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Sunil Srinivasan Enterprise Solution Architect SAP India SAP SNC –Supply Network Collaboration

SAP SNC (Supply Network Collab With SNC 7.0)

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Text of SAP SNC (Supply Network Collab With SNC 7.0)

SAP SNC Supply Network Collaboration

Sunil Srinivasan Enterprise Solution Architect SAP India

Agenda

1.Business Background and Big Picture 2.SAP SNC Product Overview 3.Customer Examples

Agenda

1. 2. 3.

Business Background and Big Picture SAP SNC Product Overview Customer Examples

Customer Challenges and Trends Drive Strategy for Supply Chain CollaborationManual partner interaction: expensive, error-prone and slow Supplier On/off boarding Lack of Visibility Beyond the Four Walls

Poor Customer Service

Globalization and Outsourcing

How Is SAP Addressing the Challenges Enabling Adaptive Supply Chain NetworksGlobalization & OutsourcingUnderstand the Customer Demand Include your Suppliers into your Network Enable visibility into your outsourcing partners

VisibilityTreat suppliers, outsourcing partners, customers and service providers as an extension of your organization

Improve Customer ServiceSense and respond to real time supply and demand signals

It is all about adaptability and managing the network SAP Network Supply Collaboration

Combining Efficiency & Responsiveness Develop and Leverage Core Capabilities in the NetworkCollaborative Demand and Supply Planning

Streamline Logistics and Fulfillment

Increase Supply Network Visibility & Collaboration Manage Risk and Ensure Compliance Increase Real World Awareness

Success depends each Enterprise becoming Best in Class itself and leveraging the Best in Class capabilities of the Network

SAP Supply Network Collaboration A 360 View On Collaboration

Extend Your Enterprise to Encompass Suppliers, Contract Manufacturers and CustomersOut-of-the-Box Collaborative Business Processes Intuitive, Easy to Learn, and Easy to Use Web-User Interface Standards-Based & Service-Enabled Connectivity Between Your SAP ERP and Partner Systems

Suppliers360 Collaboration

Customers

My Company

Contract Mfg

Agenda

1. 2. 3.

Business Background and Big Picture SAP SNC Product Overview Customer Examples

What is SAP SNC?Its a supply chain collaboration application, but it has several different dimensions: Collaboration & Visualization Layer to External PartnersShow e.g. POs, Forecasts and Inventory from internal systems (ERP), encompassing the use of exception management. Extending processes running in internal systems. Allow partners to update information and respond back to internal systems (e.g. PO confirmations, ASNs, Forecast Responses). Collaborate and capture commitments from partners. Consolidate many internal systems into one SNC system, provides one comprehensive, simplified and consolidated view to the outside world.

Enabler of New Business Processes on top of Internal SystemsResponsive Replenishment (next-gen VMI), Work Order collaboration with contract manufacturers and Supply Network Inventory providing cross-tier/cross-partner visibility to supply, demand and inventory that go above and beyond what ERP systems provide. New processes integrate to existing internal (ERP) systems on buy and sell side, adding process value.

Multi-Mode Communication Layer to External PartnersMessage-Based Communication like XML (B2B), File Sharing (Excel up/downloads), E-mail exchange w/ attachments and web UI allow a menu-based approach to reach full range of external partners. Is fully eSOA-enabled, utilizes NetWeaver PI (BW & EP optional) on top of WAS and using a web-based UI

SAP SNC Key Capabilities: Supplier Raw Mats/Components, Contract Mfg and Customer CollaborationFinished Goods Flows Responsive Replenishment Min/Max VMI Demand Collaboration

My CompanyRaw Material/Component Flows PO Process Release Process CMP (Subcon PO) Process Kanban Process Work Order Process SMI Process SNI Process DCM (Reorder) Process DR (Forecast) Process Contract Mfg:ing Flows

Key Capabilities: Raw Mat/Component Supply & Contract Mfg

My CompanyRaw Material/Component Flows PO Process Release Process CMP (Subcon PO) Process Kanban Process Work Order Process SMI Process SNI Process DCM (Reorder) Process DR (Forecast) Process Contract Mfg:ing Flows

Additional Features:Cross-tier Visibility of Demand and Inventory Enabled Via SNI. WO Allows for Automated Production Progress Updates Invoices (Supplier Creates Invoices via the Web), Includes Regular and ERS Invoices (Self-Billing) Alerts for Exceptions (Includes e-mail notifications) BW Reporting Content for Alerts and Supplier Performance based on Alerts

Supplier Collaboration with SAP SNC All Suppliers Are Not EqualTop Strategic SuppliersAutomated, optimized communication (e.g., EDI) with typical business pain points, such as: High spend, high-volume large suppliers Expensive connectivity efforts Poor visibility of mid/long-term forecasts, inventory, and capacity Low supplier performance accuracy Disconnect between public and private processes

Non-Strategic SuppliersUnstructured, not optimized communication (e.g., Phone, Fax) with typical business pain points, such as: Unsynchronized supply and demand situation Long order cycle times Disruptions from last-minute changes Immense maintenance efforts of data High supply risk and costs

Low spend, low-volume small suppliers

Reaching Long Tail of suppliers requires multiple modes of connectivityBUSINESS PARTNERSSuppliers and Contract Mfg:ersLow Volume Web BrowserWeb Web Browser Browser

CUSTOMERSNCSAP NetWeaver

Mid Volume File Up/Down Loads

Up/Down Up/Down Load Files Load Files

SAP XI

ERP Backend Systems

High Volume B2B IntegratedBackend Backend System System

Browser XML File Up/Down Load

Kanban DashboardThe DIMP Kanban Board displays Control Cycles for materials supplied through different suppliers.Create a new Kanban Jit Call

Supplier: AAT_BAMBE Supplier: AAT_TROY

Customer Collaboration with SAP SNCForecast Collaboration Promotion Planning Forecast and Short Inventory and Sales Term Forecast History

My Company

Replenishment Orders Planning

Promotion Orders

Truck Loads (PO and Sales Orders)

Customers

Responsive Replenishment . . .Is a real-time, demand-driven, replenishment scenario between supplier and customer including up and down shifts of orders and shipments in the short term (next generation VMI) Manages promotional items separately thru-out end-to-end replenishment process and optimizes truck loads

VMI Min/Max Replenishment . . .Allows for traditional VMI replenishment scenarios using maximum and minimum stock limits as driver Can be used without promotional and truck load building functionality

Demand Forecast Collaboration. . .Offers a time bucketed, on-screen, collaboration and workflow driven capability to reach a consensus forecast between customers and suppliers

Main Features: Customer Collaboration BenefitsBusiness Benefits1. Controlled Data Import 6. Order Processing & Delivery 2. Responsive Forecasting

5. Order Generation 3. Responsive Promotion Planning

Increased sales and lower lost sales through prevention of stock-outs, especially during promotions Improved responsiveness to short-term fluctuations to customer demand esp. during promotions Increased cash-flow through reduced inventory and faster order cycle times while increasing service levels Improved asset utilization through higher truck capacity utilization and increased user productivity

4. Replenishment & Transport Load Building

IT BenefitsPre-delivered scenario and lean implementation SAPs platform for Supply Network Collaboration (incl. customer & supplier Collaboration scenarios e.g. SMI, CPFR)

Supply Network CollaborationImproved CollaborationCollaborate in real time Fewer phone and fax inquiries Automated Processes

Enhance VisibilitySupply Network visibility Anticipate supply delays Respond to demand changes

Increase ControlManagement by exception Manage risk Better capacity utilization

Improve Customer ServiceIncrease order fill rates

Lower costs & increased revenuesReduced inventory levels Faster order-to-cash cycle Increased inventory turns Improved asset utilization

Agenda

1. 2. 3.

Business Background and Big Picture SAP SNC Product Overview Customer Examples

SAP SNC (ICH) Reference Customers Feb 2009Customer Snapshot:460 + Global Customers 200 + Active Customers Appr.75 Live Customers Appr.25 Reference Customers

Notable Live Customers SAP SNC

Honeywell Colgate Embraer GE (Fanuc) Bell Helicopter Grundfos Roche Diagnostics Knorr-Bremse Nobel Biocare DirecTV Kraft Foods Flextronics BEML Kaeser Kompressoren

Thales Avionics P&G Sauer-Danfoss Sidel Alpine Electronics General Mills HP Kostal Novartis Philips Ritter Sport Weber Grills Rohde & Schwarz Festo

Medtronic Unilever Hindustan Kellogg Eli Lilly Cartier-Richmont Hans Grohe Wincor Nixdorf Mahle Bang & Olufsen Harman Becker Daikin Johnson & Johnson Consmr. Bayer

Notable In-Project Customers SAP SNC (OSS message-based)Ericsson Conair Coca-Cola Unilever England Rockwell Automation Yazaki Automotive Draeger Eli Lilly (upgrade) Ford LOrange Nortel Networks Philip Morris Siemens AstraZeneca Lexmark Lockheed Martin Perrigo Endwave Lennox Roto Frank Caterpillar Honeywell Melitta Osram Sappi Whirlpool Palm Pepsico Applied Materials Lexmark Eli Lilly Kimberly-Clark Johnson & Johnson Medical Daimler HP (roll-out) Nestle Panasonic Shell Novo Nordisk

SAP SNC / Manufacturing Network Planning and Execution Selected Customer ExamplesSuppliers are responsible for inventory management processes Increased visibility across the supply chain Automated key business processes with suppliers resulting in high data and decision accuracy Integrated four Baan ERP systems to one SNC instance using web services provided by SAP On-Boarded 10,000+ Suppliers and 12,500+ Supplier Users in 2 years (March 2009)

Bang & Olufsen

Flextronics

DIRECTV

Increased supply chain velocity and volume Reduced data and decision latency 3 5 times improvement in purchase order productivity

Philips Consumer Products

Increased automation reduces manual effort ( for example: Goods Receipt Process) Non-sophisticated suppliers are able to get official ASN

Customer example: Supplier Collaboration @ FlextronicsWhy SAP and enterprise SOAFlextronics Inc. Location: San Jose, CA Industry: Computer Products and Services: Electronics Manufacturing Services (EMS) provider Revenue: US$33.6 Billon (2008) Employees: 162,000 (Mar 2008) Web Site: http://www.flextronics.com SAP Solutions and Services: SAP SNC 5.0, eSOA Proof-of-Concept Partner: none

1/2

SOA enabled multiple interaction points (Excel, B2B, etc.) over a single process Easily configurable solution: separation of process steps from the services allows for easy reconfiguration of the process later

Benefits (of eSOA for this effort)SOA opens the doors for fast and easy integration into third party services and solutions, both from in-house run applications or software sourced as a service

Challenges and OpportunitiesBuild a consistent, repeatable,

Legacy supplier collaboration platform not scaling with Flextronics growth Solution instability impacting business and supply chain efficiency

synergistic and scalable operational infrastructure that hosts the market segments in each of the major geographies and drives focused execution/Josh Clark Director of IT Flextronics Inc.

ObjectivesIncrease buyer / supplier performance Reduce purchasing transaction cost Increase supply chain data integrity, availability and visibility Improve operational efficiency

Customer example: Supplier Collaboration @ FlextronicsFlextronics Inc. Location: San Jose, CA Industry: Computer Products and Services: Electronics Manufacturing Services (EMS) provider Revenue: US$33.6 Billon (2008) Employees: 162,000 (Mar 2008) Web Site: http://www.flextronics.com SAP Solutions and Services: SAP SNC 5.0, eSOA Proof-of-Concept Partner: none

2/2

Implementation Highlights PO Collaboration Web-based collaboration tool that manages the full Purchase Order lifecycleDynamic Replenishment Web-based collaboration tool that manages the Forecast process Exception Management ERP based exception reports that enables buyers to manage POs by exceptions Exchange Infrastructure (XI / PI) EAI/B2B middleware which enables integration among various applications and supply chain partners POC to assess robustness and scalability of SAP Supply Network Collaboration

Build a consistent, repeatable,

synergistic and scalable operational infrastructure that hosts the market segments in each of the major geographies and drives focused execution/Josh Clark Director of IT Flextronics Inc.

Statistics (Apr 2008)Transaction volume of 200K per week Penetration: 36 Sites Supplier Locations: 4300 Supplier Partners: 2000

Thank you!

SAP 2008 / Page 25

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