[

Enabling a Demand Driven Supply Network using SNC

Ganesh Vellore SAP SCM Solution Management

[ Learning Points
Understand the processes enabled by SNC Customer Collaboration Learn about the business benefits and how your company could leverage SNC Customer Collaboration Gain insight into the latest enhancements to the solution

Real Experience. Real Advantage.

[ Agenda
SAP SNC Overview SAP SNC Customer Collaboration SAP SNC Summary

Real Experience. Real Advantage.

[The Supply Chain Network Evolution:

From Linear Supply Chains to Supply Chain Networks

From Linear supply chains, optimization within 4 walls, standard response

Real Experience. Real Advantage.

[The Supply Chain Network Evolution:

From Linear Supply Chains to Supply Chain Networks

From Linear Supply Supply Network Chains, Optimization Common Standard within 4 walls, Goal = response
Real Experience. Real Advantage.

To Global = Competitive AdvantageEnd to End Collaborative Serve the Customer Processes

 [ Collaborationsuccess Challenges to
Networking: Can I
synchronize my business with all involved partners?

Expertise: Can my business

partners and my employees work effectively with the solution?

Investment: Does the solution help

me to get a quick ROI?

Visibility: Can I manage my

white spots?

Response time: Can I

increase the speed of my business and order cycles?

On-boarding: Can I add new

Business Partners easily over time?

Real Experience. Real Advantage.

is an Enterprise-Wide [ SAP SNCChain Collaboration Needs Strategic Platform for All Supply
Suppliers Suppliers My Subsidiary My Division

Suppliers
Suppliers

Customers

My Company
Customers

3PL/DC

SNC

Customers / DC
Customers

Contract Manufacturers

SNC can be used for internal collaboration between divisions or lines of business and subsidiaries SNC can be modeled to allow for visibility and collaboration between suppliers suppliers and customers customers, as well as 3PL warehouses participating in the supply chain

Contract Mfg:ers

Contract Mfg:ers

Real Experience. Real Advantage.

[ Collaboration

SAP Supply Network Collaboration (1)

Highlights

Collaboration and Visualization layer for external Partners Enabler of new processes Multimode Communication (B2B, WEB UI and Upload)

Networking: Can I synchronize my business with all involved partners?

Real Experience. Real Advantage.

[ Collaboration

SAP Supply Network Collaboration (2)

Highlights

Quick view (Dashboards) & Micro Blog File Transfer & Worklists Alert Management

Expertise:
Can my business partners and employees work effectively with the solution?

Real Experience. Real Advantage.

[ Collaboration

SAP Supply Network Collaboration (3)

Highlights

Short implementation time for Supplier Collaboration Pre-defined processes Rapid Deployment Solution (RDS) SAP SNC for Customer Collaboration

Investment:

Benefits

Does the solution help me to get a quick ROI?

Low implementation costs Lower Total Cost of Ownership (TCO) Quick and immediate business benefits such as cost reduction, customer service optimization and process automation

Real Experience. Real Advantage.

[ Collaboration

SAP Supply Network Collaboration (4)

Highlights

Supply Network Visibility (multi-tier subcontracting) Supplier Managed Inventory (SMI) Sales Forecast Collaboration (Demand Collaboration)

Visibility: Can I manage my white spots?

Real Experience. Real Advantage.

[ Collaboration

SAP Supply Network Collaboration (5)

Highlights

Efficient operation via Worklists Event-driven via Alert Management Automation through pre-delivered backend integration

Response time: Can I increase the speed of my business and order cycles?

Real Experience. Real Advantage.

[ Collaboration

SAP Supply Network Collaboration (6)

Highlights

Supplier Connectivity & Administration File transfer Capabilities (up/download) Multi-mode communication

On-boarding:
Can I add new Business Partners easily over time?

Real Experience. Real Advantage.

[ SAP SNC Value Proposition

Improvements in accuracy and velocity of your Supply Chain Provides global inventory, supply and demand visibility reducing the
need for large inventory buffers while increasing inventory turnover Enables higher customer service levels Reduces cost by eliminating need for manual data re-entry allowing for improved data accuracy and consolidation of data through one system Reduces operational costs by allowing for faster order to cash cycle and enabling exception based interaction Supplements structured collaboration with unstructured information Allows for reduction in administrative costs Enables consolidation of multiple systems into a unified frontend for all supply chain partners

Value Proposition: What are the benefits of this Collaboration solution?

Real Experience. Real Advantage.

[ SAP Supply Network Collaboration

Current release
Outsourced Manufacturing & Integration Focus Extensions, Outsourced Mfg & Usability Focus

SNC 7.0 EhP1

Initial SupplierSide Capabilities

ICH 4.0

Supplier Collaboration: Quality Collaboration Shipment Collaboration SNC 7.0 APO integration (Planning Supplier Collaboration: Collaboration) Invoice and Credit Memo Initial Customer Collaboration: Enhancements to SMI, PO Outsourced Enhancements to Responsive (FTR, Quickviews) Manufacturing SNC 5.1 Replenishment Capabilities Customer Collaboration: Supplier Collaboration: Forecast Collaboration Outsourced Manufacturing: Invoice and Credit Memo ICH 5.0 Enhancements to Outsourced Enhancements to Responsive Enhancements to SMI, PO Manufacturing Replenishment Supplier Collaboration: Addition of (Batch Traceability) Kanban Replenishment Customer Collaboration: Customer Outsourced Manufacturing: Delivery Control Monitor -Collaborative Forecasting Hosting Enhancements Collaboratio Work Enhancements to Responsive Order Collaboration Reorder Point n Enhancements to Outsourced Enhancements to SMI, PO Replenishment ICH 4.1 Manufacturing Outsourced Manufacturing: Customer Collaboration: Supplier Collaboration: SCM 7.0 Stable Core Responsive Replenishment Work Order Collaboration Purchase Order Enhancements for SAP AFS Enhancements to Outsourced Forecast Visibility Manufacturing Demand Combination Enhancements to SMI, SNC Release Process, ASN Outsourced Manufacturing: Standalone Enhanced Customer Collaboration & Outsourced Manufacturing

BW Reporting KPIs Supply, Demand & Inv. Visibility Enablement Sevice Supplier Collaboration: at Contract Mfg. Customer Collaboration: SMI Subcontract POs Responsive Replenishment Release Process ASN Maintenance Alert Monitor 2003 Real Experience. Real Advantage. 2004 2005 2007 2009 2010

[Rapidly Expanding Customer Base 750+ Customers, 50+ Reference Customers

SAP is a key enabler of our corporate strategy. SAP Supply Network Collaboration ensures we are tightly integrated with our manufacturing partners to maintain service, control costs, and uphold lean IT practices. Jon Harding
CIO Conair Corporation

High Tech

Consumer Products

We have already seen significant benefits, and we expect more in the future. Gary Botine
VP Information Technology Sauer Danfoss

IM&C

By the time the analysts start their work day, forecasts and replenishment plans have been updated, based on information about retailer activity that happened the previous day. Nicholas Daddetto
Senior Manager Colgate- Palmolive Company

Life Science , A&D, Auto

Real Experience. Real Advantage.

[SAP SNC

Tangible Benefits Gained by Customers

66% reduction in early shipments 100% improvement in errors associated with direct material invoice discrepancies

Acknowledgement rate increased from 40 80 % Inbound decreasing for Stock/JIT : - 30 %

Reduced inventory levels by 20% Reduced number of orders placed by 30% Improved avg wt per order by 50%

Purchase order processing productivity gains 35 times Reduction in nonqualified returns 20%

Live in 4 Months 10-15% stock reduction in the chain using supplier managed inventory 50% FTE reduction at GR processing

Real Experience. Real Advantage.

[SAP Supply Network Collaboration Overview

Summary
SAP Supply Network Collaboration

a 360 view of your supply network

central supply chain platform for real-time collaboration with internal and external business partners

drives supply chain efficiencies and transparency

by optimizing information and data flows between your supply chain partners

enables all your business partners

independent of their IT sophistications, size, or volume of data exchange

results in quick business benefits

Inventory reduction Increased response time Operating cost reductions Reduced lead time Customer satisfaction

Real Experience. Real Advantage.

[ SAP SNC

Collaborative Business Process enablement

Responsive Replenishment Min/Max VMI Demand Collaboration

Customer Collaboration

My Company
Supplier Collaboration
PO Process Release Process Kanban Process SMI Process DCM (Reorder) Process DR (Forecast) Process
Real Experience. Real Advantage.
SMI = Supplier Managed Inventory CMP = Contract Manufacturing Purchasing DCM = Delivery Control Monitor DR = Dynamic Replenishment

Quality
Collaboration

Manufacturing Collaboration
CMP (Subcon PO) Process Work Order Process SNI (Inv Monitoring) Process

[ Agenda
SAP SNC Overview SAP SNC Customer Collaboration SAP SNC Summary

Real Experience. Real Advantage.

[ SAP SNC Customer Collaboration

Business Challenge
Customer Pain Points

Forecasting and short term demand fluctuations Promotion Visibility and Response Truck Load and Oreder Building Efficiency Data Mapping and Harmonization

Customer Goals/Needs

How do I respond faster to rapidly changing consumer demand and economic uncertainty?

Increased sales and lower lost sales through prevention of stock-outs, especially during promotions Improved responsiveness to short-term fluctuations to customer demand esp. during promotions Increased cash-flow through reduced inventory and faster order cycle times while increasing service levels Improved asset utilization through higher truck capacity utilization and increased user productivity

Real Experience. Real Advantage.

[ SAP SNC Customer Collaboration

Finished Goods Level

My Company

Demand Forecast Collaboration Min / Max VMI Responsive Replenishment Customers

Real Experience. Real Advantage.

[SAP SNC Customer Collaboration

Demand Forecast Collaboration My Company
Sales (Baseline / Promotion)

Forecast (Baseline / Promotion) Customers

Revised Forecast

Demand Forecast Collaboration allows comparison and consensus between consumption data and customer transmitted forecast
Real Experience. Real Advantage.

[ SAP SNC Customer Collaboration

Demand Forecast Collaboration Process
Vendor
SAP SCM

Customer

Collaboration
SNC

ERP (e.g. SAP ECC)

Sales Forecasting

Consensus Forecasting

Forecast Revised Forecast

Short-term Forecasting

Replenishment Planning

Real SAP AG 2010. All rights reserved. / Page 24 Experience. Real Advantage.

[ SAP SNC Customer Collaboration

WEB-UI Example Demand Forecast Collaboration

Real Experience. Real Advantage.

[SAP SNC Customer Collaboration

Responsive Replenishment
Inventory Sales

My Company

Forecast Promotion Plans Number Ranges Order Forecast Customers

Responsive Replenishment represents the next generation in Demand driven Replenishment

Baseline Orders Promotion Orders Advanced Shipping Notifications

Real Experience. Real Advantage.

[SAP SNC Customer Collaboration

Responsive Replenishment Process
Vendor
SAP ERP SAP SCM SNC
Data Import Controlling

Customer
ERP (e.g. SAP ECC)
Inventory, Sales/ Forecast, Promotions

Forecasting & Promotion Planning

Replenishment Planning Sales Order Transport Load Building Goods Receipt

Outbound Delivery

Order Generation

Inbound Delivery

Goods Issue

Shipping Notification

Purchase Order

Real Experience. Real Advantage.

[SAP SNC Customer Collaboration

Responsive Replenishment Process
Vendor
SAP ERP SAP SCM SNC
Data Import Controlling

Customer
ERP (e.g. SAP ECC)
Inventory, Sales/ Forecast, Promotions

APO
Deployment

Forecasting & Promotion Planning

Replenishment Planning Goods Receipt

Sales Order Allocation Transport Load Building

Outbound Delivery

gATP Check

Order Generation

Inbound Delivery

Goods Issue

Shipping Notification

Purchase Order

Real Experience. Real Advantage.

[ SAP SNC Customer Collaboration

WEB UI Example Responsive Replenishment

Real Experience. Real Advantage.

[SAP SNC Customer Collaboration

Min / Max Replenishment
Inventory

My Company

Sales Forecast Number Ranges Order Forecast Baseline Orders Customers

Min-Max replenishment is a simple stock level based replenishment process

Advanced Shipping Notifications

Real Experience. Real Advantage.

[ SAP SNC Customer Collaboration

Min/Max Replenishment Process
Vendor
SAP ERP
SAP SCM

Customer
SNC
Data Import Controller Inventory, Sales, Forecast Forecasting

ERP (e.g. SAP ECC)

Min/Max Planning Sales Order Order Generation

POD

Goods Receipt

Outbound Delivery Inbound Delivery In-Transit Goods Issue Shipment Notification Purchase Order

ASN

Real Experience. Real Advantage.

[ SAP SNC Customer Collaboration

WEB UI Example Min/Max Replenishment

Real Experience. Real Advantage.

[ SAP SNC rapid-deployment solution for Customer

Collaboration

Preconfigured

software to eliminate

the guesswork
Rapid

deliver in as little as 14 weeks, using SAP consulting affordable, flexibly priced solution Limited scope to jump start clear path to your full Supply Network Collaboration vision

An

Real Experience. Real Advantage.

[ SAP SNC rapid-deployment solution for Customer

Collaboration
Business Requirement
What is my pain?
Forecasting and Visibility Data Cleansing and Harmonization Truck Load and Order Building Efficiency Promotion Visibility and Response

Solution
Solution description
This SAP Rapid Deployment Solution provides Customer Collaboration functionality easy and fast to implement. The planned scope comprises the following: Initial 10 ship to customer locations Master data cockpit accelerator for creation/maintenance of master data and profiles Accelerator (Altova tool) for inbound customer data to PI mapping Standard mapping for the inbound EDI data and outbound interface to backend ERP system Accelerator for loading sales history Data validation and alerts generation Forecast collaboration Responsive replenishment & Promotion planning functionality Transport load building functionality based on basic parameter like weight & volume Order generation ASN generation and in-transit calculation Min/Max planning functionality

What are my needs?

Streamline replenishment process Reduce finished goods inventory Increase sales

What will excite me?

Increased sales and lower lost sales through prevention of stock-outs, especially during promotions Improved responsiveness to short-term fluctuations to customer demand especially during promotions Increased cash-flow through reduced inventory and faster order cycle times while increasing service levels Improved asset utilization through higher truck capacity utilization and increased user productivity

Business Processes
Demand Forecast Collaboration Responsive Replenishment Min/Max Replenishment

Business KPIs
Increased customer satisfaction Improved replenishment rates Reduced inventory levels Improved asset utilization

Technical Components
SAP ERP 6.0, SAP SCM 7.0, PI 7.0

Available since Q1/2011

Real Experience. Real Advantage.

[ Effective Short-Term Planning Throughout the

Supply Network

Real Experience. Real Advantage.

[ Agenda
SAP SNC Overview SAP SNC Customer Collaboration SAP SNC Summary

Real Experience. Real Advantage.

[ SAP SNC
Summary

SAP SNC is a central supply chain platform for real-time collaboration with internal and external business partners
Collaboration Flows
SMI & VMI Forecasting Order sharing confirmation (PO, Release, Kanban) Shipping Invoicing Quality reporting Work order tracking Multi-tier supply and demand visibility Usability & On-Boarding WEB UI UP/Download (Excel) Backend Integration Quick Views Micro blog Alert Management Efficient Worklists Notes Management Supplier Self Service for User Administration

Real Experience. Real Advantage.

[ SAP SNC Customer Collaboration

Finished Goods Level

My Company

Demand Forecast Collaboration Min / Max VMI Responsive Replenishment Customers

Responsive Replenishment . . .
Is a real-time, demand-driven, replenishment scenario between supplier and customer including up and down shifts of orders and shipments in the short term (next generation VMI) Manages promotional items separately thru-out end-to-end replenishment process and optimizes truck loads

Min/Max VMI. . .
Allows for traditional VMI replenishment scenarios using maximum and minimum stock limits as driver

Demand Forecast Collaboration. . .

Offers a time bucketed, on-screen, collaboration and workflow driven capability to reach a consensus forecast between customers and suppliers
Real Experience. Real Advantage.

[ SAP SNC
Key Points

SAP Supply Network Collaboration provides you with a 360 view of your supply network, including your customers, suppliers, and outsourced manufacturing partners SAP Supply Network Collaboration drives supply chain efficiencies and transparency by optimizing information and data flows between your supply chain partners SAP Supply Network Collaboration enables all your business partners, independent of their IT sophistications, size, or volume of data exchange Collaboration capabilities in SAP Supply Network Collaboration are plug-n-play extensions of business processes managed in SAP ERP today

Key Points to take home

Rapid Deployment Solutions for SAP Supply Network Collaboration will allow you to quickly deploy SAP SNC with a fixed scope and fixed price
Benefits derived from SAP Supply Network Collaboration can be quantified as reduction in inventory, increased response times, operating cost reduction, and reduced lead time leading to increased customer satisfaction! There is an active SAP Supply Network Community out there! Reach out, get information, engage, and exchange.

Real Experience. Real Advantage.

SAP SNC

Ganesh Vellore
Solution Management
ganesh.vellore@sap.com

Q&A
Thank you for your interest!
Real Experience. Real Advantage.
This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.

Thank you for participating.

Please remember to complete and return your evaluation form following this session. For ongoing education on this area of focus, visit the Year-Round Community page at www.asug.com/yrc

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Real Experience. Real Advantage.