Time to Rethink your Supply Chain

Ganesh Wadawadigi, Ph.D., Vice President, Supply Chain Solutions, SAP

Volatile Markets & Growing Logistics Complexity

Constant Challenges for Supply Chain Professionals

Sustainable Growth

2013 SAP AG. All rights reserved.

Highest Customer
Service Levels

vs.

Lowest Inventory
Levels

Minimize
Transportation Cost

vs.

Maximize On-Time
Delivery

Highest Quality of
Products

vs.

Lowest Cost of
Production

Internal

Rethink your Supply Chain

Treat Exceptions as Standard

Frequently build and adjust profitable

business plans across departments
and companies

Know the demand for all products

in all markets at any time

Rethink Responsiveness

Introduce fast and lean demand &

supply planning processes

Rethink Operations

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Rethink Collaboration

Rethink Supply
Chain Monitoring

Transition to on-demand shipment in

combination with local, small
distribution centres

Rethink Distribution

Internal

Best Run Companies are Rethinking their Supply Chains

Best Run Supply Chains have

37%

89%

Higher on time
delivery performance

Lower Inventory
Carrying Cost

Source: SAP Benchmarking Services

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Internal

SAP is Rethinking the Supply Chain

SAP Supply Chain Management Solution Strategy

Provide highly collaborative processes

in the Cloud

Provide the best possible User

Experience

CLOUD

USABILITY

Provide mobile applications for

highly automated processes

MOBILE

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REAL-TIME

Provide high value capabilities for

Supply Chain Planning and Execution

VALUE

Internal

SAP Supply Chain Management Solutions

2013 SAP AG. All rights reserved.

SALES & OPERATIONS BUSINESS PLANNING

Sales & Operations Planning, Inventory & Service Level Optimization, Scenario Planning

DEMAND DRIVEN SUPPLY CHAIN

Demand Management, Collaborative Response Management, Manufacturing & Supply Planning

LOGISTICS & ORDER FULFILLMENT

Transportation Management, Warehouse Management, Track & Trace

SERVICE SUPPLY CHAIN

SUPPLY CHAIN MONITORING

SUPPLY CHAIN VALUE MAP

End-to-End Business Process Coverage

Internal

Sales & Operations Business Planning

Real-Time Collaboration
Leverage HANA to deliver a single aligned cross
departmental plan balancing the impact on
inventory, service levels and profitability
Perform consensus planning, match demand
with supply, and align to financial targets
Determine optimal inventory amounts at each
tier within the supply chain
Perform supply-chain simulation and what-if
analysis and compare the best results for both
tactical and strategic decisions

2013 SAP AG. All rights reserved.

Internal

Announcement: SAP has Acquired SmartOps

Help Customers Optimize Inventory and Service Levels in Supply Chain

Enterprise Demand Sensing

predictive analytics solution will
enhance SAP Demand Signal
Management

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Sales & Operations Planning, Inventory & Service Level

Optimization, Supply Chain Scenario Planning

SERVICE SUPPLY CHAIN

Inventory Optimization Suite

will complement and expand
Sales & Operations Business
Planning solutions

SUPPLY CHAIN MONITORING

SALES & OPERATIONS BUSINESS PLANNING

DEMAND DRIVEN SUPPLY CHAIN

Demand Management, Collaborative Response Management,
Manufacturing & Supply Planning

LOGISTICS & ORDER FULFILLMENT

Transportation Management, Warehouse Management, Track & Trace

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Demand Driven Supply Chain

Real-Time Responsiveness
Capture and sense demand in real-time
Incorporate structured and unstructured demand
sources, to provide a holistic picture of actual
demand
Incorporate demand directly into mechanisms that
shape supply-chain response
Realign supply and demand as changes occur
Synchronize supply and manufacturing planning
across internal and external manufacturing sites

2013 SAP AG. All rights reserved.

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Demonstration: Demand Driven Supply Chain

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Announcement: liveCache on HANA now available

APO on HANA
APO powered by HANA
Making Supply Chain Planning faster and more
responsive
Increase speed of information analysis,
simulations in areas of forecasting and supply
network planning
Accelerate reporting and processing on large
volumes of supply chain planning data
Pre-defined dashboards for different use cases
(analytical workflows) for SAP APO based
planning scenarios
Faster and more responsive interactive and batch
planning

Up to 3 times faster
Interactive Alert monitoring and
alert batch processing

Up to 40% faster
SNP Heuristic run

Up to 40% faster
Backorder Processing in gATP

Up to 4 times faster
Interactive planning in DP, SNP and
PP/DS

Disclaimer: All measurements are done based on Customer and SAP test data. Runtime can differ on other data and configuration.
2013 SAP AG. All rights reserved.

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Logistics and Order Fulfillment

Real-Time Distribution
Make informed decisions to balance customer service
(the Perfect Order) and the cost of delivering that level
of customer service
Align integrated distribution and fulfillment processes
around speed, efficiency and sustainability
Improve efficiency, readiness and agility by operating,
orchestrating, monitoring and collaborating across your
supply network
Monitor, measure, and analyze in real-time to adjust
shipments, sourcing decisions based on business
dynamics

2013 SAP AG. All rights reserved.

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SAP Logistics and Order Fulfillment in action at EDEKA

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Announcement: SAP TM 9.0 and EWM 9.0 are Generally Available

Fast Adoption of SAP Transportation and Extended Warehouse Management 9.0
Facts and figures

Sample customers

250% growth in 2012

25 live customers
Over 40 ongoing implementation projects
Productive use of SAP TM in 15 countries and
14 industries

Active & live customers

Customer geographical coverage

35
30
25
20

Active

15

Live

10
5
0
2010
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2011

2012
Internal

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Only SAP Delivers a Real-time Supply Chain, Anytime, Anywhere

Summary
Real-Time
Collaboration

Real-Time
Responsiveness

Real-Time
Distribution

Real-Time
Operations

Real-Time
Monitoring

Powered by SAP HANA

Reduce planning cycles
Build and adjust
profitable business plans
across departments and
companies
Leverage real-time
information to increase
visibility and
sustainability of the
supply network
2013 SAP AG. All rights reserved.

Zero latency access to

demand for all products
in all markets
Drive real time
replenishment and
order promising based
on customer, product
and supplier priorities

Get closer to the

customer and have
improved visibility of
inventory position
across the network
Leverage logistics to
offer value added
services

Fast demand and

supply planning
processes
Pan and re-plan based
on short term changes
to supply & demand
Profitably plan based
on distribution and
manufacturing costs

Improve visibility across

the supply network
Make informed
decisions based on real
time supply and
demand dynamics

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Thank you

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