An overview of how the different components of SAP's SCM (Supply Chain Management) software can be applied to real world challenges to create the opportunities for cost savings and efficiency gains.

1. Optimising Supply Chains -Using APs Integrated SCM business suite Our mission is to help you To work in partnership with our clients, radically improving their operational excellence, business process throughput and resource efficiency. To enable business success by delivering powerful supply chain and warehouse management solutions that incorporate SAP, technology and best practice. Presenter: Mat Eames Date: Feb 2010 Copyright © Rocket Consulting Limited 2010. All Trademarks are hereby acknowledged. This document contains information that is proprietary to Rocket Consulting and must not be disclosed in whole or in part to any third party.

3. Introduction to Rocket Consulting

4. Supply Chain Challenges

5. SAP Supply Chain management (SCM)

6. What is SAP SCM?

7. Enhanced Warehouse Management (EWM)

8. Transportation Management (TM)

9. Supply Network Collaboration (SNC)

10. Event Management (EM)

11. Auto-ID infrastructure

12. Conclusion

16. Improve communication

17. Increase availability of information

18. Remove cost from a wide range of supply chain activities

19. Introduction to Rocket Consulting "Rocket has helped transform our operation, introducing efficient material flows and effective working practices that have allowed us to significantly increase throughput, improve stock and picking accuracy, and further improve on customer service."Andy Lilley, Chanel Operations Director

21. Dedicated to helping businesses meet the increasing demands of today’s supply chains and warehouse operations

22. Delivering optimised and adaptive supply chain solutions through extensive and deep knowledge of SAP’s software, complementary technology, best practice process design and our own specially designed SAP add-ons called Rocket Packs

24. What are today’s Supply Chain Challenges?

26. A significant increase in globalisation across all industry segments due to global competition

27. Sourcing and manufacturing have migrated to the Far East resulting in extended supply networks

28. Geographically dispersed partners to bring products and services to market

29. Unrelenting pressure on costs and quality

30. Long and costly supply pipelines

31. Shrinking capital availability driving lean manufacturing and supply operations

33. Tariffs and unpredictable currency fluctuations creating constant review of sourcing decisions

34. Changes in legislation and significant world agreements (CFC’s, Fair Trade, CO2 emissions, Tariff areas, Trade blocks e.g. NAFTA, EFTA, EU..etc)

35. Volatile fuel, energy and transportation costs

36. Pandemics (SARS, Swine flu, BSE, Foot and Mouth, Blue tongue, etc.) impacting on willingness to travel, training, supervision, inspection and concerns with food products

39. High cost of intercompany communication as strong and compulsory supplier involvement in Original Equipment Manufacturer (OEM) product development becomes necessary

40. Need for effective integration of design of transactional systems to remain competitive

41. Ever increasing influence of Web enabled technologies as cost, reach and availability extends

43. Customer require suppliers and contract manufacturers to be integrated into the supply chain with improved and more cost effective products

45. Supply Chain Challenges - summary Improve the probability of successful business expansion - Addressing separate specific business challenges with their own timelines and without costly system upgrades World class product, process and supply chain performance - Develop processes which are customer-centric, demand-driven, enabling knowledge sharing between partners Reduce system cost and increase system integration – Adopt a functionally rich common system platform which meets flexible business process requirements without costly support models

46. Introduction to SAP SCM 7.0 - Supply Chain Management

48. Delivers large range of new and improved functionality

49. Supports end-to-end processes that address the unique business demands of more than 25 industries.

50. It enables:

51. Improved user productivity

52. Faster and more cost-effectively business process change

54. Is a complete supply chain management application that:

55. Helps link systems for tighter integration of planning and execution

56. Quickly incorporates partner solutions for greater efficiencies

57. Enables the collaboration, planning, execution, and coordination of an organisation’s entire supply network

58. Can be deployed in all industry sectors to address specific business challenges without costly upgrades.

60. APO (Advanced Planning Optimisation)

61. F&R (Forecast and Replenishment for retail)

62. Collaboration -

63. SNC (Supply Network Collaboration)

64. Execution -

65. EWM (Enhanced Warehouse Management)

66. TM (Transportation Management)

67. Auto ID (RFID and sensor integration)

68. GTS(Global Trade Services)

69. Coordination-

71. SCM OverviewHow do SCM products reside in an SAP system landscape?

73. Transportation Management (TM)

74. Supply Network Collaboration (SNC)

75. Event Management (EM)

78. Aimed at challenging best of breed products

79. EWM offers flexible, automated support for processing various goods movements and for managing stocks inside the warehouse

81. Slotting

82. ASN Validation & Correction

83. Internal Routing (Simple and Complex)

84. Returns / Reverse Logistics

85. Internal

86. Resource and Labour Management

87. Yard Management

88. Foreign Trade / Bonded Warehouse

89. Warehouse Analytics

90. Outbound

91. Wave Planning & Management

92. Warehouse Orders

93. Kitting (to Stock & Order)

95. Slotting automatically determines a storage concept for a product

96. Can automatically update product master

98. Now runs at item level inside deliveries and according to flexible criteria

99. Wave Creation

100. Control amount of work released to the warehouse floor at a specific time

101. Automatic, Immediate or Manual release

102. Full or Partial delivery may belong to a wave

104. Facilitating the management and distribution of work via queues

105. Both RF and non RF

106. Optimising the selection of warehouse orders for resources requesting work

107. Resource Controlling and Monitoring allows managers to:)

108. Analyse resource workload

109. Monitor work order execution by resources

110. Send messages to resources

112. EWM Labour Management facilitates the management of time and productivity of warehouse workers through:)

113. Measurement and KPI’s

114. Planning and Simulation

115. VisualisationCollect pallet Pick stock Wrap pallet Drop off Detailed Productivity KPIs A B Picking task

117. Central tool for keeping warehouse managers constantly up-to date as to the current situation in the warehouse and to enable them to initiate appropriate responses accordingly

118. Graphical Warehouse Layout Tool

119. Graphical Layout of the warehouse storage per level that can also show conveyors, resources and stock levels

120. Warehouse Cockpit

121. Intended for Supervisor and Warehouse Manager

122. Monitors team performance

123. Monitors the performance of areas or the whole warehouse

125. Maximise resource utilisation to best meet the operational requirements

126. Efficient and reactive labour management tools

127. Standard KPIs and measurement tools to drive productivity gains

128. RFID Enablement standard in EWM

129. Scalability & Flexibility

130. Ability to handle a variety of supply chain business processes

131. Entitled Party to Dispose

132. Designed for 3rd Party Warehouse Operations where stock ownership must be managed and executed separately

135. Improve collaboration with logistics service providers

138. All activities related to the transportation request, taking and updating of these requests

139. Transportation Dispatching (Planning):

140. All activities before the start of the actual movement of the goods

141. Transportation Execution:

142. All activities during and after the actual movement including the printing of documents necessary for the transport and also track & trace

143. Transportation Charges:

146. Intelligent Route Scheduling

147. Optimised Load Building and Resource Scheduling

148. Transport Documentation

149. Event Management

150. Returns and Reverse Logistics

151. Modelling and bench marking of carriers

152. Tariff Management and Invoicing

153. Financial Consolidation and Reporting options

155. Considers resource constraints and incompatibilities

156. Determines the optimal drop sequence in the network

157. Proposes a transportation service provider based on cost efficiency or partnership criteria

159. Optimise on least cost decisions

160. Optimise on strategic transportation service provider selection

161. Optimise on realistic resource usage

162. Optimise on long or short term planning horizons

163. Optimiser results can provide proposals for transport managers to choose execution decisions or to automate execution for follow on activities

164. Optimisation can be run in real time by the user or as a background batch process

166. Enhanced TSP /carrier selection to get best price

167. Optimised automatic decision making reduces manual workload

168. Superior resource utilisation

169. Effective resource management

170. Higher visibility of the transportation supply chain

171. Tools and the ability to better react to supply chain changes

172. Comprehensive charge management and freight invoicing

175. Customers – Capabilities for integrated replenishment and vendor managed inventory (VMI)

177. Responsive and Dynamic Replenishment Planning

178. Purchase Order Processing

179. Supplier Managed Inventory with Replenishment Order Processing

180. Delivery Control Monitor

182. Purchasing information published using the portal is secure

183. Purchase order details are checked and confirmed by the supplier with a browser

184. Information is presented in the suppliers language using Supplier part numbers

185. Supplier is alerted by email that the purchase order has been published

186. Subcontracting and 3rd party works order processes are supported

187. Supplier confirms details such as delivery date and quantities

188. Changes to the purchase order can also be sent for approval

189. Supplier creates advanced shipping notification (ASN) using the portal

190. ASNs can be packed

191. The supplier can use EDI or a spreadsheet interface into the SNC portal to improve efficiency and accuracy

193. Proof or delivery (POD) documentation is issued allowing the supplier to see quantity or quality differences

194. The supplier can post invoices on the portal using a web browser

195. Purchase Order and ASN relevant invoices can be created by the supplier

196. Goods receipt (GR) and non GR relevant processes supported

197. Approval and rejection invoice statuses give the customer control

198. Self billing processes are supported

199. Monitoring Purchase Order process

200. Both parties can monitor the purchasing process and add notes

201. Alerts and emails can be used

203. Errors in supplier and customer communication can be eliminated

204. Communication cycles are shortened

205. Low cost but highly effective integrated processes develop

206. A consequential reduction in stock levels

207. Reduced effort and cost expediting

208. Supplier managed inventory (SMI) reduces planning effort

209. Exception based management can be implemented

210. Reduced supplier call volumes

211. Highly integrated SMI scenarios can be offered to customers

214. Allows management by exception

216. Location details where is the event being performed

217. Measurements weights, volumes or temperatures

219. Supply chain AssetsIs an application to manage and monitor events within and between organisations

221. Goods issue of a pallet

222. Departure of a truck

223. Receipt of the goods at the customer’s location

225. Personalised views of events

226. Appropriate viewing rights

228. SAP Event Management - Overview Analyse the KPI “perfect order fulfilment” measures whether a customer received the exact quantity of the product ordered, on the date (and time, if necessary) when it was requested To provide high-integrity metrics, a delivery event would be used to capture the exact time and date of delivery at each customers location SAP Event Management captures and stores specific event context and time-specific data. This can feed summarised statistical information to the Business Information component automatically updating KPI’s, for example:

230. Allows management by exception

231. Improved customer service through ‘alert’ notification and automated resolution

232. Provides data for performance reporting and KPI’s external to SAP

233. Reduces response time to supply chain problems

234. Uses the Netweaver technical infrastructure

236. SAP Auto-ID SAP solutions for Auto-ID & item serialisation enable the use of RFID or sensors to automate business processes. They provide accurate real time information about items as they move through the supply chain. In summary: Automatically integrates identification technologies (barcodes, RFID, etc) with existing SAP ERP software systems Convert raw reader data into business transactions and set up a rule-based mechanism to handle its tasks Use preconfigured processes for outbound processing, inbound processing and returnable transport item management

238. SAP Auto-ID Enterprise – connected to SAP Object Event Repository (OER) is designed to collect data, manage queries and monitor process centrally across multiple SAP Auto-ID infrastructures

241. Create opportunities for cost savings and efficiency gains– by providing KPI’s and management information to exploit the enhanced communication, processes and functionality

242. Improve exception management (with consequential reduction in non-conformance)– by providing tools to manage, monitor and communicate exceptions

243. Reduce errors in supplier and customer communication – by tightened integration between business partners resulting from the use of Web portals and open communication technologies“Real world challenges can be addressed by providing a responsive real-time supply network”

244. Supply Chain Challenges - Conclusion The benefits offered by implementing the SAP SCM solution to meet the supply chain challenges are: Superior supply chain logistics and operational performance Tighter integration between business partners Enhanced supply chain functionality Responsive real-time supply network Event and exception management capability Single web enabled technology platform These improvements and solutions to the supply chain challenges can be realised by exploiting the functionality of the latest SCM software

245. The Rocket Innovation Approach Supply Chain challenges initiatives & Opportunities Assessment Experience Partners R&D Prototyping Rocket Packs Demo Systems

246. Our Relevant Experience

247. To take off with Rocket by contacting us launch@rocket-consulting.comto discuss how these improvements and solutions to the supply chain challenges can be realised by exploiting the functionality of the latest SCM software

248. www.rocket-consulting.com Copyright © Rocket Consulting Limited 2010. All Trademarks are hereby acknowledged. This document contains information that is proprietary to Rocket Consulting and must not be disclosed in whole or in part to any third party.