SAP ENTEGRE İŞ PLANLAMA ÇÖZÜMLERİ

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SAP FORUM İSTANBUL 2014Basit Düşün Fark YaratSAP ENTEGRE İŞ PLANLAMA ÇÖZÜMLERİKonuşmacı Adı : Emir BarınFirma Adı : SAP Türkiye

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2

SAP Business Network

SAP Integrated Business Planning

World class solution for supply chain monitoring, sales and operations planning, demand management, inventory planning, supply planning, and response management

IBP for demand IBP for inventoryIBP for supply

IBP for response

IBP for sales & operations

User Experience

Supply Chain Control Tower

SAP HANA Platform

Integrated Business Planning (IBP)

Supply Chain Monitoring

SAP Integrated Business Planning for Sales and Operations


What problem are we solving?

Finance

Marketing

Sales

Operations

SCM

CRM

ERP

Consequence Miss the quarter Lose a high-profile

customer Lose market share E&O

Problem: can’t plan across the organization in time, don’t have the right information and can’t test assumptions.

Supply Chain:

“Where/when am I going to source this

new product”

Finance: “How’s our overall

margin impacted by our growth in

BRIC?”

Sales Mgmt: Can we support this new account?

GM/CXO: “How do we make

sure we don’t miss the quarter?”

Marketing: “How will a pricing change impact demand of my highest volume

product family?”


External impact exacerbates the problem

Risk is always present, ability to react will differentiate

“Long After The Floods Recede, Supply Chains Feel The Pain”ForbesDecember 01, 2011

“PC Sales Drop During Holiday Quarter”Wall Street Journal January 10, 2013

“The World Is Totally Unprepared For Extreme Events Like Sandy”Business InsiderDecember 21, 2012

“Cisco bets on software and services for mid-term growth”ReutersDecember 7, 2012

“Caterpillar ‘in a Hurry’ to Meet Growing Demand, CEO Says”BloombergMarch 23, 2011


Social Collaboration

Transparent communication, record

decisions

Real-Time What-if Scenario Planning

Real-time scenarios and simulation on entire model

Complete Scalable Model

Demand, supply chain, and financial model at aggregate & detailed

levels

What are the 3 key differentiators for SAP Integrated Business Planning for sales and operations?

Executive Review & Real-Time Analytics

Sales and Marketing

Forecasting

Consensus Demand Planning

Revenue & Profit Impact

Inventory Target

Setting & Projections

Material & Capacity-

Constrained Planning

Supply

FinanceDemand


What is Sales and Operations Planning?

Tom Wallace Definition

Sales & Operations Planning (S&OP) is a set of decision-making processes to:

Balance demand and supply Integrate financial planning and operational planning Link high-level strategic plans with day-to-day operations

S&OP is also known as IBP (Integrated Business Planning)


SAP Integrated Business Planning for sales and operations

Excel: Plan

High Level Solution Architecture

Sales/Marketing

Demand Planning

Finance

Supply Chain

Executives

Web

UI

sftp

| ht

tps

Out

-of-

the-

box

orco

nfig

ured

Inte

grat

ion

Dat

a S

ervi

ces

or

HC

I

SAP HANA™

SAP Jam™

S&OP Model & EngineAttributes

Key Figures Scenarios & Simulation

Predictive AnalyticsHeuristics & Optimization Process Workflow

Alerts

Social Collaboration

Web: Analyze

Mobile: Analyze

ERP

CRM

BPC

APO

BW

Any other system

Files


Where SAP Integrated Business Planning for sales and operations fits across enterprise planning

Strategic Planning

Sales Force Automation

Operational Planning

Opportunities, Promotions

Constrained Qty Plan

Short Term Plans

Scenario Plans

Constrained Revenue Margin Projections

Strategic Plans

Value

• Make strategy actionable

• Integrate tactical planning & Execution

• Drive visibility and agility

Sales Forecast Financial

Planning

Scenario Plans

Constrained Rev & Margin Projections

Strategic

Tactical/ExecutionAOP, Finance Plan

SAP Integrated Business Planning

for sales and operations


Unified Planning EnvironmentSAP Integrated Business Planning for sales and operations

Unified Planning Environment

Single unified data model across Demand, Finance, Supply Chain to support both tactical and operational planning at any level of granularity & dimension

Flexible process modeling

Planning, Analytics & Collaboration driven off of this single model


Real-Time Planning & Simulation Tools

Consensus demand planning, Rough-cut capacity planning, Volume & revenue modeling,

Alternative what-if scenarios for rapid decision-making across multiple key figures, dimensions

Constraints at both detailed and aggregate level, R/T aggregation & disaggregation

Real-Time Planning & Simulation ToolsSAP Integrated Business Planning for sales and operations


Contextual Process Orchestration

Contextually organize People, Documents, S&OP Process Steps, S&OP Data, Action items, Decisions, Alerts, etc. around the S&OP Process

Enable People to stay on top of relevant, contextual updates

Contextual Process OrchestrationSAP Integrated Business Planning for sales and operations


AdvancedAnalytics

Evaluation of multiple levers to shape profitable demand

Faster identification of problems through better visualization

Compare scenarios, track KPIs, monitor trends across multiple dimensions, granularities in R/T

End user personalization and sharing

Advanced AnalyticsSAP Integrated Business Planning for sales and operations


Data Integration

Automated data loads from multiple source systems

Secure On-Premise to Cloud integration (https, sftp)

Configurable target data model with extensibility

Flexible source-to-target integration templates using SAP Data Services

Data export back to Source systems

Data IntegrationSAP Integrated Business Planning for sales and operations


How to get started

1Phased approach

Option 1: parts of your business

BU1

Option 2: parts of your process

BU 2 & 3 BU 4 - 10

2 3 Quickly reconfigure the S&OP solution

Out-of-the-box S&OP model and data integration

Reconfigure S&OP to meet your needs as requirements change• Hours to days• Driven by the business• Configuration based

ECC APO BPC

SAP Integrated Business Planning for sales and operations

Reduce implementation time and risk by leveraging SAP model and data integration

Achieve early wins by deploying in bite-sized chunks

Demand & Finance Supply Net Profit


Wrap up - SAP Integrated Business Planning for sales and operations

Deliver a cross departmental sales and operations plan balancing the impact on inventory, service levels and profitability

Business Benefits

• Create the optimal business plan to drive revenue growth and increase market share

• Effectively balance demand and supply and attain financial targets

• Increase speed and agility of planning and drive most profitable responses

• Improve forecast accuracy and on-time delivery

SAP Integrated Business Planning for Inventory


What Problems Are We Solving?

Business Volatility

Today, companies are facing increased supply chain risk due to economic

uncertainty, escalating customer expectations, demand volatility, and supply

variability. To remain competitive, they must improve their ability to plan, analyze,

and collaborate to help ensure long-term growth and profitability.

Consequence High or uncontrolled inventory levels Inadequate customer service levels or inventory availability Multiple planning and inventory target setting processes


But inventory plans for a single location are challenging…

Warehouse Customers

Customer Service Do Demand Channels have different service level

expectations?

Is that the right service to provide to customers?

How much notice does the customer provide before expecting delivery (order lead time)?

Demand Side How variable is the forecast provided?

Is the forecast consistently over or under forecasted?

Does seasonality exist for a given product or products?

Does the sales history have any outliers or data anomalies that would effect variability?

Suppliers

Supply Side What level of response do we expect from your

suppliers?

How often can we order product from our suppliers?

How reliable is the supplier for each product?

Do we have to order in specific batch sizes?

Are supplies commonly on time, early, or late?

What is the sourcing relationship involved?

Do seasonal supply sources exist?


These challenges when expanded to the entire system, make supply chain management extremely difficult

Mastering complexity in supply chain is a fundamental building block to inventory planning and supply chain success


Multi-stage Optimization Eliminates Excessive Buffering of InventorySAP Integrated Business Planning for inventory

SAP Integrated Business Planning for inventory prescribes inventory activity to maximize profit while buffering uncertainty

Considers and compensates for uncertainty (forecast error, supply timing and quantity) Maximizes service level to the end customer, balanced with corporate profit objectives Coordinates multi stage inventory planning across complex supply chains

How about here?

How much inventory here?

Here?


SAP Integrated Business Planning for inventory

Calculation of every stage individually leads to “planning silos” and to a supply chain with excessive inventory stocks. Multi stage-optimization eliminates the “silo-effect” and plans all stages simultaneously.

Traditional Approach

S S S

C C C

S S S

C C C

Single Stage Calculations:Isolated planning results in over-buffering of inventory at each stage

Multi-stage Optimization:Coordinated planning eliminates over-buffering of inventory1

2

3

Stage

SAP Integrated Business Planning for inventory


Integrated Business Planning for inventory - dashboard

Unified data model Inventory-specific overview

Same single-instance data model used by all IBP apps

Configurable, with standard configurations included

The IBP for inventory dashboards and unified data model allow many levels of granularity, sharing data across apps for clear understanding


Efficient use of inventory buffers risk at least cost

Multi-stage optimization Consider costs at each stage

Consider multiple sources of uncertainty (demand, forecast, supply)

True mathematical optimization, not simulation or guesswork

IBP’s unified data model insures the IBP for inventory results are fully considered during Supply planning, S&OP, and Control Tower operations


Familiar Excel User interface means easy communications (1/2)

Excel User Interface Excel Add-In provides a familiar

toolset for planners

Easy-select operations

Easy to communicate using the embedded collaboration tools in the IBP platform

IBP’s unified data model means decisions reached in S&OP are considered in IBP for inventory, with results used in across Supply plans


Familiar Excel User interface means easy communications (2/2)

Excel User Interface Excel Add-In provides a familiar

toolset for planners

Easy-select operations

Easy to communicate using the embedded collaboration tools in the IBP platform

The Excel user interface is shared across IBP applications


Multi Stage Inventory Optimization

Maximum working-capital efficiency to meet

service level targets

Real-Time What-if Scenario Planning

Real-time scenarios and simulation on entire

model

Complete Scalable Model

Demand, supply chain, and financial model at aggregate & detailed

levels

What are the 3 key differentiators for SAP Integrated Business Planning for inventory?

Executive Review & Real-Time Analytics

Sales and Marketing

Forecasting

Consensus Demand Planning

Revenue & Profit Impact

Inventory Target

Setting & Projections

Material & Capacity-

Constrained Planning

Supply

FinanceDemand

S S S

C C C

S S S

C C C


1. Decrease Risk by Mastering Supply Chain Uncertainty Understand and master the uncertainty in your supply chain Beyond visibility, recalculate inventory targets to efficiently use your working capital Drive root-cause supply network improvements

2. Lower Costs to Drive Higher Margins & Supply Chain Efficiency Position inventory effectively to minimize working capital and reduce risk exposure Provide ability to evaluate different service and inventory investment options Enable product rationalization and cost to serve analysis

3. Grow Market Share by Providing Best-in-Class Customer Service Capture more business through optimized inventory positioning – and better service Drive customer service planning & segmentation Manage customer expectations for service level, lead time and demand upsides

Master supply chain uncertainty to drive better service.


How does SAP Integrated Business Planning for inventory deliver value?

-3%-5%

-12%

11%

-18%-25%

-6%

-18%

-30%

-19%

-40%

-7%

-16%-21%

2%

-25%

-33%

15%

-31%

-7%

-35%

13%

-28%-30%

-23%

-30%

-19%

-43%

13%

-25%

-10%

46%

8%4%

-14%

-33%

-60%

-40%

-20%

0%

20%

40%

60%

Fix the Mix of Inventory!

Inventory reduction is not just across-the-board… for many stocking points, tool recommends higher inventory levels to protect service levels

Very often the net impact is a significant reduction in inventory requirements, while maintaining or even improving customer service

Incr

ease

Dec

reas

e

Achieve the Right Balance Between Inventory and Service Levels

Provides management visibility into the tradeoff between inventory investment and service objectives

Customer service becomes a corporate objective, as opposed to an outcome of the planning process

Scenario Capability allows exploration of root-cause improvements

90% 91% 92% 93% 94% 95% 96% 97% 98% 99% 100%

SAP Integrated Business Planning for inventory Company Current Performance

Customer Service Level (%)

Inv

en

tory

($

)


Wrap Up - Integrated Business Planning for inventory

Achieve the Right Balance Between Inventory and Service Levels with Multi Stage optimization

Fix the Mix of inventory by item and location

Use inventory more efficiently to buffer risk and uncertainty – at least total cost

Business Benefits Improve customer service levels 5-10%, with better order lead time variability Reduce working capital 15-30%, with corresponding reductions in obsolescence and

inventory carrying cost Improve planner productivity with 20-40% less time spend expediting, and more

effective supply plans

SAP Integrated Business Planning for Supply


SAP Integrated Business Planning for supply Overview

Goal

Simulate within an S&OP process an optimal mid to long-term supply plan based on forecasts, orders, and inventory or safety stock targets.

Utilize a multi level sourcing determination model for both distribution and Bills of Material

Creation of either a constrained or unconstrained production, distribution, and procurement plan, using heuristics or optimization based algorithms.

Development of rough cut capacity supply plan, with the ability to create and use simulation capabilities for scenario planning

Result

Supply simulation as an extension of the sales and operations planning process

Times series bucketed supply plan that can be used as constrained demand and an input for further processing


SAP Integrated Business Planning for supply

Real-Time Planning & Simulation Tools

Utilize either heuristic or optimization algorithms to develop a constrained or unconstrained supply plan

Meet optimized inventory targets set by IBP for inventory

Gain visibility for projected stock or shortages at relevant levels of aggregation

Use the embedded alerting capabilities to pinpoint where potential issues have been detected


Supply Planning Environment

Simulate and optimal Rough Cut Capacity Plan based upon various resources

Plan based upon financial aspects that ensure the most profitable solution.

Constraints at both material and capacity level can be modeled and used to constrain the plan.

Use collaboration capabilities both internally and externally to make manual adjustments

SAP Integrated Business Planning for supply


SUP 302

SUP 301

Multi-level supply chain model example

Customer 1

MFG 2011

A

A Product Capacity Resource

1 Material

Sourcing Ratio& Lead Times

Customer 2

A

Customer 3

A

DC 101

A

DC 102

A

Demand- Forecast or Orders

On-Hand/Target Inventory

Location

Capacity LimitRequired /

Available Supply

4

A

1

2

3

4

5

4

5

Multi-level BOM

Production Source

MFG 202

A

1

6

3

4

5Multi-level BOM


On-Hand/Target Inventory



SAP Integrated Business Planning for supply - Heuristics

Algorithm Type

Mode Planning Capabilities with Support for the following

Heuristic Unconstrained Supply Planning

“Infinite Without Shortage”

• Supports Supply Chain Network with customer-products and location-products as nodes and sourcing links between these, plus production sources

• Lead times for sourcing between nodes

• Mixed Sourcing - combination of Production \ Transportation \ External via quotas

• Can model Production and Handling Resources

• Resource capacities are not taken into account, considered as infinite

• Multi-Level BOM with components and co-products. Number of levels can be arbitrarily deep

• Minimum lot-size on transportation lanes and production sources.

• Periodic lot-size with granular sub-periods. Relevant only for production

• Target Inventory can be modeled.

• Manual Adjustments from user can overwrite and fix the plan, this acts as a constraint.

• Computes a complete plan (Demand and Supply Propagation) with no shortage.

• The generated plan is infeasible without manual adjustments (e.g. Negative Projected Stocks, capacity over-utilization, etc.)

• End-user simulation on time dependent master data input key figures (e.g. consensus demand, sourcing ratio, component coefficient, capacity supply)


SAP Integrated Business Planning for supply - Optimizer

Algorithm Type

Mode Planning Capabilities with Support for the following

Optimizer Two Modes:

Profit Maximization

Cost Minimization for Full Delivery

• Supports Supply Chain Network with Customer-Products and Location-Products as nodes and sourcing links between these, plus production sources

• Lead times for Customer and Location Sourcing

• Mixed Sourcing (Combination of Production and/or Transportation and/or External).

• Production and Handling Resources can be modeled. Can be modeled as Finite or Infinite

• Multi-Level BOM with Components and Co-Products.

• Min-Max Lot-Sizes on Transportation Lane and Production Sources

• Periodic Lot-Sizes with granular sub-periods. Relevant only for Production

• Computes a feasible plan

• Manual Adjustments from end-user can overwrite and fix the plan. This acts as a constraint

• End-user simulation on time dependent master data input key figures (e.g. consensus demand, sourcing ratio, component coefficient, capacity supply)

Optimizer Costs:• Non-Delivery Cost Rate• Production Cost (fixed and per-unit rate)• Transportation Cost (fixed and per-unit rate)• External Procurement Cost (fixed and per-unit rate)• Inventory Holding Cost (per-unit rate)• Safety-Stock Violation Cost (per-unit rate)


Optimizer Constraint TypesSoft Constraints Should be satisfied, violations are penalized

in the objective function

Examples:

Variable/rate costs for transports, production, external receipts

Non-delivery costs for customer demands (rate)

Fix costs* for transports, production and external receipts

Inventory holding costs (rate) and safety stock violation costs (rate)

Pseudo-hard constraints Soft constraints with a very high penalty cost (usually higher than the

sum of all other costs)

Gets satisfied if possible, but still allows for a solution if not possible

Examples:

Manual adjusted values (internal to the optimizer, very high cost if violated)

Hard Constraints Must be satisfied, no solution if not possible

Examples:

Max stock Minimum and Maximum lot-sizes (unless

overwritten by adjusted values) Resource Capacities Stock Balance


IBP for supply – Optimizer example

• The objective of the Optimizer is to minimize the total costs or maximize total profit of the supply plan.

• Optimization is performed via a mathematical model using Mixed Integer Linear Programming (MILP).

• The output is an optimal and feasible Times Series production, distribution and procurement plan for the entire supply chain network taking into account constraints.

DC1

DC2

Plant 1

Plant 2

Customer1

Customer2

Customer Transport costsTransport costs

Customer Transport costs

Fixed Production Cost

Production Rate

Fixed Procurement Cost

Procurement Unit Rate

Fixed Production Cost

Production Rate

Fixed Procurement Cost

Procurement Unit RateInventory Holding Cost Rate

Safety Stock Violation Rate

Inventory Holding Cost Rate

Safety Stock Violation RatePrice

Price

Transport costs


Wrap up – SAP Integrated Business Planning for supply

Quickly adapt to changes in demand, considering the full supply chain model.

Simulate plans for production, distribution, and procurement to meet customer needs in a constrained or unconstrained mode.

Generate What-If analysis to provide visibility into potential scenarios.

Determine supply plan, to become constrained demand for further processingBusiness Benefits

Optimize sourcing and capacity utilization Maximize profit by determining most profitable way to satisfy

demand requirements via supply alternatives Plan to inventory targets Improve customer service


What are the benefits of cloud for Supply Chain?

Better Stakeholder Collaboration

Simpler Data Integration

Lower Total Cost of Ownership

Frequent Solution Innovation

Faster Time to Value

$


Why HANA?example SAP Integrated Business Planning for sales and operations

S&OP = “big data”

Only SAP HANA = Real-Time S&OP

Customers, Products, Locations,

Resources & Components

2 to 4 year planning horizon

Sales, Finance &

Supply Plans and Scenarios

X XBillions of Data

Points=

460 billion records analyzed in less than 1 second

18 million S&OP calculations per sec


SAP HANA Cloud Integration TechnologyBuild, Deploy, and Monitor

SAP HANA Cloud Integration

Cloud-based technology

Bi-directional process and data integration

Graphical flows & mappings

Centralized monitoring and administration

Pre-built adapters

Community marketplace (future)

Lower cost of change over time

Real-Time Process Integration

Prepackaged Integration flows

Community and Marketplace

DataIntegration

SAP On-Premise

3rd Party On-Premise

3rd PartyCloud Solutions

SAP Cloud Applications


Natively build SAP HANA Cloud Application ArchitectureSAP Integrated Business Planning

One Harmonized Data ModelAvoid any latency due to integration efforts and leverage the SAP ERP data model

Cloud First ApproachThe solutions will be provided in the SAP Cloud.

State-of-the-Art User ExperienceClean and flexible WebUI, communication capabilities (SAP JAM), and MS Excel Spreadsheets

Built on SAP HANALeverage HANA platform top to bottom

New Planning AlgorithmsEmbed descriptive analytics to understand the current performance, with predictive analytics and optimization to sense and respond


SAP Cloud Services: Highly Secure Global Data Centers and Processes for SAP Integrated Business Planning

World-class Tier-3/4 data centers

Certified operations

Advanced network security

Reliable data backup

Built-in integrity and confidentiality

Dedicated SAP HANA servers

Walldorf / Rot (Germany)Newtown

Square, PA

Australia(planned)

http://youtu.be/xmTIA9dv7Os

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http://youtu.be/xmTIA9dv7Os


SAP Cloud Services: Around-the-Globe Customer Support

Segregation of duties

Maximum degree of

traceability

Sophisticated automatic health

checks

End User

Key User

Built-in Learning Help Communities SAP

Support Backbone

IncidentManagement

✓

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SAP Cloud Services: End-to-End SAP Cloud Application Management

Provisioning Deployment Maintenance Hot Fixes

Strict data access control & security

Automated proactive system monitoring (tenant checks,

system checks)

Upgrades

Central Cockpit for all App

Management

Information Security Management System

defines processes and controls

Tight configuration control as basis for strict

security management

Isolated HANA Instances per customer

✓

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Teşekkürler

İletişim Bilgileri:

Emir BarınÇözüm YöneticisiSAP Türkiye+90(530)3911687