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SAP rapid-deployment solution for collaborative replenishment between manufacturers. Solution Details. Contents. Introduction to SAP Rapid Deployment Solutions Overview of the Solution Solution in Detail VMI Process for consigned and non-consigned material Service Delivery
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SAP rapid-deployment solution for collaborative replenishment between manufacturers Solution Details
Contents Introduction to SAP Rapid Deployment Solutions Overview of the Solution Solution in Detail • VMI Process for consigned and non-consigned material Service Delivery Technical Details
Today’s reality… “ “ • Statistics state that up to 70% of IT projects run late, over-budget, or do not meet planned goals…Consequently, implementation risk is a critical factor… • From “Introducing Packaged Solutions” by Michael Krigsman • Now when companies think about implementing an application, they really want to implement an integrated solution. • Henry D. Morris, Senior Vice President of Worldwide Software and Services, IDC • Customers today want choices in how they scope, configure, and deploy business software. • Peter M. Russo, Managing Director of Pierre Audoin Consultants
You want to… • … ensure the most predictable and fastest time to business value • … deliver the integration the business demands to start and grow without compromises • … choose from a modular ready to use portfolio of solution, deployment and pricing options
SAP and a global partner ecosystem offer Rapid Deployment Solutions to meet specific business needs… • Software • Quickly address the most urgent business processes • Content • SAP best practices, templates and tools make solution adoption easier • Enablement • Guides and educational material speed end user adoption • Service • Fixed scope and price provides maximum predictability and lowers risk SAP Rapid Deployment Solutions Rapid Deployment Solutions Software Service Content Enablement
… which allow predictability, out-of-the-box integration and adoption choices as business demands • Predictability • Fast value in days/weeks • Fixed cost and fixed best practice scope • Integration • Integrated start and growth options • Immediate and future IT and business processes landscape integrity • Choice • Modular packages to meet specific business needs and allow individual adoption paths • Flexible licensing and deployment options SAP Rapid Deployment Solutions
Why have customers chosen SAP Rapid Deployment Solutions? • 8 • Weeksto go-live • 15% • Reduction in project costs • 4 • Week implementation
Delivered by SAP or qualified partners • Large Global Partner Ecosystem maximizes availability of and choice within the Rapid Deployment Solutions portfolio • System integrators and value-added resellers provide industry and LoB specific capabilities and expertise • Cloud partners provide the deployment options to match your business needs
SAP Rapid Deployment Solutions define a new standard for business solution adoption across the SAP Portfolio Solution Portfolio Industry & LoB Deployment Innovations Business Solutions On demand Mobility Analytics On premise HANA Technology On device
SAP Rapid Deployment Solutions support all use cases along your adoption path Predictability Integration Choice From zero to ERP baseline in one goIndustry & geography-ready Start New business and user capabilities – that fit with your existing footprint LoB or industry-specific, mobile, business analytics, collaboration Grow, extend, innovate
Get the most out of your business – NOW! • Quickly meeting your most pressing business needs on unprecedented predictability to adopt and manage business solutions • Enabling strategic business adoption paths with out-of-the-box integration for start and grow options as your business demands • Giving choice by providing a modular and well defined portfolio of solution options together with a Global Partner Ecosystem
Set up VMI relationships with your customers quickly and affordably • This RDS covers the material replenishment process between manufacturing companies. It supports the VMI process with consigned/non-consigned material, material tracking by batch and integration with SAP ERP. The RDS utilizes an enhanced version of SAP/SNC and a fixed cost 3 months deployment effort. • Different solutions to manage different types of customer collaboration (order-based, consigned VMI, non-consigned VMI, forecasting) • No clear replenishment logic to customers based on their needs and material availability • No ability to support inventory consignment at customers or logistic provider location • No ability to track material by batch number • Complex integration with ERP to support a multi-systems replenishment process
Benefits for you • Increase Inventory turns • Reduces Material Shortages • Improves Customer service • Better Material tracking process • Improves Customer intimacy and long term relation (improved) • Improves Operating margins • Optimize material replenishment and reduce inventory throughout the supply-chain (Critical in the case of consigned material that is owned by the vendor) • Reduce effective lead-time • Provides vendor with control and decision making especially in period of shortage as to where production is allocated • Increase customer intimacy which is key to customer retention • It is a demand-driven replenishment process, in line with lean concepts • Lower TCO by enabling a common packaged solution to address all types of customer collaboration"
VMI Process for consigned and non-consigned material: Scope and Benefits • Optimize material replenishment and reduce inventory throughout the supply-chain (Critical in the case of consigned material that is owned by the vendor) • Reduce effective lead-time • Provides vendor with control and decision making especially in period of shortage as to where production is allocated (Basis of customer service and prioritization) • Increase customer intimacy which is key to customer retention (The most impactful initiative on long-term revenue generation) • It is a demand-driven replenishment process, in line with lean concepts. • Forecast propagation from customer to vendor. This forecast is mainly used: a) to drive the replenishment process (short-term or mid term); b) to calculate Min/Max parameters with APO or any alternate option and c) for long-term capacity planning at the vendor location (No collaborative or consensus forecasting is provided) • Min/Max Replenishment Process • Inventory Overview screen to highlight any discrepancy between the inventory level received from the customer through the PROACT notification Vs the inventory level in the vendor’s ECC system. This is critical for consigned material since that material is owned by the vendor until consumed by the customer. • Batch Management (Visibility into batches at the 3PL /customer’s site; no planning at the batch level or batch traceability is offered) • Advanced Shipment Notifications without packing, labeling, and shipments
In the system • Key process flows covered • Controlled Data Import: Customer shares inventory and daily consumption through the product activity notification. Based on that a consignment consumption order is created in ECC • Forecasting: The customer shares weekly forecast through the Product Forecast Notification xml. The forecast is then disaggregated in daily buckets • Replenishment Planning: Performed using the Min/Max algorithm. When the projected stock falls below minimum a replenishment order is created to fill the stock to maximum level • Publication of Orders to the Vendor ERP system: To create sales order or consignment fill up order. Based on ‘Lean TLB’ without the load building step. For combinations of consigned and standard products, the order would be split into separate orders • Sales Order confirmation (Example Only): The VMI process will support the ATP confirmation quantity and will update the replenishment order accordingly or schedule it out considering a shortage. The ATP setup in ECC / gATP in APO is out of scope • Update replenishment order items based on ASNs: The replenishment order open quantity will be updated based on the ASNs"
Service Delivery • Set up VMI relationships with your customers quickly and affordably
Go live in as little as 12 weeks 1 2 3 • Start • Run • Deploy Expectations • Project management • Kick-off workshop participation • Preparing technical infrastructure • Mutually-approved scope document • Working SAP system • Implementation • Testing • Key User Training • Successful rollout and adoption • Configuration documentation • User-acceptance testing • Onsite and remote support • Superior support to ensure smooth functioning Results Note: This slide represents a typical deployment. Exact details may differ according to solution.
Pre-defined Services for Rapid Deployment Solutions • Your path to Go-Live: fast, efficiently and at predictable cost • Fixed-price Implementation Services • Pre-defined Project Methodology • Ready-to-use Accelerators 1 2 3 Start Deploy Run • Project management • Kick-off workshop participation • Preparing technical infrastructure • Accelerators / Deliverables • Consulting Delivery Guide • Project schedule • WBS • Service Delivery Model, roles and responsibilities • Request for consultants template • Process descriptions • Process-flow-documents • Kick-off presentation • Consumption Guide • Pre-delivery requirements and checklist • Solution Realization • Master Data Load • Refinement Workshop &Refinement Realization • Knowledge Transfer to Key Users • Accelerators / Deliverables • Installation guide • Solution Documentation • Solution Manager content • Best-Practices content(pre-configuration) • Configuration activities • Consulting Delivery Guide • Implementation Content • Performance Tests • End User Training • Sign off of solution • Go-Live Preparation • Go-Live • Post go-live support and activities • Improvements and road map workshop • Accelerators / Deliverables • Test cases • Deliverable acceptance forms • Training Materials – Process-flow recordings etc. • Go-Live Checklist Note: This slide represents a typical deployment. Exact details may differ according to solution.
Implementation methodology 1 2 3 Start Deploy Run Kickoff Workshop Configuration Guide Project Schedule Scoping Questionnaire Check Lists Support Portal Note: This slide represents a typical deployment. Exact details may differ according to solution.
Project plan and timelines 1 2 3 Start Deploy Run • Prepare Project • Kick off workshop • Select Options • Check Installation • Activate Solution • Confirm Solution • Acceptance Testing • Train Key Users • Set up Customer Data • Transport • End-user Training and Organisation Change Management • Prepare Production • Project Sign-off &Support SAP involvement Customer involvement Note: This slide represents a typical deployment. Exact details may differ according to solution.
Set up VMI relationships with your customers quicklyand affordably • The SAP SNC rapid deployment of collaborative replenishment between manufacturers enables an enterprise to collaborate with its customers. The service supports the Vendor Managed Inventory (VMI) process and covers key transactions like forecast collaboration, Replenishment planning , publication of orders to ERP system for consigned and non consigned materials and update of Order Quantities based on ASN to name a few. The RDS fast-track implementation approach minimizes risks, assures quality and executes with predefined scope and time period at a fixed price. A special step-by-step guide describes each activity during the deployment
Key deliverables • SNC – Customer Collaboration VMI scenario (Up to 20 customers and maximum of 200 Total products) • PI configuration for SNC interfcaes • Forecasting based on the sales history and short term forecasting parameters. • Min/Max based Replenishment Planning &Setting up of Planning service Manager Jobs. • Publishing of RO to ECC which creates a Consignment Fill up order in ECC • Replenishment order confirmation back from ECC to SNC. • Creation of Consignment Fill up Order etc. • Set up of Inventory Overview & Set up of Inventory Comparison Query by data providing partner • Custom report in SNC to extract the Customer Consignment stock from Supplier’s ECC system • Field enhancements, developments (including custom and software developments) or extensions except for those items identified in Section 1.5. • B2B Mapping of the PRAOCT interface and any additional interface changes. • Interfaces to other systems • Any changes required because of pre-existing Licensee specific enhancements or developments • Any changes that are required because of industry specific functionality or requirements for country specific localization • Any formal SAP education classes or other offerings from SAP Education. • Statistical Forecasting • This solution is designed to work with a standard SAP ECC application.
Project team: SAP • SAP Project Lead • Serves as a central contact person, from project initiation to going live and support • On the SAP side, responsible for functional project management, coordination, support and coaching of the customer’s project manager, and so on • SAP Consultants • Responsible for implementation of the agreed upon scope for the rapid-deployment solution
Project team: customer • Leading Project Manager • Serves as a central contact person, from project initiation to going live and support • On your side: responsible for functional and commercial project management, coordination, overall project controlling, preparation of steering committees, and so on • Basis staff • Especially responsible for the installation and administration of the development and productive system landscapes • Functional department staff / key user • Responsible for workshops, questions from SAP, end-user training, and possibly as a power user for simple configurations • Specialized Staff (Optional) • Responsible for further specialized areas such as customization and configuration
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