Front page - SAPSA Kraftfullt nätverk page . 2 The Co-Development Company ... Supply Chain Management ... developed in accordance with SAP development guidelines,

Rapid

implementation of

enhanced

Demand Planning

Processes at AAK

John Rehn AAK AB

Front page

2 The Co-Development Company

Agenda

Presentation of how

AAK AB implemented a

new solution for

Demand Planning

Presentation of AAK

Background to project

Presentation of ORSOFT

Objectives for project

AAK System Landscape

Technical Setup

Demonstration

Questions


Vision

The first choice for value-adding

vegetable oil solutions


This is AAK

Our competence is speciality vegetable oils

Three business areas:

Food Ingredients

Chocolate & Confectionery Fats

Technical Products & Feed

AAK delivers speciality vegetable oils that meet our customers' high

requirements

In partnership with our customers, AAK develops leading global

products and solutions


AAK around the world


New GSP (EWB), Background

New application to meet new requirements from

Users, flexibility, ease of use etc. Input from earlier Sales

Conferences

AAK US implementing new S&OP process that required

new functionality and make it to a tool for the Sales

Managers

Statistical forecast should be possible

The new tool is a must to be able to handle planning in

weekly buckets (AAK-BE and AAK-TR). New

stakeholders and demands.

Flexibility to forecast on different aggregation levels

Advanced Production Scheduling

ORSOFT

ORSOFT GmbH Production planning, SCM and Advanced Planning &

Scheduling for SAP ERP

Hartmut Friedrich

28-04-2016

SAPSA, Malmö

© 2014 ORSOFT GmbH / SAP AG. All rights reserved. www.orsoft.net 8

Agenda

ORSOFT – the company

Products and main principles


ORSOFT GmbH Company: Basic Key Figures

Software Solutions and Consulting Company

1990

Leipzig, Germany

Operations Research

75

39

30

06

Deutsche Bank Rating: AAA

9.500 k€

Who we are

Founded

Headquarter

OR stands for

Nr. of Employees

Development

Consulting

Service/Support

Financial status

Revenue 2015


OR Soft – Product Lines

Strategic Simulation

Demand Planning

Supply Chain Management

Production Planning

Production Scheduling

Manufacturing Execution

Master Data Management

Workflow Management

Planning Solution for Healthcare


ORSOFT Manufacturing Workbench/Enterprise Workbench Basic Principle

Use all relevant data and make it available

for the user in an In-memory temporary database

Company Data

MM PM SD PP-PI QM

ORSOFT Manufacturing Workbench

Logistic Processes

Purchase Produce Ship Store Sell

PS Z-Tables

Table appends


ORSOFT Strong SAP ERP Integration Principles of SAP ERP Integration

Certified plug-in to SAP ERP

Integration (by Design) as genuine Add-on

Available for all supported releases of SAP ERP (many re-

certifications, SAP EBS certificate includes much more

than only interface certification)

Active SAP consistency and authorization checks

Communication with execution queue

Asynchronous communication via RFC

Data download & upload via BAPI and Batch Input

Direct mode of working

automatic update [online]

user controlled [on demand]

Simulation mode [off-line]


ORSOFT GmbH Partnership with SAP

SAP-endorsed business solutions are

complementary to SAP software offerings,

developed in accordance with SAP development guidelines,

recommended by SAP as extension of the SAP portfolio

The SAP-recommended partner solution in the area of SCM and APS is

ORSOFT Manufacturing Workbench.

2013

SAP-EBS Re-

certification

1997

Complementary Software

Program Partner

2000

Implementation

SAP APO Partner

2002

SAP Services

Partner

2003

Special Expertise

Partner

2004

Best Practices

Partner

2004

„Powered by SAP

NetWeaver“

2007

SAP-Endorsed Business

Solution (EBS)

2013

Ready for SAP

HANA

2016

S/4 Integration

(Certification in

progress)

Advanced Production Scheduling

ORSOFT

ORSOFT GmbH

Martin-Luther-Ring 13

04109 Leipzig

Tel.: +49 (0)341 230 89-00

Fax: +49 (0)341 230 89-01

[email protected]

www.orsoft.net


Objectives of the Demand Planning Process

In the demand planning process we’ll maintain a sales forecast on product level per customer.

Quantity in monthly or weekly buckets

NM/kg (or lb) in monthly or weekly buckets

The output is used by several other parties, for example like:

Sourcing and Trading.

To have timely insight in required quantities of oils to be acquired to make sure there is sufficient

supply coming in to cover the customer demands

Operations

To plan for projected capacity needs on the different production equipment in the different facilities

and be prepared to deliver the product by the time the customer orders come in.

Finance

To monitor expected business development and financial impact.


The project

Decision in April 2015 to do a Pilot based on our operation in US

Pilot was done within a month and finalized in May

Based on pilot, AAK decided in June to implement a new demand planning tool based on EWB

Scope was entire AAK with stepwise implementation

US went live 1st of October

ap. 90% of AAK in the new tool from April 2016

As we had an existing solution covering most of the functionality and major changes on SoP processes

was out of scope, the project had been relativly easy


Biggest challenges

Master Data, Master Data, Master Data, Master Data, Master Data ………

Leveling of expectations (statistical forecast)

Lack of process owners


What have we achived?

Project objectives have been meet

Individual sales manager are (in most cases) the one who enter the forecast

Statistical forecast are in use in selected areas

One tool for entire AAK, meeting the requirements for different kind of businesses

Easier to use

Can be expanded to new sites

Harmonizing master data, that have possitive effects on other areas and support future SAP

implementations

Flexibility to implement changes in SoP


AAK System landscape

SAP ECC

Non

SAP

ERP

Non

SAP

ERP

Non

SAP

ERP

Non

SAP

ERP

Global AAK SAP Applications Based on SAP BW, EWB and IBM Notes


Technical setup

SAP ECC

EWB MWB

MWB-GUI EWB-GUI

SAP BW (GSS)

Non SAP ERP

Invoice statistics

and customer

master data for

GSS

Invoice statistics

and customer

master data for

GSS

Customer &

material master

data for EWB

Sales statistics,

and contract for

EWB


Technical setup

SAP ECC

EWB MWB

MWB-GUI EWB-GUI

SAP BW (GSS)

Non SAP ERP

Updated forecast

to BW

Updated

forecast to non

SAP

environment

Documents

Front page - SAPSA Kraftfullt nätverk page . 2 The Co-Development Company ... Supply Chain Management ... developed in accordance with SAP development guidelines,