Time to Rethink your Supply ChainGanesh Wadawadigi, Ph.D., Vice President, Supply Chain Solutions, SAP
2013 SAP AG. All rights reserved. 4Internal
Sustainable Growth
Volatile Markets & Growing Logistics ComplexityConstant Challenges for Supply Chain Professionals
vs.Highest CustomerService Levels
Lowest InventoryLevels
vs.MinimizeTransportation CostMaximize On-Time
Delivery
vs.Highest Quality ofProducts
Lowest Cost ofProduction
2013 SAP AG. All rights reserved. 5Internal
Rethink your Supply ChainTreat Exceptions as Standard
Frequently build and adjust profitablebusiness plans across departmentsand companies
Rethink Collaboration
Introduce fast and lean demand &supply planning processes
Rethink Operations
Know the demand for all productsin all markets at any time
Rethink Responsiveness
Rethink SupplyChain Monitoring
Transition to on-demand shipment incombination with local, smalldistribution centres
Rethink Distribution
2013 SAP AG. All rights reserved. 6Internal
37%Higher on timedelivery performance
Source: SAP Benchmarking Services
Best Run Companies are Rethinking their Supply ChainsBest Run Supply Chains have
89%Lower InventoryCarrying Cost
2013 SAP AG. All rights reserved. 7Internal
SAP is Rethinking the Supply ChainSAP Supply Chain Management Solution Strategy
Provide highly collaborative processesin the Cloud
CLOUD
Provide mobile applications forhighly automated processes
MOBILE
Provide the best possible UserExperience
USABILITY
REAL-TIMEProvide high value capabilities forSupply Chain Planning and Execution
VALUE
2013 SAP AG. All rights reserved. 8Internal
SAP Supply Chain Management SolutionsEnd-to-End Business Process Coverage
SALES & OPERATIONS BUSINESS PLANNINGSales & Operations Planning, Inventory & Service Level Optimization, Scenario Planning
DEMAND DRIVEN SUPPLY CHAINDemand Management, Collaborative Response Management, Manufacturing & Supply Planning
LOGISTICS & ORDER FULFILLMENTTransportation Management, Warehouse Management, Track & Trace
SUPP
LYC
HA
INM
ON
ITO
RIN
G
SER
VIC
ESU
PPLY
CH
AIN
SUPP
LYC
HA
INVA
LUE
MA
P
2013 SAP AG. All rights reserved. 9Internal
Sales & Operations Business PlanningReal-Time Collaboration
y Leverage HANA to deliver a single aligned crossdepartmental plan balancing the impact oninventory, service levels and profitability
y Perform consensus planning, match demandwith supply, and align to financial targets
y Determine optimal inventory amounts at eachtier within the supply chain
y Perform supply-chain simulation and what-ifanalysis and compare the best results for bothtactical and strategic decisions
2013 SAP AG. All rights reserved. 11Internal
Inventory Optimization Suitewill complement and expandSales & Operations BusinessPlanning solutions
Enterprise Demand Sensingpredictive analytics solution willenhance SAP Demand SignalManagement
Announcement: SAP has Acquired SmartOpsHelp Customers Optimize Inventory and Service Levels in Supply Chain
SALES & OPERATIONS BUSINESS PLANNING
Sales & Operations Planning, Inventory & Service LevelOptimization, Supply Chain Scenario Planning
DEMAND DRIVEN SUPPLY CHAIN
Demand Management, Collaborative Response Management,Manufacturing & Supply Planning
LOGISTICS & ORDER FULFILLMENT
Transportation Management, Warehouse Management, Track & Trace
SUPP
LYC
HAI
NM
ON
ITO
RIN
G
SER
VIC
ESU
PPLY
CH
AIN
2013 SAP AG. All rights reserved. 12Internal
Demand Driven Supply ChainReal-Time Responsiveness
y Capture and sense demand in real-time
y Incorporate structured and unstructured demandsources, to provide a holistic picture of actualdemand
y Incorporate demand directly into mechanisms thatshape supply-chain response
y Realign supply and demand as changes occur
y Synchronize supply and manufacturing planningacross internal and external manufacturing sites
2013 SAP AG. All rights reserved. 13Internal
Demonstration: Demand Driven Supply Chain
2013 SAP AG. All rights reserved. 14Internal
Announcement: liveCache on HANA now availableAPO on HANA
Up to 4 times fasterInteractive planning in DP, SNP andPP/DS
Up to 3 times fasterInteractive Alert monitoring andalert batch processing
Up to 40% fasterBackorder Processing in gATP
Disclaimer: All measurements are done based on Customer and SAP test data. Runtime can differ on other data and configuration.
Up to 40% fasterSNP Heuristic run
y Making Supply Chain Planning faster and moreresponsive
y Increase speed of information analysis,simulations in areas of forecasting and supplynetwork planning
y Accelerate reporting and processing on largevolumes of supply chain planning data
y Pre-defined dashboards for different use cases(analytical workflows) for SAP APO basedplanning scenarios
y Faster and more responsive interactive and batchplanning
APO powered by HANA
2013 SAP AG. All rights reserved. 15Internal
Logistics and Order FulfillmentReal-Time Distribution
y Make informed decisions to balance customer service(the Perfect Order) and the cost of delivering that levelof customer service
y Align integrated distribution and fulfillment processesaround speed, efficiency and sustainability
y Improve efficiency, readiness and agility by operating,orchestrating, monitoring and collaborating across yoursupply network
y Monitor, measure, and analyze in real-time to adjustshipments, sourcing decisions based on businessdynamics
2013 SAP AG. All rights reserved. 16Internal
SAP Logistics and Order Fulfillment in action at EDEKA
2013 SAP AG. All rights reserved. 18Internal
Announcement: SAP TM 9.0 and EWM 9.0 are Generally AvailableFast Adoption of SAP Transportation and Extended Warehouse Management 9.0
Facts and figures
y 250% growth in 2012y 25 live customersy Over 40 ongoing implementation projectsy Productive use of SAP TM in 15 countries and
14 industries
Sample customers
Active & live customers Customer geographical coverage
0
5
10
15
20
25
30
35
2010 2011 2012
Active
Live
2013 SAP AG. All rights reserved. 19Internal
Real-TimeCollaboration
y Get closer to thecustomer and haveimproved visibility ofinventory positionacross the network
y Leverage logistics tooffer value addedservices
y Reduce planning cyclesy Build and adjust
profitable business plansacross departments andcompanies
y Leverage real-timeinformation to increasevisibility andsustainability of thesupply network
y Zero latency access todemand for all productsin all marketsy Drive real time
replenishment andorder promising basedon customer, productand supplier priorities
Real-TimeResponsiveness
Real-TimeDistribution
Real-TimeOperations
y Fast demand andsupply planningprocesses
y Pan and re-plan basedon short term changesto supply & demand
y Profitably plan basedon distribution andmanufacturing costs
Powered by SAP HANA
Real-TimeMonitoring
y Improve visibility acrossthe supply networky Make informed
decisions based on realtime supply anddemand dynamics
Only SAP Delivers a Real-time Supply Chain, Anytime, AnywhereSummary
Thank you
2013 SAP AG. All rights reserved. 21Internal
2013 SAP AG. All rights reserved.
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