Orange County Convention Center

Orlando, Florida | June 3-5, 2014

SNC Supplier Collaboration at PepsiCo

Surekha Vutukuru & Sanjay Jelaji

The views and opinions expressed in this document and presentation are those of the author and do not necessarily reflect those of the company
 Todays Agenda

Expected Takeaways
PepsiCo Overview
SNC Supplier Collaboration
Project
Key Learnings / Best Practices
Question & Answer

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Expected Takeaways

Utilization of SNC Supplier

Managed Inventory / Supply
Network Inventory capabilities to
address supply chain visibility
gaps

B2B and APO Integration

solutions

3
 4
Who we are
 PepsiCo s Supplier Collaboration at a glance 5

PepsiCo utilizes Supply Network Collaboration as a cross-divisional solution to

integrate the Beverage Direct Store Delivery with the Warehouse Delivered supply
chain to leverage affiliate locations to supply the respective Go-To-Market
channels.

Inter-Company Supply- Demand Collaboration Cross Divisional Supply- Demand Collaboration

- Typical scenario for Supplier Collaboration - PepsiCo s Supplier Collaboration scenario

Your Company

Supplier Business
Division A

Supply Demand Supply Demand

Business
Your Company Division B
 Need for Supplier Collaboration at PepsiCo

Opportunities Solution

Disparate planning tools that Enterprise wide strategic

require cross divisional platform for real time
automated integration. collaboration between
internal business divisions
Offline planning by planners
to facilitate intercompany Integrated Supply Planning
product movements. with SAP and non-SAP
partners
Supply visibility gaps
Share and provide visibility of
inventory, production and
Challenges with master data in
demand in the planning
disparate planning tools.
process across different
business units and external
partners
Factors considered in tool evaluation
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Ease of integration with existing SAP - APO solution.

Flexibility to automate and provide standard technology

for interfacing Demand, Planned production and
Vendor A Inventory between SAP and non-SAP systems thru XML
SCM-SNC messages.
Leverage existing infrastructure.
In-house
Integration
tool
Variable planning horizon by business unit.

Flexibility to upload Production plan and inventory by co-

packers no capability to interface data files.

SAP SCM - SNC Minimal customization required to meet PepsiCo

business requirements.
 Ramp up for readiness

SAP Technical - Business

Functional Expertise Hardware
Function activation
Training in SCM SNC Partner with enterprise Activation of required
Supplier Collaboration architecture and Basis business functions in
for all project to determine SCM in Dev, QA and
resources including additional DB memory Production prior to
CIO, Solution Architect, and app servers project kick off.
Project Manager, required prior to
Functional Analysts deployment.
and Business Analysts.

Engage SAP AGS for

guidance on go
forward approach and
overall architecture

Hire SNC consultant

with Supplier
Collaboration expertise
as SME
 SNC Supplier Roadmap
Deployment Strategy - Crawl/walk before run
2013
Build Foundation
B2B integration of SAP
and Non-SAP systems
for
visibility of
Demand and
Production Plan
Upload and download
of planned receipts
Pilot on SNC Supplier
Collaboration
2014
Expand Solution
Complete the deployment of supplier locations
Expand Capability
B2B integration of SAP and Non-SAP systems for
visibility of inventory at Zero Balance Locations
Upload and download of inventory
Capability to restrict access for supplier location
groups
Architecture team is
involved in determining
Application Integration
approach based on
sizing and will also
provide sizing
implications
 High-level Process Flow Prior to SCM SNC implementation 10
Inter company transactions relied on manual interaction

Manual process followed to facilitate cross divisional distribution

Determine Share network Manual

Manual input into Replenishment Share Supply Plan
network requirements adjustments in
non-SAP tools by planning solve in
requirements in with Division A SAP SCM-SNP to
with Division B planner non-SAP tools
SAP SCM-SNP address shortages

SCM Disparate
planning tools
Master and requiring manual
Non-SAP
SNP
transaction
ECC communications
data
between planners Business Division B
Planned
Orders
Planned Business Division
Orders
A
ISCP tools

Manual Process Automated Process

 High-level Process Flow After SCM SNC implementation 11
Manual collaborative tasks significantly reduced with automated integration

Publish network
Determine requirements Publish Supply
Replenishment Demand Vs. Review Supply
network from SAP SCM- plan to SAP
planning solve in Supply analysis plan published
requirements in SNP to SCM-SNC / SCM-
non-SAP tools by Division B by Division B
SAP SCM-SNP SNP
Division B

SCM Demand
Master and Demand
Non-SAP
SNP SNC
transaction SAP -PI
ECC data
Production Production Business Division
Planned Plan and Plan and
Orders Inventory Inventory B
Planned
Orders Business Division A

ISCP tools

SAP-APO integrated with non-SAP tools through SCM-SNC and SAP-PI/ TIBCO architecture.
Visibility to demand, supply plan and on-hand inventory in SNC-Web UI screens.

Manual Process Automated Process New Functionality to automate demand / supply plan integration between PepsiCo Busine
Solution Design Challenges 12

Leveraging SNC for Cross Divisional Supplier Collaboration in PepsiCo coupled with
our preference to minimize customization resulted in technical challenges that
needed out-of-the-box thinking.

Master Data across disparate tools

Integration requirements

Restricted planner access

 Master data in cross divisional planning tools 13
Solution for master data challenges

Demand files with Material

and Location in SAP
Division A
numbers Division B : Non-SAP
Unit of measure in Cases

Unit of Measure Unit of Measure

Cases Eaches
Production Plan and
Plant X Product A Inventory file with Plant Y Product B
Material and Location in
SAP numbers
Unit of measure in Cases
All conversions required for Material, Location and Unit of
Measure (UOM ) are performed in Non-SAP tools
 Demand publish from APO to SNC and Non-SAP Planning Tools

SAP Non - SAP

Dynamic target Conversions from Demand feed to

Demand publish from SAP SCM
determination in SAP to non-SAP supply chain
/SAPAPO/APO_SNC_EXTRACTION
SAP-PI format planning tools

Product Activity
Notification with
Product Demand for
SAP-SCM Activity Business Division A Business
Notification
With
locations only
Division A
Demand
SNP Non-SAP
SAP PI
Product and Planning
Activity
TIBCO Product Activity Tool
Notification Notification with
With Demand for
Demand Business Division B
SNC locations only Business
Division B

Non-SAP
Planning
Tool

Standard functionality available Customization

in SAP
 Supply Plan publish from Non-SAP Planning Tools to SCM-SNC and SNP

Non-SAP SAP

Publish inventory from

Publish Planned Receipts SNC to SCM-BW
Publish Planned Receipts and from SNC to SNP
Create Planned
Inventory post conversion to / SCA/DM_TIMESERIES_OUT
standard extractor Orders and
SAP format 0ICH_INV_1 Inventory in SNP

Product Activity
Notification With SAP-SCM
Business Planned Receipts /
Division A Inventory Inventor
SNC y
Non-SAP Product Forecast
SAP PI
Planning Notification with
BW
Product and Planned Receipts
Tool Activity
Notification TIBCO
With
SNP
Business Planned Receipts /
Inventory
IDOC with Planned Receipts
Inventor
Division B y
Non-SAP
Planning
Tool
Custom ABAP program to create
Planned orders in SNP
Inventory in SNP
Standard functionality available Customization
in SAP
 SNC Planner Access
Pepsico needed authorization based on hierarchy in addition to robust security available with standard
SAP-SNC access restrictions

SNC Planner Access Required

SNC Planner Access available in SCM

Restrict access within SNC WebUI to specific ship-

Access controlled through Business Partner to which
from and ship-to locations within Supplier and
locations and planners are assigned to
Customer Views.

Locations
Plant1, Plant2, Plant 3,
Plant 4 Business Partner User
1
Access to view / modify data for
plant 1,2,3 and 4 in SNC Web-UI
Business Partner - screens
Organization Location-GRP1 Location-GRP2 Location-GRP3

Business Partner User Plant 1 Plant 3

1 Plant 2 Plant 4
Vendor

Business Partner User

Access to view and modify Access to view and modify
2
data for plant 1 and 2 only data for plant 3 and 4 only
Business Partner User
3 Business Partner User Business Partner User
2 3
All 3 users have access to view / modify
data for plant 1,2,3 and 4 in SNC Web-UI
screens
Restricted Planner Access Configuration and 17
Customization required

Assign Alternative location identifiers in location master data to

Location facilitate grouping
Master data

Assign location groups to business partner user

Business
Partner

Custom selection mode incorporates filtering logic to display

Custom SNC data based on assigned location groups and configured
selection for specific SNC screens and business partners
mode
 Key Learning's / Best Practices

Iterative Business Engagement

Engage Business users in all phases of the project.
Review solution with business users prior to QA migration
and UAT kick off.

Proof of Concept
Allocate time / resources to explore multiple options
through proof of concept during design phase of the project.

Avoid Big bang

Phased deployment of deliverables starting with pilot
locations and expanding the capabilities resulted in
zero high priority issues.

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 Where do we stand after go-live?
Unlocked time savings
Enabled a new level of data integrity across multiple divisions

Service level improvements

Inventory reduction
operating cost efficiency

Productivity savings for planners,

Reduction in miscommunications
System is taking out non value added duplicate work

Improved visibility to demand and supply plan

Questions

Is there anything we can help clarify?

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Glossary
BW: Business Warehouse
SAP s business intelligence (BI), analytical, reporting and data warehousing software

ISCP: Integrated Supply Chain Planning

PI: Process Integration

SAP's enterprise application integration software

SCM: Supply Chain Management

SAP s tool which enables collaboration, planning, execution, and coordination of the entire supply
network

SNP: Supply Network Planning

Module in SCM

SNC: Supply Network Collaboration

Module in SCM

TIBCO: Infrastructure and business intelligence software

XML: Extensible Markup Language

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SESSION CODE: 3102

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Contact Information

Surekha.Vutukuru@Pepsico.com
www.Pepsico.com

Sanjay Jelaji
Sanjay@SCMConnections.com
www.SCMConnections.com

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