sap scmp improving effectiveness
TRANSCRIPT
3 juin 2009
Francois Leteinturier, SCM Solutions Expert, SAP FranceJacques Libeyre, Solutions Expert, SAP France
Improving Supply Chain Effectivenesswith SAP BusinessObjectsSupply Chain Performance Management
Cost
Supply chains are under pressureAnd climate is getting tougher
Volatility
Risk
Purchasing Manufacturing Index
Supply Chain Digest, 2009, and McKinsey, 2008
What are your company's 2 main strategic goals for your supply chain?
Reducing costs
Improving customer service
Getting new products/services to market faster
Improving reliability of supply chain
Improving product quality
Reducing company’s carbon footprint
Maintaining majority of employees in home region
None of above
McKinsey, 2008
How, if at all, has the amount of supply chain risk faced by your company changed in the past 5 years?
Increased significantly
Increased Slightly
No change
Decreased Slightly
Decreased significantly
Consumer Confidence Index
2007 2008 ChangeDow Jones Industrial Average on Oct 9 14,279 8,579 -39.9%
Crude Oil/bbl on Oct 9 $94.83 $76.77 -19.0%Institute of Supply Management – PMI for Manufacturing, Oct 50.9% 38.9% -23.6%
$/Euro on Oct 9 .7093 .7320 +3.2%University of Michigan Consumer Sentiment Index- Oct 80.9 57.6 -28.1%
Sample of Economic Measures
Are my customers satisfied ?
Am I managing my assets
effectively?
How much should I
produce?
You cannot manage what you cannot measure
Demand Forecast
Supply Chain Cost Perfect Order RatingTo what extent is your company meeting the strategic goals for its supply chain?
Improving Product Quality, n = 48
Reducing Costs, n = 165
Getting New Products/Services to Market Faster, n = 88
Improving Reliability of Supply Chain, n = 78
Improving Product Quality, n = 119 XX
X
Need for Performance Management
Demand Perfect Order
Cost
Finance
Sales
Manufacturing
How arewe doing?
Why is this happening?
What should we do?
Volatility
Cost Risk
Supply Chain Performance ManagementEffectiveness, not only efficiencies
Demand Perfect Order
Cost
Accounts payable
Cash flow
Shipment & Manufacturing cost
Number of returns
Customer satisfaction
Customer defection
Demand
Inventories
Economical environment
Visibility
Effectiveness
Control
Inter-enterpriseend-to-end processes
Collaborative Demand and Supply Planning Collaborative Demand and Supply Planning
Logistics and Fulfillment management
Logistics and Fulfillment management
Manufacturing Network Planning & Execution
Service Parts ManagementService Parts Management
Collaborative DemandResponse & Execution
VP Supply Chain
VP Manufacturing
Supply Network Strategy and DesignSupply Network Strategy and Design
Supply Network TraceabilitySupply Network Traceability
Execution
Tactical
Strategic
VP Logistics
DESIGN SOURCE MAKE STORE MOVE SELL SERVICE
CEO / CFO / CRO
Demand ForecastDemand Forecast Perfect Order Rating
Perfect Order Rating
Supply Chain Cost
Supply Chain CostSupply Chain
PerformanceManagement
Supply Chain Performance ManagementTied into value scenarios within Responsive Supply Networks
SCOR Contains 3 Levels Of Detail
#
Level
Schematic Comments
1
2
3
4
ConfigurationLevel
(ProcessCategories)
ProcessElement Level
(DecomposeProcesses)
Plan
DeliverMakeSource
A company’s supply chain can be “configured-to- order” at Level 2 from approximately 24 core “process categories.”
Companies implement their operations strategy through their unique supply chain configuration.
Companies “fine tune” their Operations Strategy at Level 3
Level 3 defines a company’s ability to compete successfully in its chosen markets and consists of:• Process element definitions • Process element information inputs and outputs• Process performance metrics • Best practices, where applicable • System capabilities required to support best
practices • Systems/tools
•
•
ImplementationLevel
(DecomposeProcess
Elements)
Companies implement specific supply-chain management practices at this level
Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions
Supp
ly C
hain
Ope
ratio
ns R
efer
ence
-mod
el
Top Level(Process Types)
Level 1 defines the scope and content for the Supply Chain Operations Reference-model
Here basis of competition performance targets are set
Notin
Scope
Description
Identify, Prioritize, and AggregateProduction Requirements
P3.1
Balance Production Resources with
Production Requirements
P3.3
Establish DetailedProduction Plans
P3.4
Identify, Assess, and AggregateProduction Resources
P3.2
Supply Chain Performance ManagementEffectiveness, not only efficiencies
Order Management
Cost
Order Management
Cost
Material Acquisition
Cost
Material Acquisition
Cost
Planning and Finance CostPlanning and Finance CostLevel 2 Metrics
Finished Good Warehouse
Cost
Finished Good Warehouse
Cost
Customer Service Cost
Customer Service Cost
Outbound Transportation
Cost
Outbound Transportation
CostLevel 3 Metrics
Express Freight
Express FreightFuel CostFuel Cost ReturnsReturns Invoices
OutstandingInvoices
OutstandingDiagnostic Metrics
-
Strategic Goals
Perfect Order Fulfillment
Perfect Order FulfillmentLevel 1 Metrics
+
Supply Chain Management
Cost
Supply Chain Management
Cost
+
Supply Chain EffectivenessSupply Chain Effectiveness
-
Product look & feel
SAP BusinessObjects Supply Chain Performance Management
At any time, know your operational and related financial performanceAt any time, know your operational and related financial performance
Standards-based end to end process support
Timely insights, with tight operational application integrationTimely insights, with tight operational application integration
Automated data collection
Fully understand operational drivers affecting performanceFully understand operational drivers affecting performance
Proactive diagnostics
Metrics management functionalityMetrics management functionality
Fast time to value, business agility
Distribute planning for none Supply chain expert usersDistribute planning for none Supply chain expert users
Supply Chain Planning and Easy visibility
Receive pro-active alerts about deviations for performance targets, and better balance trade-off decisions for improved supply chain performanceTe
st a
nd
Impr
ove
Iden
tify
and
Ana
lyze At any time, know your operational and related financial performance, and understand operational drivers affecting performance
Comply with leading industry standards from performance management (e.g. SCOR), focusing on metrics that matter
Mod
el a
nd
Und
erst
and
Solution detail – IT viewC
olle
ct Collect and collate data directly from operational processes, such as order-to-cash, from SAP- or non-SAP systems
Technology Architecture and RoadmapDisclaimer: Preliminary Only
2008 2009 2010Release SAP SCPM V1 Beta SAP SCPM V1 RU
SAP SCPM V1 GASAP SCPM V2 RU
SAP SCPM V2 GA
Deliverymodel
On-Premises On-PremisesHosted
On-PremisesHosted
Archi-tecture
DWH/OLAP: SAP NW BIETL: BOBJ DI, SAP starter kitsFunctionality: Flex-basedUI: Flex-based
Additional support of BO:Universe for data accessSharing of master/metadataSharing of UI components
Full migration to BO Data Integrator for ETL
Start of integration with IDM
SAP NW BI (DBW+OLAP)
SAP extractorstarter kits
Data Integrator
Flex-basedapplication framework
SAP NW BI (DBW+OLAP)
SAP extractorstarter kits
Data Integrator
Flex-basedAppl. FW
BOUniverse
SAP NW BI (DBW+OLAP)
Data Integrator
Flex-basedAppl. FW
BOUniverse
SAP SCPM = SAP Supply Chain Performance Management
SAP BusinessObjects Supply Chain Performance Management
SAP BusinessObjects Supply Chain Performance Management application helps companies improve supply chain effectiveness, by focusing on actionable, operational process metrics that impact supply chain performance.
• Translate Strategic Goals Into Measurable Targets
• Measure Effectiveness, across End-to-End Processes (e.g. OtC)
• Proactively Identify Bottlenecks, and Pin-Point Root Causes
• KPI Management Functionality based on SCOR reference model
• Deliver Results Faster, at Lower Risk
© SAP 2008 / Page 18
Thank you!