sap supply chain day - pierre erasmus sap

Pierre Erasmus

September 2013

SAP Demand Signal Management

© 2013 SAP AG. All rights reserved. 2 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

Agenda

■ Introduction

■ SAP Demand Signal Management Overview

■ Summary

© 2013 SAP AG. All rights reserved. 3 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

Challenges of Today’s Consumer Goods Companies

© 2013 SAP AG. All rights reserved. 4 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

Challenges of Today’s Consumer Goods Companies

20%

-19%

20%

75%

Source: Accenture (1), Capgemini (2), GS1 (3), IHL/RIS (4), AMR (5)

Revenue spent for sales & marketing

ROI is priority #1

Average ROI of trade promotions

(1)

(2)

Average out of stock rate (3), (4)

Product launch failures

average time to market is 27.5 months (5)

© 2013 SAP AG. All rights reserved. 5 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 Demand Signal Management:

Enterprise platform

Integrate & consolidate demand signals

Provide a single source of truth

Retailer

POS Social

Media

Market Research

data (e.g. Nielsen)

Distributor/

Wholesaler SAP

Business Suite

SAP Demand Signal Management

Linking additional external

information (e.g., weather)

SHARE DATA WITH

OTHER ENTPRISE

SOLUTIONS

DELIVERED

ANALYTICS

SAP Demand Signal Management (DSiM) on HANA Positioning

CUSTOM ANALYTICS

© 2013 SAP AG. All rights reserved. 6 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

Point-Of-Sale Data

POS data takes too long to

upload.

Its too late to take action

Before SAP DSiM

After SAP DSiM

Consumer insight propagated &

consumed immediately

© 2013 SAP AG. All rights reserved. 7 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

Market Research Data

Data Collection

(Nielsen, IRI, GfK, e.g)

Consolidated Market Research

Data

© 2013 SAP AG. All rights reserved. 8 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

Unstructured data Meaningful information

■ Brand / Product

■ Location / Region

■ Time

■ Sentiment

(positive / negative / neutral)

■ Gender

■ …

Demand Signals from Social Media Turning unstructured data into meaningful information

© 2013 SAP AG. All rights reserved. 9 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

Selected Demand Signal Management Use Cases Use Cases for LoB: Sales, Marketing, and Supply Chain

Promotion

Effectiveness

Market Share

Analysis

Forecast

Accuracy

Out of Stock

Reduction

Product Launch

Success

Sales

Analysis

Marketing

SCM

Sales

© 2013 SAP AG. All rights reserved. 10 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

Agenda

■ SAP Demand Signal Management Overview

© 2013 SAP AG. All rights reserved. 11 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

Data

Harmonization &

Enrichment

Data

Sources

Data

Consumption

Data

Upload &

Validation

Core SAP HANA Repository

Integration

to the

SAP Business Suite

(e.g., ERP, SCM, TPO)

Analytics (Desktop & Mobile)

Sales Performance, Promotion Insight, New Product

Launch, On-Shelf Availability, Out-of-stock Analysis,

Market Share Reporting, …

SAP Demand Signal Management (DSiM) Architecture

Retailer

POS

Social

Media

Market

research data

Distributor/

wholesaler data

Additional information

(e.g., weather) SAP

Business Suite

Company external data

(POS, market research data etc.)

Company internal data

(shipments, stock, promotions etc.)

© 2013 SAP AG. All rights reserved. 12 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

Analytics & Reporting Different User Interfaces

ABAP Web-Dynpro

(Standard UI)

BusinessObjects

Dashboards (Customers)

Mobile

(HTML 5 Prototype)

BusinessObjects

Analysis (Excel)

Access of data via SAP BW Queries

© 2013 SAP AG. All rights reserved. 13 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 Demand Signal Management on HANA Analytics for Different LoBs

LoBs Roles Report

Sales Key Account Manager / Sales Director ■ Sales Analysis ■ Promotion Analysis ■ On shelf Availability

Marketing Marketing Director / Product Manager ■ Market Share Analysis ■ Product Launch

SCM

Head of Logistics / Supply Planner / Demand planner

■ Out of stock Analysis ■ Inventory Analysis

SAP DSIM Pre-defined analytics

© 2013 SAP AG. All rights reserved. 15 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

© 2013 SAP AG. All rights reserved. 16 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 Social Media sentiments within SAP DSiM

© 2013 SAP AG. All rights reserved. 18 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

Own Reports (e.g. using Business Objects Dashboards) Sell-In / Sell-Out comparison

© 2013 SAP AG. All rights reserved. 19 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

Own Reports (e.g. using Business Objects Dashboards) Linking Sell-Out data with weather data & predict short term sales

© 2013 SAP AG. All rights reserved. 20 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

Ad-hoc Data Browsing with Business Objects Analysis Sales & Stock Analysis

Easily create your own reports on-the-fly with live DSiM data

© 2013 SAP AG. All rights reserved. 22 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

Data

Harmonization &

Enrichment

Data

Sources

Data

Consumption

Data

Upload &

Validation

Core SAP HANA Repository

Integration

to the

SAP Business Suite

(e.g., ERP, SCM, TPO)

Analytics (Desktop & Mobile)

Sales Performance, Promotion Insight, New Product

Launch, On-Shelf Availability, Out-of-stock Analysis,

Market Share Reporting, …

SAP Demand Signal Management Integration

Retailer

POS

Social

Media

Market

research data

Distributor/

wholesaler data

Additional information

(e.g., weather) SAP

Business Suite

Company external data

(POS, market research data etc.)

Company internal data

(shipments, stock, promotions etc.)

© 2013 SAP AG. All rights reserved. 24 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 Components for Demand Management SCM360

ERP

Demand

Signal

Mgt

Advanced Planner & Optimizer (APO)

Sales & Operations Planning (S&OP)

Enterprise

Demand

Sensing

Master Data,

Delivered orders

Downstream

demand signals

Forecast

adjustments Master Data,

Delivered orders

Open orders

Forecast

Short-Term

Forecast

S&OP

Forecast Forecast

Downstream

demand signals

Social Media

Downstream

demand signals

Long

Term

Medium

Term

Short

Term

© 2013 SAP AG. All rights reserved. 25 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

Data

Harmonization &

Enrichment

Data

Sources

Data

Consumption

Data

Upload &

Validation

Core SAP HANA Repository

Integration

to the

SAP Business Suite

(e.g., ERP, SCM, TPO)

Analytics (Desktop & Mobile)

Sales Performance, Promotion Insight, New Product

Launch, On-Shelf Availability, Out-of-stock Analysis,

Market Share Reporting, …

SAP Demand Signal Management Data Upload, Validation, Harmonization and Enrichment

Retailer

POS

Social

Media

Market

research data

Distributor/

wholesaler data

Additional information

(e.g., weather) SAP

Business Suite

Company external data (POS, market

research data etc.)

Company internal data (shipments, stock,

promotions etc.)

© 2013 SAP AG. All rights reserved. 26 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

Control, Cleanse, Harmonize & Enrich Built for Flexibility

Check Quality

■ Usage of rules to check

■ data quality

■ completeness

Control & Monitor

■ Automated data uploads

■ Upload task monitoring

Harmonize

■ Harmonization of external

data with internal data

■ Automated harmonization

process using rules.

Enrich

■ Create Key Figures

■ Examples: Out-of Shelf / Out-of Stock

Open and extensible framework

© 2013 SAP AG. All rights reserved. 27 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

The Data Harmonization Solution

Retailer

POS 1

…

Market Research Data

Bottlers/Distributor

/ Wholesaler

Retailer

POS 2 …

Retailer

POS 3

Exte

rnal d

ata

In

tern

al d

ata

SU7885956

SU987762

K1882829 IT1882875

RD778872

SAP

APO DP

SAP

CRM SAP

ERP

SAP

DSiM

SAP

TPO

6916660PH

© 2013 SAP AG. All rights reserved. 29 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

Benefits of SAP DSiM Harmonization Concept

■ Easy & automated extraction, linking internal & external data

■ Enable 360° view of your business

■ One concept , One repository and One single point of truth

© 2013 SAP AG. All rights reserved. 30 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

Agenda

■ Summary

© 2013 SAP AG. All rights reserved. 31 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

Respond faster to demand fluctuations Integrate your downstream business processes

Share consumer demand insights

Optimize inventory & reduce costs Reduce lost sales & out-of-stock

situations

Improve Product launch and Promotion

effectiveness

Thank You!

Contact information:

Pierre Erasmus

Pierre.erasmus@sap.com