integration management zf and trw€¦ · sap hana cloud azureplatform … supplyonflexible and...

© ZF Friedrichshafen AG, 2017 1 Odette Conference May 15th , 2017

ZF Friedrichshafen AG

Vice President ZF Group, Integration Management SCM, Processes & Systems

John Sobeck

Integration Management ZF and TRW Challenges and Opportunities for the Digital Supply Chain


Division

Car Powertrain

Technology

Division

Car Chassis

Technology

Division

Commercial

Vehicle

Technology

Division

Industrial

Technology

Division

Active &

Passive Safety

Technology

Division

E-Mobility

Corporate Structure ZF Friedrichshafen AG Shareholders: 93.8% Zeppelin Foundation and 6.2% Dr. Jürgen and Irmgard Ulderup Foundation

Division

ZF Aftermarket

Board of Management, ZF Friedrichshafen AG


2015 - THE POWER OF2

Facts and Figures when it all started

2015 YEAR OF

INTEGRATION

230 LOCATIONS

WORLDWIDE

40 DIFFERENT

COUNTRIES

134K EMPLOYEES

IN TOTAL

71K 63K

13.0 € BILLION

18.4 € BILLION

2014 SALES

720 € MILLION

891 € MILLION

2014 R&D

2014 Purchasing

(controllable spend)

7.8 € BILLION

9.9 € BILLION


The product portfolio almost doubled and so did complexity as the

acquisition was driven by complementation, not synergies

ZF TRW


Three core principles defined our way of integration

BUILD ON STRENGTH STAY FOCUSED

We follow a business driven

integration, with complexity kept

to a minimum

We focus on maintaining

business momentum

We deliver on our plans and stay

focused on customers

We set the right priorities and

sequence, starting where we can

create the highest value added

We merge, once joint businesses

are ready to work together

seamlessly

SET THE RIGHT PACE

We conduct an integration of 2

industry champions

We will identify the "best of both"

across the two organizations

We will leverage our financial

strength and mobilize our people

and skills


The integration process is following clear prioritization guidelines

THREE PHASES: FROM DAY ONE TO FULL INTEGRATION IN 3–5 YEARS

ADDITIONAL

DIVISION

PROJECT-BASED

COLLABORATION

STRUCTURAL

INTEGRATION

Technology and Future Products

Complementary portfolios, technologies and R&D capabilities

Go-to-Market

Enhanced regional and customer access

Enablers

Efficient business operations to keep the company agile

Delivery Engine

Lean processes to unfold economies of scale

Our core principles

BUILD ON STRENGTH

SET THE RIGHT PACE

STAY FOCUSED

Purchasing

Sales

Innovation


1. Financial impact: (Sub-) process has a strong impact on improving financial results if done jointly

2. Efficiency: Different processes cause major friction in NPO / joint teams causing waste or hindering

target achievement

3. Cost avoidance / reduction: Harmonization / carry over of process (and tool) creates synergies by

avoiding investment or reducing running costs

4. Imminent change: Decision for replacing/implementing of process/system required soon for other

reasons

Scanning the existing process landscapes for harmonization was

based on predefined criteria

NPO: New Purchasing Organization


Master data, processes and systems, as well as their

interdependencies have been evaluated for prioritization

priority

1

2

3

effort high medium low

Contract Awarding

Supplier selection;

bundling, GCS

RfQ process

Supplier selection;

bundling, GCS

Supplier

capacity

Cost engineering/modeling

approach (per commodity)

Savings tracking

and forecasting

Supplier ID

matching Commodity

codes

(segments)

material

codes

New supplier

approval

Commodity

strategy Matched teams

parts family strategy

Supplier

financial risk

Supplier

classification

Planning, reporting

OP and MPV/PPV

Planning, reporting

others (process rel.)

Supplier

performance

EXCERPT 2015


The integration projects soon faced challenges regarding the global

IT infrastructure forcing us to a strategic decision

standard processes,

master data and

business logic

shall only be

implemented

in global

IT-tools

no

map-

pings

Top Projects (currently running)

• OneSB (One Supply Base)

• SWAT (Global Sourcing Workbench, pm)

• npm eProcurement (catalog & free text ordering)

• COPS (Central Order Processing System)

• Purchasing KPI Harmonization

• PoC Transportation Management System

• eComm 2.0

• Web-EDI migration pilot China

Standard processes and tools • Sourcing process (pm and npm)

• Purchase Order maintenance

• KPI planning and reporting

• Freight network management

Seamless electr. communication • SupplyOn

• Joint class. EDI

Central Master Data • Supplier ID

• Payment terms

• Incoterms

• Commodity codes

pm: production paterial npm: non production Material PoC: proof of concept


The increasing number of locations and ERP systems boosts

complexity, not only internally but also for our partners

number ERP instances* number of ZF locations*

~ 120

~ 50

10

~ 230

* focused on from a “roll out” point of view

SAP SAP

QAD

2017 05/2015* 2017 05/2015*


An IT target picture for Materials Management was jointly

developed - enabling effectiveness, efficiency and agility

ZF BUSINESS

TECHNOLOGY PLATFORM

SAP S/4 HANA

Cloud Edition

Success

Factors

Concur

SAP HANA

Cloud Platform

… SupplyOn

Azure IoT

Non-SAP

ERP Systems

Fiori

HTML5

… BI/BO

Frontends …

ZF ERP Systems Focused ERP consolidation

ZF SAP Platform Start with nucleus and develop

ZF Cloud Services Flexible and modular ecosystem

As-is SAP ERP

2017

Future

Option

Target SAP ERP

2018-2022

Leverage cloud based partner networks incl. external ecosystems (open for data network and digitalization)

Use central platform as an enabler for cross-divisional standardization

Consolidate the existing ERP landscape based on new architecture, reduced to the max …

NAV QAD

…

Functional roll-ins: stepwise expansion

BW MDG

Master Data Governance

Components: migration to central instance

CFinance (Accounting)

CPurchasing

(Prod.) …

CLogistic … …


Top priority had the implementation of a “single point of truth”

regarding supplier master data as one example

OneSB

(MDG-S)

SAP QAD VIN Navision …

Global shared service (dedicated team)

OneSB

data

sheet

Non-connected systems

SAP 1 SAP 2 …

connected systems

Via E-Mail

Global

Local

transfer via workflow

Single point of truth reg. released/active suppliers


Efficiency in Sourcing is increased by passing on already digitized

information to the next process step automatically without retyping

Customer Quotation Release

Sourcing Pipeline

RFQ Planning

RFQ Processing

Award planning

Technical Review

Preparation Sourcing Decision

Pre Check Sourcing

Case

Sourcing Decision

Document & Implement

Example end2end Sourcing Process

SHARP/SWAT (harmonized sourcing process and supporting platform)

eSourcing* COPS (PO processing)

eDocs* (document mgmt.)

* Part of eComm 2.0 Initiative

In addition parallel systems or services can

be shut off to reduce running costs and fees

PO’s Specs,

drawings & drawings

Inte

rnal e

xte

rna

l


Regarding material flow the biggest savings are in freight costs and

freight bill audit was identified as an area for potential process savings

Supplier

Hub

ZF

(web-) EDI* (ASNs, DELFOR, …)

Active Transport Mgmt. (network planning, transport orders, scheduling, …)

eFinance*

* Part of eComm 2.0 Initiative

Example Delivery & Transport Mgmt.

Freight bill audit


Both companies worked on a concept implementing a

Transportation Management System prior to the merger

ZF Legacy: SupplyOn TOMS

Implementation of SupplyOn TOMS started in 2013 in big

German plants (~135 suppliers in 8 plants)

SupplyOn TOMS is integrated in the SAP ERP systems of

the piloted plants

Scenario C based on 4flow/inet iTMS integrated into

SupplyOn was developed in 2016 as target scenario

ZF TRW: iTMS (4flow/ inet)

Intensive studies conducted with external support

(McKinsey) to decide on implementing the 4flow/inet iTMS

to steer the ZF TRW transportation network in Europe.

The iTMS is closely linked to the Scenario C in SupplyOn

and large today’s users iTMS are e.g. Bosch, Volvo, Lear

Project was pending due to the integration in ZF


Prior to the common implementation project a technical Proof-of-

Concept is done in a pilot environment

Prepare technical Proof-of-

Concept in a pilot

environment

Implement and operate

Transportation Manage-

ment System & Processes

in a pilot network

Technical Proof-of-

Concept

Current project scope


Supplier

Relationship

Management

(SRM)

Supply Chain

Management

(SCM)

Supplier Master Data

ManagementBid Process

(eRFQ)

Contract

Management

Document

Management

Advanced Product

Quality Planning

(APQP)

Complaint

Management

(8D)

Supplier

Assessment

Delivery Instructions and

Call-offs/

Purchase Order

VMI / Kanban

Advance Shipping

Notification

(ASN)

Import Control Systems

(ICS)

Transport

Management

Credit Note

Invoice

SA

P P

I

local ERP

SAP BW EDI based

communication

web based

communication

Regarding electronic communication with our partners we also build

on standard interfaces and messages (e.g. via SupplyOn)

Target landscape for electronic communication with ZF


Since then all ZF MM employees have access to actual information

MM Newsletter

MM we >inform

MM Information & FAQ

MM Trainings

• Live webinars with Member

of the Board

• every 2-3 months with

latest news and chats

• morning & evening session

• open for all MM employees

http://www.zf-world.com/ml/Z/S/Strategische_MaWi/Materialwirtschaft-Services/Know_How_Management/Schulungen/Schulungstermine/index.html


Our approach seems to be successful looking at the

achievements of 2016

Summary 2016 Financial Year

PLAN


We‘re not done, yet – it‘s still a journey

• We are strongly pushing standardization of processes & data structures, using international standards where ever possible

• We consequently follow our integration roadmap to migrate databases and supporting IT systems, internally and towards our supply chain partners

• We intensify training of our experts as well as our suppliers to improve the quality of collaboration

• We are striving for synergies and efficiency to ensure our sustainable, profitable growth

Thank You for Your Attention

integration management zf and trw€¦ · sap hana cloud azureplatform … supplyonflexible and...

Documents