digitising the extended supply chain - sap ch events scm... · digitising the extended supply...

SAP Forum Lausanne

13 June 2016

[email protected]

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.


Extended Supply Chain Strategy

Introduction to SAP digital transformation framework

Integrated Business Planning

Solution Introduction

Roadmap Status

Customers

Discussion Agenda


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


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


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


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


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

http://demo.tdc.sap.com/speeddemo/756764cf2bdfaa1a/



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


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.

http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/


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


Customers &

Markets

Suppliers &

Logistics

Products &

Assets

People &

ResourcesResource Scarcity

Sustainability


Industry 4.0

Customer Centricity

Omni-Channel

Sharing Economy

Business Network

Digitizing the Extended Supply Chain


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


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

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14

Enabling Demand Networks


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


SAP HANA Platform


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


High Tech

Pharma

Chemicals

Manufacturing

Mill

Products

& Mining

Consumer

Products

Services

Retail AerospaceAutomotive

IBP has a growing customer base and is a proven platform

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=4tEcQGDzwfxenM&tbnid=svr2qZ8cImr4JM:&ved=0CAgQjRw&url=http://www.conagrafoods.com/news-room/media-library/logos&ei=fLSnUuuGGeK8ygPQ94HgBQ&psig=AFQjCNE2cSENeGjzsllc2dNb-nMCBLBWQw&ust=1386808828444913

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=4tEcQGDzwfxenM&tbnid=svr2qZ8cImr4JM:&ved=0CAgQjRw&url=http://www.conagrafoods.com/news-room/media-library/logos&ei=fLSnUuuGGeK8ygPQ94HgBQ&psig=AFQjCNE2cSENeGjzsllc2dNb-nMCBLBWQw&ust=1386808828444913

/upload.wikimedia.org/wikipedia/commons/e/e9/Luxottica.svg

/upload.wikimedia.org/wikipedia/commons/e/e9/Luxottica.svg

http://www.bose.com/

http://www.bose.com/

http://www.dsm.com/countrysites/dsmnl/nl_NL/home.html

http://www.dsm.com/countrysites/dsmnl/nl_NL/home.html

http://www.mondelezinternational.com/home

http://www.mondelezinternational.com/home

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=Ub3Pnd1X3hScYM&tbnid=Eio1t1JcwV21nM:&ved=0CAgQjRwwAA&url=http://tourolouco.blogspot.com/2010/03/j-macedo-dona-benta-levanta-r-1205.html&ei=wgxLUsOECPDh4AOnwYHgAg&psig=AFQjCNH9rTVLuEoGDq8ooSijmJtn-LMqRg&ust=1380736578194968

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=Ub3Pnd1X3hScYM&tbnid=Eio1t1JcwV21nM:&ved=0CAgQjRwwAA&url=http://tourolouco.blogspot.com/2010/03/j-macedo-dona-benta-levanta-r-1205.html&ei=wgxLUsOECPDh4AOnwYHgAg&psig=AFQjCNH9rTVLuEoGDq8ooSijmJtn-LMqRg&ust=1380736578194968

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=DIw3KFICHlR28M&tbnid=4cuNFCNdC75FPM:&ved=0CAgQjRw&url=http://www.sopheon.com/CUSTOMERS/FoodBeverageSolutions.aspx&ei=n0qyUp2FC8z8oASam4HQAg&psig=AFQjCNF7N5FO46t4Rxjrfxt245UAdSRB5A&ust=1387502623267339

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=DIw3KFICHlR28M&tbnid=4cuNFCNdC75FPM:&ved=0CAgQjRw&url=http://www.sopheon.com/CUSTOMERS/FoodBeverageSolutions.aspx&ei=n0qyUp2FC8z8oASam4HQAg&psig=AFQjCNF7N5FO46t4Rxjrfxt245UAdSRB5A&ust=1387502623267339

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=mcKulgzpjTK3jM&tbnid=0OUidneudk7ycM:&ved=0CAgQjRwwAA&url=http://www.underconsideration.com/brandnew/archives/sun_rises_in_hillshire.php&ei=7QxLUsmJC6634APntIHIBA&psig=AFQjCNG9S27V3by3nLfyh576f31flyQu1A&ust=1380736621234939

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=mcKulgzpjTK3jM&tbnid=0OUidneudk7ycM:&ved=0CAgQjRwwAA&url=http://www.underconsideration.com/brandnew/archives/sun_rises_in_hillshire.php&ei=7QxLUsmJC6634APntIHIBA&psig=AFQjCNG9S27V3by3nLfyh576f31flyQu1A&ust=1380736621234939

http://www.akzonobel.com/

http://www.akzonobel.com/


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


Sales & Operations



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


Sales & Operations


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


Days of Inventory

With real-time, enterprise-wide visibility into inventory*

-12%


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


Sales & Operations



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


Sales & Operations


Revenue Growth

Growth in top-line revenue with integrated sales and operations planning

1%–2%


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


Sales & Operations


Customer service levels lifted from

93.7% to 99.1

Improved service levels with a 20% reduction in

days of inventory


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




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%


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


SAP integrated Business Planning


APO Global

Available to

Promise


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)


SAP HANA Platform


DemandSupply &

ResponseInventory

S/4

Advanced Planning & Optimization(APO - DP, SNP, PP/DS, GATP)

Supply Network Collaboration (SNC)

SAP HANA Platform


More Information: View SAP Value Map

Visit us online

Benchmark your

performance

solutionexplorer.sap.com.

Line of Business –> Supply Chain

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

http://www.sap.com/solution/lob/scm.html

https://valuemanagement.sap.com/vlm

http://solutionexplorer.sap.com/


Q&A Contact Details

Patrick Crampton-ThomasSAP Solution Management, Response

and Supply Orchestration

patrick. [email protected]


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