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SAP SNC Supply Network CollaborationKirsten Loegering & Ganesh VelloreSolution Manager SAP SNC
© 2011 SAP AG. All rights reserved. 2
Agenda
SAP SNC – Overview
SAP SNC – Supplier Collaboration
SAP SNC – Outsourced Manufacturing
SAP SNC – Quality Collaboration
SAP SNC – Customer Collaboration
SAP SNC – Summary
© 2011 SAP AG. All rights reserved. 3
Agenda
SAP SNC – OverviewCustomer Pain pointsCollaboration ChallengesSAP SNC Value PropositionSAP SNC Solution GrowthSAP SNC Customer References
SAP SNC – Supplier Collaboration
SAP SNC – Outsourced Manufacturing
SAP SNC – Quality Collaboration
SAP SNC – Customer Collaboration
SAP SNC – Summary
© 2011 SAP AG. All rights reserved. 4
Collaboration –Customer Pain points
Customer Pain PointsReduced business visibility in multi-tier supply networksIncreased supply risksDelayed response to shifts in demandPressure to ensure customer satisfactionPressure to ensure return on assetsNeed to minimize inventory and decrease costNeed to consolidate heterogeneous IT landscapesPressure to synchronize data, people and processes internally and with external business partners
How can I address:Business needsMinimize TCOEfficient operation
© 2011 SAP AG. All rights reserved. 5
Collaboration –Six challenges to Your Success
Investment: Does the solution help me get a quick ROI?
Expertise: Can my business partners and my employees work effectively with the solution?
Networking: Can I synchronize my business with all involved partners?
Visibility: Can I manage my ‘white spots’?
Response time: Can I increase the speed of my business and order cycles?
On-boarding: Can I add new Business Partners easily over time?
© 2011 SAP AG. All rights reserved. 6
Collaboration –SAP Supply Network Collaboration
HighlightsCollaboration and visualization layer for external partnersEnabler of new business processesEnable of multimode communication (B2B, WEB UI, Up-and Download)
Networking:
Can I synchronize my business with all involved partners?
© 2011 SAP AG. All rights reserved. 7
Collaboration –SAP Supply Network Collaboration
HighlightsQuick view and Micro BlogFile Transfer and WorklistsException management through Alerts
Expertise:
Can my business partners and employees work effectively with the solution?
© 2011 SAP AG. All rights reserved. 8
Collaboration –SAP Supply Network Collaboration
HighlightsShort Implementation time for Supplier CollaborationPre-defined processesRapid Deployment Solution (RDS) SAP SNC for Customer Collaboration
Investment:
Does the solution help me get a quick ROI?
BenefitsLow implementation costsLower Total Cost of Ownership (TCO)Quick and immediate business effects to achieve cost reduction, customer service optimization and process automation
© 2011 SAP AG. All rights reserved. 9
Collaboration –SAP Supply Network Collaboration
HighlightsSupply Network Visibility (multi-tier subcontracting)Suppler Managed Inventory (SMI)Sales Forecast Collaboration (Demand Collaboration)
Visibility:
Can I manage my ‘white spots’?
© 2011 SAP AG. All rights reserved. 10
Collaboration –SAP Supply Network Collaboration
HighlightsEfficient operation via WorklistsEvent-driven via Alert ManagementAutomation through pre-delivered backend integration
Response time:
Can I increase the speed of my business and order cycles?
© 2011 SAP AG. All rights reserved. 11
Collaboration –SAP Supply Network Collaboration
HighlightsSupplier Connectivity & AdministrationFile transfer Capabilities (up/download)Multi-mode communication
On-boarding:
Can I add new Business Partners easily over time?
© 2011 SAP AG. All rights reserved. 12
SAP SNC is Enterprise-Wide Strategic Platform for All Supply Chain Collaboration Needs
SNC
Suppliers
Suppliers
Suppliers
Contract Mfg:ers
Contract Mfg:ers
Customers
My Subsidiary My Division
3PL/DC
SNC can be used for internal collaboration between divisions or lines of business and subsidiaries
SNC can be modeled to allow for visibility and collaboration between supplier’s suppliers and customer’s customers, as well as 3PL warehouses participating in the supply chain
SNC can be used for internal collaboration between divisions or lines of business and subsidiaries
SNC can be modeled to allow for visibility and collaboration between supplier’s suppliers and customer’s customers, as well as 3PL warehouses participating in the supply chain
Contract Manufacturers
My Company
Suppliers
Customers / DCSNC
Customers
Customers
© 2011 SAP AG. All rights reserved. 13
SAP SNC is Enterprise-Wide Strategic Platform for All Supply Chain Collaboration Needs
Customers
My CompanyCustomer
Collaboration
SNC
Customer Collaboration• VMI• Forecasts• Promotions• Replenishment• ASNs
Customer Collaboration• VMI• Forecasts• Promotions• Replenishment• ASNs
Contract ManufacturersOutsourced
Manufacturing
Outsourced Manufacturing• Sub Con POs• ASNs• Invoices• Shipments• Work Order WIP• Multi-tier Visibility
Outsourced Manufacturing• Sub Con POs• ASNs• Invoices• Shipments• Work Order WIP• Multi-tier Visibility
Suppliers
Quality Collaboration• Quality NotificationsQuality Collaboration• Quality Notifications
Quality Collaboration
Supplier CollaborationSupplier Collaboration
SMIForecastsPurchase Orders SA ReleasesKanbanASNsInvoicesShipments
Supplier Collaboration SMIForecastsPurchase Orders SA ReleasesKanbanASNsInvoicesShipments
SAP SNC is a central supply chain platform for real-time collaboration with internal and external business partners
© 2011 SAP AG. All rights reserved. 14
SAP SNC –Collaborative Business Process enablement
My Company
PO Process
Release Process
SMI Process
Kanban Process
DR (Forecast) Process
Work Order Process
SNI (Inv Monitoring) Process
Supplier Collaboration Manufacturing Collaboration
DCM (Reorder) Process
CMP (Subcon PO) Process
Min/Max VMI
Demand Collaboration
Customer Collaboration
Responsive Replenishment
SMI = Supplier Managed InventoryCMP = Contract Manufacturing PurchasingDCM = Delivery Control MonitorDR = Dynamic Replenishment
Quality
Collaboration
© 2011 SAP AG. All rights reserved. 15
SAP SNC –Value Proposition
Improvements in accuracy and velocity of your Supply ChainProvides global inventory, supply and demand visibility reducing the need for large inventory buffers while increasing inventory turnoverEnables higher customer service levels Reduces cost by eliminating need for manual data re-entry allowing for improved data accuracy and consolidation of data through one systemReduces operational costs by allowing for faster order to cash cycle and enabling exception based interactionSupplements structured collaboration with unstructured information Allows for reduction in administrative costs Enables consolidation of multiple systems into a unified frontend for all supply chain partners
Value Proposition:
What are the benefits of this Collaboration solution?
© 2011 SAP AG. All rights reserved. 16
SAP Supply Network Collaboration Current release
ICH 4.0Supplier Collaboration: • SMI• Release Process• ASN Maintenance• Alert Monitor
ICH 4.1Supplier Collaboration:• Purchase Order• Forecast Visibility• Enhancements to SMI,
Release Process, ASN• BW Reporting – KPI’s
Customer Collaboration:• Responsive
Replenishment
ICH 5.0Supplier Collaboration:• Kanban Replenishment• Delivery Control Monitor -
Reorder Point• Enhancements to SMI, PO
Customer Collaboration:• Responsive Replenishment
Enhancements for SAP AFS• Demand Combination
Outsourced Manufacturing:• Supply, Demand & Inv.
Visibility at Contract Mfg.• Subcontract PO’s
2003 2004 2005 2007 2009 2010
Initial Supplier-Side Capabilities
Addition of Customer Collaboration
Initial Outsourced Manufacturing Capabilities
Enhanced Customer Collaboration & Outsourced Manufacturing
Extensions, Outsourced Mfg & Usability Focus
SNC 5.1Supplier Collaboration:• Invoice and Credit Memo• Enhancements to SMI, PO
Customer Collaboration:• Collaborative Forecasting• Enhancements to
Responsive Replenishment
Outsourced Manufacturing:• Work Order Collaboration• Enhancements to
Outsourced Manufacturing
SNC Standalone
Sevice Enablement
SNC 7.0Supplier Collaboration:• Invoice and Credit Memo• Enhancements to SMI, PO
(FTR, Quickviews)
Customer Collaboration:• Forecast Collaboration• Enhancements to
Responsive Replenishment
Outsourced Manufacturing:• Work Order Collaboration• Enhancements to
Outsourced Manufacturing
SCM 7.0 „Stable Core“
SNC 7.0 EhP1Supplier Collaboration:• Quality Collaboration• Shipment Collaboration• APO integration (Planning
Collaboration)
Customer Collaboration:• Enhancements to Responsive
Replenishment
Outsourced Manufacturing:• Enhancements to Outsourced
Manufacturing(Batch Traceability)
Hosting Enhancements
Outsourced Manufacturing & Integration Focus
© 2011 SAP AG. All rights reserved. 17
Rapidly Expanding Customer Base750 Customers, 50 Reference Customers
Life Science , A&D, Auto
“We have already seen significant benefits, and we expect more in the future.”
Gary Botine VP Information TechnologySauer Danfoss
“SAP is a key enabler of our corporate strategy. SAP Supply Network Collaboration ensures we are tightly integrated with our manufacturing partners to maintain service, control costs, and uphold lean IT practices.”
Jon Harding CIOConair Corporation
“By the time the analysts start their work day, forecasts and replenishment plans have been updated, based on information about retailer activity that happened the previous day. “
Nicholas DaddettoSenior ManagerColgate- Palmolive Company
IM&C
High Tech
Consumer Products
© SAP AG 2010. All rights reserved. / Page 17
SOLUTION TODAY
© 2011 SAP AG. All rights reserved. 18
Reduced inventory levels by 20%Reduced number orders placed by 30%
Improved avg. wt. per order by 50%
Live in 4 Months10-15% stock reduction in the chain using supplier managed inventory
50% FTE reduction at GR processing
66% reduction in early shipments100% improvement in errors associated with direct material invoice
discrepancies
Acknowledgement rate increased from 40 – 80 %Inbound decreasing for Stock/JIT : - 30 %
Purchase order processing productivity gains 3–5 timesReduction in nonqualified returns 20%
SAP SNCTangible Benefits Gained by Customers
© 2011 SAP AG. All rights reserved. 19
Agenda
SAP SNC – Overview
SAP SNC – Supplier CollaborationEssentialsPurchase Order CollaborationRelease ProcessingWeb-based KanbanSupplier Managed InventoryDelivery Control MonitorDynamic Replenishment
SAP SNC – Outsourced Manufacturing
SAP SNC – Quality Collaboration
SAP SNC – Customer Collaboration
SAP SNC – Summary
© 2011 SAP AG. All rights reserved. 20
SAP SNC – Supplier Collaboration Business Challenge
How do I align a vastly distributed supply chain across multiple partners and geographies to increase responsiveness while effectively managing costs?
Customer Pain PointsLack of visibility beyond four wallsManual partner interaction, expensive too many errors and slow Supplier on/off boardingGlobalization (faster & more complex & multiple partners)Lack of compliance in Supply Network
Heterogeneous IT landscapes
Customer Goals/NeedsEnhanced Visibility through the Supply Network to anticipate supply delays and respond to demand changesImproved collaboration in real-time and automatedIncreased cash-flow through reduced inventory and faster order cycle times while increasing service levels
© 2011 SAP AG. All rights reserved. 21
SAP Supply Network SolutionSupplier Collaboration Landscape Example
My CompanyWeb BrowserWeb Browser
SAP NetWeaverLow
Vol
ume
–W
eb B
row
ser O
nly
SAP PI
Hig
h Vo
lum
e –
B2B
Inte
grat
ed
Backend SystemBackend System
BackendSystemsUp/Down
Load FilesUp/Down Load Files
Mid
Vol
ume
–Fi
le U
p/D
own
Load
s
SUPP
LIER
S &
CO
NTR
ACT
MFG
’S
SAPSNC
Crossgate Business-Ready Content (1)
SAP Information Interchangeby Crossgate
CommunityPlatform
Item
Location
Party
Business PartnerProfiles
SAP PI Only (2)
© 2011 SAP AG. All rights reserved. 22
Solution Enhancements Key Benefits
SAP SNCSAP Information Interchange by Crossgate
Integrate SAP SNC with SAP Information Interchange by Crossgate First bundle focus covers– Purchase Order– ASN– Invoice
Provides a simpler, more affordable way to connect with customers and suppliers for business-to-business Reduce supplier on boarding time, IT complexity, and costSuppliers can view data from their customers directly in their Back-End system and respond accordingly with SNC still acting as the central source of data for all suppliers (small, medium, high volume)
SAP Information Interchange has two focuses:• Out of the box and pre-integrated interfaces to SAP applications, focus of first deliverables is SAP ERP. • Partner Profiles – fixed fee B2B Content.
Essentials
© 2011 SAP AG. All rights reserved. 23
Usability and On-Boarding
• SAP SNC Micro Blog allows users to collaborate on unstructured data
• Short 140-character twitter-like messages can be exchanged between suppliers and customers and between users within an organization
Micro blog•The Quick view is a tactical dashboard that serves as an entry screen for the business partner•It provides an “at-a-glance” view of the users’ work through a prioritized list of work items
Quick Views•SAP SNC allows reduction of administrative workloads through delegation of user administration to external business partners
•Enhanced File Transfer capabilities to support offline supplier collaboration
On-Boarding
© 2011 SAP AG. All rights reserved. 24
SAP Supply Network Collaboration – Microblog WEB 2.0 enabled solution
Use preferred Workspaces
• Outlook• MS Sharepoint• Jive SBS• Mobile devices
Microblog allows unstructured ‘twitter-like’ collaboration between users and companies
RSS = Really Simple Syndication
© 2011 SAP AG. All rights reserved. 25
SAP SNC Supplier Collaboration –Raw Material/Component Replenishment
Suppliers My Company
Additional Process Features:Confirmations (Date & Qty Changes by Supplier) on Purchase Orders
ASNs (Ship Notifications) On All Processes (Packaging Capability with Bar Code/Label Printing) & Shipment Collaboration
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
cFolders Integration
APO Integration for SMI and Release Processing
PO Process
Release Process
Kanban Process
SMI Process
DCM (Reorder Point) Process
DR (Forecast) Process
© 2011 SAP AG. All rights reserved. 26
SAP SNC –Purchase Order Process
Customer Supplier
Receive POPO
PO Confirmation
Legend:
Business Partner
Business Process Step/Action
Business Object
Confirmation Update
Create/Change PO
Create ASNReceive ASN
Create ShipmentReceive Shipment
ASN & Shipment updatePODGoods receipt
Quality CollaborationQuality Collaboration
Receive Invoice Create Invoice
Invoice updatePayment status update
Customer can change or cancel PO’s and PO items, and suppliers can reject PO items
Approval process based on rules such as quantity and date deviations can be done via web UI
ASN can combine many PO items into one communicated to the customer’s ERP in advance of receiving goods
Several ASNs can be grouped to shipments
Quality Collaboration is enabled based upon the Quality Notification
Includes supplier invoice creation based on shipments, or ERS handling of invoices, and payment status updates
Real-time, synchronized, collaboration on PO’s enable more accurate execution between a customer and a supplier
© 2011 SAP AG. All rights reserved. 27
SAP SNC –WEB UI Example Purchase Order Worklist
© 2011 SAP AG. All rights reserved. 28
SAP SNC –Scheduling Agreement Release Process
Customer Supplier
Receive ReleaseRelease
Release Confirmation
Legend:
Business Partner
Business Process Step/Action
Business Object
Rel. Confirmation Update
Create Release
Create ASNReceive ASN
Create ShipmentReceive Shipment
ASN & Shipment updatePODGoods receipt
Quality CollaborationQuality Collaboration
Receive Invoice Create Invoice
Invoice updatePayment status update
Customer can update and send new release updates whenever needed
Releases can be of type Forecast or JIT releases
Suppliers can create confirmations via a dedicated screen, and send them back to the customer (*only available with SAP APO on the customer side)
ASN can combine many SA items into one communicated to the customer’s ERP in advance of receiving goods Several ASNs can be grouped to shipments
Quality Collaboration is enabled based upon the Quality Notification
Includes supplier invoice creation based on shipments, or ERS handling of invoices, and payment status updates
Real-time, synchronized, collaboration on Releases enable more accurate execution between a customer and a supplier
© 2011 SAP AG. All rights reserved. 29
SAP SNC –WEB UI Example Scheduling Agreement Release
© 2011 SAP AG. All rights reserved. 30
SAP SNC –Web-based Kanban Process
Customer Supplier
Receive empty KanbanPO
Set Kanban in process
Legend:
Business Partner
Business Process Step/Action
Business Object
Set Kanban empty
Set Kanban in transitReceive ASN
Create ShipmentReceive Shipment
ASN & Shipment updatePODGoods receipt
Quality CollaborationQuality Collaboration
Receive Invoice Create Invoice
Invoice updatePayment status update
Customer sets Kanban bins to “empty” status in ERP, triggering a Kanban signal to the supplier
Suppliers view the Kanban needs in a dashboard environment, allowing for easy processing of empty and in-process Kanban ID’s
customer can change or cancel PO’s and PO items, and suppliers can reject PO items
ASNs can include packaging hierarchies and label with bar codes
Several ASNs can be grouped to shipments
Includes supplier invoice creation based on shipments, or ERS handling of invoices, and payment status updates
Real-time, synchronized, collaboration using Kanban enables pull-based execution between a customer and a supplier
© 2011 SAP AG. All rights reserved. 31
SAP SNC –WEB UI Example Kanban Screens
© 2011 SAP AG. All rights reserved. 32
SAP SNC –Supplier-Managed Inventory Process
Customer Supplier
Receive Forecast & Stock
Forecast & Inventory
Create plan & send orders
Legend:
Business Partner
Business Process Step/Action
Business Object
Receive PO
Send Forecast & Stock
Create ASNReceive ASN
Create ShipmentReceive Shipment
ASN & Shipment updatePODGoods receipt
Quality CollaborationQuality Collaboration
Receive Invoice Create Invoice
Invoice updatePayment status update
Customer can update and send forecast and inventory updates whenever needed
Suppliers use Min/Max logic to create optimal replenishment plans
Replenishment Orders can be created as indication of intended shipments, and can be sent to backend systems at both supplier and customer
ASN can be created to combine many planned receipts into one message communicated to the customer’s ERP in advance of receiving goods
Several ASNs can be grouped to shipments
Includes supplier invoice creation based on shipments, or ERS handling of invoices, and payment status updates
Supplier Managed Inventory, or customer-hosted VMI, enables more synchronized collaboration. between suppliers and customers
© 2011 SAP AG. All rights reserved. 33
SAP SNC –WEB UI Example Supplier Managed Inventory
© 2011 SAP AG. All rights reserved. 34
SAP SNC –Excel Example SMI (File up/download)
© 2011 SAP AG. All rights reserved. 35
SAP SNC –Delivery Control Monitor
Customer Supplier
Receive inventoryInventory
Monitor reorder point level
Legend:
Business Partner
Business Process Step/Action
Business Object
Send Inventory
Create ASNReceive ASN
Create ShipmentReceive Shipment
ASN & Shipment updatePODGoods receipt
Quality CollaborationQuality Collaboration
Receive Invoice Create Invoice
Invoice updatePayment status update
Customer can send inventory updates whenever needed, and not worry about replenishment anymore
Suppliers use reorder points and min/max logic to create optimal replenishment plans
Also uses color-coding and e-mail alerts to notify buyers of exceptions
ASN creation enabled to ship to customer
Several ASNs can be grouped to shipments
Includes supplier invoice creation based on shipments, or ERS handling of invoices, and payment status updates
Delivery Control Monitor enables a customer to “outsource” the replenishment of components using reorder point logic
© 2011 SAP AG. All rights reserved. 36
SAP SNC –Delivery Control Monitor Screen
© 2011 SAP AG. All rights reserved. 37
SAP SNC –Dynamic Replenishment Process
Customer Supplier
Receive forecastOrder Forecast
Receive firm orders
Legend:
Business Partner
Business Process Step/Action
Business Object
Send firm orders
Send forecast
Send forecast confirm.Receive Forecast confirm.
Send order confirmReceive order confirm.
Exception ManagementAlert GenerationException Management
Compare Supply/DemandCompare Supply/Demand
Customer can update and send forecast updates whenever needed
Suppliers can enter responses or commitments to forecasts
Calculation of delta quantities and dates including thresholds and alerts
The DR process is based on net requirements and does not include inventory
Allows for a comparison of customer and supplier planning data in a single-screen environment
Dynamic Replenishment is a supply and demand synchronization process, allowing for comparison between customer and supplier forecasts
© 2011 SAP AG. All rights reserved. 38
SAP SNC –Web UI – Dynamic Replenishment
© 2011 SAP AG. All rights reserved. 39
Agenda
SAP SNC – Overview
SAP SNC – Supplier Collaboration
SAP SNC – Outsourced ManufacturingEssentialsContract Manufacturing ProcurementWork Order CollaborationSupply Network Inventory
SAP SNC – Quality Collaboration
SAP SNC – Customer Collaboration
SAP SNC – Summary
© 2011 SAP AG. All rights reserved. 40
SAP SNC – Manufacturing CollaborationBusiness Challenge
How do I ensure that I optimize costly manufacturing capacity while meeting customer request dates and minimizing inventory levels and obsolescence?
Customer Pain PointsLost visibility to critical informationIncreased communication with multiple external organizationsReduced control of manufacturing process
Customer Goals/NeedsWork in process statusActual costsComponent planning activities and inventory levels at contract manufacturerMultiple useres requiring different views/levels of data accessNeed of quality and yield data
© 2011 SAP AG. All rights reserved. 41
SAP SNC – Manufacturing Collaboration Contract Manufacturing
My Company
Additional Process Features:Contract Manufacturing Purchasing (CMP) equals Subcontracting PO’s in ERP (PO’s with a BOM)
Changes to the components in BOM possible along with approval procedure
Work Order Process offers the most granular functionality for tracking production progress at CMIncludes BOM and “Phases (routing) collaboration with approvals/reject procedure
Advanced features calculate projected end date and finished goods qty in mid production
WO exists only in SNC. It is initiated via a subcon PO or regular PO from SAP ERP
Supply Network Inventory (SNI) is a time-bucketed supply and demand monitoring capabilityOn-hand stock, supply, demand and a calculated future stock per time bucket with min/max limits for monitoring
Cross-plant, cross business partner views on supply and demand including aggregation capabilities
CMP (Subcon PO) Process
Work Order Process
Supply Network Inventory (SNI) ProcessContract Manufacturers
© 2011 SAP AG. All rights reserved. 42
SAP SNC –Contract Manufacturing Procurement
Customer
Receive Subcon POSubcon PO
Subcon PO Confirmation
Legend:
Business Partner
Business Process Step/Action
Business Object
Confirmation Update
Create/Change Subcon PO
Create ASNReceive ASN
Create ShipmentReceive Shipment
ASN & Shipment updatePODGoods receipt
Quality CollaborationQuality Collaboration
Receive Invoice Create Invoice
Invoice updatePayment status update
Customer can change or cancel Subcon PO’s and items
Approval process based on rules such as quantity and date deviations can be done via web UI, includes collaboration on components used
Customer’s ERP system gets periodical updates of components consumption at the contract manufacturer’s location
ASN can combine many PO items into one communicated to the customer’s ERP in advance of receiving goods. Several ASNs can be grouped to shipments
Quality Collaboration is based upon the Quality Notification (components + finished goods)
Includes supplier invoice creation based on shipments, or ERS handling of invoices, and payment status updates
Real-time, synchronized, collaboration on subcontracting PO’s enable more accurate execution between a customer and a contract manufacturer
Component stock updateComponent stock update
Cont. MfG
© 2011 SAP AG. All rights reserved. 43
SAP SNC –Web UI Example Contract Manufacturing Procurement
© SAP AG 2010. All rights reserved. / Page 43
© 2011 SAP AG. All rights reserved. 44
SAP SNC –Work Order Process
Customer
Receive WOWork Order
Change/approve WO
Legend:
Business Partner
Business Process Step/Action
Business Object
WO update
Create/Change WO
Create ASNReceive ASN
Create ShipmentReceive Shipment
ASN & Shipment updatePODGoods receipt
Quality CollaborationQuality Collaboration
Receive Invoice Create Invoice
Invoice updatePayment status update
Work Orders exist as a collaborative object and facilitator of manufacturing status data between a customer and a contract manufacturer
Advanced on-screen collaboration on Work Order initiation, changes and updates based on statuses
Collaborate on order BOMs up front, before production starts
Project finished goods end date and quantity using production phase updates
Quality Collaboration is based upon the Quality Notification (components + finished goods)
Includes supplier invoice creation based on shipments, or ERS handling of invoices, and payment status updates
Real-time, synchronized, collaborative Work Orders enable more accurate execution between a customer and a contract manufacturer
Component stock updateComponent stock update
Cont. MfG
© 2011 SAP AG. All rights reserved. 45
SAP SNC –Web UI Example Work Order (1)
© SAP AG 2010. All rights reserved. / Page 45
© 2011 SAP AG. All rights reserved. 46
SAP SNC –Web UI Example Work Order (2)
© SAP AG 2010. All rights reserved. / Page 46
© 2011 SAP AG. All rights reserved. 47
SAP SNC –Web UI Example Work Order (3)
© SAP AG 2010. All rights reserved. / Page 47
© 2011 SAP AG. All rights reserved. 48
SAP SNC –Supply Network Inventory Process
Customer
Supplier
Send demandDemand
Send supply
Legend:
Business Partner
Business Process Step/Action
Business Object
Send supply
Send demand
Send inventorySend inventory
Compare supply / demandCompare supply / demand
Exception ManagementAlert GenerationException Management
Customers, Suppliers, Contract Manufacturer’s and 3PL’s can all update their individual supply, demand and inventory positions
Configurable visibility concept as to which partner and user has access to another partners data
Proactive monitoring using min/max thresholds on calculated future inventories
Cross Location Visibility (multi-tier)
Allows for aggregation of data across multiple plants belonging to different partners
Supply Network Inventory is a cross-partner supply, demand and inventory monitoring and visibility process
3 PLCont. MfG
© 2011 SAP AG. All rights reserved. 49
SAP SNC –WEB UI Example Supply Network Inventory
© SAP AG 2010. All rights reserved. / Page 49
© 2011 SAP AG. All rights reserved. 50
Agenda
SAP SNC – Overview
SAP SNC – Supplier Collaboration
SAP SNC – Outsourced Manufacturing
SAP SNC – Quality CollaborationEssentialsQuality Collaboration uses cases
SAP SNC – Customer Collaboration
SAP SNC – Summary
© 2011 SAP AG. All rights reserved. 51
SAP SNC Quality Collaboration –Business Challenge
How do I ensure that the viability of my key suppliers will not affect my ability to serve my customers?
Customer Pain PointsDelayed information about raw material or finished good defect or non-compliance with quality standardsDisruptive quality processInefficient quality notification process
Customer Goals/NeedsIncreased Customer ServiceQuick response timeAutomated Quality CollaborationAchieve improved overall quality metrics
© 2011 SAP AG. All rights reserved. 52
SAP SNC Quality Collaboration
Suppliers
My Company
Quality Notification Process
Contract Manufacturers
Additional Process Features:Collaborate on quality problems with products or subcontracting components during the manufacturing process or after delivery with Suppliers and Contract Manufacturer.Specific pre-defined Alerts availableQuick view building blocks supportedEfficient worklist processingcFolders integration supported
© 2011 SAP AG. All rights reserved. 53
SAP SNC Quality Collaboration –Use Case 1
Purchase Order
Customer (ERP-System)Supplier (SNC- System)
Provisioning of subcontractingcomponents
Goods Receipt inspection for components
Confirm PO
Defect
Creation of a qualitynotification
Processing of the quality notification
Provisioning of Additional
components
Analytics and internalCAPA Management
Production acc. to PO
Confirmation of the quality notification
© 2011 SAP AG. All rights reserved. 54
SAP SNC Quality Collaboration –Use Case 2
Purchase Order
Customer (ERP-System)Supplier (SNC- System)
Provisioning of subcontractingcomponents
Goods Receipt inspection for components
Confirm PO
Goods Receipt (GR) and Inspection
Analytics and internalCAPA Management
Production, creation of an ASN and Delivery
Creation of a qualitynotification
Processing of the quality notification
Shipment of additional products
GR Inspection and confirmation
of the quality notification
Defect
© 2011 SAP AG. All rights reserved. 55
SAP SNC –WEB UI Example – Quality Collaboration
© 2011 SAP AG. All rights reserved. 56
Agenda
SAP SNC – Overview
SAP SNC – Supplier Collaboration
SAP SNC – Outsourced Manufacturing
SAP SNC – Quality Collaboration
SAP SNC – Customer CollaborationEssentialsDemand Forecast CollaborationResponsive ReplenishmentMin / Max ReplenishmentRapid Deployment Solution
SAP SNC – Summary
© 2011 SAP AG. All rights reserved. 57
SAP SNC – Customer Collaboration Business Challenge
How do I respond faster to rapidly changing consumer demand and economic uncertainty?
Customer Pain PointsForecasting and short term demand fluctuationsPromotion Visibility and ResponseTruck Load and Oreder Building EfficiencyData Mapping and Harmonization
Customer Goals/NeedsIncreased sales and lower lost sales through prevention of stock-outs, especially during promotions Improved responsiveness to short-term fluctuations to customer demand esp. during promotionsIncreased cash-flow through reduced inventory and faster order cycle times while increasing service levelsImproved asset utilization through higher truck capacity utilization and increased user productivity
© 2011 SAP AG. All rights reserved. 58
SAP SNC – Customer Collaboration Finished Goods Level
My Company
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
Min/Max VMI. . .Allows for traditional VMI replenishment scenarios using maximum and minimum stock limits as driverCan 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
Demand Forecast Collaboration
Min / Max VMI
Responsive Replenishment Customers
© 2011 SAP AG. All rights reserved. 59
SAP SNC – Customer Collaboration Demand Forecast Collaboration
Demand Forecast Collaboration allows comparison and consensus between consumption data and
customer transmitted forecast
© SAP AG 2010. All rights reserved. / Page 59
My Company
Customers
Sales (Baseline / Promotion)
Forecast (Baseline / Promotion)
Revised Forecast
© 2011 SAP AG. All rights reserved. 60
SAP SNC – Customer CollaborationDemand Forecast Collaboration Process
CustomerVendor
SAP SCM SNCCollaboration
ERP (e.g. SAP ECC)
Sales
Forecast
Forecasting
Short-term Forecasting
ConsensusForecasting
Replenishment Planning
Revised Forecast
© SAP AG 2010. All rights reserved. / Page 60
© 2011 SAP AG. All rights reserved. 61
SAP SNC – Customer CollaborationWEB-UI Example – Demand Forecast Collaboration
© 2011 SAP AG. All rights reserved. 62
SAP SNC – Customer Collaboration Responsive Replenishment
Responsive Replenishment represents the next generation in Demand driven Replenishment
© SAP AG 2010. All rights reserved. / Page 62
My Company
Customers
Inventory
Promotion Plans
Order Forecast
Sales
Forecast
Number Ranges
Baseline Orders
Promotion Orders
Advanced Shipping Notifications
© 2011 SAP AG. All rights reserved. 63
SAP SNC – Customer CollaborationResponsive Replenishment Process
ERP (e.g. SAP ECC)SAP ERP SAP SCM SNC
CustomerVendor
Inventory, Sales/ Forecast, Promotions
Data Import Controlling
Forecasting & Promotion Planning
Replenishment Planning
Transport Load Building
Order Generation
Shipping Notification Purchase Order
Inbound Delivery
Goods Receipt
Goods Issue
Outbound Delivery
Sales Order
© 2011 SAP AG. All rights reserved. 64
SAP SNC – Customer CollaborationResponsive Replenishment Process
ERP (e.g. SAP ECC)SAP ERP SAP SCM SNC
CustomerVendor
Inventory, Sales/ Forecast, Promotions
Data Import Controlling
Forecasting & Promotion Planning
Replenishment Planning
Transport Load Building
Order Generation
Shipping Notification Purchase Order
Inbound Delivery
Goods Receipt
Goods Issue
Outbound Delivery
Sales Order
APO
Deployment
Allocation
gATP Check
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SAP SNC – Customer CollaborationWEB UI Example – Responsive Replenishment
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SAP SNC – Customer Collaboration Min / Max Replenishment
Min-Max replenishment is a simple stock level based replenishment process
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My Company
Customers
Inventory
Order Forecast
Sales
Forecast
Number Ranges
Baseline Orders
Advanced Shipping Notifications
© 2011 SAP AG. All rights reserved. 67
SAP SNC – Customer CollaborationMin/Max Replenishment Process
ERP (e.g. SAP ECC)SAP ERP SAP SCM SNC
CustomerVendor
Inventory, Sales, Forecast
Data Import Controller
Forecasting
Min/Max Planning
Purchase Order
Inbound Delivery
Goods Receipt
Goods Issue
Sales Order
Shipment Notification
Order Generation
Outbound Delivery
POD
ASN
In-Transit
© 2011 SAP AG. All rights reserved. 68
SAP SNC – Customer CollaborationWEB UI Example – Min/Max Replenishment
© 2011 SAP AG. All rights reserved. 69
SAP SNC rapid-deployment solution for Customer Collaboration (1)
.
SAP BRINGS TOGETHER SOFTWARE AND SERVICES IN A NEW OFFERING THATGIVES YOU ESSENTIAL SNC FUNCTIONALITY QUICKLY AND AFFORDABLY
Preconfigured software to eliminate the guesswork
Rapid deliver in as little as 14 weeks, using SAP consulting
An affordable, flexibly priced solution
Limited scope to jump start
A clear path to your full Supply Network Collaboration vision
© 2011 SAP AG. All rights reserved. 70
SAP SNC rapid-deployment solution for Customer Collaboration (2)
Business RequirementBusiness Requirement SolutionSolution
What is my pain?Forecasting and VisibilityData Cleansing and HarmonizationTruck Load and Order Building EfficiencyPromotion Visibility and Response
What are my needs?Streamline replenishment process Reduce finished goods inventory Increase sales
What will excite me?Increased sales and lower lost sales through prevention of stock-outs, especially during promotions Improved responsiveness to short-term fluctuations to customer demand especially during promotionsIncreased 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
Business KPI’sIncreased customer satisfaction Improved replenishment rates Reduced inventory levels Improved asset utilization
Solution descriptionThis SAP Rapid Deployment Solution provides Customer Collaboration functionality easy and fast to implement. The planned scope comprises the following:
Initial 10 ship to customer locationsMaster data cockpit accelerator for creation/maintenance of master data and profilesAccelerator (Altova tool) for inbound customer data to PI mapping Standard mapping for the inbound EDI data and outbound interface to backend ERP systemAccelerator for loading sales history Data validation and alerts generation Forecast collaborationResponsive replenishment & Promotion planning functionalityTransport load building functionality based on basic parameter like weight & volume Order generationASN generation and in-transit calculation Min/Max planning functionality
Business ProcessesDemand Forecast CollaborationResponsive ReplenishmentMin/Max Replenishment
Technical ComponentsSAP ERP 6.0, SAP SCM 7.0, PI 7.0
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Available since Q1/2011
© 2011 SAP AG. All rights reserved. 71
Agenda
SAP SNC – Overview
SAP SNC – Supplier Collaboration
SAP SNC – Outsourced Manufacturing
SAP SNC – Quality Collaboration
SAP SNC – Customer Collaboration
SAP SNC – SummaryWrap upKey points to take home
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SAP SNC –Summary
SMI & VMIForecastingOrder sharing confirmation (PO, Release, Kanban)Shipping InvoicingQuality reportingWork order trackingMulti-tier supply and demand visibility
WEB UIUP/Download (Excel)Backend IntegrationQuick Views Micro blogAlert ManagementEfficient WorklistsNotes ManagementSupplier Self Service for User Administration
Usability & On-BoardingCollaboration Flows
SAP SNC is a central supply chain platform for real-time collaboration with internal and external business partners
© 2011 SAP AG. All rights reserved. 73
SAP SNC –Key Points
7 Key Points to take home?
SAP Supply Network Collaboration provides you with a 360° view of your supply network, including your customers, suppliers, and outsourced manufacturing partners
SAP Supply Network Collaboration drives supply chain efficiencies and transparency by optimizing information and data flows between your supply chain partners
SAP Supply Network Collaboration enables all your business partners, independent of their IT sophistications, size, or volume of data exchange
Collaboration capabilities in SAP Supply Network Collaboration are “plug-n-play” extensions of business processes managed in SAP ERP today
Rapid Deployment Solutions for SAP Supply Network Collaboration will allow you to quickly deploy SAP SNC with a fixed scope and fixed price
Benefits derived from SAP Supply Network Collaboration can be quantified as reduction in inventory, increased response times, operating cost reduction, and reduced lead time leading to increased customer satisfaction!
There is an active SAP Supply Network Community out there! Reach out, get information, engage, and exchange.
Thank You!Contact information:
Kirsten LoegeringSolution Manager - Supply Chain Planning & Collaboration
Email: [email protected]: 650.391.4452
© 2011 SAP AG. All rights reserved. 75
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Appendix
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SAP SNC: Work Order Screens
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SAP SNC:Quality Collaboration Screens