7 Ways to Optimize SAP | Morgan Foods Mines for Gold!

Morgan Foods Mines for Gold in SAP | Introduction

Cheryl Bogenschutz

Senior Director, Strategic Engagements

Roger Heaverin

IT Director

AGENDAMorgan Foods BackgroundAssessment Process/Findings7 TipsRoadmapSummary

The Company Family Business – Started 1899 Soups, Broths and Beans Customers – Wal-Mart, Kroger, Aldi, Sav-A-Lot Publix, Topco, HEB, Wegman’s, AWG, Sam’s Club Explosive Growth Customer Demands Compliance Demands

Morgan Foods Mines for Gold in SAP | History

Information Technology 1984-1999 Legacy Systems 1999 – SAP Installed SAP 4.0B 6-Month Project Holland Technology – Big Bang Core Modules – FI-CO, MM, SD, PP-PI, WM 2004 – SAP Upgraded to R3 Enterprise 4.70 CSC – 3-Month Project – Oracle Database Core Modules – FI-CO, MM, SD, PP-PI, WM 2012 – SAP Upgraded to ECC6 EP5 itelligence – 3-Month Project – Oracle Database Core Modules – FI-CO, MM, SD, PP-PI, WM, QM 2016-2017 – Assessment – itelligence, Determine Next Steps

Morgan Foods Mines for Gold in SAP | History

Project Preparation Discovery Workshops(Current State)

Discovery Workshops

(Future State)Assessment Report

• Team Selection• Project Kickoff• High-level Scoping• Initial System

Questionnaire• System Access• Scheduling &

Logistics

• Conduct Review Sessions/Interviews

• Current State Review (AS-IS)

• Analyze Business Process(es).

• Review System Configuration

• Examine Master Data• Evaluate Architecture

Design• Identify Issues/

Improvement Opportunities

• Prepare and Present Alternatives

• Establish Course of Action

• Develop Future State/Solution

• Explore People, Process, Data, Technology

• Document Limitations & Opportunities

Prepare Final Assessment, Executive Summary, Recommendations

Deliver Executive Summary

Deliver Report and/or SOW

Opportunity Prioritization & Classification

Establish Remediation Plan(s)

Project Sequencing Prepare Next Phase

Project Plan

1 -2 days 2 days1-2 Weeks

Morgan Foods Mines for Gold in SAP | Assessment Process

Executive SummaryHigh-level summary and gauge for executive distribution and review.

Return on Investment / Quick Win AnalysisIdentification of quick wins, detailed benefits, and return on investment opportunities.

Morgan Foods Mines for Gold in SAP | Assessment Findings

7 Ways to Boost ROI with Automation

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Leverage ACH to reduce Accounts Payable manual activities

Warehouse operations utilize more RF capabilities

Streamline Quality Management documents within SAP

Warehouse Monitoring tools will give needed visibility to operations

Tip #1: Identify Manual Processes to Automate by Looking for Productivity Gains

Article: 7 Ways to Optimize SAP | Automate Manual Processes

• Procurement Contracts entered into SAP will automate PO processes and reduce dependency on employee’s knowledge

• Superstars provide strong value, but they may be holding you back

• Superstars can be better leveraged in new ways

Tip #2: Transition Tribal Knowledge to Formal Processes and Systems

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Downstream pain point may be due to upstream culprit

Blocked invoices may be caused by incorrect freight or pricing being entered upstream

Morgan Foods buried freight in the cost of the product rather than as separate, controllable costs

By stepping back and looking at end-to-end processes, you can identify the root cause

Tip #3: Staple Yourself to an Order

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Downtime and activity types can be captured and updated, resulting in more visibility of product cost

Explosive growth is a trigger to examine and formalize current processes

By automating processes, you can meet customer demands more cost effectively

Tip #4: Don’t Let the Gravitational Force of Old Processes Prevail

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Implement SAP’s standard invoice blocking functionality to enable system driven resolution

Batch characteristics functionality improves visibility of materials

Standard Production reporting functionality provides vital operations information

Use the system created best practices to streamline and simplify

Don’t be afraid to leap frog beyond simply automating the manual processes

Tip #5: Don’t Pave a Cow Path, Put in a Highway

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Governance of your master data does not have to be costly and burdensome

It’s worthwhile to put into place owners of your key data to reduce inaccurate analysis

For example, base unit of measure is set to “can”

Tip #6: Master Your Data!

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Actual activity values can be used on process orders instead of planned values to provide more accurate variances

Manufacturing instructions can be added inside SAP to allow the instructions to print automatically when the process order is released

Eliminate auxiliary systems, leverage the integration value of SAP; use the right tool for the job

Tip #7: If You Only Have a Hammer, Everything Looks Like a Nail

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Roadmap2017 2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Pricing and Costing Initiatives

Eliminate Manual Processes

SAP Moved to Cloud

Implement Material Ledger

Suite on HANA

S4 HANA

Morgan Foods Mines for Gold in SAP | Roadmap

A fresh look at both process and system can result in quick

improvements and eliminate pain points.

Balance immediate initiatives with positioning for future SAP

upgrades and investments.

Customer involvement from both Business and IT leaders is

essential.

Examine Process, Data and Technology to be successful.

Focus assessment on “practical” vs “futuristic”.

Be on the lookout for these 7 tips to find gold in your SAP investment

Morgan Foods Mines for Gold in SAP | Summary

Cheryl BogenschutzSenior Director – Advisory Services

10856 Reed Hartman HighwayCincinnati, OH 45242Web: http://www.itelligencegroup.com

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Morgan Foods Mines for Gold in SAP | Questions?

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