1108 Automated Cvc Maintenance in Demand Planning in Sap Apo

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Orange County Convention CenterOrlando, Florida | May 15-18, 2011

Automated CVC maintenance in APO Demand Planning at ACH Food Companies

Steve Smythe ACH Food Companies

Suresh Nagarajan Deloitte

Real Experience. Real Advantage.

Consulting, LLP

[Introductions Who we are

Steve Smythe Business Analyst, ACH Food Companies Suresh Nagarajan APO Consultant, Deloitte Consulting,

LLP

Real Experience. Real Advantage. 2

[Company Background ACH Foods is a mid market, manufacturer and marketer of

consumer branded products


Consumer Cooking Oils

Spices seasonings and sauces

Baking Enhancements

Foodservice AlimentosCapullo

[ Company Background (continued)ACH operates out of four

locations in the US: Headquarters Oakbrook, IL Shared Services Cordova, TN (shown)

Oil & Syrup Manufacturing Argo, IL Spice Manufacturing Ankeny, IA


Spice Manufacturing Ankeny, IAACH also maintains sales

offices in Canada, Puerto Rico

Utilize Third Party Distribution Centers

[ ACH & SAP - Project Compass Wave 1

Finance, PTP and OTC, BI Live June 2008

Wave 2: ECC Core Manufacturing, Product Costing, Recipe

Management and Quality Management


Management and Quality Management APO Demand Planning and Supply network Planning Live March 2011

[ Learning Points Definition of CVCs Challenges of CVC maintenance Custom solution to proactively maintain CVCs based on

master data in ECC. Custom Solution to compare ECC & APO master data to

trigger realignments



[DEFINITIONS OF CVCS


[ CVC Characteristic Value Combinations CVCs form the base hierarchy against which all data

(history and forecasts) are recorded & managed in APO Demand Planning


[ CVC Characteristic Value Combinations Characteristic:

Example APO Product, APO Location Value:

Example APO Product = A, APO Location = X CVC:

Example A X

Real Experience. Real Advantage.

Example A X

9

[ CVC Structure at ACH Foods

Product Attributes

Customer Attributes

Location Attributes

Our CVC structure is a combination of product attributes, customer attributes and location attributes


Product Group Product Category Brand type Brand Size Volume / Rebate group (or)

Pack Size

Sales division Industry (or) distribution channel Account assignment group (or)

Country Sales office Sales district Major account Plan-to/Buy group

Ship - from

[ Source of CVC Data - Customer

ECC Customer Master Tables

These are the customer related attributes with example values that each one can have


1. Consumer2. Food Service

1. US2. Canada

1. Retail2. Fdsrvc

1. North East2. South East

1. NY2. Miami

1. Promo 12. Promo 2

1. Cust group 12. Cust group 2

Customer

(Ship-to)

Customer

Division

Account

Assignment

Group

(Country)

Industry Code

(Distribution

Channel) Sales Office Sales District

Plan-to/Buy

group Major Account

[ Source of CVC Data - Product

ECC Product Master Tables

These are the product related attributes with example values that each one can have


Product Brand Type Brand Product GroupProduct

CategorySize

Volume / Rebate Group

(pack size)1. Branded2. Unbranded

1. Mazola2. Spice Islands

1. Oils2. Spices

1. Corn oil2. Seasonings

1. 12/48 Oz2. 207/1 Oz

1. 48 Oz2. 1 Oz

[CVC MAINTENANCE CHALLENGE


[ CVC maintenance challenge? Standard methods for maintaining CVCs:

Automatically added when shipment history with new combination of attributes posted

Load from file Load from existing planning object structure Create manually one by one


CVC Maintenance Challenges Creating new CVCs before sales occur (i.e. forecast first, ship

second) Keeping CVCs in sync with master data in ECC Manual creation of CVCs is labor intensive and error prone as it

does not have a mechanism to validate the combinations that are being created by the planners.

Triggering history re-alignments

[ Manual process to create CVCs /SAPAPO/MC62

All Characteristics are keyed in manually with no validation. We have 18 Characteristics Lots of room for error

No validation of codes for each characteristic No validation of combinations between each characteristic

Ex. Correct Brand on a product.


Ex. Correct Brand on a product.

[ Guiding principles Master data in ECC and APO to match Master data in ECC to be the source Planner will make conscious decision before updating

CVC Planner will use discretion on if new CVC needs to be

created for new distribution


created for new distribution Given complexity of CVC structure, we didnt want CVCs

created from scratch. We want the system to recommend based on inputs.

CVCs that are generated from the shipment history would be accepted.

[CREATION OF NEW CVCs


[ Business events that could trigger creation of new CVCs

New Products

Business Event

New Distribution

Activities in ECC

Create the new material with all the product

attributes in ECC Material master

N/A

Activities in APO

Create new CVCs and begin manual forecasting

in demand planning




in demand planning

New Distribution

New customers

N/A

Create the new Customer in the Customer master

begin manual forecasting in demand planning

[Schematic Diagram of create new product CVC logic ECC Material Master data tables

APO-BI Master data tables

Nightly refresh APO-DP

CVCAPO-BI Shipment transactions

Nightly refresh

Compare , identify new Products that are setup in ECC and are not in APO


Planner select key customer attributes from

custom solution input screen

Program derives valid combinations based on

the master data and planner inputs in a text

file

Planners upload the text file to create new CVCs

in APO-DP

CVC create program

[Schematic Diagram of create new customer CVC logic ECC Customer Master data tables




Nightly refresh

Planner select the product that needs to be setup for the new customer

CVC create


Planner select key customer attributes from

custom solution input screen

Program derives valid combinations based on

the master data and planner inputs in a text

file

Planners upload the text file to create new CVCs

in APO-DP

CVC create program

[ Custom solution to create CVCs at ACH Can generate CVCs for new product or customer As hierarchical fields are entered, other levels are

suggested based on validity rules/ master data setup.


[ Custom solution to create CVCs at ACH After all fields are entered you select the location to download the file


[ Custom solution to create CVCs at ACH Executing the prior screen will display all proposed CVCs to createAll product attributes will be pulled in from the material master


[ Custom solution to create CVCs at ACH Upon exiting a message will appear showing the name of the file created.


[ Custom solution to create CVCs at ACH After creating the CVC report (downloaded file), you will use /sapapo/mc62 to upload the suggested CVCs.Use Create Characteristic Combination option


[ Custom solution to create CVCs at ACHSelect to Load to WorklistSelect Load data from FileEnter location of the downloaded file from previous step


[ Custom solution to create CVCs at ACHUploaded file is copied into the table to generate CVCs


[PROPOSE CVC REALIGNMENTS


[Business events that could trigger Maintenance of existing CVCsChange any one of the material master

attributes(Brand

Brand TypeProduct group

Product cat Size

Volume rebate grp)

Complete the changes to the material master

Activities in ECCBusiness Event Activities in APO

Perform CVC realignment in demand planning and begin forecasting in the

changed product hierarchy


Volume rebate grp)

Change any one of the customer

master attributes(Sales districtSales office)

Complete the changes to the customer master

Perform CVC realignment in demand planning and begin forecasting in the

changed customer hierarchy

[Schematic Diagram of change CVC program Logic ECC Master data tables




Nightly refresh

Compare product attributes in CVC to product attributes in product master

Proposed


Compare customer attributes in CVC to

customer attributes in customer master

Generate proposed realignment report for

exceptions where there is a product & customer master data mismatch

Planners download the exception report and use

it in DP realignment transaction

Proposed Realignment report program

[ Custom Recommended Re-Alignment ReportThis report will compare master data in APO-BI with master data in APO-DP and highlight the discrepanciesDiscrepancies will either trigger master data correction or a realignment in APO-DPThis is a report that should be run regularly to identify master data issues.


[ Custom Recommended Re-Alignment ReportWhen run on Product Attributes, the report will highlight any products where the attributes in ECC do not match the attributes in APO for that same product.Ex. On 2001573 below, the product category is 0116 in APO and 0101 in ECC. This is most likely created because of a change in master data in ECC. This will trigger a realignment.


[ Custom Recommended Re-Alignment ReportWhen run on Customer Attributes, the report will highlight any customers where the attributes in ECC do not match the attributes in APO for that same product.Ex. On customer number 1400555 below, the Planto in APO is ZZZ and the planto in ECC is blank. This will require the master data team to update this shipto with the correct planto.


[ Key Learnings Definition of CVCs Challenges of CVC maintenance Custom solution to proactively maintain CVCs based on

master data in ECC. Custom Solution to compare ECC & APO master data to




[] Thank you for participating.Please remember to complete and return your evaluation form following this session.Real Experience. Real Advantage.

]SESSION CODE: 1108

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Speakers:Steve Smythe & Suresh Nagarajan

Documents

1108 Automated Cvc Maintenance in Demand Planning in Sap Apo