ERP IMPLEMENTATION

IN
TATA Motors
307 SUBHRADEEP BHOWMIK
308 GAURAV BHUTIANI
313 BRIAN D’SOUZA
316 SHIVANGI GUPTA
319 EVA JOSHI
329 TRIPURARI KUMAR
 WHY SAP: Tata motors
•
perspective
SAP is the world leader in ERP systems for
manufacturing companies
• Ready made processes for auto manufacturers 
level of customization required is less
• The success of SAP SCM module hinged on the
success of the Tata Motors implementation
• Functional and Technical Consulting for
implementation of mySAP portfolio of
products
– SAP R/3 Implementations including Industry
Specific Solutions
– BIW, CRM, SRM, APO, SCM, Enterprise Portals
• Change Management
• SAP Implémentation Audit
• Identification of Risk Factors
• Risk mitigation Planning
• Solution / System Optimization
• System Operations Plan
 Rechristened as Project VECTOR:
Value Enhancement by Collaboration
through Technology and Operational
Restructuring

Project VECTOR Mission:

“Revolutionize the supply chain by
uncovering the hidden value through
technology driven Sourcing and
collaborative Purchasing”
Picture 2
 The ultimate goal of project VECTOR is stated in
bullet points below:
• Automate procurement process
• Enhance Supplier capability through catalogue content
management
• Streamline procurement process across locations
• Quick sourcing through live auctions
• Clear visibility of supplies and payments status to
suppliers through portal.
• Bring global Spend visibility to maximize negotiation
power
• Parts rationalization through spend analysis
• Competitive price through live auctions
• Harness state of the art technology – Netweaver, Web
enabled collaboration
Organization Chart for
implementation
 SAP Commitment
• SAP SCM
module’
success
hinges on a
robust
implementatio
n in TATA
Motors.
Logical Structure
Physical Structure
 e-Procurement
Supplier Relationship
Management
 SRM
Tata Motors has used the following features
• Self Service procurement.
• Catalog and Content Management.
• Strategic Purchasing Scenario: Spend Analysis,
Contract Monitoring.
• Sourcing Scenario: Rfq, Rfx.
• Supplier Self Registration Module.
• Live Auction Cockpit
• Order Collaboration Scenario with full support for
Goods Movement.
• Contract Re-Negotiation Scenario for Retrospective
Price Amendments.
• Usage of SAP Netweaver: People Integration, Process
Integration and Information Integration
 Purchase Process Flow
Tender Floatation Evaluation of
tender

Selection of Vendor

Material transport & Documents

Exchange

Material Acquisition
 Evaluation of tender
Parameters
 Quality aspects
 Competitive price rates among
consignor
 Freight rates
 Price conditions ( transit
insurance, packaging )
 Tax structure to be applied on
consignor Location basis
 Business Process – Supply Strategy Development

DEFINITION
Supply Strategy Development is initiated by
assessing the organization’s supply needs. Data Strategy
collection collaboration
Products and/or product groups are combined
into sourcing categories. Categories are
positioned according to their business impact.
Market information, technology and industry
trends are collected along with information
about the supply base. Strategic
analysis
Based on the analysis of this combined www..
information a supply strategy is derived for
each of the souring categories.

EXAMPLES SRM COMPONENTS

 A company opens a new facility in East Asia,
and defines the sourcing strategy for that
region.
 Analysis of hidden procurement costs kicks
off a “supplier de-proliferation” initiative.
 SAP Enterprise Buyer (Prof. Ed.)
 SAP Decision Support
 SAP Business Information Warehouse
 SAP Collaborative Room
 SAP Supplier Collaboration Services
 Supply strategy development
SUPPLY STRATEGY DEVELOPMENT
Supply need Business impact Supply market Strategy
assessment assessment assessment collaboration

SAP Business Information Warehouse

SAP Decision Support
SAP Collaborative Room
SAP Supplier Collaboration Services
 Product key mapping & synchronization
cross multiple backend systems
 Hub-based analytics architecture SAP Business Information Warehouse
 Cross-organization purchasing visibility SAP Decision Support
 Collaborative demand aggregation  Import and analysis of
using documents in C-ROOM Dun & Bradstreet data

SAP Enterprise Buyer Pro

SAP Business Information Warehouse
SAP Decision Support
 Vendor key mapping & synchronization
cross multiple backend systems
 Cross-organization supply
base analysis
 Contract & Spend analysis
SAP Collaborative Room
SAP Supplier Collaboration Services
 Collaborative document mgmt with C-ROOM
Sharing of spend reports & research documents
in a commodity team
Structured discussions about documents
 Trigger RFQ process via C-ROOM
Business Process – Supplier Selection (commodity
goods)
DEFINITION
Bidding
Strategic Sourcing is the process of sourcing a
scenario
strategic contact for a material group where
design collaboration is less important.
A request for proposal is submitted to qualified
suppliers and responses are evaluated. A
contract negotiation phase usually follows.

RFQ / Bid Strategic

Reverse Auction Analysis Contract

EXAMPLES SRM COMPONENTS

 Consulting company reduces supplier base,
by aggregating airline tickets to one airline.
 Bank aggregates paper demand to improve
MRO pricing.
 SAP Enterprise Buyer Professional
 SAP Business Information Warehouse
 SAP Decision Support
 SAP Dynamic Bidding
 Supplier Selection (commodity goods)
Commodity Sourcing
Initiate Publish Create and Bid analysis Determine
RFQ/Auction RFQ/Auction submit bid and evaluation Winner

SAP Dynamic Bidding

 RFQ/Reverse auction
capabilities in DB
SAP Enterprise Buyer Pro
 Initiate RFQ from C-ROOM
SAP Dynamic Bidding
 Contract Management in EBP
 Integration of DB and EBP

SAP Dynamic Bidding

 Online bidding in DB
 Attach document to bids

SAP Dynamic Bidding SAP Dynamic Bidding

 RFQ/Reverse auction SAP Business Information Warehouse
capabilities in DB
SAP Decision Support
 Bid invitation via e-mail
 Export of RFQ/Bid to BW
 Multi-parameter bid analysis
1
 Supplier Collaboration
Extend process control to your suppliers…
Design Collaboration Order Collaboration Collaborative
 New product design  Account information Replenishment
 Collaborative project  Bidding event  Stock requirement visibility
management notification  Supplier managed inventory
 Order management  Advance shipping notification
 Invoice processing
 Dispute resolution

Reduce administrative overhead for

supplier communication

Supplier Registration Supplier Connectivity

 Supplier self-  Integration broker
registration  Supplier network
 Supplier qualification
 Supplier Self-Registration
 
 
 Order Collaboration
Functions & Benefits
BUYER SUPPLIER  Documents supported:
Purchase Order
Release schedule
Order Response
Order/Change order Confirmation/ASN
Purchase Order Sales Order Invoice/ERS Invoice

Order Response*
 e-mail notification for new/changed
Order response Order response orders/release schedules
Confirmation/ASN

Confirmation/
 Overview of all orders/release
Confirmation/ schedules
ASN Receipt** ASN
 Print & download functionality
Invoice*
 Service Agent for Service Entry
Invoice Invoice
Receip**t  Confimation/Service entry creation
ERS Invoice in easy to use Web UI for EBP-SUS
scenario
 ASN creation in easy to use Web UI
Note that EBP-SUS scenario is only fully supported for MM-SUS scenario
in local deployment mode.
 Easy invoice creation* based on
* Order Response and Invoice creation is not supported for Release schedule Confirmation/ASN or orders
** Receipt message is only supported for EBP-SUS scenario
 Supplier Self Service
SUPPLIER SELF SERVICE
Content Receive
Creation orders
SAP Supplier Self Service
 Supplier content Management
Suppliers can modify their catalog data or
can manually create new catalog data
SAP Supplier Self Service
 Receive order via xml documents
 Orders can be viewed
 Ability to download orders
Respond to Data Capture Invoice
Orders
SAP Supplier Self Service
SAP Supplier Self Service
 Supplier manages orders
 Create Invoice based on
 Process order acknowlegement
order or without reference
 Changing status of order
to order
 Changing of delivery times,
 Data is distributed to
quantities etc. procurement system via
 Changes are distributed to procur- xml document
ement system via xml documents
SAP Supplier Self Service
 Entering the information about
services performed and Material needed
 Data distribution to procurement
system via xml document
 Web reports accessible to suppliers
 Business Process – Self Service
DEFINITION
Procurement
Self Service Procurement is the process of Catalog
purchasing non-strategic goods, i.e. goods not requisitioning
directly linked to the value chain (often called Purchase
MRO – maintenance, repair and operations Order
items).
Demand is generated mostly ad hoc by humans.
Users are all employees in an enterprise, not
just professional buyers. Example commodities:
office material, work clothes, IT equipment. Approval

EXAMPLES SRM COMPONENTS

 Catalog buying of office materials, IT  SAP Enterprise Buyer Professional
equipment and more by employees.  Requisite BugsEye
 Employee requesting some special materials
or service not found in catalogs or frame
contracts.
 Self Service Procurement
SELF SERVICE PROCUREMENT
Goods Invoice
Requisition Approval Ordering Payment Accounting
Received Handling

SAP Enterprise Buyer Pro SAP Enterprise Buyer Pro

Requisite Bugs Eye  Centralized procurement using EBP
 Catalog buying from any OCI-  Order tracking functionality
certified catalog.
 Off-line access via mobile devices
mySAP Enterprise Buyer Pro
 Download toAccounts
Payable/General
Ledger systems
SAP Enterprise Buyer Pro
 Workflow for order approval
SAP Enterprise Buyer Pro
 Invoice verification against purchase order
and goods delivery note
SAP Enterprise Buyer Pro
 Standalone or backend-integrated
procurement dependent on
product category

** Selected customers only

 Overall Benefits
• Overall Integration of the departments –
Finance, Sales, Production etc.
• On Demand Decision making data
• Backward Demand Integration
• Reduction in inventory cost as real time info is
available
• Reduction in production bottleneck with better
scheduling
• Seamless integration across the Supply Chain
• Standardization of processes across plants at
various locations
• Reduction in manual efforts of Invoice Capture
• Reduction in Transaction Cost & Compress Cycle
time