Enabling Demand Driven Supply Chains - SAPfm.sap.com/data/UPLOAD/files/Demand Signal... · SAP...

SAP Demand Signal Management, powered by SAP HANA

Enabling Demand Driven Supply Chains

Supply Chain Summit

April 3, 2013

Tod Stenger - SAP Solution Management

Brooke Williams - SAP Solution Engineer

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Agenda

Overview of SAP Demand Signal Management

Architecture and Data Acquisition

Loading Data

Integration with SAP Business Suite

Analytics and End User Interaction

Implementation Considerations

Wrap-Up

Overview


Not Understanding what your Customer Wants can

have major consequences

Companies need to Sense and Respond to Customer

Demand using Downstream Demand Signals

Average ROI

on Trade Promotions

is -12% to -19%

Retailer Trade

Collaboration 2011

Average Out of Stock

Rate is 8% to 20%

Improved On-Shelf

Availability 2011

75% of New Product

Launches Fail

Rebuilding the

21st Century on Demand April 2011


Today, Traditional Forecasting is not Enough to Manage

Demand

There is a need to establish another level of visibility to more accurately

manage demand, align consumer, promotional and forecast data

Demand Signal

Management

(SAP HANA)

Social

Networks

Detailed Demand

Signals

Market Research

Syndicated Data

Demand

Signal

Capture

Analysis, Mkt

Research,

Social Insight

Demand

Sensing

Promotion,

Pricing

Replenishment, Inventory,

Trade Promotions

Planning,

Promotions,

Replenishment

Demand

Response


Challenge #1 Addressed by SAP Demand Signal Management Information Latency and Lack of Granularity

New Approach

Direct access to

Consumer Demand

Wholesale

Level

Retail

Level

Consumer

Level

Distribution Network

Finished Goods

Manufacturer

Existing Approach

Multiple Layers to

Consumer Demand

Multiple layers

leads to latency

in data

Multiple

aggregations

leads to loss of

granularity

SAP Demand

Signal

Management, powered by

SAP HANA


Challenge #2 Addressed by SAP Demand Signal Management Lack of Cross-Functional Process Synchronization

SAP Demand

Signal

Management, powered by

SAP HANA

New Approach

Enterprise scale, single source of

latest information to synchronize

processes

Existing Approach

Disconnects due to lack

of up to date information

Supply

Chain

Sales Marketing

• Sales Targets

• Sales Promotions

• Store Listings

• Market Share Goals

• Introducing New Products

• Trade Funds

• Forecasting Demand

• Inventory Targets

• Stock Replenishment

Supply

Chain

Sales Marketing

RIGHT - Product

- Quantity

- Place

- Time

- Price


Opportunities by Leveraging Downstream Demand Signals

Instantly identifying market trends

and customer needs

Identifying how market price

volatility will affect your promotions

Immediately see changes in

demand/supply across entire

supply chain

Monitor and analyze all deviations/

issues in replenishment process

Provide exactly the right offers and

service levels to every customer

Have a continuously-updated

window onto sales

Understand customer/potential

customer buying behavior

Identify risks and understand

promotion success in real-time


Where does DSiM fit in my landscape?

SAP Demand

Signal Management

CRM

SAP BW on HANA

Supply

Chain

Planning

Core ERP

Trade

Promotion

Management

External

Demand

Signals


Scalable and centralized in-memory database for BIG DATA Capture large volumes of downstream demand data (e.g. Point of Sales) and Market

research data in a single instance

Automate the process to cleanse, validate, harmonize and enrich data with additional

information during data upload

Central source of truth for advanced analytics Pre-packaged analytics to instantly analyze large volumes of demand and market data

along multiple dimensions

Extend and create purpose built analytics and mobility applications to meet specific

needs of various roles in the organization

Combine social media data with analytics like e. g. sales

Richer demand data for enterprise business applications Provide cleansed and harmonized demand data to supply chain, sales & marketing

business applications

SAP Demand Signal Management powered by SAP HANA

SAP’s Demand Signal Management solution provides a holistic view of how customer demand

and sales are materializing by analyzing massive volumes of external downstream data (like

POS data and Social Media), market research data as well as internal data like sales


Key Value Propositions Of SAP Demand Signal Management Supply Chain, Sales and Marketing

Promotion

Effectiveness

Track promotion participation and

compliance

Track price variation by store Market Share

Analysis

Monitor market share changes

across geographies

Perform root cause analysis of

declines in sales

Forecast

Accuracy

Monitor demand and market data

Analyze historic sales and

promotions

Input to Demand Planning process

Out of Stock

Reduction

Monitor Inventory

Quickly spot stores with low or no

stock

Product Launch

Success

Track store sales and listings

Track price compliance

Ensure stock availability

Sales Analysis

& Planning

Analyze store level demand data

Benchmark store sales

Identify stock issues and prioritize

sales visits

Adjust – add builds and simplify text

Architecture and Data

Acquisition


SAP’s HANA Technology – a Uniquely Powerful Foundation

to Enable the DSiM Value Proposition

Data

Harmonization

& Storage

Data

Sources

Data

Consumption

Data

Collection &

Transformation

HANA Repository (DSiM)

Retailer

1

Retailer

2

… Retailer

n Households Distributor/

Wholesaler

Market

Research Data Point-of -Sales

Internal

Data

SAP

Business

Suite

Mobile Apps SAP Business Suite

(e.g. ERP, SCM, CRM) etc…

Out-of

Stock / Shelf

Data Acquisition Data

Upload

…

Analytics

Standardized

Interfaces

SAP Demand Signal Repository Application


Architecture Built for Extensibility and Flexibility

Netweaver/BW

HANA

Application Foundation

Consumption Layer

Extension at Any

Layer Possible

Capability to process

large data volumes at

high speed

Leverage existing

BW knowledge and

know-how

Various user

experience options

Robust

foundation


Flexible Data Acquisition Options SAP Information Interchange, BOBJ Data Services or Third-Party solution

Retailers /

Distributers

Portal

Flat Files

EDI

Data Acquisition

Options

Third-Party

Solution

3

1

SAP Business

Objects Data

Services

2 SAP Demand

Signal

Management

SAP

Information

Interchange on

Demand

Data Collection

http://www.microsoft.com/office/excel/default.htm

Loading Data


Control, Cleanse, Harmonize & Enrich

Cleanse & Check Quality

• Flexible functions to check data quality

& completeness

Control & Monitor

• Automated data upload and

processing

• End-to-end monitoring

Harmonize

• Harmonization of external

data with internal data

• Automated harmonization

process using rules.

Enrich

• Enhancement of incoming

data to make it more usable

Rules for quality check, harmonization and data enrichment are contained in

an open and extensible framework


Load Manager and Process Flow Control initiate and control the data upload

process

File system monitoring and PSA monitoring can be scheduled separately via jobs

Job-schedules can be defined via customizing

Load Manager & Process Flow Control

Interaction

Evaluate process

schedule

Load Manager Process Flow Control

Trigger

process chain

Update

status

Check

completeness

Monitor

file system

& incoming PSA’s

Schedule

process

Create

instances


Data Agreement Concept

• Defined by data source (retailer, market

research provider) and determines

• What data is sent?

• What do the files look like?

• How often to I get data?

• How do I process the data?

Target Nielson Wal-Mart

DSiM Data Store


Data Upload Steps

Stages & Process Chains

Data Quality

Validation Data Harmonization Data Enrichment Analytics Data Upload

Step0:

Load Management

Step6: Data Enrichment

Step5

Data Propagation

Step4: Data Harmonization*

Step3:

Creation of internal

IDs (optional)

Step2:

Quality Validation

Step1:

Data Acquisition

Legend: No process chain attached

process chain attached

Step7:

Data Consumption


Data Quality Validation

Goals of Data Quality Validation

Save Costs in the overall process

Avoid time consuming manual re-work

of data

Check the data quality at an early stage,

where the cost for fixing the data quality

issue is comparably low

Improve decision quality

Avoid the use of incomplete and

inconsistent data which leads to wrong

decisions

Load Validate Enrich .. <DSiMProcess>

Cost of Data Quality Issues


Data Quality Validation

Validation Functions

• Standard Validations

oAbsolute KPI’s

oComparative KPI’s

oOut-of-Sequence KPIs

Customer Defined Validations

Validation Life Cycle

Customizing

• Functions, Sequences, Steps, Thresholds

• Delivery Agreement Specific

1 Million units sold this week

Sales decreased by 75% week

over week

Data from three weeks ago just

showed up


Purpose of Harmonized Data

Harmonized Object Attributes

Harmonized Object Attributes

Local objects can have their own

attributes and attribute semantics

Each object has some attributes that

are provided by each data origin with

the same meaning

Global location number (GLN)

for locations

Global trade item number

(GTIN) for products

Local attributes are harmonized into

global data that can be used for

reporting

Specific attributes can be governed,

that means that only specific attribute

values are allowed for global objects

Manufacturer

Master Data

Retail

Master

Data

Market

Research

Data

Other

External

Data

Global

Master Data

Object


Data Harmonization enabling combined data usage

Global ID approach


Data Enrichment in DSiM: Overview (simplified)

Calculation of Out-of-Stock and Out-of-Shelf

DSiM Data Foundation

DSiM Analytical Reporting

Master Data

(Product,

Location)

Transactional

Data

(Sales, Stock)

Harmonization

External

Master

Data

Internal

Master

Data Sales

Data Stock

Data

Data Enrichment

Data Enrichment on Mass Data

Evaluate high volume of data

Add indicators

Calculate additional key figures

SQL Script based

Algorithms for Out-of-Shelf and Out-

of-Stock calculations in DSiM 1.0

Integrated in Data Upload process

using BW process chains

Integration With SAP

Business Suite


Side by Side with the SAP Business Suite S

AP

DS

iM

(De

ma

nd

Sig

na

l M

an

ag

em

en

t)

SAP ERP

■ Synchronize Master Data

■ Receive Transactional Data (e.g. Sales Order Data, Deliveries)

SAP CRM

■ Synchronize Master Data

■ Receive Transactional Data (e.g. Promotion Plans)

SAP Advanced Planning and Optimization (APO)

■ Provide external sales history data (POS) information to APO DP

■ Improve Forecast Accuracy

SAP Trade Promotion Optimization

■ Provide harmonized, external sales history data

for SAP Trade Promotion Optimization


Respond faster to demand fluctuations Integrate your business processes


Use cases for DSiM data in APO

Improve Forecast Accuracy –

1. Statistical Forecast - Point of Sale Algorithm

• Correlate POS Demand with Shipment History

• Fine tunes short term forecast (<12 week horizon)

2. Automated comparisons -

• Use macros to detect patterns between POS and Shipment data

• Highlight exceptions with alerts


Integration: SAP DSiM & APO Demand Planning

DSiM APO DP

POS Data

Store

Configured

DataSource

Master

Data

InfoCube

Planning

Area


DSiM and APO Integration demo

Analytics and End User

Interaction


Aligning stakeholders to achieve effective

Supply Chain Management

Effective Supply Chain Management requires alignment between several stakeholders

with differing objectives

Sales Director

Analysis for Sales

How is the market

receiving our new

product? Are we gaining

market share?

How effective is my

promotional spend this

month?

How much did my

customer order last

month?

Analysis for

Marketing

Analysis for Supply

Chain

How can I quickly respond

to fluctuations in consumer

demand?

Marketing Director

Analysis for Key

Accounts

Demand Planner Key Account Manager

New Product Launch

Marketing Analysis

Sales Analysis

Promotion Analysis

Account Analysis

Account details

Out of Stock Analysis

On Shelf Availability

Inventory Analysis


Key Analytics delivered in Demand Signal Management

Analytics delivered:

On Shelf Availability (by location

or product)

Out-of-stock Analysis (by location

or product)

Stock Analysis (by location or

product)

Sales Analysis (optionally with

Social Media)

Promotion Analysis

Product Launch Analysis

Market Share Analysis


Business

Area

Pre-built Embedded Analytics Delivered with SAP Demand

Signal Management

Analysis for Sales Key Account Manager

/ Sales Director

Analysis for Marketing Marketing Director /

Product Manager

Analysis for Supply

Chain Management

Head of Logistics /

Demand planner

Sales Analysis

Promotion Analysis

Market Share Analysis

Product Launch

Out of Stock Analysis

On Shelf Availability

Inventory Analysis Roles


Extensibility of the User Interface

• Customers can modify/enhance the existing reports with minimum of effort, all is integrated in the framework.

Existing Analytics

• Customers can build their own reports and integrate them in the user interface.

New Analytics

It’s possible with minimum effort to extend the existing Analytics or to add

new ones to DSiM


Option to Create Your Own Analytics with Business

Objects


Unstructured data Meaningful information

■ Brand / Product

■ Location / Region

■ Time

■ Sentiment

(positive / negative / neutral)

■ Gender

■ …

Option to Capture Demand Signals from Social Media Turn unstructured data into meaningful information


Option to Build Mobile Apps for Key Roles Mobile app for Key Account Manager (Showcase)


Analytics Demo

Implementation

Considerations


The Value that Ramp-Up delivers for you

Accelerated Pay Back Via intensive project coaching

By a comprehensive Ramp-Up knowledge transfer Model

By getting a head start on achieving business value with leading edge solutions

Reduced Risk Because of Scoping and Coaching

Higher product quality because of prior pilot phase and validation

Higher Customer Satisfaction You become first mover in your industry

You influence the future development of the solution

Your IT department becomes strategic role model for other business units


SAP Rapid Deployment solutions

Fast

• Quickly address specific needs

• Gain fast time to value with seamless

rapid-deployment tools, embedded best

practices – 9-12 weeks

• Speed end-user adoption with guides and

educational materials

Simple

• Clearly priced services and project time

frames – help ensure a predictable outcome

• Modular yet integrated solutions – help

ensure long-term landscape integrity

• Support across all environments (on-

premise, mobile, and cloud) – leveraging

the cloud to accelerate projects and

deployment

A complete solution

Deployed in weeks


Two Main DSiM Scenarios Covered with this RDS

• Increase the demand visibility

into your supply chain

• Process and analyze massive

volumes of retailer point-of-sale

(POS) data

• Leverage standard reports in

the areas of Sales, On-shelf

availability, and Out-of-Stock

• Integrate SAP ERP master

data (material, customer, plus

hierarchies)

• Get a holistic view on your

markets

• Process and analyze massive

volumes of syndicated data

from market research institutes

• Leverage market share

analyses

• Integrate SAP ERP master

data (material, customer, plus

hierarchies)

Demand Analysis (Leveraging Point-of-Sale Data)

Market Analysis (Leveraging Market Research Data)


Deliverables

Data Sets delivered with the DSiM RDS:

SAP ERP eCATT with ERP product and location master data

POS data set: Retailer sales data for 1 year on a daily basis.

Market Research data set: retail panel information covering one year timeframe, 1

country and 2 product categories

Documentation / Config Guides delivered with the DSiM RDS:

DSIM System-set-up

File System Set-Up

NWBC Set-Up

BOE Set-Up

DSiM configuration

SAP ERP configuration for master data upload

Test cases to test Data Upload, Data Quality Validation, Data Harmonization, Data

Enrichment and the Analytical UIs

Wrap-Up


SAP Demand Signal Management Key benefits

Increase sales

Real time insights down to retail store level

Performance improvements in planning & execution

Improved market understanding

Improved end consumer understanding

Thank You

Contact information:

Tod Stenger

[email protected]

Brooke Williams

[email protected]

mailto:[email protected]

mailto:[email protected]

Enabling Demand Driven Supply Chains - SAPfm.sap.com/data/UPLOAD/files/Demand Signal... · SAP...

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