digitizing the extended supply chain - hans thalbauer

Digitizing the Extended Supply Chain Hans Thalbauer

Senior Vice President, Extended Supply Chain, SAP

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 55Confidential

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

The Digital Disruption

is Happening


Business models Business processes Work

Digital Transformation Impact


KAESER, From selling products to selling services, pay per use

Business Challenge

Benefit

Competitive advantage through new business

models such as pay per use while being operated

by the OEM.

Guarantee higher uptime and productivity


Benefit

Reduced lead time to produce customized

motorbikes from 21-day cycle to 6 hours!

-7%

Reduced Cost

+19%

Net Margin

Harley Davidson, enabling responsive manufacturing with SAP Connected MFG

Business Challenge


AIRBUS, digitalization of work

Business Challenge

Example

Humans and two-armed robots work side by side at

Airbus Puero Real plant in Cádiz


Desig

n

Resp

on

d

Sharing EconomyBusiness Network

End-to-End

Visibility

Resource ScarcitySustainability

Individualized ProductsIndustry 4.0

Customer CentricityOmni-Channel

Digital Transformation in Extended Supply Chain

Customers &

Markets

Suppliers &

Logistics

Products &

Assets

People &

Resources


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


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


Sharing Economy

50% of networked companies are

more likely than their peers to

have increased sales, higher

profit margins, and be market

leadersSource: McKinsey


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

surveyJoint risk mitigation with suppliers drives

ability to leverage supply chain disruptions

Steady rise of cost savings as

justification for investments in

Environmental Responsibility

Talent acquisition and development

has become twice as hard since 2011


NetworksAddress the digital priorities with best-in-class

cloud applications

Digital CoreSimplify and innovate the digital core with

S/4HANA across the extended supply chain

SAP HANA platform

digitizing the extended supply chain - hans thalbauer

Technology