sap keynotetime to rethink your supply chain

Time to Rethink your Supply ChainGanesh Wadawadigi, Ph.D., Vice President, Supply Chain Solutions, SAP

2013 SAP AG. All rights reserved. 4Internal

Sustainable Growth

Volatile Markets & Growing Logistics ComplexityConstant Challenges for Supply Chain Professionals

vs.Highest CustomerService Levels

Lowest InventoryLevels

vs.MinimizeTransportation CostMaximize On-Time

Delivery

vs.Highest Quality ofProducts

Lowest Cost ofProduction


Rethink your Supply ChainTreat Exceptions as Standard

Frequently build and adjust profitablebusiness plans across departmentsand companies

Rethink Collaboration

Introduce fast and lean demand &supply planning processes

Rethink Operations

Know the demand for all productsin all markets at any time

Rethink Responsiveness

Rethink SupplyChain Monitoring

Transition to on-demand shipment incombination with local, smalldistribution centres

Rethink Distribution


37%Higher on timedelivery performance

Source: SAP Benchmarking Services

Best Run Companies are Rethinking their Supply ChainsBest Run Supply Chains have

89%Lower InventoryCarrying Cost


SAP is Rethinking the Supply ChainSAP Supply Chain Management Solution Strategy

Provide highly collaborative processesin the Cloud

CLOUD

Provide mobile applications forhighly automated processes

MOBILE

Provide the best possible UserExperience

USABILITY

REAL-TIMEProvide high value capabilities forSupply Chain Planning and Execution

VALUE


SAP Supply Chain Management SolutionsEnd-to-End Business Process Coverage

SALES & OPERATIONS BUSINESS PLANNINGSales & Operations Planning, Inventory & Service Level Optimization, Scenario Planning

DEMAND DRIVEN SUPPLY CHAINDemand Management, Collaborative Response Management, Manufacturing & Supply Planning

LOGISTICS & ORDER FULFILLMENTTransportation Management, Warehouse Management, Track & Trace

SUPP

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Sales & Operations Business PlanningReal-Time Collaboration

y Leverage HANA to deliver a single aligned crossdepartmental plan balancing the impact oninventory, service levels and profitability

y Perform consensus planning, match demandwith supply, and align to financial targets

y Determine optimal inventory amounts at eachtier within the supply chain

y Perform supply-chain simulation and what-ifanalysis and compare the best results for bothtactical and strategic decisions


Inventory Optimization Suitewill complement and expandSales & Operations BusinessPlanning solutions

Enterprise Demand Sensingpredictive analytics solution willenhance SAP Demand SignalManagement

Announcement: SAP has Acquired SmartOpsHelp Customers Optimize Inventory and Service Levels in Supply Chain

SALES & OPERATIONS BUSINESS PLANNING

Sales & Operations Planning, Inventory & Service LevelOptimization, Supply Chain Scenario Planning

DEMAND DRIVEN SUPPLY CHAIN

Demand Management, Collaborative Response Management,Manufacturing & Supply Planning

LOGISTICS & ORDER FULFILLMENT

Transportation Management, Warehouse Management, Track & Trace

SUPP

LYC

HAI

NM

ON

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RIN

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PPLY

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Demand Driven Supply ChainReal-Time Responsiveness

y Capture and sense demand in real-time

y Incorporate structured and unstructured demandsources, to provide a holistic picture of actualdemand

y Incorporate demand directly into mechanisms thatshape supply-chain response

y Realign supply and demand as changes occur

y Synchronize supply and manufacturing planningacross internal and external manufacturing sites


Demonstration: Demand Driven Supply Chain


Announcement: liveCache on HANA now availableAPO on HANA

Up to 4 times fasterInteractive planning in DP, SNP andPP/DS

Up to 3 times fasterInteractive Alert monitoring andalert batch processing

Up to 40% fasterBackorder Processing in gATP

Disclaimer: All measurements are done based on Customer and SAP test data. Runtime can differ on other data and configuration.

Up to 40% fasterSNP Heuristic run

y Making Supply Chain Planning faster and moreresponsive

y Increase speed of information analysis,simulations in areas of forecasting and supplynetwork planning

y Accelerate reporting and processing on largevolumes of supply chain planning data

y Pre-defined dashboards for different use cases(analytical workflows) for SAP APO basedplanning scenarios

y Faster and more responsive interactive and batchplanning

APO powered by HANA


Logistics and Order FulfillmentReal-Time Distribution

y Make informed decisions to balance customer service(the Perfect Order) and the cost of delivering that levelof customer service

y Align integrated distribution and fulfillment processesaround speed, efficiency and sustainability

y Improve efficiency, readiness and agility by operating,orchestrating, monitoring and collaborating across yoursupply network

y Monitor, measure, and analyze in real-time to adjustshipments, sourcing decisions based on businessdynamics


SAP Logistics and Order Fulfillment in action at EDEKA


Announcement: SAP TM 9.0 and EWM 9.0 are Generally AvailableFast Adoption of SAP Transportation and Extended Warehouse Management 9.0

Facts and figures

y 250% growth in 2012y 25 live customersy Over 40 ongoing implementation projectsy Productive use of SAP TM in 15 countries and

14 industries

Sample customers

Active & live customers Customer geographical coverage

0

5

10

15

20

25

30

35

2010 2011 2012

Active

Live


Real-TimeCollaboration

y Get closer to thecustomer and haveimproved visibility ofinventory positionacross the network

y Leverage logistics tooffer value addedservices

y Reduce planning cyclesy Build and adjust

profitable business plansacross departments andcompanies

y Leverage real-timeinformation to increasevisibility andsustainability of thesupply network

y Zero latency access todemand for all productsin all marketsy Drive real time

replenishment andorder promising basedon customer, productand supplier priorities

Real-TimeResponsiveness

Real-TimeDistribution

Real-TimeOperations

y Fast demand andsupply planningprocesses

y Pan and re-plan basedon short term changesto supply & demand

y Profitably plan basedon distribution andmanufacturing costs

Powered by SAP HANA

Real-TimeMonitoring

y Improve visibility acrossthe supply networky Make informed

decisions based on realtime supply anddemand dynamics

Only SAP Delivers a Real-time Supply Chain, Anytime, AnywhereSummary

Thank you


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