SAP SCM PLM

SAP PLMSAP PLM for SCM driven CPG

Industries3/03/073/03/07

By Chandu KamisettyChandu Kamisetty

Contact: chandu.sap999@gmail.com

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ContentsContents

CPG Industry - Key Business DriversCPG Industry Key Business DriversKey SCM-PLM InitiativesWhat is PLM?What is PLM?CRM-PLM-SCM in Manufacturing EnvironmentEnvironmentSAP PLM-SCM Possibilities for Fast Moving CPG industriesC G dust esPLM SCM Leverage points Detailed capabilitiesDetailed capabilitiesThank You! 2

CPG Industry –Key Business DriversCPG Industry Key Business Drivers

Fast paced industryp yTime to market Supply chain managementMaintain Market share with new productsLeadership through innovation – R & D, Market research and consumer insightresearch and consumer insightCulture of continuous product and process innovationcustomer & supplier intimacy; operational excellence;customer & supplier intimacy; operational excellence; and product leadership Low cost, highly efficient & flexible operationsStream line day to day operations

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CPG Industry –Key Business DriversCPG Industry Key Business Drivers

Market penetration with high quality products, price p g q y p , ppoint strategy.Master data / Product information management Effective change management Risk Management and FDCA, FDA, etc regulatory and safety compliancesand safety compliances.Product availability whenever, wherever, however.Consumer communication, Globalization and out ,sourcingFocus on People, Process, information, Brands, P d tProducts.Digitalized product information 4

Key SCM-PLM initiativesKey SCM PLM initiatives

Develop efficient NPDI process.p pDevelop internal and external collaborationLeverage Supply chain by integration with product life cycleRecipe Management - continuous and integrated processprocessPLM for Life cycle data and process management Standardization of Internal and External Master DataCost reduction Increase business / product visibility to Technical / Purchasing / Supply Chain / Marketing.Reduce and Optimize Processes gaps 5

What is PLM?What is PLM?Set of solutions that facilitate more efficient productcollaboration between functions within the enterprise: Sales,Marketing, Engineering, Purchasing, Supply chain,Manufacturing, Planning, Forecasting, Service, CustomerS t d t l t th t i ith th i 'Support and external to the enterprise with the companies'suppliers and customers.Streamlines all the activities and data involved with a productth h t it' ti lif l i l di d t t d ithroughout it's entire lifecycle, including product concept, design,sourcing, Supply chain, manufacturing, transportation, storage,promotion, sales, support, maintenance, retirement, and evenrecycling There is a significant amount of data associated withrecycling. There is a significant amount of data associated withthe product, the programs and projects, and the people andfunctional areas involved in this set of complex processes.PLM is an essential tool for coping with the challenges of morePLM - is an essential tool for coping with the challenges of more demanding global competition and ever-shortening product and component lifecycles.

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PLM-SCM-CRM in Manufacturing Environment

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SRM-PLM Integration (1)SRM PLM Integration (1)

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NPDI (PLM)–SCM Integration (2)NPDI (PLM) SCM Integration (2)

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PLM-SCM Integration (3)PLM SCM Integration (3)

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Product development PLM-SCM (4)Product development PLM SCM (4)

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Master data PLM – SCM (4)Master data PLM SCM (4)

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SAP PLM-SCM Possibilitiesfor Consumer Packages Goods

Product Definition / Innovation NPDI (xPD) PProduct Definition / Innovation NPDI (xPD) P

Project Collaboration (cProject & cFolders Suite)

Portfolio and Project management (xRPM)Portfolio and Project management (xRPM)

Document Management System (DMS)

Recipe Management (RM)Recipe Management (RM)

Engineering Change Management (ECM, ECR/ECO))

FDA / FDCA, GMP, EHS (Compliance Mgmt)

Master Data Management (MDM)Master Data Management (MDM)

SAP Workflow ( process flow for above components) 13

PLM SCM Leverage points (1)PLM SCM Leverage points (1)Project and resource Mgmt: Clear definition of project phases andmilestones, tasks, deliverables, roles, and responsibilities makescoordination of all development, supply chain, marketing, sales, andproduction activities more effective.PD A k d t t t h l id tif th b t l ti f ixPD: A known product structure helps identify the best locations for in-

house production or suitable suppliers. Make or buy decisions aresupported and demand planning and supply network planningsimplified.pStrategic Sourcing: By bringing R&D, product, and sourcing closelytogether, product costs are optimized at the early design stage. Thestrategic sourcing process is accelerated using cFolders and SAPBidding EnginePrototyping and Production Ramp-Up: Process prototyping isused in parallel to product development to ensure technical feasibility

d ti i th d ti I t ti bl th tand optimize the production process. Integration enables the mosteffective ramp-up of a recipe for production of higher volumes.

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PLM SCM Leverage points (2)PLM SCM Leverage points (2)Master Data Management: MDM is designed to create a singleenterprise thesaurus. Supply chain synchronization, new productintroduction, multi-channel sales and support, trade reconciliation, riskmanagement, and compliance are just some of the drivers that arecompelling companies to be more strategic about managing theircompelling companies to be more strategic about managing theirinformation assets.Workflow: Deploying Workflow makes sure the process gaps areremoved and manual errors are minimized.Lot more…

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Detailed capabilities (1)Detailed capabilities (1)

Idea / Concept development and NPDI.Idea / Concept development and NPDI.Idea / concept managementProduct developmentDevelopment CollaborationClassification

Life Cycle Data ManagementDocument ManagementECM (ECR/ECO) managementECM (ECR/ECO) managementProduct Structure ManagementSpecification ManagementSpecification ManagementChange and Configuration management

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Detailed capabilities (2)Detailed capabilities (2)

Recipe Management cProject SuiteRecipe ManagementFormula / SpecificationProduct, ingredient and allergen labeling

cProject SuiteAPQP / Phase gate approachDevelopment collaboration S l N t k C ll b tiallergen labeling

Regulatory complianceNPDI

Supply Network CollaborationStrategic sourcingOutsourced Manufacturing

Multilevel recipe and specification management

Purchase order CollaborationInvoice ProcessingAccount and PaymentAccount and Payment information

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Detailed capabilities (3)Detailed capabilities (3)

Project / Portfolio ManagementProject / Portfolio ManagementProject PlanningProject ExecutionProject AccountingResource and Time managementP t T i d RProto Typing and Ramp upDevelopment CollaborationWorkflowWorkflowRelated Document / change Management

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Detailed capabilities (4)Detailed capabilities (4)

Master Data Management (MDM)Master Data Management (MDM)

LabelingShopping cartShopping cartProduct Catalogue / Web publishingManage Product master globallyg g yGlobal Data Synchronization (GDS)

30% error rate between manufacturer and retailer contentM lti l t d i t fMultiple systems and interfacesConflicting product definitionsProprietary SKUs numbers VS Standard EAN/UPC Numbers (GTINs)(GTINs)Enables rapid product updatesMinimizes Incorrect / returned shipments 19

Detailed capabilities (5)Detailed capabilities (5)

Process integrationProcess integrationDocument managementBill of materials / IngredientsBill of materials / IngredientsSourcingStatus triggered workflowsggCollaborative and Competitive scenarios

Workforce Deploymentp yProject Resource PlanningPort folio managementgStaffing and assignmentsScheduling

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Detailed capabilities (6)Detailed capabilities (6)

EHS ComplianceEHS ComplianceFDA / FDCA, ISAOther regulations and safety standards

Quality ManagementQuality EngineeringQuality improvementQuality AssuranceAudit ManagementAudit Management

AccountingProject accountingProject accountingProduct cost accounting 21

References:References:www.sap.comwww.sdn.sap.comwww.sdn.sap.com

Thank youThank you

Chandu.Kamisettycontact: chandu.sap999@gmail.com

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