sap supply chain response management by icon-scmfm.sap.com/data/upload/files/supply chain response...

Michael LiptonSAP Supply Chain Planning Solution Management

Jan AggerbeckCEO, icon-scm

SAP Supply Chain ResponseManagement by icon-scm

© 2012 SAP AG. All rights reserved. 2

Agenda

The demand/supply alignment challenge

What makes committing with confidence tougher today?

What is supply chain response management?

SAP Supply Chain Response Management by icon-scm

Demo

How SAP SCRM fits into SAP Supply Chain Management

Proven customer value


The demand/supply alignment challenge

Volatile demandKey customer order exceeds forecastCustomer wants to pull-in forecast

Inflexible supply with visibilitychallenges

Excess supplyLate deliveries

Corporate strategies and prioritiesHow to prioritizeHow to protect existing commitsfor key customers


36%

42%

12%10%

20%

30%26%

10%

14%

Rapid response is crucial, but few have attained it

Agility Factor Requiredto Make Decisions

Aberdeen Group, January 2011

Within the hour and belowWithin the dayWithin the weekWithin the month

More than 80% of the time61-80% of the time41-60% of the time21-40% of the timeLess than 20% of the time

20% admitted to having it available within the day

Availability ofInformation within a day

78% of survey participants indicate that in order tomake timely decisions, they need operational informationavailable within 1 day or faster


How are most demand/supply challenges handled today?

Challenges

Fear of de-committing important orders

Avoiding holding stock and/or capacity

Poor supply/demand visibility

Expediting decisions

Balancing corporate policies and goals

Classic Workarounds

Blocking sales orders, allocationspreadsheets

Virtual stock locations, customer-specific stock, multiple part numbers

Phone calls, lost time, SWAGs, lostopportunities

Block orders, phone calls, spreadsheets

Blocking sales orders, allocationspreadsheets, ‘cherry picking’ orders


What is supply chain response management?

Synchronizes demand commitmentand supply planning in one solution

Across the extended supply networkAccording to business rules andprioritiesRespecting supply chain constraintsEnables more rapid response tochanges or opportunities– Understand the business impact– Compare scenarios– Execute the best plan back into ERP


Which plan do I commit to?Do I now have enough supply?If not, what are the priorities?How can I best use availablematerials and capacities?

RespondCan I resolve the problems?

Can I get more materials?Can I get more capacity?Can I eliminate excess?

Resolve

Can I meet the demand?What is on-time vs. late?Where am I shortmaterials?Where am I shortcapacity?Do I have excess?

ReviewCustomer demand

Wants more, want lessWants the sameWants it sooner

Request

Supply ChainResponse

Management

The response management planning cycle


APO SNC

ERP

SAP Supply Chain Response Management by icon-scmQuickly re-aligns supply and demand across the network

SCRMCustomer Driven

Financially Beneficial

Operationally Aligned

CustomerManufacturer AssemblySupplier Distribution

Execute

Upload

Supply Planning Production Planning Order Promising

Decision Support


SAP Supply Chain Response ManagementBi-directional integration

SAP SCRM

APO integration for demand plans

SNC integration for collaboration

ERP integration

Full or delta

Can be scheduled or triggered manually

Used for initial or ad-hoc system synch

Event driven based on change pointers(configured in ECC)

Based on IDOCs and JCO

ERP

APO SNC

APO SNC

ERP


Coming in 11.1…. Full HANA Support

One of 1st SCM applications supporting…

SCRM Planning supports HANA as persistance layer (DB)

SCRM DataHub supports HANA as persistance layer (DB)


What’s included – Service scope

SAP Supply Chain Response Management rapid-deployment solutionOffered by SAP and Certified PartnersGo live in as little as 14 weeks

Installation of SAP Supply Chain ResponseManagement:

Short-term planning:

Visibility and what-if analysis

Reporting

Master data

Transaction data

Users

A special step-by-step guide describes each activityduring the deployment

© 2011 SAP AG. All rights reserved. 12/ Ganesh Wadawadigi / Internal Use Only

Demonstration


SAP Supply Chain Management Solutions


Traditional planning process

CreateDemand Plan

PlantSchedule

DemandPlanning

Recommended for CPG / process industries

CreateSupply Plan

Commit OrdersAgainst Fixed

Supply

Adjust OrderCommitments

SupplyNetworkPlanning

OrderPromising

(gATP)

gATPBackorderProcessing

ProductionPlanning /

Scheduling

ERP

Order Management, Fulfillment,Production, Finance

SupplyNetwork

Collaboration

APO


Responsive planning scenario

CreateDemand Plan

DemandPlanning

CreateSupply Plan


ERP


SupplyNetwork

Collaboration

APO

Supply ChainResponse

Management

Create Supply Plan, Set/Adjust Order Commitments Plant

Schedule


Scheduling

Recommended for certain discrete industries


Responsive planning scenario - Option 2

CreateDemand Plan

DemandPlanning

CreateSupply Plan

Commit OrdersAgainst Fixed

Supply

Adjust OrderCommitments


OrderPromising

(gATP)gATPBOP

ERP


SupplyNetwork

Collaboration

APOSupply ChainResponse

ManagementCreate Supply Plan, Set/

Adjust Order Commitments

PlantSchedule


Scheduling

Recommended for certain discrete industries


With SAP Supply Chain Response ManagementRadisys decreases forecast cycle time by 50%

Customer: Radisys Corporation

Headquarters: Hillsboro, Oregon

Industry: Electronics

Products/Services: Embedded wirelessinfrastructure solutions

Revenue: $300 million (2011)

Solutions:SAP SCRM

SAP SCRM is enabling Radisys to reducecustomer response times and capture

more demandRadisys lacked visibility to outsourcer supply detailsOutsourcer lacked visibility to Radisys demand detailsLong planning cycles

Business Challenges

Automate supply chain planningAccelerate accurate commitmentsImprove overall inventory positionImprove collaboration with supply network partners

Objectives

Aligned with corporate strategyBusiness rules govern supply allocationsFull integration with SAP ERP and SCM systemsEasy to use prioritization and modeling tools

Why SAP SCRM?

High visibility and collaboration between headquarters and regionsIncreased flexibility and responsivenessReduced costs of excess materials50% reduction in forecast cycle times

Benefits


With SAP Supply Chain Response ManagementFoxconn improves capacity utilization by 15%

Customer: Foxconn Technology Group

Headquarters: Taipai, Taiwan

Industry: Electronics

Products/Services: Contract ManufacturingServices

Revenue: $6.4 billion (2011)

Solutions:SAP SCRM

Underutilization of manufacturing facilitiesExtended planning cycles for supply/demand change managementHigh carrying costs of WIP inventory

Business Challenges

Transition from ‘Load and Chase’ to ‘Feasible Production’ modelAccept and build more lower priority orders without jeopardizing higher priorityordersImprove capacity utilization and decrease idle time

Objectives

Aligned with corporate strategyBusiness rules govern supply allocationsFull integration with SAP ERP and SCM systemsEasy to use prioritization and modeling tools

Why SAP SCRM?

Capacity utilization improved by 15%Accelerated customer response rate by 9XReduced WIP inventory by 40-50%Can release 15% more orders to production

Benefits

SAP SCRM is Enabling Foxconn to releasemore orders to production

Thank You!

Contact information:

F name MI. L nameTitleAddressPhone number

Backup


SAP Supply Chain Response ManagementOrder promising

User friendly specification of corporate rulesand policies for demand fulfillment

Use a broad set of characteristics to define ademand category

Previous commit, upside, pull-inProduct characteristicCustomer characteristicDemand characteristic

Rules maintained by business users, noprogramming required

Corporate fulfillment policies explicit, executeduniformly

Setting ‘previous commit’ as highest priorityProvides plan stability and high deliveryperformance

ERP

APO SNC

Drag’n’Drop


SAP Supply Chain Response ManagementProduction planning

Finite capacity/finite materialsToggle capacities between constraint orunconstrainedSimulate additional/reduced capacityAlign materials plan to available capacity

ERP

APO SNC


SAP Supply Chain Response ManagementSupply planning

Camera

Packing Accessories

Body Assy

Distribution

Assy CapacityInvInv

Customer Order #1 Priority 1 Customer Order #2 Priority 2

PO PROP @LT

SMT Assembly

Part 1 Part 2a Part 2b

Factory 1SMT Capacity

Inv

100% Substitutes 0%

InvInv

PO #123 PO #456

Optical AssemblyFactory 2

Part 3 Part 4

Inv

Optical Capacity

PO PROP @LT

Inv

ERP

APO SNC

Non-blocking allocation meets priorities butdoes not reserve supply unnecessarily

Results in 10-30% improvement ininventory turns

Full transparent pegging of each customerdemand to component supply

Flexible priorities and fulfillment rules

End-to-end, multistage demand-supply matching

All demands, all suppliesForecasts and sales ordersInventoriesOpen orders/in-transitsCapacities

Intelligent consideration of substitutes/alternates


© 2012 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purposewithout the express permission of SAP AG. The information contained herein may bechanged without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietarysoftware components of other software vendors.

Microsoft, Windows, Excel, Outlook, PowerPoint, Silverlight, and Visual Studio areregistered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x,System z, System z10, z10, z/VM, z/OS, OS/390, zEnterprise, PowerVM, PowerArchitecture, Power Systems, POWER7, POWER6+, POWER6, POWER, PowerHA,pureScale, PowerPC, BladeCenter, System Storage, Storwize, XIV, GPFS, HACMP,RETAIN, DB2 Connect, RACF, Redbooks, OS/2, AIX, Intelligent Miner, WebSphere, Tivoli,Informix, and Smarter Planet are trademarks or registered trademarks of IBM Corporation.

Linux is the registered trademark of Linus Torvalds in the United States and other countries.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are trademarks or registeredtrademarks of Adobe Systems Incorporated in the United States and other countries.

Oracle and Java are registered trademarks of Oracle and its affiliates.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWinare trademarks or registered trademarks of Citrix Systems Inc.

HTML, XML, XHTML, and W3C are trademarks or registered trademarks of W3C®,World Wide Web Consortium, Massachusetts Institute of Technology.

Apple, App Store, iBooks, iPad, iPhone, iPhoto, iPod, iTunes, Multi-Touch, Objective-C,Retina, Safari, Siri, and Xcode are trademarks or registered trademarks of Apple Inc.

IOS is a registered trademark of Cisco Systems Inc.

RIM, BlackBerry, BBM, BlackBerry Curve, BlackBerry Bold, BlackBerry Pearl, BlackBerryTorch, BlackBerry Storm, BlackBerry Storm2, BlackBerry PlayBook, and BlackBerry AppWorld are trademarks or registered trademarks of Research in Motion Limited.

Google App Engine, Google Apps, Google Checkout, Google Data API, Google Maps,Google Mobile Ads, Google Mobile Updater, Google Mobile, Google Store, Google Sync,Google Updater, Google Voice, Google Mail, Gmail, YouTube, Dalvik and Android aretrademarks or registered trademarks of Google Inc.

INTERMEC is a registered trademark of Intermec Technologies Corporation.

Wi-Fi is a registered trademark of Wi-Fi Alliance.

Bluetooth is a registered trademark of Bluetooth SIG Inc.

Motorola is a registered trademark of Motorola Trademark Holdings LLC.

Computop is a registered trademark of Computop Wirtschaftsinformatik GmbH.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer,StreamWork, SAP HANA, and other SAP products and services mentioned herein as wellas their respective logos are trademarks or registered trademarks of SAP AG in Germanyand other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, CrystalDecisions, Web Intelligence, Xcelsius, and other Business Objects products and servicesmentioned herein as well as their respective logos are trademarks or registered trademarksof Business Objects Software Ltd. Business Objects is an SAP company.

Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybaseproducts and services mentioned herein as well as their respective logos are trademarks orregistered trademarks of Sybase Inc. Sybase is an SAP company.

Crossgate, m@gic EDDY, B2B 360°, and B2B 360° Services are registered trademarksof Crossgate AG in Germany and other countries. Crossgate is an SAP company.

All other product and service names mentioned are the trademarks of their respectivecompanies. Data contained in this document serves informational purposes only. Nationalproduct specifications may vary.

The information in this document is proprietary to SAP. No part of this document may bereproduced, copied, or transmitted in any form or for any purpose without the express priorwritten permission of SAP AG.

sap supply chain response management by icon-scmfm.sap.com/data/upload/files/supply chain response...

Documents