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SAP FORUM İSTANBULProduct and Demand NetworksConnecting Your Company Strategy with Your Customer and Product Strategy
Fatih KayadelenElif Kuralay
SAP
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2
Source: The Chief Supply Chain Officer Report 2014, September 2014, SCM World
Social media
CatalogsWeb sites
Mobile
Smart devices
Kiosks
Retail
Customer centricityMultichannel strategy requires demand networks
45%of enterprises are building direct-to-customer fulfillment capabilities
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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 3
Personalized solutionsLot size of one requires product networks
Source: The Chief Supply Chain Officer Report 2014, September 2014, SCM World
52%of manufacturing companies expect to be highly vertically integrated in the next five years
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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4
“Help the world run better and improve people’s lives”
“To help people save money so they can live better.”
“…charting the course for a stronger, more sustainable future...”
“…dedicated to…enriching people’s lives”
“…to create a more prosperous society…”
Improve people’s livesThe speed to fulfill individualized customer demand requires the Internet of Things
Source: The Chief Supply Chain Officer Report 2014, September 2014, SCM World
87%of supply chain officers consider the Internet of Things as important or interesting technology
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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5
Business strategiesTranslating business realities to business strategies
Customer centricityTransform supply chain and logistics into
Demand networks
Personalized solutionsConnect products, assets, and machines to
Product networks
Improve people’s livesGain real-time network insight to action with the
Internet of Things
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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6
Demand networksTransform supply chain and logistics into demand networks
Planning mattersAggregated demand leads to short-term forecast accuracy < 70%* Business concept: three-dimensional planning
Be responsive< 10%* of suppliers are directly connected with their customer’s supply chainBusiness concept: business networks
Fulfil to pleaseAbout 10%* of worldwide GDP is related to logistics spendingBusiness concept: connected logistics PLAN – RESPOND – DELIVER
*Source: Several SAP Benchmarking Reports and Industry Analyst Reports
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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 7
Product networksConnect products, assets, and manufacturing to product networks
Individualize products~ 70%* of businesses have disconnected product development and launch processesBusiness concept: product (data) platform
Produce to demandOnly 25%* of businesses will continue with outsourced manufacturing strategies Business concept: Industry 4.0
Create solutions, not productsMore and more businesses are introducing “pay as you go” principles Business concept: predictive maintenance DESIGN – PRODUCE – OPERATE
*Source: The Chief Supply Chain Officer Report 2014, September 2014, SCM World
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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8
Internet of ThingsGain real-time network insights to action with the Internet of Things
Things
ThingsThings
50 billion things by 2020
Always on Only 20%* of supply chain professionals say that they have the information they need, to make decisions Business concept: insight to action*Source: Several SAP Benchmarking Reports and Industry Analyst Reports
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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9
SAP’s solution strategyConnect your company strategy with your customer and product strategy
SAP HANA platform
Product networksPersonalized solutions
Internet of ThingsImprove people’s lives
Demand networksCustomer centricityPlan
Respond
Deliver
Design
Produce
OperateMonitor
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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10
Internet of ThingsImprove people’s lives: real-time network insights to action
IoT connector
Third-party integration SAP HANA Cloud Platform
Data Models Analytics Search Spatial Rules
Application ServicesStream/Event Processing
Identity Management
Document Management MobileDevice
Integration
SAP partner and custom apps
Extended supply chain insights Supply chain integrity Product safety and stewardship
Monitor
Public
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12
SAP Integrated Business Planning
Inventory
Response and Supply
Demand
Sales and Operations Planning
Enhanced User Experience
Supply Chain Control Tower
SAP HANA Platform
SAP Business Suite
Production Planning and
Detailed Scheduling
Supply Network Planning
Global Available to Promise
Demand planning
Cloud First (On premise options over time)
Simplify User Experience
Simplified common user interfaceWeb / Excel
Fiori
Simplifybusiness processes
Connected Planning ProcessesReal-Time Dashboard & KPI
Alert Simulation and Predictive
Collaboration
One Consistent Data ModelFaster Adoption (Cloud)
Simplified Landscape (HANA)
Simplifytechnology
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13
SAP Supply Chain Control Tower
End-to-end visibility in the extended supply chain
Integrate data from various systems
Drive visibility and action with configurable analytics
and alerts
KPI Library & Dashboards
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14
SAP Supply Chain Control Tower
End-to-end visibility in the extended supply chain
Integrate data from various systems
Drive visibility and action with configurable analytics
and alerts
Global Visibility & Analytics
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 15
SAP Supply Chain Control Tower
End-to-end visibility in the extended supply chain
Integrate data from various systems
Drive visibility and action with configurable analytics
and alerts
Collaboration with Task & Case Mng
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16
SAP IBP for S&OP
Balance demand & supply, providing organizational
alignment. Complete scalable model (demand, supply and finance)
What-if scenarios using “real time” information
Communication and collaboration tool
S&OP process management
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 17
SAP IBP for S&OP
Balance demand & supply, providing organizational
alignment. Complete scalable model (demand, supply and finance)
What-if scenarios using “real time” information
Communication and collaboration tool
S&OP process management
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18
SAP IBP for S&OP
Balance demand & supply, providing organizational
alignment. Complete scalable model (demand, supply and finance)
What-if scenarios using “real time” information
Communication and collaboration tool
Collaboration
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 19
SAP IBP for Inventory
Inventory Optimization and Simulation Efficiently position inventory to best respond to demand and
supply uncertainty
Multi-echelon (multi-stage) inventory optimization
Drive S&OP decisions with inventory recommendations
(item, location, time specific)
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 20
SAP IBP for Inventory
Efficiently position inventory to best respond to demand and
supply uncertainty
Multi-echelon (multi-stage) inventory optimization
Drive S&OP decisions with inventory recommendations
(item, location, time specific)
Inventory visibility and drivers
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21
SAP IBP for Demand
Demand sensing and mid/long-term forecasting in one comprehensive solution
Embedded demand analytics. Exception based
planning processes
Collaborative Demand Planning
Inventory Optimization & Simulation
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 22
Generate a mid to long-term supply plan
Constrained or unconstrained plans, using heuristics or optimization based algorithms
Multi level sourcing determination
Rough cut capacity
Simulation capabilities
SAP IBP for Response & Supply
Plan production, procurement, and distribution
Respond to daily disruptions to change supply plans and reschedule demand with
what-if
Manage allocations where supply is scarce
Supply Planning
Response Planning
Response Planning & Allocation Management respond quickly to actual or hypothetical changes to demand and/or supply
Order Promising: generate allocations for online confirmations of sales orders based on material and capacity
Order-based / demand-based
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
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