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Transcript of BTS CP Business Best Practice Process Designsapidp/012002523100017589512014E/… · BTS CP Business...
BTS CP Business Best Practice Process Design
Carola Feind-Just
Head Consumer Products MEE
Business Transformation Services
© 2013 SAP AG. All rights reserved. 2
SAP CP Business Best-Practices are the pre-defined reference content for
defining, managing and measuring processes
• Implement systematic business process management and performance monitoring based on
business best practice information
• Design industry best practice buiness processes without separate As Is process analysis
• Bridge the gap between IT and business based on SAP business best practices
Goal of
the approach
Extensive business best practice process content
available out-of-the-box
Quick and efficient blueprinting is enabled
Business best practice content is
available for all CP core process areas
Content is based on SAP experience
with major global CP customers
Available Business Best Practice content as
basis for process management
© 2013 SAP AG. All rights reserved. 3
Process flows
Organizational structure
IT support
SAP
Business
Best Practice
Content
• Process standards and rules
• Defined KPI’s and PPI’s
• Roles/ Responsibilities
• Meeting structures
• Applications supporting the processes
• Extensions, user exits, modifications
Business process management needs to consider process flows,
organizational structures and IT support
© 2013 SAP AG. All rights reserved. 4
Key element of the business best-practice content are out-of-the box
available described business rules & principles for processes, organization
and IT
Which rules & principles
need to be followed for a
business process to be best-
practice?
Process flows
Organizational
structure
IT support
KPI / PPI trees
to measure process
performance
Benefits
to be expected by
implementing the best-
practice
Customer Examples
of best-practice
implementation
© 2013 SAP AG. All rights reserved. 5
BTS CP best practice methodology is an efficient
approach to design to-be processes and identify process
optimization initiatives
Interviews Best Practice
Interviews/ Workshops Process Design Initiatives
Level Level 1 Level 2 Level 3 Level 4
1 04 Supply Chain Planning
2 04.01 Demand planning
3 04.01.01 Sales history evaluation
4 04.01.01.01 Clean up sales history data
4 04.01.01.02 Maintain promotion samples
3 04.01.02 Uplift planning (Optional)
4 04.01.02.01 Determine basis for new promotion
4 04.01.02.02 Create new promotion
4 04.01.02.03 Maintain influence of promotion on baseline
4 04.01.02.04 Review of current promotions
3 04.01.03 Baseline planning
4 04.01.03.01 Adapt Data for new, dropout & seasonal products
4 04.01.03.02 Select forecast model
4 04.01.03.03 Generate statistical forecast
4 04.01.03.04 Finalize sales forecast
4 04.01.03.05 Reconcile Demand & Promotion Plan
3 04.01.04 Demand plan consensus
4 04.01.04.01 Achieve Demand Plan Consensus
4 04.01.04.02 Release DP to supply planning
2 04.02 Vendor managed inventory
3 04.02.01 Release DP to supply planning
4 04.02.01.01 Retailer consolidates & sends data to manufacturer
4 04.02.01.02 Load retailer DC or store level data (sales, inventory, etc.)
4 04.02.01.03 Load retailer or manufacturer promotion data
4 04.02.01.04 Cleanse & harmonize data
4 04.02.01.05 Simulate data
3 04.02.02 Statistical forecast
SAP OneWorld
Consumer Products Process Map
1 2 3 4
Understand key process
differences between the
customer’s business
units / countries
As-is processes and
key differences
understood
Reference Process
Framework
© 2011 SAP AG. All rights reserved. 23
Daily Discuss and resolve order exceptions
Discuss and resolve credit blocks with Credit Control
Discuss and resolve product availability issues
Weekly
Monthly
Analyze reasons for order fulfillment failure for main customers
Discuss and solve deductions, credit notes, and overdue accounts
Analyze and define actions for claims, returns, refusals
Agree on action plan for products in short supply
Update on promotions/events, customer prioritization etc.
Consider planned Warehouse and Transportation issues
Meeting Topics
ARCS
Meeting
Participants
S
ARCS PL S
CS P S
CS S
CS
ARCS PL P S
ARCS S
CS PL P S
AR
CS
CS
ARCS PL P SCustomer
Service
Accounts
Receivable
Physical
Logistics
Demand
Supply
Planning
Sales
Meeting
Frequency
Illustrative
P
Analyze KPI’s and reasons for failure, plan improvement I.e.
Review trade debtors and risk categories
Review sales forecast against demand & supply planning
To ensure the success of One Face to the Customer, internal alignment is
essential (1/2)
© 2011 SAP AG. All rights reserved. 17
Key Principles & Rules – Exception-based Order Management and Order
Monitoring (1/2)
(1) Customer Service is monitoring order status on a regular basis at defined points in time (daily
schedule)
(2) Orders are monitored throughout entire order cycle from order entry and scheduling to delivery, billing
and payment
(3) Exceptions are raised automatically by the order management system and feed into CS work list
(4) Customer Service frequently reviews exception reporting and work lists as part of a daily activity
schedule including e.g.:
i. EDI errors to identify errors in order transmission process
ii. Inaccurate Orders (e.g. EDI input doesn’t match system determined values)
iii. Non-confirmed order lines report to identify stock-out situations (including allocation , ATP
failures non-authorised products)
iv. Review ‘at risk’ orders (orders committed against expected inventory)
v. Blocked orders with reason codes for further analysis and action (e.g. credit block)
vi. Business rules compliance check (efficient unit loads, order quantities etc.)
vii. Returns report to identify not processed returns
viii. Physical Logistics issues with real-time visibility
ix. Proof-of-Deliver (POD) confirmation report
x. Delivery discrepancies report
Rules & Principles: Exception-based Order Management and Order Monitoring (1/2)
Pre-defined best-
practice content
Define rules & principles
for to-be processes
based on best practice
material
Rules & Principles for
to-be processes
defined
Process Steps
(Level 4) RACIExecuting
RoleDescription/ Rules& Principles/ Variants
Process Objective KPIs
08.06.01.01
Receive order
08.06.01.02
Order entry
R
C
C
I
ISales deskmanager/ System
Automated order entry has to follow the principle to reduce the
number of touches for the whole organization.
Sy
ste
m
Cre
dit
Ma
na
ge-
me
nt,
Su
pp
lyC
ha
in
Sa
les
, S
hip
ping
De
pa
rtm
en
t
R/A
R/A
Cu
sto
me
r S
erv
ice
09 St or age & Dist ribution
09. 01 Delivery planning & mgm t
09. 02 Tr ansp. planning & execut ion
09. 04 Outbound logistics
09. 06 Returns & r ef usals mgmt
08 Sales
08. 06 Or der mgmt & execution
08. 07 Claim s mgmt
10 Finance
10. 01 Cr edit mgmt
10. 02 Stocks m gmt
10. 03 Account s receivable
10. 04 Fact or ing
Sales deskmanager
A customer order can be received via EDI, web, fax, email,
phone call.
08.06.01 Receive and enter order
– Process Description
Process Steps
(Level 4) RACIExecuting
RoleDescription/ Rules& Principles/ Variants
Process Objective KPIs
08.06.01.01
Receive order
08.06.01.02
Order entry
R
C
C
I
ISales deskmanager/ System
Automated order entry has to follow the principle to reduce the
number of touches for the whole organization.
Sy
ste
m
Cre
dit
Ma
na
ge-
me
nt,
Su
pp
lyC
ha
in
Sa
les
, S
hip
ping
De
pa
rtm
en
t
R/A
R/A
Cu
sto
me
r S
erv
ice
09 St or age & Dist ribution
09. 01 Delivery planning & mgm t
09. 02 Tr ansp. planning & execut ion
09. 04 Outbound logistics
09. 06 Returns & r ef usals mgmt
08 Sales
08. 06 Or der mgmt & execution
08. 07 Claim s mgmt
10 Finance
10. 01 Cr edit mgmt
10. 02 Stocks m gmt
10. 03 Account s receivable
10. 04 Fact or ing
Sales deskmanager
A customer order can be received via EDI, web, fax, email,
phone call.
08.06.01 Receive and enter order
– Process Description
Process Documentation
Templates
Design to-be processes
according to agreed
rules & principles
To-be processes
documented
Cost reduction
potential
Low hanging fruits Long-term benefits
low
medium
high
Value Realization
Time
Evaluation Criteria for
Initiatives
Prioritize identified
optimization initiatives (e.g.
tools to be implemented,
processes to be rolled out)
Optimization initiatives
prioritized
© 2013 SAP AG. All rights reserved. 6
SAP BTS provides a Consumer Products Process map to structure
Process Analysis and Design
1
• Industry process map
• SAP internally aligned
across all key Business
units
• Based on industry
standards
• Can be mapped to
industry standards like
AFPQ, SCOR, …
Business Best
Practices are
integrated in the
different
process areas
Excel process map
© 2013 SAP AG. All rights reserved. 7
All Business Best Practices are described in a standard format and will be
discussed in workshops with business participation
2
Each of the business best
practices consists of a set of
10 – 25 key rules and principles which
have to be discussed during the
workshops and assessed regarding
adoption, modification, variants
© 2013 SAP AG. All rights reserved. 8
Best-Practice rules & principles are adapted to fit the customer‘s situation
(5) Reasons for exceptions need to be documented systematically with reason codes to be able to
analyze cause and to initiated corrective actions
(6) Original and the final order details (qty., delivery date, plant, shipping point, prices, etc.) need to be
kept to facilitate audit compliance and reporting
(7) In case of any potential issues CS proactively communicates to customers.
(8) Rules to systematically evaluate orders and determine exceptions are defined and implemented
(9) Clear roles and responsibilities for processing exception work lists are defined for different people or
groups (to avoid duplication of work and/or omission of tasks)
(10) Effectiveness of check rules and exceptions are regularly reviewed and adjusted in order to improve
process effectiveness of checks and improve process efficiency
(11) CS is tracking the number of exceptions to manage workloads and workforce planning
(12) CS is measured upon exception resolution rate and resolution time
(13) Automated order entry (EDI, Web-ordering) is encouraged, orders flow through the remaining
process (credit check, fulfillment, billing) without manual interventions
(14) Customer Service Cockpit is available as comprehensive entry point to all OM related activities (e.g.
handle order monitoring and exceptions ‘on one screen’, customer data, communication with
customer, invoices, shipping documents, claims, returns)
(15) Workflow processes support involvement for different functions to resolve exceptions effectively
Rules & Principles: Exception-based Order Management and Order Monitoring (2/2)
Red: to be discussed
Blue: potentially irrelevant
for Company
© 2013 SAP AG. All rights reserved. 9
Adopted Business Best Practices are transferred into level 4 processes
based on the workshop results and the reference process map
3
Consumer Products industry
process map level 1 - 4
Organizational units, roles/ res-
ponsibilities affected by
best practices discussed during
the workshop
Processes affected by
best practices discussed
during the workshop
© 2013 SAP AG. All rights reserved. 10
To-Be processes are then documented in the format agreed with the customer
Process Steps
(Level 4) RACI
Executing
Role Description/ Rules& Principles/ Variants
Process Objective KPIs
08.06.01.01
Receive order
08.06.01.02
Order entry
R
C
C
I
I Sales desk
manager/
System
Automated order entry has to follow the principle to reduce the
number of touches for the whole organization.
Syste
m
Cre
dit M
anage-
ment,
Supply
Chain
Sale
s, S
hip
pin
g
Depart
ment
R/A
R/A
Custo
mer
Serv
ice
09 Storage & Distribution
09.01 Delivery planning & mgmt
09.02 Transp. planning & execution
09.04 Outbound logistics
09.06 Returns & refusals mgmt
08 Sales
08.06 Order mgmt & execution
08.07 Claims mgmt
10 Finance
10.01 Credit mgmt
10.02 Stocks mgmt
10.03 Accounts receivable
10.04 Factoring
Sales desk
manager A customer order can be received via EDI, web, fax, email,
phone call.
08.06.01 Receive and enter order
– Process Description
Identfication of the
process in overall
order-to-cash scope
Relevant KPIs to
measure process
quality
Description of level 4 to-be
process, directly reflecting
rules & principles that have
been defined on level 3
Level 3 process
Level 3 process
description and
objective
Functions
involved in the
process step
Role executing
the process
step
Level 4 process
steps
© 2013 SAP AG. All rights reserved. 11
All potentials are described in detail to provide the basis for the
prioritization of the initiatives to be implemented
Description of the
potential and the
relevant process area
Benefit description
Description of change
impacts each sub-
company
Description of
measures to realize
potential effort
Relation to overall
program goals
Status discussion on
benefits
Business & IT implications
4
© 2013 SAP AG. All rights reserved. 12
Main focus of process and organizational design are process levels 3 and 4
Inte
gra
tion
In
tegra
tion
Process level 3
Process level 4
Process level 6
Process level 1
Process level 2
Process level 5
Business
Ownership
IT Ownership
08 Sales
08.06 Order management &
execution
08.06.01 Order receive, enter
and validation
08.06.01.02 Enter order
08.06.01.02. ...
08.06.01.02. ...
© 2013 SAP AG. All rights reserved. 13
Main focus of process and organizational design are business process and
sub-process levels
Organization and Planning Reverse Logistics
(1) Customer Service is a single point of contact for all customer Returns and is responsible to coordinate
resolution with involved parties and communication to the customer
(2) Business rules are defined for Returns defining requirements for documentation, authorization and
maximum resolution time
(3) Where possible, Reverse Logistics strategy is planned for new product launches as a part of the
product strategy
(4) Clear instructions on company’s return policy are defined with customers where possible and are
easily accessible for customers (available electronically and where appropriate on product packaging,
with delivery documents or through product managers)
(5) The 'no returns' policy is implemented with customers where appropriate, and is strictly controlled to
ensure that all non-saleable goods are destroyed. Customer audits on product disposal compliancy
are conducted
(6) Where appropriate, in case of product discontinuation by the company or customer, clear guidelines
are communicated internally and externally on how to process
Rules & Principles: Reverse Logistics (1/3)
08.06.02.07 Per-
form credit check
10.01 Credit
Management
10.03 Accounts
Receivable
Interface
Interface
Description/ Rules& Principles/ VariantsRACIProcess Steps
Syste
m
Cre
dit
Man
age-
men
t,
Acco
un
ts
Receiv
able
Ccusto
mer
Serv
ice
R A C
R A C
Credit check uses the centrally def ined credit check rules as input that
are developed in Credit Management
10.01.01 Credit Limits Management: Central credit limit is def ined by
cross-functional team (see slide XX) and cascaded to the companies
dealing with the customer through a def ined logic
10.01.03 Credit Master Maintenance: credit check rules that are
maintained in the customer credit master are required as input for the
credit check
Credit check rules refer to credit-relevant information f rom the customer
account and include, but are not limited to customer credit limit, dunning
level, days sales outstanding
input
input
Credit check uses the customer open items as well as other credit-
relevant data (e.g. dunning transactions, oldest open item, last payment,
DSO) maintained in Accounts Receivable as input for credit check
Normally, open items are reported to Credit Management once each
day af ter all incoming and outgoing payments have been processed in
AR
Customer credit exposure and payment behaviour summary are
updated based on this information and the current order value
Business Process
Level
Sub-process
Level
Process Activity Level
Process levels 1-2 Strategic guidelines, general
operating model of the company
Cle
ar
an
d w
ell
str
uctu
red T
op
-Do
wn-A
pp
roa
ch
has t
o b
e a
dopte
d
Typically no systematic
definitions or documentation
on business process and sub-
process levels available
Inte
gra
tion
Inte
gra
tion
Multiple formats
throughout the company
Typically
documentation
available from system
implementations
© 2014 SAP SE All rights reserved. 14
SAP Business Best Practices are mapped to end-to-end processes
05 Purchasing
06 Manufacturing &
Quality Mgmt
10 Finance
05.03
Operational
Procurement
06.04 Inbound
Logistics
05.02 Purchase
Agreemt. Mgmnt
10.06 Accounts
Payable
05.06 Supplier
Settlement
Procure-to-Pay
Efficient Procurement Organization
Spend Category Management
Manage Purchasing Agreements
Efficient Procurement of Services and Indirect Materials
Efficient Invoice Management
Streamline & Automate AP Processes
Vendor Returns / Claims
Inbound Material Management (operational)
P2P
Best
Practices
Potentially
excluded from
P2P scope
© 2013 SAP AG. All rights reserved. 15
Best-practice information is the efficient baseline for establishing a business process management framework
Customer
challenges
Roll-outs are not as efficient and fast as they
could be
Roll-out efforts are up to 30% higher than
they could be with a structured template
No defined continuous improvement
process, processes are not systematically
adapted to changing environments
Multiple small IT and Process optimization
projects are running without clear link to a
„template“ solution
Process ownership is not systematically
defined
No clear description of roles and responsibili-
ties, no clear process governance
Business processes not systematically
documented
No common documentation standards, diffe-
rent business processes based on IT solution
No process performance framework / KPIs
in place
Benefits vs. costs of process improvement
projects cannot be tracked and evaluated
Best-practice methodology is used to meet customer challenges in
continuous improvement
© 2013 SAP AG. All rights reserved. 16 Internal
Initiatives are prioritized at the end of Design, based on pre-defined criteria
Initiative COM CO FI HR OPS PUR RM
Harmonize and streamline structures within sales3
Initiative lead streams Initiative affected streams
2 Harmonize tactical sales and supply planning
8 Harmonize subcontracting processes
4 Increase automation of purchasing processes
9 Harmonize supplier management
5 Harmonize and streamline order to cash process
11 Harmonize sales contract management
12 Harmonize intercompany trade
1 Harmonize operational supply planning
10 Optimize material groups
6 Centralize & improve master data management processes
7 Standardize & further professionalize FI & CO processes
Very high harmonization benefit Harmonization benefit for Template Optimization
• Initiatives are
prioritized based on
the benefits and
harmonization
achievement
• Functional
dependencies are
strongly considered
Contact
Contact information:
Carola Feind-Just
Head Consumer Products MEE
Business Transformation Services
+49 151 5711 8299