 Accounts
receivable
accounting
 Bank
accounting
 Closing
activities
 Cash
management
 Assets
management

Questions and Answers
Copyright (C) 2009 Fujitsu America31

Fujitsu Preconfigured Solutions
 Procure to Pay
 Live Stock Procurement
 Catch Weight Management
 Production Planning
 Production Execution
 Production
 Sales Order Processing
 Indirect Sales
 Direct Store Delivery
 Empties Management
 Rebate and Bonus
Management
 Sales Returns
 Meat Sales Processing
 Traceability & Food Safety;
Quality Management
 Inventory Management
 Excise Duty
 Contribution Margin Planning
 Financials and Controlling

Thank You!

Appendices

What is it?
 Documented global business requirements
 Business scenarios representing global best
practices
 A configured system enabling common
business processes
 Support for multiple business models and
solution requirements (e.g. manufacturing,
final assembly and service)
 Master Data Strategy & Definition
 Enterprise Data Warehouse Strategy
 Test Cases
 Implementation Kit - guidelines, training
materials & project standards
Once completed, individual business operations
may implement the needed solution elements
with minor configuration changes to support
local VAT, legal and other business-justified
extensions.
Global or Deployment Template Definition
Why?
Enable quick, repeatable, and cost-efficient project
implementations
Define common and potentially shareable core
business processes
Allow transfer of leading practices across all lines of
business
Deliver flexible business solutions that utilize
integrated applications, common technology, and
standardized data
Eliminate investment in redundant system
development, interfaces, and support
The establishment of a standard set of global
processes to serve all business components
Establishment of a Master Data Set for all facilities
leveraging single instance capability if desired
Incorporation of regional differences to the Global
Template (currency, language, statutory
requirements)
Enables manufacturing cross-region flexibility with
focus on supply chain improvements
Common processes enable reduced new product
introduction timeframes
Enables global visibility to inventory, cost,
profitability
More rapid ROI

 Drive for quick, repeatable project implementations
 Project methodology
 Compliance check
 Documentation of standards
 Define common core business processes
 Efficient centralized definition and pre-configuration of global / harmonized elements
 Setup of multiple templates in parallel
 Allow transfer of leading practices across all lines of business
 Re-use of customizing on local components
 Version management
 Comparison and adjustment of template versions
 Deliver flexible business solutions that utilize integrated applications, common technology and
standardized data
 Minimize investment in redundant systems development, interfaces, and support
Global / Pre-Configured Template, “What Do I Get”.
Approach is to standardize at least 80%-85% of processes across organization and make that the
global template. Gaps (15%-20%) will be addressed in local templates. First implementation
would be global template plus at least one local deployment

Business Objectives
How Do You Fit with the Global / Pre-Configured Template
Business
Objectives include:
End State
View:
Business
Transformation and
Standardization
Develop template to bridge the
gap Current state and End
state
Move to single global template and
supporting platform, increasing agility and
transparency across all business units
Standardize and improve globally and locally
to meet business objectives
End-to-end factory solution supporting
mixed modes of manufacturing
Robust product configuration capabilities
Global view of spend, inventory, capacity,
and profitability
Enhanced support of and interaction with
customers and suppliers
Increased user productivity via enhanced
functionality, analytics, workflow, and
alerting
Single solution with common global
processes

Platform Consolidation End State View
Global Template
Single Corporate SAP Business Suite Instance
Centralized IT support function
An ERP architecture provides the flexibility to centralize functions, standardize business process,
leverage scale and reduce cost of ownership
Single SAP instance consistent business processes and enabling global real time
analytics

Example of a Global / Plant Roll-out Roadmap
Roadmap reflects the plan, dependencies and ERP high level estimate of duration and benefit
Deployment Site
Global Template Design
Deployment 1
Deployment 2
Deployment 3
Deployment 4
Site 2
By sequential implementation and factoring in ease of implementation, readiness, SAP Global
Template, risks, and a close governance , we would achieve global roll-out within 4 years
Site 3
Site 4
Site 5
2011 2012 2013 2014 2015 2016 2017 2018
6 Months
Site 1
Global Template
Site 10
Site 9
Site 8
Site 6
Site 11A
Site 11B
Site 12
6 Months
12 Months
6 Months
12 Months
Site 7
12 Months
6 Months
Return to Presentation

Business Case
ECC 6.0 CWM
Implementation

41 Copyright 2010 Fujitsu America, Inc.41
ECC 6.0 CWM Business Case
 Ineffective tools and processes for tracking inventory across their lifecycle
 Trailing profit expectations of new parent company
 Unresponsive support infrastructure for existing SAP applications
 Upgrade SAP environment to latest release level (ECC 6.0) to support new inventory functionality
 Implementation of catch weight functionality to track dual units of measure through inventory lifecycle
 Migration of SAP support from existing environment to Fujitsu 24x7 SAP hosting facility
 Incorporation of desktop and help desk support within overall SLA-based maintenance contract
 Base-lining of existing support levels from which to establish productivity metrics
 Exceeded profitability commitments of parent company; ranking in the Top Tier of all operating groups
 Significantly improved inventory to profit ratio as compared to other sister companies
 Reusable SAP support processes, that can be leveraged throughout sister companies
 A well defined, integrated and SLA based global support process for IT outsourcing.
This business case represents a company that is well known and respected for providing premium-quality
meat products to families across the United States. The company is part of a larger parent company with a
strong presence across retail, deli and food service channels with approximately 3,000 employees spread
across 13 states.
Client Business Drivers
Fujitsu Solution
Client Outcomes
Industry: Food

Project Team
Customer Customer Customer
Customer
Customer Customer
Customer
Customer
Customer

ECC 6.0 CWM Timeline
43

ECC 6.0 CWM Application Scope
CWM Financials (AP, AR, New GL, COPA, Asset management, P&L, corner stone corp.
reporting, Taxware)
CWM Order to Cash (SD)
CWM Order to Pay
CWM Production Costing and Planning
CWM MRO and light PM
CWM Manufacturing
BPC for Decision Support and Logility reporting
CWM BI 7.0 for reporting
Warehouse Management
Integration with Logility for demand, supply and production planning
Integration with BelTek for Direct Sales delivery (Hand Held devices)
Integration with Blacksmith for trade promotion process
Integration with Nistevo Transportation Planning
Integration with AmeriCold Warehousing and Logistics
Integration with Infinium Payroll system
Integration with TaxWare
Red Wood Scheduler
Productivity Pack
Solution Manager
FileNet
44

Final State
ERP6.0 CWM EhP 5.0
Advanced Planning and Optimization (APO)
Intranet
HCM
Enterprise Data Warehouse (EDW) BPC Consolidated Reporting
ERP6.0 CWM
GLO BAL ATP
Market Pricing
BI BI BI BI BI
BPC BPC BPC BPC BPC
System
Network Planning PP / DS TP / VS
ERP6.0 CWM ERP6.0 CWM ERP6.0 CWM ERP6.0 CWM
Sales Rep
Portal
Kill / Cut Portal
BI Portal
Reporting
Kill / Cut Portal

Old methods of product tracking are costly:
• Fragmented systems, limited visibility/traceability, lack of real time
information supported by query capability lead to an error prone and
time consuming effort. The result is high cost, high risk and the
potential to seriously damage consumer trust and your brand value.

Solution: Full visibility & built-in compliance
• Integrated traceability and compliance guarantees product integrity and
allows fast and accurate response to any issues throughout the value
chain.

Traceability – Process Overview

Serialization Process Overview – Creating the Links

Product Tracking & Tracing –”End to End Process”

Result: Total Supply Chain Management & Monitoring Capability

Sapphire Presentation for Review_CPG_Food.PPTX

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