Digitising the extended Supply Chain - SAP CH Events SCM... · Digitising the extended Supply...
Transcript of Digitising the extended Supply Chain - SAP CH Events SCM... · Digitising the extended Supply...
SAP Forum Lausanne
13 June 2016
SAP Solution Management, Head of Response and Supply Orchestration
February 2016
Digitising the extended Supply Chain: SAP Supply Chain Strategy and Solution Innovations for Integrated
Business Planning
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Internal
Disclaimer
This presentation outlines our general product direction and should not be relied on in making a purchase
decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP
has no obligation to pursue any course of business outlined in this presentation or to develop or release any
functionality mentioned in this presentation. This presentation and SAP's strategy and possible future
developments are subject to change and may be changed by SAP at any time for any reason without notice.
This document is provided without a warranty of any kind, either express or implied, including but not limited
to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP
assumes no responsibility for errors or omissions in this document, except if such damages were caused by
SAP intentionally or grossly negligent.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Internal
Extended Supply Chain Strategy
Introduction to SAP digital transformation framework
Integrated Business Planning
Solution Introduction
Roadmap Status
Customers
Discussion Agenda
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World’s largest taxi company owns no taxi’s
Largest accommodation provider owns no real estate
Largest phone company owns no infrastructure
World’s most valuable retailer owns no inventory
World’s largest movie house owns no cinemas
Largest music company owns no music
Worlds biggest book distributor owns no books
Digital Disruption is Happening:
We all feel it!
Digital Economy
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49% Supply Chain Executives said that digital supply chain will be both disruptive and important within the next three yearsSource: SCM World’s 2014 Chief Supply Chain Officer survey
80% Said that digital operations are critical of every organizations manufacturing competitivenessSource: Digital Manufacturing & Design Innovation Institute
13% Said that their organization has digital manufacturing capabilities todaySource: Digital Manufacturing & Design Innovation Institute
37% Said their organization has a strategy for how digital manufacturing will enable competitivenessSource: Digital Manufacturing & Design Innovation Institute
Opportunities for digitized supply chains
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Customers &
Markets
Suppliers &
Logistics
Products &
Assets
People &
ResourcesResource Scarcity
Sustainability
Individualized Products
Industry 4.0
Customer Centricity
Omni-Channel
Sharing Economy
Business Network
Digitizing the Extended Supply Chain
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Customer Centricity
45% of enterprises are building direct-to-customer fulfillment capabilitiesSource: SCM World’s 2014 Chief Supply Chain Officer survey
Demand Sensing
Same-day Delivery
Omni-Channels
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Example Capabilities for Digital Supply Chain
Demonstration integrating demand and supply across a real time
responsive supply chain with SAP Integrated Business Planning
Inventory
Demand Response and Supply
Sales & Operations
Supply Chain Control Tower
Demo
Slides
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Individualized Products
80% of companies said that digital operations are critical of every organizations manufacturing competitivenessSource: Digital Manufacturing & Design Innovation Institute
Digitized Inventory
Lot-Size of 1
Configured Products
Industry 4.0
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Sharing Economy
Response Network
Strategic Sourcing
Logistics Network
Product Networks
Asset Network
Manufacturing Networks
Project Network
50% of networked companies are more likely than their peers to have increased sales, higher profit margins, and be market leadersSource: McKinsey
40%Growth in adoption of business networks last 2 years Source: Technology Adoption Report on Business Networks, Ardent Partners, 2015.
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Resource Scarcity
64% of companies say that priority access to scarce raw materials/capacity and collaborative cost reduction with suppliers are extremely relevant to their competitive advantageSource: SCM World’s 2014 Chief Supply Chain Officer survey
Talent AcquisitionTalent acquisition and development has become twice as hard since 2011
Risk ManagementJoint risk mitigation with suppliers drives ability to leverage supply chain disruptions
Environmental ResponsibilitySteady rise of cost savings as justification for investments in Environmental Responsibility
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Customers &
Markets
Suppliers &
Logistics
Products &
Assets
People &
ResourcesResource Scarcity
Sustainability
Individualized Products
Industry 4.0
Customer Centricity
Omni-Channel
Sharing Economy
Business Network
Digitizing the Extended Supply Chain
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Simplified Solution Approach
Internet of Things
SAP Fiori on any device
Business Network
SAP S/4 HANA
Extended Supply Chain
Plan
Respond Deliver
Design
Produce
OperateManaged cloud
Public cloud
On-premise
Connectors
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Sales, Inventory and Operations Planning Demand Management Demand Network
Response and Supply Management Production Planning and Scheduling Response Network
Warehouse Management Transportation Management Logistics Network
ma
na
ge
d c
lou
d
public cloud
on-premise
Plan Respond Deliver
SAP HANA Platform
SAP Business Suite 4 HANA
Plan Respond Deliver
Real-time Network Insights
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Enabling Demand Networks
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SAP Integrated Business Planning Solution:A new approach to supply chain planning and response
One Harmonized Data ModelAvoid any latency due to integration efforts and leverage the
SAP ERP data model
Cloud First ApproachThe solutions will be provided in the SAP Cloud but also be
made available on-premise
Mobile Enabled ExperienceIntroduce state-of-the art user experience with communication
capabilities (SAP JAM) and MS Excel Spreadsheets
Built on SAP HANADemand Networks require real-time monitoring and a focus
on short-term planning and scenario simulation
New Planning AlgorithmsLeverage predictive analytics (e.g. demand sensing)
algorithm in combination with optimization
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is providedwithout a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP Integrated Business
Planning
Inventory
Demand Response & Supply
Sales & Operations Planning
Enhanced User Experience
Supply Chain Control Tower
SAP HANA Platform
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Integrated Business Planning Evolution
S&OP 2.0
IBP for sales & operations
New cloud-based HANA
platform for advanced
planning
New Excel and HTML User
Experience
Common architecture / data
model
Support for internal
collaboration
2012
2013
S&OP 3.0
New HANA Cloud
Integration model
Integration content for
ECC, APO, EIS
Extended S&OP
Functionality
2014
IBP 4.0
IBP for Inventory
Supply Chain
Control Tower
IBP for Supply
Gartner MQ:
Leadership
Quadrant
Today
IBP 5.0
IBP for
Demand
Further
enhancements
to each
module
100+
Customers
2016
IBP 6.x
IBP for Response
& Supply
Order-based data
model
Closed loop
integration and net
Change replication
6.1, planned March
2016
FUTURE+
IBP 7.0++
IBP and S/4HANA
advanced workflows
Further industry
enhancements to all
modules
Integration with financial
planning
Integration with Sales and
Trade Promotion Planning
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is providedwithout a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
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High Tech
Pharma
Chemicals
Manufacturing
Mill
Products
& Mining
Consumer
Products
Services
Retail AerospaceAutomotive
IBP has a growing customer base and is a proven platform
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SAP Integrated Business Planning
Enhanced User Experience
Powered by SAP HANA
Real-time insight and
monitoring on aggregated
and detailed levels
Integrated processes across
all time horizons with pre-
built templates & integration
Embedded social
collaboration platform to
engage all stakeholders
Operational and financial
planning and simulation
Highly configurable data
model and pre-build
templates and integration
Amazing user
experience with SAP Fiori
and embedded Excel
Inventory
Demand Response and Supply
Sales & Operations
Supply Chain Control Tower
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SAP Supply Chain Control Tower
Increase end-to-end network visibility combining
planning, execution and network data
Intelligent alerting with resolution to increase on-
time delivery performance
Collaborative framework for all players in the
supply chain to monitor performance and drive
continuous improvement
Increase supply chain agility and response,
managing risk, reducing costs and increasing
service
Inventory
Demand Response and Supply
Sales & Operations
Supply Chain Control Tower
Integrated Business Planning
ERP
ERPERP
APO APO
APO
EM
SNC
3rd Party
3rd Party
3rd Party
Local DC
Central DCEurope
Local DC
Plant
Plant
Plant
Supplier
Central DCAmericas
Central DCAsia Pacific
Supplier
Supplier
Supplier
Supplier
Supplier
Retailer
Distributer
Customer
Customer
Customer
Customer
TM
Supply Chain Control Tower
Days of Inventory
With real-time, enterprise-wide visibility into inventory*
-12%
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SAP Integrated Business Planning for demand
Develop more accurate mid-term
statistical forecasts
React faster to short-term demand
changes with pattern-recognition-based
algorithms
Drive more accurate deployment of
product based on short-term demand
Collaborate to ensure the most
accurate forecast
When forecasting all combinations of SKU and inventory
locations*
-35%Outbound Expediting
Inventory
Demand Response and Supply
Sales & Operations
Supply Chain Control Tower
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SAP Integrated Business Planning for sales and operations
Create the optimal business plan to drive revenue
growth and increase market share
Effectively balance demand and supply and attain
financial targets
Increase speed and agility of planning and drive
most profitable responses
Improve forecast accuracy and on-time delivery
Inventory
Demand Response and Supply
Sales & Operations
Supply Chain Control Tower
Revenue Growth
Growth in top-line revenue with integrated sales and operations planning
1%–2%
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SAP Integrated Business Planning for inventory
Improve customer service levels
Maximize efficiency of inventory and working capital
Improve planner productivity, automate and
standardize planning processes
Shorter and complete inventory target-setting cycles
at each tier
Reduce production and distribution costs
Inventory
Demand Response and Supply
Sales & Operations
Supply Chain Control Tower
Customer service levels lifted from
93.7% to 99.1
Improved service levels with a 20% reduction in
days of inventory
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SAP Integrated Business Planning for response and supply
Strategic, Tactical and Operational supply planning
covering all time horizons in one solution
Planning and Simulation / What-if analysis / Pegging and
Gating-factor analysis
Unconstrained and constrained planning with profit
optimization combining operational and financial planning
Manage allocations and response for optimal customer
service across prioritized demand streams
Operate lean low cost operations concurrently planning
capacity and materials across manufacturing networks
Inventory
Demand Response and Supply
Sales & Operations Planning
Supply Chain Control Tower
Shorter Lead Times
With flexible rules-driven supply-demand matching
40% Higher On-time Delivery
With integrated material and capacity order planning and promising
5,6%
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Internal
IBP, APO and S/4 HANA
SAP S/4 HANA Enterprise Management (SAP HANA)
APO Production
Planning and
Detailed Scheduling
APO SNPAPO DP & Demand
Signal Management
Benefits
• Flexible roadmap to leverage existing
implementations (i.e. APO) and adopt
new innovations
• Standard integrations with Business Suite
(ERP, APO, BPC…)
• Choice where to execute business
processes, and can evolve over time
• APO and IBP bring deep industry
capabilities to maximize value delivery
now
• IBP and HANA enable evolution to next
generation real time supply chain platform
• New Rapid Deployment Solution for IBP
enables deployment in 10-12 weeks
Inventory
Response & Supply Demand
Sales & Operations Planning
SAP integrated Business Planning
Supply Chain Control Tower
APO Global
Available to
Promise
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S/4 HANA Outlook: Secure roadmap with integration of both
existing and new SCM solutions with S/4 HANA
SAP HANA Platform
Warehouse
Management
Track & Trace
Transportation
Management
Supply Chain Execution Platform(On Premise Deployment)
Supply Chain Planning(On Premise Deployment)
Integrated Business Planning (IBP)(New, Unified Platform for Cloud Deployment)
Sales & Operations Planning
SAP HANA Platform
Supply Chain Control Tower
DemandSupply &
ResponseInventory
S/4
Advanced Planning & Optimization(APO - DP, SNP, PP/DS, GATP)
Supply Network Collaboration (SNC)
SAP HANA Platform
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More Information: View SAP Value Map
Visit us online
Benchmark your
performance
solutionexplorer.sap.com.
Line of Business –> Supply Chain
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Q&A Contact Details
Patrick Crampton-ThomasSAP Solution Management, Response
and Supply Orchestration
patrick. [email protected]
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