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SAP for Global Data SynchronizationUnleash the Potential for Collaboration
Felix Loecher, IS Consumer Products
September 2009
© SAP 2009 / Page 2
The roadmaps in this presentation are preliminary versions and not subject to yourlicense agreement or any other agreement with SAP. This document contains onlyintended strategies, developments, and functionalities of the SAP® product and isnot intended to be binding upon SAP to any particular course of business, productstrategy, and/or development. Please note that this document is subject to changeand may be changed by SAP at any time without notice.
SAP assumes no responsibility for errors or omissions in this document
Disclaimer
© SAP 2009 / Page 3
1. The Key to Successful Collaboration2. SAP`s Solution for Global Data Synchronization3. Customer Success4. Summary
Agenda
© SAP 2009 / Page 4
1. The Key to Successful Collaboration2. SAP`s Solution for Global Data Synchronization3. Customer Success4. Summary
Agenda
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Growing the business while satisfyingconsumer demand is getting tougher
Proliferation ofProducts
Business PartnerCollaboration
Product information not consistentIncreased cost and complexityWasted resources
Outdated or wrong item informationReturned shipments and deductionsPoor customer service
data synch includes multiple objectsNew topics e.g. sustainabilityOther industries onboarding
In a global economy not companies but business networks are competing
Extended Usageof Standards
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The Common DenominatorSynchronized Master Data
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Synchronized Data is Key to SuccessfulCollaboration
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Without Synchronized Data The BusinessImpact is Severe!
Incorrect: 30-80% of all item dataTo Correct: 60$-80$ per errorTo Cleanse: 25min/SKU/year
CatalogueDisparities
Incorrect: 60% have errorsCosts: 43% have deductionsTo Correct: $40-$400 to reconcile
Invoices
Product Roll-out: 4 weeks on averageLost Sales: 3.5% due to inaccuratedata
Lost SalesOpportunities
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With the right Tools: One version of the truth as the basisfor effective collaboration across the entire businessnetwork
Timely update of product informationto retailers
Order & item administrationimproved by 67%
Data management effortsreduced by 30%
Onboarding of new tradepartners simplified
Data Administration
Time-to-shelf reduced by an average of 2 to6 weeks
Improvement of on-shelf availability, without-of-stock items reduced from 8% to 3%
Item data issues in sales process reduced byan average of 25% to 55%
Consistent and accurate product data create significant business value across theorganization
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Global Data Synchronization is Growing-Slowly and Inexorably-
December 11, 2008 Successful Results Reported in Global GDSN Healthcare PilotGartner, March 2006, Gain Value Sooner With a Clear Understanding of the Global Data Synchronization Road MapForrester 2005, Shared Strategy Study, Consumer Goods, Technology and RIS NewsIDC Manufacturing Insights 2007, Worldwide CPG/Retail 2007 Top 10 Predictions
Trends pushing Global Data SynchronizationRetailer mandate to move RFID Implementations incrementally to item levelOther industries than consumer industries are onboarding the GDSN e.g. Healthcare,
Public Sector, DefenseChange in mentality from pure price or cost-cutting to collaborative innovationManufacturers and retailers treat master data as strategic assetNew opportunities open up by expanding from item synch into multiple objects
exchange
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Global Data SynchronizationObjectives, issues, capabilities and benefits
Simplify the number ofcommunication channels and formats
Ensure that retailers have the latestand most current item informationValidate item information against theGS1 standard
Easy identification of who did whatOperate an end to end informationflow in the supply chain
Increase speed to market anddecrease out of stock related lostsales
Improve data quality foundation
Reduce Item maintenance andpublication effort
Objective:Efficient exchange of product information with retailers
Best practice solution:Provide product information in the GS1 standard to retailers in a seamless end-to-end process
Issues Key business capabilities Benefits
It is a challenges to get newproducts to the market or updateexisting ones due to the numberof systems and trading partnersinvolvedA lot of out of stock situationsoccur because ofincorrect/returned shipments
Error reconciliation of itemrecords is a time consuming anddifficult task
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Global Data SynchronizationSAP Solution
Extract material information from backend system
Enrich with synchronization relevant attributes
Validate against GS1 rules
Handle communication with data pool and retailersPublish trade item information
SAP differentiators
SAP solution
Single Platform: Consolidate on a single ecosystem of solutions based on one common platform
Integration: Manage the GDS process end-to-end
Data Quality: Validate trade items prior to communication to ensure compliance with GS1
Flexibility: Quickly adapt to changing requirements of standard and trading partners
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Extract materialinformation
Transfer material intoGS1 compliant format
Automated validationand registration ofsuccessfully validateditems
Automatic delta loads
Process overview
Global Data SynchronizationPublish trade item information
Exchange product information in the GS1 standard in a seamless end-to-end process Publish trade item information
Define trading partnerspecific attributes
Set common defaultvalues
Fill in content
Link items
Perform GS1validations
Embedd additionalvalidations for dataquality checks
Trigger publication tosingle trading partnersor trade partnergroups
Automatic deltapublication
Process feedback
Identify owners forerror reconciliation
Gather Inputs Statistical Modeling Publish Forecast Finalize Forecast
21 3 4
Extraction Enrichment Validation Publication
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1. The Key to Successful Collaboration2. SAP`s Solution for Global Data Synchronization3. Customer Success4. Summary
Agenda
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SAP delivers the most comprehensivesolution for Consumer Products
Marketing & Consumer Insights
Consumer-Driven
Best People & TalentSupply the enterprise with an adaptive workforce
ResponsiveSupply
Networks
Product &Service
Leadership
SuperiorCustomer
Value
Financial ExcellenceFund operations, financial compliance and monitor risk & compliance
Strategic ITBuild the Foundation for Integration, Collaboration and Analytic Insights
SAP’s solutions leverage cross-functional industry best practices to reduce time to value
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SAP’s solution and platform harnessesthe value of integration
Marketing & Consumer Insights
Consumer-Driven
Best People & TalentSupply the enterprise with an adaptive workforce
ResponsiveSupply
Networks
Product &Service
Leadership
SuperiorCustomer
Value
Financial ExcellenceFund operations, financial compliance and monitor risk & compliance
Strategic ITBuild the Foundation for Integration, Collaboration and Analytic Insights
ProductInformationManagement
Global DataSynchronization
CustomerDataIntegration
Master Data Management
PortfolioManagement
SAP’s native integration drives down Total Cost of Ownership
Native integration:Across the business functions thatenable the processWith all other SAP and partnerapplicationsImproves decision-making, reduceslatency and drives more effective cross-functional collaboration
Enables better decision-making andreduces latencyNetwork ready through fast & flexibleintegration of:
Internal and external locationsTrading partners (suppliers, customers)Data sources (Retail data)
via the SAP NetWeaver platform
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Industry Business Scenarios Select Customers
Financial ExcellenceFinancials, Controlling, HR
Responsive Supply NetworksCollaborative Demand & Supply Planning, Logistics &Fulfillment Management, Manufacturing NetworkPlanning & Execution
Superior Customer ValueAccount & Trade Promotion Management, SalesExecution, Direct Store Delivery
Product & Service LeadershipContinuous Product Innovation, Integrated ProductDevelopment
Marketing and Consumer InsightsBrand & Category Management
Strategic ITNetWeaver Exchange Infrastructure, BI, Portal, MDM
SAP is the Consumer Products Standard
Industry leaders are leveraging SAP beyond ERP to addresshigh-value industry scenarios
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SAP NetWeaver MDM global datasynchronization - How It Works!
Register TradeItems
Extraction Enrichment Publish totrading partners
MDM
PI
SAPSAPNetWeaverNetWeaver
SAPERP
Data Pool
GDSConsole
Data Pool
GlobalRegistry
CP Manufacturer
GDSN
Retailer
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SAP NetWeaver MDM global datasynchronization - How It Works!!
Extraction Enrichment Publication
MDM
PI
SAPSAPNetWeaverNetWeaver
SAPERP
Data Pool
GDSConsole
Data Pool
Validation
GlobalRegistry
CP Manufacturer
GDSN
Retailer
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SAP NetWeaver MDM global datasynchronization - How It Works!
Extraction Enrichment Publication
MDM
PI
SAPSAPNetWeaverNetWeaver
SAPERP
Data Pool
GDSConsole
Data Pool
Validation
GlobalRegistry
CP Manufacturer
GDSN
Retailer
© SAP 2009 / Page 21
SAP NetWeaver MDM global datasynchronization - How It Works!
Extraction Enrichment Publication
MDM
PI
SAPSAPNetWeaverNetWeaver
SAPERP
GDSConsole
Validation
Data Pool Data Pool
GlobalRegistry
CP Manufacturer
GDSN
Retailer
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SAP NetWeaver MDM global datasynchronization - How It Works!
MDM
PI
SAPSAPNetWeaverNetWeaver
SAPERP
GDSConsole
Data Pool Data Pool
GlobalRegistry
Subscribe andSynchronizedata pools
CP Manufacturer
GDSN
Retailer
Extraction Enrichment PublicationValidation
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New User Interface to Simplify Handling andReduce Effort
A New look and feel, adapted to SAP standardDeveloped in webdynpro
Can be integrated in Enterprise Portal or used as standalone
Can be tailored to user needs
Directly print or save result lists to MS Excel
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Placeholder WF Screenshot
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Significantly Reduce Manual Steps in dataCreation and Communication
Embedding of MDM WorkflowDifferent triggers available: Import, New Trade Item, Item Modification, Automation Process,Unprocessed Messages (Registration, Publication, Link and Import Error), ManuallyStandard Workflows for each Trigger are part of the deliveryWorkflows can be extended or completely new created*Actions available: Create, Start, Cancel, Next Step, Repeat Step, ReassignApproval Step Feature
Automation of the following processesValidation of trade items in inbound processRegistration of sucessfully validated trade itemsCorrection of modified trade items, that have already been published
*requires appropriate MS visio license
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Limit Access and Focus Users on What ReallyMatters
For different operations, accesscan be granted based on values ofspecific attributes
Granular authorization concept to better embed work into existing roles and focus on specific tasks
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Identify who did what for better errorreconciliation
Reuse of the MDM change tracker functionalitySearch by different categories
Target Market specificGlobal Data
According different criteriaDateUserFieldLanguageFree text
Display complete item history including old values
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Leverages the Latest and Greatest in MDMTechnology today –MDM 7.1-
Extended flexibility for data modeling and supportfor complex objectsFurther performance improvements for inbound andoutbound processingChange and transport management for data modeland integration contentImproved administration and life-cycle managementIncreased compliance and auditing supportNative MDM adapter forSAP NetWeaver Process IntegrationModel-driven and typed Web services forstraightforward SOA implementation...
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1. The Key to Successful Collaboration2. SAP`s Solution for Global Data Synchronization3. Customer Success4. Summary
Agenda
© SAP 2009 / Page 33
Proven ResultsKimberly Clark*
Challenges andOpportunitiesData quality significantly impacts thesupply chain processes betweenconsumer products companies andtheir retail business partners
Why SAPSupport for emerging Internetstandards and Web services,enabling more efficient businesscommunications
ObjectivesOptimize the cross companyintegration through ensuring that acomplete and consistent productdefinition exists within the salesorganization and product details aresynchronized efficiently with tradingpartners via the Global DataSynchronization Network
Implementation HighlightsIntegrated SolutionProduct Information Manager usableacross EuropeExtendable GDS solution, now focusingon two target markets and two tradepartnersSystem realization in 11 weeks
Operational BenefitsReduced errors, due to elimination ofmanual tasks and spreadsheetsStreamlined sales processesImproved efficiency companywideEnabled accurate reportingEnhanced supply chain and orderexecutionImproved ability to quickly introduce newproductsDecreased trade partner setup time
QUICK FACTSCompany Kimberly-Clark EuropeLocation Kings Hill, UKIndustry Consumer ProductsRevenue $18 billionEmployees 53,000Web Site http://www.kimberly-clark.com/SAP® Solution and Services SAPNetWeaver Master Data Management(MDM) and Global Data Synchronization(GDS).
Live with GDS 1.0*
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Proven ResultsColgate Palmolive
Challenges andOpportunities
NA & Europe Trade compliancerequirements with own variation ofattributesHeavy development/maintenanceeffort requiredSlow response to our tradepartnersNot in a position to meet the nextchallengeLack Global visibility
Why SAPArchitecture - Integrated solutionembedded into MDMSupport Global requirementsCentral dashboard1Sync certified
ObjectivesSimplify existing landscape andprocessesKeep up with GS1 standardpartners via the Global DataSynchronization Network
Implementation HighlightsClose collaboration with SAPContinuous Improvement
Operational BenefitsTrade compliance – itemsynchronizationOne to many – Data to anyone,anywhereStandardization of business processDrive supply chain efficiencyReduce trade partner set-up timeIncreased speed to market for newproductsReady for any trade partnerrequirements
QUICK FACTSCompany Colgate-PalmoliveLocation Morristown, NJ USAIndustry Consumer ProductsRevenue $3,6 billionEmployees 36,000Web Site http://www.colgate.comSAP® Solution and Services SAPNetWeaver MDM for Global DataSynchronization (GDS)
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1. The Key to Successful Collaboration2. SAP`s Solution for Global Data Synchronization3. Customer Success4. Summary
Agenda
© SAP 2009 / Page 36
SAP NetWeaver GDS 2.0 helps you tolet your users run GDS in a simple and efficient mannerconstantly update your trading partners with an automated and workflow guidedsolution, reducing lead time, time to market and out of stock situationsembed GDS related tasks in existing roles and responsibilities to focus on whatreally mattersquickly identify data owners, for faster error reconciliation and task handlinganalyze the impact of running GDS on your KPIsmake the most out of the existing data in your backendrealize ROI quicklybuild one single strategic MDM solution with a low TCO and high degree ofintegration
Global Data Synchronization is constantly evolving, it wentfrom a single retailer requirement to an obligation to ensureefficient business operations in a collaborative network.
Summary SAP MDM for GDS 2.0
SAP NetWeaver MDM for GDS 2.0 is there to meet the challenge
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Thank you!
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