SOA Productized Services –Sales Order Tracking

© SAP 2009

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© SAP 2009

© SAP 2009

Sales Order Tracking Scenario

ProofPoint initiative, Productized Services

AS-IS Challenges

TO-BE Business Benefits

System Landscape (products, version)

Enterprise Services used

Demo (recorded)

Optimum Quantitative Benefits

Technical Architecture

Summary

What is a SOA Productized Service

KEY MESSAGE

A Productized Service is :

a business scenario as a composite

with enterprise services.

Has to be implemented at 2 or more

customers

Results in comprehensive

documentation to enable other

customers/partners to repeat the

implementation

Can be easily reused – via

productized offerings (comprising of

documentation, composite

application, consultancy)

Enterprise

SOA

Proofpoint

Documentation of

business scenario

Business Case with

Quantitative KPIs

Technical

Documentation

Support

Professional SAP

Services’ Description

Lessons Learned

Documented

Requirements

The ProofPoint program generated productized SOA offering.

© SAP 2009

What is a Proof Point Productized Offerings

First Report of Injury

Logistic Assessment

Field Service Experience Management

Inventory Level Replenishment

Maintenance Order Processing

Returns Merchandise Authorization

Processing

Sales Order Issue Resolution

Contingent Workforce Management

Sales Order Change Management

Maintenance

Service

Collaboration

Service Order

Execution

Inventory

Lookup

Sales Order

Tracking

Proof Point Candidates

Productized

Offerings

Wholesale Industry

Add industry

© SAP 2009

Threat to Wholesale Distribution

* Annual State of Logistics Report, 15th Edition; Delaney, Bob and Wilson, Rosalyn (CLM, June 2004)

** Zentes, Institute of Retail and International Marketing, Saarbrücken, 2006

*** U.S. Census, 2006 (Total Trade Turnover consists of Retail Trade and Wholesale Trade)

Increased efficiency of logistics service providers in logistics core functions*

Doubling of revenue over last 10 years*

Technical advantage as a result of state-of-the-art IT

Suppliers

Wholesaler bypassed (ECR strategy)

Verticalization of manufacturers

Need for individualized services, such as assembling and packaging

Direct purchase of goods from manufacturer (ECR strategy)

Demand for private labels and customer-specific products

Distribution of own retail chains

Logistics service providers Customers

How can wholesalers

ensure they survive?

Fight for market share► Three steps to

success

© SAP 2009

Business Scenario Players:

Sales Order Tracking process

SupplierLogistic Service Provider

Wholesaler

Customer

Wholesaler Customer Service

Product can comes from WD or/and

from supplier in the same SO

© SAP 2009

Finish Customer

Call

Verify

Customer

Order Data

and Status

Call supplier

to receive

recent Info

Verify Customer

Order statusCheck with

3PL for

delivery date

Call 3PL to

receive

recent Info

Call

Distributor

to confirm

status

Current Process Challenges

Issues on Distributor-side• Low visibility on availability

of non stock or out of stock

goods

• Low transparency on shipping

and delivery date

• Telephone costs

• Resources bound

Issues on Supplier & 3PL-

side• Telephone costs

• Resource Costs

Issues on Customer-side• Unsatisfying service quality

• No instant feedback

• Low transparency on

order and delivery status

• Extensive Customer wait times

© SAP 2009

Natively Integrated Industry

Processes on ONE Open Platform

Receivecustomer call

Verify customer SO

data in WD system

Check supplier

system for order status

Obtain tracking

number

Check 3PL system for

delivery date

Update customer on status info

Supplier

WholesalerLogistic Service Provider

Customer

© SAP 2009

DEMO

Business Scenario

Order tracking

CSR – Customer Sales Responsible

Check supplier

system for order status

Obtain tracking

number

Check 3PL system for

delivery date

Update customer on status info

Receivecustomer call

Verify customer SO

data in WD system

© SAP 2009

Business Scenario

Order tracking

CSR – Customer Sales Responsible

Receivecustomer call

Verify customer SO

data in WD system

Obtain tracking

number

Check 3PL system for

delivery date

Update customer on status info

© SAP 2008 / Enterprise SOA for the SAP Business Suite InfoDays 2008 / Page 1,

© SAP 2008 / Enterprise SOA for the SAP Business Suite InfoDays 2008 / Page 1,

© SAP 2008 / Enterprise SOA for the SAP Business Suite InfoDays 2008 / Page 1,

Check supplier

system for order status

© SAP 2009

Business Scenario

Order tracking

CSR – Customer Sales Responsible

Receivecustomer call

Verify customer SO

data in WD system

Obtain tracking

number

Check 3PL system for

delivery date

Update customer on status info

Check supplier

system for order status

© SAP 2009

Business Scenario

Order tracking

CSR – Customer Sales Responsible

Receivecustomer call

Verify customer SO

data in WD system

Check supplier

system for order status

Check 3PL system for

delivery date

Update customer on status info

Obtain tracking

number

© SAP 2009

Business Scenario

Order tracking

CSR – Customer Sales Responsible

Receivecustomer call

Verify customer SO

data in WD system

Check supplier

system for order status

Obtain tracking

number

Check 3PL system for

delivery date

Update customer on status info

© SAP 2009

Optimum Quantitative Benefits

Value Source Change Impact

CSR Efficiency – Stocked Items 4 min. 2 min. 50% reduction

Reduce the time CSRs spend providing order

status information

Average duration of stocking call

Reduce from 4 steps to 2 steps

CSR Efficiency – Sourced Items 12 min. 4 min. 66% reduction

Reduce the time CSRs spend providing order

status information

Average duration of stocking call

Reduce from 9 steps to 3 steps

CSR Efficiency – On-line Items 4 min. 0 min 100% reduction

Reduce the time CSRs spend providing order

status information

Average duration of stocking call

Reduce from 9 steps to 3 steps

Additional Benefits

Reduce time for other groups – Sales, A/R, Credit – searching for order status

Improve customer service – reduce customer wait time

Improve customer satisfaction for source items – by improving overall competency

and responsiveness

Reduce overall CSR call volume – by transitioning customers to on-line service for

order tracking

© SAP 2009

Software Components Used – Detailed View

NetWeaver 7.0

SPS13

Enterprise Services

WAS ABAP

Development

Tools

NW Developer

Studio 7.1

ERP 6.0 SP9, EhP4

CE 7.1

WAS J2EE

Web

Dynpro

NW

EP

WAS J2EE

© SAP 2009

Enterprise Services Used

Order tracking

CSR – Customer Sales Responsible

Receivecustomer call

Check supplier

system for order status

Obtain tracking

number

Check 3PL system for

delivery date

Update customer on status info

FindCustomer

Find Sales order

Check S/O Status

Verify customer SO

data in WD system

© SAP 2009

Technical Architecture

Receivecustomer call

Check supplier system for

order status

Check 3PL system for

delivery date

Update customer on status info

FindCustomer

Find Sales order

Retrieve SO, OD Status

Verify customer SO

data in WD system

Obtain tracking

number

Retrieve Supplier info

Get and Display tracking info

Business Scenario

UI Layer

Application Service Layer

Enterprise Service Layer

SuppliersWholesaler

CAF Services DB

© SAP 2009

SOA enables Order & Delivery Tracking

- Summary -

Realization

Obtain Tracking Number

Check Supplier System for

Order Status

Check LSP System for

Delivery Date

Receive Customer Call

Verify CustomerOrder Data in WD System

UpdateCustomer OnOrder status

Improved customer satisfaction: Reduced wait time to retrieve order and

shipment status update

Enhanced service offering

Increased internal efficiency at customer,

distributor and supplier Process automation

Reduction of call volume and manual effort

Improved supplier relationship: Enhanced service offering towards wholesaler

Reduced supplier costs

Challenges

Increased Cost Pressure drives

need for higher internal efficiencies

Higher speed of business forces an

increased supply chain visibility

Ease of product accessibility spurs

increased customer loyalty

Benefits

NW 7.0 sp13, ERP ehp3 +4 pre-

release

Utilization of 10 Enterprise Services

User Interface template available

Requires a CE environment for

running the Sales Order tracking

application.

©2008 / Order & Delivery Tracking Scenario Overview

© SAP 2008 / SAP TechEd 08 / Page 24

Thank you!