Download - Industry Segment Overview Packaging
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Industry/Segment Overview
Industry Mill ProductsIndustry segment Packaging
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Agenda
1. Industry context
2. SAP solution overview
3. Why SAP? Top reasons
4. SAP customers
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Agenda
1. Industry context
2. SAP solution overview
3. Why SAP? Top reasons
4. SAP customers
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Globaloperations
Intensifiedinnovation
Increased risk ®ulation
Demandingcustomers
DecreasingProfits
Many mergersand acquisitions
Increasing global
activities
Lack of visibility inglobal supplychain
Disparate ITlandscape
Green Products
required
Packaging as key
productdifferentiator
Innovativepackagingrequired (lightweight, RFID,reusable, )
Financialregulationsincrease
Global tradeincreases
Environmentalregulationsincrease
Environmentalfriendly packagingrequested
Timeliness andagility forquotations anddelivery wanted
Services aroundproduct wanted
Rising energy,transportation andmaterial costs
Decreasing orstable prices
High cost of debt
Overcapacitiesand increasedcompetition
Key trends are Driving
Change in the Packaging Industry
Increasing customer demands, decreasing margins and global operations are driving the need forconstant innovation
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Customers are demanding more flexible business models and companies are innovating to support them
Rapid response to quotations and demand signals Innovative products & service around the product (e.g. design) Increased customer collaboration necessary
Customerorientation
Product leadership enables customer retention and margins Collaboration and product support across the entire life-cycle Innovation for product and processes across all supporting operations
Innovative productsand collaboration
methods
Operational cost control across the whole supply chain Visibility into the global value chain from request to delivery
Optimization of prices and margins
Continued focus onglobal operational
efficiency and margin
control
IT as the enabler for change and new business models
Flexible platform to adopt new lines of business or acquisitions Ability to scale required
Need for business
model innovation formargin growth
Products & processes that meet customers sustainability requirements Variety and scale of global regulations One-off temporary approaches put you and your company at risk
Compliance
The need for Constant Innovation is Affecting
Industry Business Models
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Typical CEO questions
How do I optimize operations and control costs?
How can I effectively manage the supply chain andtransportation network while utilizing materials and capacitiesefficiently?
How can I ensure profitability in a low-margin industry withmostly commoditized products?
How to build up customer satisfaction with a differentiatedproduct and service offering?
How do I increase visibility to customer behavior & needs?
How do I maximize employee productivity & leverage bestpractices globally?
How do I reduce compliance risk?
How do I ensure value from IT?
What does this mean for your Business?
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Poor Asset Performance
Low OperationalPerformance &Throughput
Poor TransportationScheduling
Poor Customer Service and noVisibility of Sales Revenues andMargins
Cumbersome Design Processes
Lack of Supply Chainand Operational Visibility
Ineffective Sourcing andSpend Management
Difficult to manage operations, track sales and schedule logistics; low visibility into productiondata from across the company results in poor decisions and sub-optimal performance
Inability to align performance objectives and processesreduce ability to execute; resulting in low profitability
Low visibility to operational data leads to inefficiencies
High ratio of unplanned versus plannedmaintenance resulting in lower reliability and
higher maintenance cost Inefficient resource utilization
Poor visibility into supply chain constraints and throughput rates
Insufficient ability to benchmark between global operations
Long exchange times of designs
Long time to market
Inadequate version management
Inefficient sourcingprocess and poor spendvisibility leading to stockouts
Low productionrates and quality
High stock levels
Insufficient
demand andsupply matching
Tracking of real-time costs notpossible
Inability to adjustproductionschedules
Poor integration oftransportationscheduling with salesand production,
Low visibility of shortterm changes intruck, ship and trainarrivals
High transportationcosts
Inability to timely react on quotations and demand signals
Inability to determine a competitive price
Low visibility on sales revenue and cash flow by commodity
Ineffective credit limit control leading to write offs
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Improved spend visibilityenables better leverageof buying power
Efficient sourcingprocess ensuring in timesupply of critical items
Aligned performance objectives and processes increaseability to execute; resulting in higher profitability
Increased visibility to operations leads to improved processes
High Asset Performance
Improved OperationalPerformance and
Throughput
Adaptive TransportationManagement
Outstanding customer serviceand high visibility to salesrevenues and profitability
Improved Supply Chain Visibility
Accelerated Time-to-Market
Data is shared across the corporation; stakeholders have visibility to operations, resultingin more timely decisions, greater overall performance and increased profitability
Effective Sourcing andSpend Management
High ratio of planned maintenance, low ratioof breakdown maintenance
Increased asset availability and utilization Reduced maintenance cost
Minimized stock bymatching demandand supply
Flexible adjustment
of productionschedules
Integrated supplychain planning toincrease throughput
Full integration oftransportation schedulingwith Sales & Production
Dynamic rescheduling toreact to short termchanges in ship or trainarrivals
Control of transportationcosts
High visibility of sales revenue
Reduced penalty cost
Integrated credit limit checks leading to reduced write offs
Create timely and competitive quotations based on product attributes
Full visibility into supply chain constraints
Pro-active benchmarking across differentoperations
Real-time monitoring of manufacturing costs
Efficient customer collaboration
Version management
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Agenda
1. Industry context
2. SAP solution overview
3. Why SAP? Top reasons
4. SAP customers
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Improved supply chain visibility & controlReal-time visibility into supply chain and shop floor
End-to-end supply chain
visibility and control Full visibility into Supply Chain
constraints
Pro-active benchmarking acrossdifferent operations
Real-time monitoring ofmanufacturing costs
Customer examples
Stock rotation time reduced from 8weeks to 2 weeks
Reduction of working capital by 30%
Visibility into global inventory, supplychain and manufacturing operations
Multi-level inventory visibility andoptimization
Monitoring of manufacturing performanceand costs in real-time
KPI based process adoption andoptimization
Automated decision support duringProduction planning and execution basedon exceptions
Better decisions based oncurrent shop floor and supplychain issues
Cost efficient adjustments ofmanufacturing constraints
Enhanced service levels
Faster customer response
Improved order fulfillment
Better contract compliance
Key benefitsSolution enabled by SAP
12% increase of service level to 96%
90% reduction of late order items
66% stock reduction for raw materialsand components
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Supply Chain Dashboards for Packaging Companies
Visibility for Rapid Sound Decisions at all Levels
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Improved operational efficiency and throughputEnabling manufacturing and supply chain performance
Improved Operational
Performance andThroughput
Minimized stock by matchingdemand and supply
Flexible adjustment of productionschedules
Integrated supply chain planning
enabling higher throughput
Customer examples
keeps operating costs under control
Global supply planning and demand /supply matching
Product mix and profit optimizationconsidering price, costs and capacities
Integrating of production planning,scheduling and execution processes
What-if analysis of total supply chain
Integrated block planning
Integrated Trimming Tools
Reduced overall supply chain,production and material costs
Reduced inventory carryingcosts
Increase production flexibility
Shorter production lead timesand time to market
Enhanced service levels dueto faster customer response,improved order fulfillment andbetter contract compliance
Key benefitsSolution enabled by SAP
99,99 % uptime of MES systemwith MII
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Manufacturing Dashboards for Packaging Companies
Cross Plant Visibility to Improve Operational Efficiency
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Improving sales service and profitabilityEnabling sales efficiency
Outstanding customer service
and high visibility tosales revenues andprofitability
Create timely and competitivequotations based on productattributes
High visibility of sales revenue
Reduced penalty cost integrated credit limit checks
leading to reduced write offs
Customer examples
Increase customer and productProfitability with Vendavo PMM
Integrated management of sales quotas &production capacities using productattributes
Global availability check
Customer interaction & service levels
Customer information & contractmanagement
Price & Margin Management
eBusiness and service offerings
Faster response time tocustomer inquiries/quotations
Reduced Order to Invoicecycle
Enhanced sales efficiency
Improved customer andproduct profitability
High customer retention rate
High visibility on sales revenue
Key benefitsSolution enabled by SAP
25% of all orders receivedelectronically
IT operation costs reduced by 30% to
0.72% (Industry Benchmark 1,5 %)
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CRM Dashboards for Packaging Companies
Full Visibility into Sales KPIs
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CRM Dashboards for Packaging Companies
Full Visibility into Sales Performance for Better Strategic Decisions
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Accelerated Time-to-MarketImproved global communication and design processes
Accelerated Time-to-Market Efficient customer collaboration
Version management
Customer examples
Accelerated order fulfillment cycle timesthrough linking information collected duringestimating with the rest of the design andproduction process
Improved response time resulted in betterorder winning rate
Document management for integrating alldocuments in your work processes andmaking them available at any time.
Idea and concept management tocapitalize on every possible new productidea
Collaboration with internal teams andcustomers with product data andprocesses
Workflow management
Collaborative product development
Improve collaborate withcustomers to define productrequirements & specifications
Improved collaboration withcross-functional design andspecification teams
Decrease time to market byincreasing visibility
Key benefitsSolution enabled by SAP
New business model enabledwith collaborative Design
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High Asset PerformanceEnabling asset efficiency and reducing unplanned downtimes
High Asset Performance
High ratio of plannedmaintenance, low ratio ofbreakdown maintenance
Increased asset availability andutilization
Reduced maintenance costs
Customer examples
Focus on 20% of operationsthat cause 80% of downtimewith EAM and ReliabilityCentered Maintenance from
Meridium
Asset performance management
Integration of automation and controlsystems
Provides comprehensive reliabilitycentered maintenance and optimization
Integrated resource and portfoliomanagement
Integrated project planning andaccounting
Mobile asset management and RFID
Reduce # of unplannedbreakdowns
Improve equipment availability& efficiency
Increased return on assets(ROA)
Increased maintenanceproductivity
Reduced cost for emergencywork
Key benefitsSolution enabled by SAP
Reduced costs due to replacement of acomplicated and error-prone process
Dramatically improved data quality byusing of mobile asset management
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Adaptive Transportation ManagementEnabling global logistics
Adaptive Transportation
Management Full integration of transportation
scheduling with sales &production
Dynamic rescheduling to reactto short term changes in truck,ship or train arrivals
Control of transportation costs
Customer examples
Increase of delivery accuracy from 70%to 98%
Dramatically improvement of forecastsand confidence in decision making
Combined order quotation, receipt, andconfirmation, transportation planning,transportation execution, tracking, eventmanagement, and freight chargemanagement in one system.
Simple dispatching to complex routingoptimization
Complete asset visibility includingtractors, trailers/containers, and drivers.
Multiple tendering strategies
Reduction of overalltransportation costs
Optimized resource utilization
Lowest TSP costs
Punctual arrival
Increased visibility intoshipment processes
Improved delivery accuracy
Key benefitsSolution enabled by SAP
1,000 fewer in-transit rail cars
33% improvement in revenue peremployee in the paperdistribution business
14 warehouses reduced to 6
Global Paper Company*
* Lar e multinational a er com an com an name must not be mentioned officiall
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Improve compliance with various regulationsSupport for compliant manufacturing and organizational processes
Customer examples
SAP Solutions for Governance, Risk, andCompliance (GRC) provide corporategovernance & oversight, risk andcompliance management
SAP for GRC includes compliance withhealth & safety work procedures and SAPEC for emissions management
SAP GRC Global Trade Services (GTS)provides compliance with traderegulations and customs requirements
Reduced cost and risk ofcompliance
Faster and more accurateresponses to inquiries andincidents
Improved public image,
ensuring sustainable future forthe company
Key benefitsSolution enabled by SAPMonitor and manage
compliance, avoid legalliability Comply with regulations,
especially emissionsmanagement
Risks and compliancemonitored and managed withinoverall management reporting
Using SAP solutionsfor GRC and EC
Uses SAP ERPRecyclingAdministration totrack quantityflows ofpackaging
material
Easy compliance withthe packaging andWEEE legislation
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Effective Sourcing and Spend ManagementEnabling global sourcing decisions and optimization
Effective Sourcing and
Spend Management Improved spend visibility
enables better leverage ofbuying power
Efficient sourcing processensuring in time supply of criticalitems
Customer examples
Reduce inventory levels and costs
Increase process transparency
Lower total processing costs
Spend analysis capabilities
Supports supplier evaluation
Automate contract preparation andapproval workflows
Integrated purchasing processes for
multiple spend categories
Supply-chain integration towardssuppliers
Strategic and collaborative sourcingand procurement
Enterprise-wide visibility forpurchasing demand & spend
Reduced processing time andadministration costspurchased items
Improved contract
management
Improve collaboration amongsuppliers
Improved relationship withstrategic supplier for keyprocurement categories
Key benefitsSolution enabled by SAP
Reduce transaction costs andmaterial costs by using electronicpurchasing processes
Accelerating purchase processes
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Agenda
1. Industry context
2. SAP solution overview
3. Why SAP? Top reasons
4. SAP customers
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Why Packaging Companies choose SAP
Industry leading solution is the standardacross the entire value chain
Broad adoption by the entire Industry beyond ERP
SAP supports Business Network Transformation
SAP Business Suite optimizes business and IT forefficiency, flexibility and insight
Complete end-to-end enterprise support
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Customers and partners find synergies as they interact across the value chain
The entire value chain runs SAP
PackagingCompanies
Pulp & PaperSuppliers
Customers
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Leading Packaging Companies Run
SAP for their Critical Applications
Go to Market Supply to Market Enterprise Management and Support
Company
Integrated
order mgmt.
And execution
Channel
mgmt.
Sales &
marketing
Sourcing &
procurement
Integrated
demand and
supply
planning
Global
regulatory
compliance
Corporate
finance
Financial
supply chain
mgmt.
Analytics HR
Siebel / Hyperion / PSFTSAP, I2 / SAP, SiebelPlanned with
OracleOthers / Homegr.
Industry leaders are leveraging SAP beyond ERP to address high-value industry scenarios
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Industry Business Scenarios Select Customers
Financial Excellence
Responsive Supply Networks
Superior Customer Value
Product & Service Leadership
Strategic IT
Leading Customers run SAP to Support
their Critical Business Scenarios
Industry leaders are leveraging SAP beyond ERP to address high-value industry scenarios
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3. SAP Supports Business Network
Transformation
DisparateApplications
Email
Departmentalanalytics
SiloedEnterprise
EnterpriseResourcePlanning
Corporate Portal
OperationalAnalytics
Business Suite
User centricCollaboration
PerformanceManagement
Business ProcessPlatform
CommunityNetworks
Business NetworkPerformance andRisk Management
IntegratedEnterprise
Extended
Enterprise
BusinessNetwork
ProcessEnablement
PeopleInteraction
InformationAnalysis
Companies are moving beyond internal execution to optimize performance across a network of partnersand realizing value at each step to fund further transformation
*Source: MIT Research, 2007 and St. Gallen Research, 2008
Competitive Advantage
+10% labor
productivity+15% asset
utilization
+10-30%processefficiency*
+37% laborproductivity
+13% inventoryefficiency*
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4. SAP Business Suite optimizes Business and
IT for Efficiency, Flexibility and Insight
SAP Business Suite
NetWeaverIntegration
NetWeaverComposition
EHP
SRM CRMSCMPLM ERP
EHP
IndustrySolutions
Harmonized UI increasesend user productivity
End-to-End processesimprove business
effectiveness and ITefficiency
Enhanced application andidentity management improvesTCO and control
EnhancementPackages providesnon-disruptiveinnovation with lowerTCO
SOA enablement forprocess flexibility andbusiness agility
Embedded analyticsfor business insight
Built in industry best practicesimproves core process
performance
Continuous innovation resultsin improved performance for
all lines of business
The SAP Business Suite enables companies to drive flexibility and insight without reducing efficiency
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SAP provides the most comprehensive enterprise support offering
Single point of contact foryour SAP enterprise platformand beyond
Reduce risk through proactiveand reactive support services
24x7 service provided througha global support backboneincluding SAP and Partners
Global supportbackbone
Mission
critical supportand
Delivered viarun SAP,
SAP Enterprise SupportManages innovation and integration in SAP solution landscapes
Innovation andProtection of investment
Enabled by
end-to-end solution operations
in collaboration with the SAP Ecosystem
5. Reduce Risk and Lower TCO with
End-to-end Enterprise Support
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Minimize risk
Proven solution with embeddedIndustry best practices
SOX and Industryregulations compliant
Growth and profitability
7x the mission critical apps run bySAP than any other company
All of top 10 global packagingcompanies and a great number ofmidsized packaging companies run
SAP
Enable business strategy
Innovation without disruptionleveraging a stable platform
Continuous solution enhancementsbased on customer needs
Why SAP?
Reduce operating costs
The strongest industry value network
Reduce TCO with:
A stable and flexible platform
Industry best practices
End to End Enterprise Support
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Agenda
1. Industry context
2. SAP solution overview
3. Why SAP? Top reasons
4. SAP customers
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Increased productivity more than 1% Reduced parts inventory by 30%
Winning orders that would have been lost because of slow responsetime and enhanced customer satisfaction
Accelerated order fulfillment cycle Enhanced information visibility for executives
Stock rotation time reduced from 8 weeks to 2 weeks Reduction of working capital by 30%
Reduced cost of ownership and increased value of SAP applications Rapid issue resolution through service-level agreements
Decreased cost of production via better order scheduling and reducedinventory
Improved visibility into end-to-end business processes Significant support of business growth and acquisitions
SAP Driving Customer Value:Selected Packaging References
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PROJECT OBJECTIVE
Seamless integration of estimating through billing for rapid estimating and order fulfillmentcycle
Complete online visibility of real-time information across the enterprise
Create base for R/3 internet application components to even further cycle time reduction andtighter linkage with customer
KEY CHALLENGES
THARCO needed to create a rapid, accurate estimating system so it would not losebusiness to competitors because it was unable to provide customer quotes on the phone.
De-fragmented system landscape
WHY SAP SOLUTION WAS SELECTED
Strong manufacturing capability
Ability to handle THARCOs four diverse businesses custom corrugated packaging,custom foam packaging, stock box line, and distribution
BUSINESS VALUE REALIZED
Winning orders that would have been lost because of slowresponse time and enhanced customer satisfaction
Accelerated order fulfillment cycle times through linkinginformation collected during estimating with the rest of thedesign and production process
Enhanced information visibility for executives, especially the
president, who access R/3 daily to track the business
THARCO manufacturescorrugated boxes of all sizes,shapes, and strength, as well asfoam/plastic inserts that go intopackaging solutions.
Before, we needed extremely
knowledgeable and experienced
people to perform estimates
we now have customer service
people who can take a very small
set of data elements box style,
board type, and dimensions and
with a few keystrokes and mouse
clicks generate an estimate whilethe customer is on the phone
Bill Picton
MIS director at THARCO
Sales: $200 millionEmployees: 1000
Customer references
C t f
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Customer references
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R R SAP S i d A t
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Rexam Runs SAP Service and Asset
Management
SAP plant maintenance module tightly integrated realtime with other business processes
Simplified user interface for all levels of employees
Increased productivity more than 1% Preventive maintenance has significantly enhanced
manufacturing uptime
Reduced parts inventory by 30%
Developed parts standardization and best practices
With the benefit of SAP solutions, we have built world-
class business manufacturing processes that have drivensubstantially increased operational efficiencies across
our American plants.
John NiemzykVP of IT and CIO,Rexam Beverage Can North America
Company Rexam Beverage Can
North AmericaLocation Chicago, Illinois
Industry Mill Products
Products/Services Consumer beveragepackaging
Revenue $2 billion
Employees 2,300
www.rexam.com
Factory machinery ideally runs 24/7; breakdowns anddowntime create substantial expenses across 15 plants
Increased focus on lean manufacturing
Improve equipment reliability and uptime to increase plant
efficiency Reduce maintenance costs and parts inventory
Move from reactive to proactive maintenance
Implemented SAPPlant Maintenance, Project SystemIntegration, Materials Management for the Storeroom, andRF using SAP Console in 24 months across all plants inNorth America
Project stayed within budget and realized ROI in two years
P l C ti
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Perlen Converting
SAP
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SAP
The Partner of Choice
The right products
Solution offering with generic and industry specific functionality
Complemented by ISV solutions
Scalable technology platform
Experience
More than 35 years industry experience
All of Top 10 Pulp and Paper companies worldwide run SAP
Over 850 customers
Implementation expertise delivered through SAP & partners
Commitment
Industry focus Global Industry Business Unit Mill Products & Mining
Customer driven co-innovation
SAP user workgroups
Executive Advisory Council for Forest, Pulp & Paper
Industry Value Network for Forest, Pulp & Paper