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Extended Supply ChainSAP Solutions for Supply Chain ExecutionMarkus Rosemann/Vice President Logistics, Extended Supply Chain, SAP SEPublic

SAP Solution StrategyConnect your Company Strategy with your Customer & Product StrategyImprove People’s LivesInternet of ThingsDesignPersonalized SolutionsCustomer CentricityPlanProduct NetworksOperateDemand NetworksMonitorRespondDeliverProduceSAP HANA Platform d.Public2

The role of logistics is changingGlobal business drivers impacting logisticsIncreasing market volatilityComplexityMajor shifts in customer demand volume,increasing regulations, new competitorsEscalating customer expectationsDeliveryPerformanceCustomer is demanding high-quality, flexibledelivery becoming the #1 logistics objectiveDeclining logistics performanceImpact of disruptive events and technologychanges while cost budgets stay the same d.Public3

Major challenges for logistics and distributionCost pressureLogistics cost average 10% of revenue and are still increasing, bearingoptimization potentialTransparency remains vagueLogisticians require process control along with real-world based insights for rapidand effective decision makingIsolated operations at logistics partnersManufacturers, freight forwarders, carriers and retailers operate independently d.Public4

Strategies for logistics and order fulfillmentLogistics optimization Translate constraint-based manufacturing and inventory optimization to logistics capacities Differentiate in logistics with planning and response management Evolve from goods fulfillment to e-commerce businessReal-time insights and control Connect logistics to the internet of everything for business Simplify material flow and increase warehouse efficiency Provide insights into the network for effective and responsive decisions, and executionConnected logistics Orchestrate strategic and medium-term planning for manufacturing companies,freight forwarders, carriers and retail companies on one platform Determine best mix of carriers to meet business goals Sense and respond to logistics insights d.Public5

Warehouse ManagementOptimize warehouse and distributionoperations by combiningoptimization techniques with theend-to-end logistics process acrossa warehouse48% Lower customer order cycle timeWhere picking, packing, and shipping are automated6%Warehouse ManagementOptimize processes, resources and assets in thewarehouse. Manage quality, safety, automation,inventory in end-to-end process optimizationcombined with state-of-the art analytics.Dock Appointment SchedulingManage the inbound and outbound flow to andfrom warehouse dock doors. Reduce delays andfees from carriers and increase service levels.Maintain and update appointment with carriers.More orders shipped on timeWhere warehouse process is optimized basedon shipping times d.Public6

Overview of SAP Extended Warehouse ManagementA complete and integrated solutionInboundprocessing Transportation unit processing Goods receipt managementand optimization Inbound quality management Yard managementStorage andoperations Physical inventory Replenishment andrearrangement Kit-to-stock managementOutboundprocessing Outbound planning(route, wave, bin, cartonization,and so on) Picking optimization, packing,staging, and load management Value-added servicesAnalyticsLabor managementCross-dockingComplianceNative technologiesImplementation tools d.Public7

Overview SAP EWM customer & market statusStrong customer growth and implementation momentumFacts and figuresSample customers Over 200 active customers added in 2013 More than 700 distinct live customers Leader in Gartner’s Magic Quadrant andARC market studies Productive use of SAP EWM in more than20 countries and 24 industriesCustomer geographical coverage d.Public8

Built-in optimizationWave management, labor management, and slottingWavemanagementOptimized work orders; efficient pick pathLabormanagementReduced labor costs; improved labor planningSlottingAdvanced storage concept; ABC goods classificationCartonizationAutomatic shipping-unit determination d.Public9

Leading-edge warehouse technology integrationIncreased accuracy, efficiency, and visibilityMaterial flow system (MFS)Native technology integration Programmable logical controllers (PLC) Augmented Reality Pallet and case conveyors Mobile radio frequency (RF) Multi-deep storage Pick by voice RFID d.Public10

Native integration with SAP Business SuiteSales and distribution Procurement Advance shipping notification (ASN) Inbound quality managementSAP Manufacturing Advanced Manufacturing Integration(Production/ Process orders and crate parts)SAP Environment, Health,and Safety Management Dangerous goods handling Storage and document printingSAP Global Trade Services Compliance with import and export regulations Customs; bonded warehouseSAP Quality Management Pre-sampling in Production, Acceptance Sampling before GR, InspectionLot Summary, Recurring Inspection, Control Invoice Verification d.Order processingCustomer relationship management (CRM)Back-order processing (global available to promise)Advanced claims and returns managementTrack and tracePublic11

Analytics with SAP EWMComprehensive stock and process transparencySupply chain managerCross-warehouseperformance monitoringWarehouse supervisorComprehensive, centralwarehouse operationmonitorAlert and exceptionmonitoring, drilldown, anddirect-action triggeringReal-Timeoperational reportingand predictiveanalysis d.Public12

SAP EWM – Labor Demand PlanningUse CaseA shift manager can select the date and the view, i.e., activities and activityareas he/she is interested in, and can efficiently plan his workers toactivities. Each hour today shows how many warehouse workers are neededin the selected areas.BenefitsAdvanced Workload Calculation based on Predictive Analysis Actual planned workload Combined with forecasted workload based on HANA-based predictiveanalyticsEnables walking through the warehouse to see the physical reality andgetting real-time insights based on the dashboard presented on a mobiletabletAllows flexible and graphical workload display Time frame selection Graphical workload display per hour, day, or week for selectedwarehouses, activity areas, & activities d.Public13

SAP Smart Business for SAP Extended Warehouse ManagementUse CaseOverview of the most important KPIs for a warehouse shift supervisor To monitor the workload for his or her shift for outbound/inbound deliveries To determine overdue outbound deliveries or outbound/inbound delivery items inreal-time To monitor the average goods issue delay timeBenefits Secure Warehouse Operational Excellence by fast identification of work exceptions(e.g., overdue picking) and fast implementation of counter measures to avoid delayedshipments Real-time information on overall Warehouse Execution Quality of current shift Enables walking through the warehouse to see the physical reality and getting real-timeinsights based on the dashboard presented on a mobile tabletKey performanceindicatorsKPIs for Outbound Deliveries (as of SP00) Number of Outbound DeliveriesKPIS for Inbound Deliveries (as of SP02) Number of Inbound Deliveries Delivery GR Completion Outstanding Delivery Item Putaway Complete Outstanding Number of Outbound Delivery Items Gross Weight of Outbound Delivery Items Number of Inbound Delivery Items Gross Weight of Inbound Delivery Items Delivery Arrival Overdue Average Wait Time in Yard Volume of Outbound Delivery Items Overdue Outbound Delivery Items Volume of Inbound Delivery Items Delivery Unloading Outstanding Overdue Outbound Deliveries Average GI Delay Time d.Public14

SAP’s Supply Chain Platform on HANA and in the CloudSAP HANA-powered SCEHANA-run solutions SAP TM, EWM, EM on HANASAP HANA-powered AnalyticsOn-Premise Dashboards Reports Fiori-Apps TM 9.2 EWM 9.2 EM 9.2Supply Chain ExecutionSAP TransportManagementHANA Enterprise CloudSAP ExtendedWarehouse Mgmt TM 9.2 EWM 9.2 EM 9.2SAP HANASAP inmemorycomputingSAPHANASAP Event ManagementSAP inmemorycomputingSAP BusinessWarehouseSupply Chain ExecutionSAP TransportManagementSAP ExtendedWarehouse MgmtSAP Event Management d.Public15

“We deployed SAP EWM at five large sites. It has helped us raise productivity, reduce costs, improve thecustomer experience, and become a safer place to work. We are seeing less travel time, fewer unnecessaryexits from the forklifts, shorter loading and unloading times, and a more accurate order picking process.”Venkat Paruchuri, Director of Supply Chain IT, Dr Pepper Snapple Group d.Public16

Transportation ManagementEnable companies to better meettransportation demands withstreamlined processes, decreasedcosts, improved compliance andflexibilityTransportation Requirements ManagementCentralize transportation requirements management, fromentry to final settlement.Freight Planning and OptimizationOptimize and balance freight costs and constraints.Freight TenderingCreate an automated environment for freight tendering22%Lower spendWhen transportation is integrated withSAP ERP and partnersCarrier BookingAutomate a collaborative environment for carrier booking.Transportation Execution and MonitoringExecute and monitor transportation and planning13%Less invoice errorsWith automatically calculated anddistributed costs d.Freight and Forwarding SettlementManage and settle freight agreements for carriers andcustomers.Public17

Business process coverage with SAP TMRole-based RStrategic CapacityProcurement &Network PlanningOrderManagementPlanner/Specialist(i.e., Tendering)Freight Planning& TenderingDispatcherCharge ClerkFreight Execution& MonitoringCarrier FreightSettlementAnalytics and ReportingEvent ManagementIntegrated Customs Processing, Dangerous Goods, and Trade ComplianceStandard Document and Output Management for all Modes of TransportIntegration and Connectivity d.Public18

Comprehensive SAP Business Suite integrationSales &Procurement Sales/Stock transfer order scheduling/ATP Sales, purchase, returns, & stock transfer ordersLogisticsExecution Delivery & shipment processing Warehouse planning & execution (EWM)EnvironmentHealth & Safety Compliant dangerous goods shipmentGlobalTrade Services International trade regulation compliance Customs export processingFinancialManagement Carrier invoice verification & payment/self-invoicing Sales order profitability & material valuationEnterprise AssetManagement Resource maintenance (time or mileage) Resource downtimes & locationsComprehensive ERP Master Data Integration d.Public19

Strategic Capacity Procurement and Network PlanningStrategic Freight Management – Business ScenarioCarrier/LSPShipper/LSPFreight RFQStrategic Freight ProcurementGoal: Freight Agreement with CarrierSAP TMResponseQuotationCarrier/LSPShipper/LSPFreight RFQ (SFP)Strategic Freight SellingGoal: Forwarding Agreement with CustomerSAP TMForwarding Agreement Quotation ResponseStarting Point d.Quotation ResponsePublic20

Order ManagementIntegrated ERP Transportation DemandIntegrated Order-to-Cash/Procure-to-Pay ProcessesSAP ERPTransportation Demand Sales ordersPurchase ordersStock transport ordersReturnsInbound/Outbound deliveriesShipments Holistic integration and management of all transportation demand Synchronized sales and STO (ATP) and transportation scheduling Full cross-system order access and lifecycle status visibility d.Public21

Order ManagementHolistic end-to-end order managementComplete Order Lifecycle Management & VisibilityFreight Orders & BookingsCapacity &Demand PlanningFreight Planning& Tendering General dataBusiness partnersTerms & conditionsCargo managementDangerous goods Transportation stagesFreight executionOutput managementDocument flowFreight chargesFreight Execution& MonitoringFreightSettlementTracking & Reporting d.Public22