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Supply Chain Management (SAP SCM)

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Unilever will present their story at the the International SAP Conference for Supply Chain on 1 October, 2015 in Darmstadt, Germany. Here is a brief session outline:

 

  • Learn about Unilever’s advance collaboration model with SAP to use best in industry IT implementation practices
  • SAP Extended Warehouse Management as a business growth enabler
  • How can applying Unilever’s real life experiences to your business allow you to:

               - Implement proven technologies, methodologies, and tools

               - Reduce total cost of implementation, including project cycles

               - Reduce total cost of ownership

  • Road map and next steps

 

Check the full conference agenda >> http://goo.gl/8iYrvk

Big data offers tremendous potential to improve many aspects of a company’s business, and can have a major impact on a company’s overall operating and financial performance.

 

According to a recent Global Operations Megatrends Study (Big Data Analytics in Supply Chain: Hype or Here to Stay?) by Accenture, most companies have high expectations of incorporating analytics on big data in their supply chains, but adopting it has been a challenge. In fact,  97 percent of the executives surveyed understand how big data analytics can improve their supply chain, but only 17 percent have implemented it.

 

SAP is conducting a research study on Big Data across the Extended Supply Chain with the goal of determining how companies can capture and leverage big data to:

 

  • Design products that incorporate sensory technology
  • Continuously improve the performance and design based on consumer preferences and automated feedback
  • Drive more effective S&OP process and decision making?
  • Respond faster and have more effective reaction time to supply chain issues based on actual supply and demand events and triggers?
  • Improvement in customer service and demand fulfillment
  • Increase in supply chain efficiency
  • Optimize inventory and asset productivity
  • Improve customer and supplier relationships?
  • Turn data into information with improved analytics and decision support analytics

 

As part of this study we are inviting executives and business practitioners to take the "Big Data in the Extended Supply Chain Survey" to provide your perspective.

 

The survey is targeted at decision makers and business experts from logistics, supply chain management, operations, R&D, asset management and Environment, Health and Safety who are concerned with capturing, analyzing and using Big Data to improve their business processes.


Take the Survey by clicking here.


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A deep dive into the Procure To Pay Processes and the automation thereof by ERPGenie. Brief whitepaper summary:


  • Introduction to Supply Chain Maturity
  • About Electronic Data Interchange (EDI) including standards definition, mapping, typical advantages, common hurdles to overcome when implementing
  • PTP Process: Purchase order > PO confirmation > ASN > Gods receipt > Invoice receipt
  • PTP Order Management: Automating the PO and the PO confirmation or acknowledgement
  • PTP Fullfilment: Automating the advance ship notice (ASN), application advice and leveraging with Goods receipt (GR)
  • Vendor Compliance: Vendor scorecard – Perfect order

 

Download the whitepaper >> http://goo.gl/43yr4L

You run CIF Delta report (CCR) in APO using transaction /SAPAPO/CCR for manufacturing order and result in error

/sapapo/cif161 - order difference for receipt date in SAP APO and SAP R/3

 

The following are the possible reasons and solutions

 

 

1) PUBLICATION SETTINGS:

 

APO is the default scheduling leading system and that means that every order coming from R/3 system will be scheduled in APO and the new scheduled dates will be sent to R/3 in order to make the system consistent.  In order to send the data, the publication settings has to be maintained . Execute T-code /SAPAPO/CP3 in APO system, and maintain the following setting 

 

 

Publication type – In-House production

Block size – 600 (based on business scenario)

Retransfer – Always retransfer

Refer to the notes 423626 and 1803658

 

 

2) DISTRIBUTION DEFINITION

 

By maintaining the objects in the distribution definition the planning results are published from APO to an external system. Execute T-code /SAPAPO/CP1 in APO system and maintain the following setting

 

Publication type – In-House production   
Location number – Location of the order

Logsystem - The integrated R/3 system

SAPRel - Release for the connected R/3 system

 

 

3) TIME ZONE

 

The plant which has the order should have the same time zone maintained in APO and R/3 system

 

a) Execute T-code OX10 for the plant and check the time zone of the plant in R/3 system

 

b) Execute T-code /SAPAPO/LOC3 and check the time zone of the plant in APO system

 

 

4) FACTORY CALENDAR

 

The factory calendar maintained for the resource should be maintained the same in R/3 and APO system so that the shift and other work center parameters of the order are consistent between the
systems

 

a) Execute T-code CR03 and enter the work center of each operation, and check the factory calendar under the scheduling relevant capacity header

 

b) Execute T-code /SAPAPO/RES01 and enter the same work resource to check the factory calendar under the “General” tab

 

5) SOURCE OF SUPPLY

 

Check if the order is using source of supply (PPM / PDS) in APO and that it is consistent between APO and R/3 systems. 

a)  Check if the operations of the R/3 order are present in APO order; there are cases where some of R/3 operations do not exist in APO order

I) The operations may go missing in APO order if it is not relevant to scheduling in APO; refer to note 367658 for filtering of operations 

ii) If business scenario doesn’t want some operations to be in APO then it can be made not relevant to APO. In this case dates inconsistencies may happen because the end date of an order is determined by the end date of the operation. Since some operations are present in R/3, but not in APO, the end dates may differ between the systems

 

 

b) If the order do not use source of supply then refer to note 788266 for creation of manufacturing orders with no source of supply

 

 

6) OTHER CIF DELTA REPORT ERROR

 

Execute T-code /SAPAPO/CCR in APO system for the material and plant in the order and check if there are other related errors to the order which could be the cause for the date inconsistency

 

7 )  IMPLEMENTATIONS

 

Check in R/3 and in APO system if there is any customer exit or BADI implemented that modifies the dates that are sent across

 

 

Refer to note 645597 that has the user exit solution to activate the comparison of order deadline in the CIF delta report

 

 

 

 

 

 

To conclude the 10 Reasons to Build a Control Tower Series, this blog we will seek to explore the final key reasons as to why such a device should be built and utilised within organisaitons across the globe. Previously, it was uncovered that the Control Tower is a key player in enabling business to obtain cross-functional views, improve their decision making capabilities and ultimately optimise their supply chain performance. Yet, what else does the Control Tower enable firms to achieve?


8. Leverage the Power of Big Data

What value does big data really hold for businesses?

 

Today, the scale, scope and depth of data which our supply chains generate is rapidly accelerating. Limited supply chains are now evolving into multifaceted, dynamic and connected value webs, and as a result, we are now bombarded by significant amounts of competitive and conflicting information. But how do we make sense of all this data? And how do we identify discrepancies and obtain useful insights when we are surrounded by a vast, and ever growing, array of information?


To reap the benefits of big data, we need to develop new strategies. We need to build effective tools to analyse the information we acquire, and we need to obtain useful insights buried within it to support our decision making. Because after all, data in itself is really no value at all. Its value comes from being of a process that collects, stores, analyses and transforms insights into business actions that drive forward improvements. Arguably, the Supply Chain Control Tower largely assists firms overcome the challenges faced. The tool strives to consolidate all data obtained within the business into a single place, and therefore enables users obtain valuable understandings and insights to improve their decision making capabilities.

 

A recent report my Accenture only highlighted the major business value which may obtained from the utilisation of big data. According to the survey, although it was found that 97% of respondents believed that big data analytics would benefit their businesses, only 17% of respondents have already implemented analytics within one or more areas of their supply chains. Clearly, such statistic highlights a major opportunity for firms to cease competitive advantage through the use of big data analytics, obtained through the utilisation of a Control Tower.

 

 

9. Empower Your Enterprise with Real Time Decision Making

... Because time is the one asset we cannot replace


External upheavals can occur at any time. But how do we respond to them? How do we act fast, when our supply chains are now increasingly complex networks? In today's world, timing is a critical success factor. We need to understand what's happening, when it's happening.

 

Through the Control Tower's real time capabilities, timing is no longer a major issue encountered by firms as the device enables users to monitor their business process in an up to the second fashion. With such device, businesses can react faster to events impacting upon their operations, as soon as they arise. They can uncover trends and patterns in an ad hoc and empowered manner, and as a result potential disasters can be overcome.

 

For example, with the Control Tower, users are able to track inventory and consistently monitor their shipments. If issues arise, businesses are immediately notified of the issue, and can take steps to solve the problem before it escalates. Now let's suppose a shipment is lost. With the help of the Control Tower, users are immediately notified of this occurrence. They can identify alternate routes and can transport additional stock from warehouses else where in order to ensure that the product reaches the customer by the set time.  By immediately  identifying these issues, we can find more effective and cheaper ways to overcome the issues we face, and as a result we are able to deliver consistent, efficient and resilient supply chains.

 

 

10. Gain End-To-End Visibility of Your Supply Chain

Imagine if we could know the unknown


In today's business environment, we need to strive to make strategic decisions that impact not only upon specific business functions, but upon our entire end-to-end supply chains. We need to have a greater understanding into what's happening faster, and we need to engage more closely with the "bigger picture". Yet, how can we manage what we cannot see?

 

In a recent survey it was found that 80% of respondents stated that they have no-full visibility of their supply chain. However, when reflecting on today's current business environmnet, it seems visibility is a critical strategy for enterprises aiming to reduce costs and improve their operational performance. Imagine if we could know the unknown, if we could track things which we previously could not see. Imagine if we could outsource our logistics more effectively, if we could improve our customer service levels, and if we could lower safety stock levels. Through the utilisation of a Control Tower, businesses are able to achieve all of these capabilities. The device provides users with end-to-end supply chain visibility, and therefore enables users to continiously track their processes, inventory and data at all times.

 

 

So What Are You Waiting for?

"Whoever desires constant success must change his conduct with the times"


Ironically, in today's world the companies who are most determined to improve and further develop themselves are already in the lead within the market place. It is those who are able to manage the challenge of growing complexity. It is those who are able to produce and distribute products to customers on time. It is those who are able to consistently deliver high levels of customer service that ultimately lead their competitors in our current competitive landscape.

 

Maintaining and sustaining old systems is now a risk. Putting in place short term fixes and doing what ever you can to return to your old ways of operating is no longer a feasible solution. Having entered an era of dramatic transformation, as a result of a combination of accelerating technological advancements and widespread experimentation with new operating models, we must now be innovative and disruptive to be competitive.

 

So, why be a follower when you can be a leader?




 


 

To refer to previous blog posts within this series:

 

Part One:


http://http://scn.sap.com/community/business-trends/blog/2015/08/05/10-reasons-to-build-a-control-tower-now

 

 

Part Two:

http://http://scn.sap.com/community/business-trends/blog/2015/08/12/10-reasons-to-build-a-control-tower-part-2


Turning a New Leaf for Green Supply Chains


As a customer, a finished product may be all you are concerned about, but for the new socially aware consumer, how that product made it to them can equally impact your satisfaction with your product. The human carbon footprint’s impact on the environment has been a debated topic for many years. My generation and generations after will be directly affected by the way we are using and abusing our natural resources. As a result of our ability to prevent future Earth from looking like it does in the movie Wall-E, people have become more aware of what resources they use and how they use them, the humanistic approach to sustainability.


Sustainability is a term not only individuals, but companies are also revolving their business around today. You may notice more coffee cups assuring you it was made from recycled materials, or your plastic water bottle made with a certain percent less plastic material, but could these materials have been conserved all together in the first place? We are so caught up in this term of sustainability that we often forget the notion of conservation as well.


With SAP Integrated Business Planning for example, a supply chain is able to function with less inventory, then it is subsequently able to reduce raw material consumption, lower manufacturing and transportation energy consumption. This minimizes the overall amount of obsolete inventory to dispose of. These materials we are using that are made up from previously recycled materials may not had to be thrown away in the first place if it was not for obsolete inventory.

sustain.jpg


Unilever is a great example of a company who are embracing sustainability. According to businessgreen.com, Unilever is focusing on a few core agricultural commodities in their tea production that will ensure “real change across their value chain”. The importance of Unilever’s Sustainable Living Strategy is also stressed, which includes a partnership with Solidaridad and a process for "continuous improvement" requiring suppliers to prove how they working towards environmental and social best practices (businessgreen.com).


Some of these best practices are seen at their estates in India, Kenya and Tanzania. For example, employees are researching less pesticide use and supporting natural diversity by preserving forests in the plantations. Some are also using plantation wood as fuel and hydro-electricity to generate electricity and reduce CO2 emissions. Unilever has also provided guidelines languages according to countries, which is necessary to communicate a universal approach, even to small supplier farmers, so everyone is on the same page (csreurope.org).

Perhaps a company like Unilever can encourage you to research the practices of companies you are giving your business to and remember that what’s on the inside matters. After all, the trend will start to catch on and eventually be mandatory according to Top 3 of the Top 10 Supply Chain Trends for the Next 10 years. So, turn over a new tea leaf and be inspired by these companies to start encouraging and helping implement more sustainable supply chains.

Christian Boos, Head SAP Global Supply Chain Services, SAP talked about innovation and using changes to your advantage. It was also mentioned how market trends will influence the Supply Chain designs within mobility, cloud computing, social networks, big data and the internet of things.

Christian's presentation is available for download for a limited period of time via this link >>

 

Check out the International SAP Conference on Supply Chain 2015 taking place on 1-2 October 2015 in Darmstadt, Germany.

 

Join the SAP Supply Chain Professionals group on LinkedIn >>

With a lot of stress on Agile Methodology in Project Management doing the round these days, let us see how this can be of help in Managing fixed cost SAP SCM Implementation Projects.

 

Definition: Agile software development is a group of software development methods in which solutions evolve through collaboration between self-organizing, cross-functional teams. It promotes adaptive planning, evolutionary development, early delivery, continuous improvement, and encourages rapid and flexible response to change (definition from Wikipedia). Below it illustrates how Agile Methodology works while collaborating with customers.

 

Pretext: A couple of years back while executing a project, the project already went behind schedule by one and a half month in the initial phase itself, i.e Project preparation phase whose main tangible outcome is As-Is document and user requirement specification. To put things in perspective, for a fixed cost project with a planned delivery time of 11 months, It took three and a half month to complete the As-Is against the planned two months. The challenge in front of PMO (Project Management Office) which includes both the implementation partner and the customer was how to meet the Go- live deadline without squeezing phases of the project where business core team and users participate. That roughly translates to shortening the blue print and realization phase of the project.

 

Challenge: One of the major requirement from URS (User Requirement Specification) was to have a custom Life Cycle Planning tool which should be intuitive and lot of user interaction enabled with some amount of intelligence built in. Obviously those requirements could not have been met by standard Life Cycle Planning tool in SAP APO. The estimated ABAP effort including unit testing for ABAP object was about 120-130 man hours and that nearly consumes major share of budgeted and available hours for ABAP meant for realization phase on account of delay in As-Is phase. Along with this there was one more major enhancement identified as a part of blue print along with a few reports. Planned Integration Testing (IT-1) by the core team was for 6 weeks. Meaning incorporating major changes / bug fixes identified during Integration Testing would obviate any chance of sticking to the planned go-live date.

 

Project as well as high level solution Approach: Customer was sensitized with shortened delivery phase and risk in terms of identifying major issues once project gets into Integration Testing Phase. System Integrator's proposal to get business core team's engagement during the realization / build phase itself was accepted by the customer, particularly for those major enhancements. As like any other major task, we adopted a divide and rule approach here too. Meaning, on completion of every sub module of the enhancement after testing from our side (Integrator's side) we asked core team to go through and and perform testing what was completed until then. For SCM-APO-DP enthusiasts the approach followed to design this life cycle planning tool was to upload an excel sheet to update a custom table with Phase-in / phase out values in percentages with a number of validations followed by writing the values in live cache. A macro too was used to make the solution complete and fool proof. A separate post, as it deserves, exclusively dealing with design details of this custom life cycle planning module will be taken up in due course. To cut the long story short, end result was by the end of realization phase core team (the team which is supposed to do Integration Testing) was quite comfortable with those enhancements.

 

During Integration Testing it emerged out that a development that needed 150-160 hours of development (including thorough unit testing) was tested with zero major issues.

 

In another project we applied Agile methodology in a completely different context, this time for SNP though (basically a planned order download / upload program in ECC which gives production planners ability to reconcile SNP optimizer results involving a number of validations). This example is brought out to drive home the point that Agile methodology equally qualifies for ABAP developments which is slightly complex in nature too [involving integration between multiple systems (ECC & SCM)].

 

Interesting thing is While implementing this methodology we actually were not aware there was a name to it. Only motivation to adopt this methodology was constraint in terms of time and complexity associated with those developments.

 

Now for seasoned Agile methodology practitioners, there can be many debates whether what was done in above two cases were really 'Agile' or not. Because in one case there was a design Specification functional spec) available including all the validations to be done where as in other case design was not clear at all when the ABAP development was started off. So in case - 1 when 'Agile' was used an iterative test approach to mitigate the risk in terms of time constraint, for the second case the very design itself emerged out of iterative approach.


Lessons learnt

Advantages:Of the many a couple we realized are mentioned below.


1) Since onsite-offshore model was followed in both the projects another advantage of 'Agile Methodology' came into fore in giving customer with visibility of    progress made in coding at regular intervals which typically takes place in offshore.

2) Mitigating the time challenge.

3) Applied where clarity of design was not there during beginning of the build.

 

Disadvantages:

1) People involved in development may be worn out because of the sheer number of iterations involved.

2) There may be a tendency to include more requirements in the scope as we progress during the development phase.

What happen, if your supply chain planning is cutting edge, but your are still not able to quickly and efficiently react to changes in demand and supply or to ensure resources are prioritized to meet business needs.

 

No doubt, changing consumer demand, supply and economic uncertainty are key challenges in business. Being intimate with customers to understand them to the point of predicting  their needs is crucial for success.


Demand Driven Business Planning, where ‘Multi Dimensional planning’ prepares a flexible supply chain based on expected customer and market forecast across time horizons, operations and finance. However plans are only a start, and industry benchmarks have forecast accuracies typically <70% (depending how measured), therefore Demand Networks need the agility to adapt to real customer and market demands in the shorter term.

 

The challenges of operating a global supply chain in a world of increasing demand volatility, channels and complex supply networks are on the increase. Success depends on the ability to plan in faster cycles and re-plan supply across the network quickly and responsively. An increasing supply chain strategy is to not only improve the planning over longer time horizons, but also mitigate inevitable exceptions and volatility through fast and intelligent response and supply orchestration. The focus is in the shorter time horizon, and enabling a real time data driven supply chain.


SAP offers end-to-end solutions enabling advanced business processes for  Response and Supply Orchestration, with proven business value like reduced lead time and improved service levels at lower cost,  enabling higher quote / order conversion rate, as well as reduced stocks levels and work in progress.

  • Response and Supply Management
    SAP Solutions in Response and Supply Management enable companies to re-plan supply, and match supply to demand across the network quickly and responsively. Including the ability to prioritise different demand streams and customers in constrained Omni-channel supply chains
  • Production Planning and Scheduling
    With SAP customers can integrate  planning with scheduling and execution having a consistent view on inventory, capacity, and product data. Schedule resources optimally considering finite capacity and material availability constraints. Gain real time visibility into production and resource status available for alerts and responsive rescheduling.
  • Response Network
    SAP Solutions provide an end-to-end cloud-based offering helping companies to connect with their partners effectively through a shared Network. Companies can engage in innovative joint supply chain initiatives to improve service levels, cycle times and reduce inventories.

 

The bottom line? Supply chains need to be differentiated and offer increasingly high service levels, yet cost is still critical and  it is not competitive to carry excessive inventory, lead time and capacity buffers to protect all risks and exceptions. To manage risk fast responsive agility is needed.

 

 

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Because every second counts and that is true for Supply Chain, too

 

 

 

 

 

 

 

 

 


See you, Volker Wilhelm

Follow us on twitter SCMatSAP


In 1913, Henry Ford introduced our country to a mass production moving assembly line to increase efficiency in the manufacturing of The Model-T, which was an affordable car that offered no personalization, not even a choice of color.  However, contrary to the early 1900’s, in today’s world customization is necessary.  How else would people live without their 20 inch rims, chrome door handles, oversized sun roof, heated steering wheel, and hand painted initials on the side of their cars?


3D printing can take customization to a whole new level, in fact an instantaneous level. Although common customization today is unique to your preferences like picking colors for your sneakers online, you are still limited with your options, not to mention having a higher lead-time for them to be made and then shipped. Imagine getting exactly what you want from the shade of a certain color, all the way down to an extra supported insole for your right foot that is less arched than your left. Or think about automotive manufacturers using 3D printing to provide a cup holder that fits your favorite extra wide coffee mug.


The more materials the more possibilities


With the array of materials being used such as plastic, nylon, stones, metals, wood, and bamboo, the future of 3D printing will be able to produce virtually anything. Homes and buildings will be the creations of 3D printing, which will drastically change manufacturing plants that are currently producing materials to build them. The future of shopping will be going to a department store where a 3D printer will allow you to design your own product from the available material instead of picking from finished products. Medicine is even being created with precise amounts of pill ingredients into colors, shapes, and sizes unique to the patient.

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Another material that 3D printing is capable of using is food. Barilla conducted a contest that called for the best design shape for pasta, which was a rosebud made possible by a 3D printer. Endless marketing opportunities running through your head? In addition, Hershey’s chocolate factory has its very own custom chocolate printer where you can make whatever your sweet tooth desires. Will the massive amount of heart shaped boxed chocolates produced for Valentine’s Day suddenly not make the cut? Richard Howells expands on the possibilities of food being printed in his blog What Can I Print for You Off the Menu Today? 3D Food Printing Could Soon be a Reality.

 

 

 

The impact on supply chains


More supply chains will be make-to-order versus make-to-stock because customers will be picking out exactly what they want. This will result in less inventory required which will therefore translate to less holding costs and lower total cycle times. However, there will be pressures on costs since economies of scale will fade. Another factor that will be effected is the factories because they will most likely have to be smaller and located closer to the end user to keep up with the demand of the customer. In conclusion, we are going to start to see massive changes in the way products are made, sourced, and delivered whether it’s on a large scale such as an office building or as simple as a lollipop.

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At SAP Insider Prague I listened into a session delivered by Tandeep Sandhu from Bombardier, he was talking to us about how Bombardier used SAP PLM and SNC to enable them to release a new line of aircraft for the 100-149 seat market and increase their market share in the process.

 

To give some background, Tandeep began by painting the picture of the company. Bombardier are the 3rd largest aerospace company, they design, build and support both business and commercial aircraft. As expected for a company in this position, they operate on a global scale and employ over 35,000 people.

 

Before embarking on this project, Bombardier outlined the key challenges that would have to be overcome in order to be successful in their bid to enter a new segment of the aircraft market.

  • There was no cross communication between the existing systems.
  • Whatever solution they picked had to run using ECC to fit alongside their current set up
  • A system was needed that could enable the engineering department to trigger a BOM change and manage the knock-on effect that this causes
  • A necessity was to create a seamless process to integrate with their tier 1 supplies, this would enable them to be a ‘paperless’ organisation and be able to manage a JIT delivery process
  • Due to the set-up of the particular industry, engineering own the change management process and the BOM is extremely large

 

After discussions with SAP, a comprehensive solution of PLM and SNC was chosen. Each solution covered all the challenging areas that Bombardier had outlined using various capabilities.

  • Supplier collaboration was possible and a communication platform was created using SNC
  • Paperless document exchange using PLM C folders alongside SNC
  • Visibility of shipments using SNC advanced shipping notification functionality
  • Enhanced inbound process and reduced manual entry of data through goods receipt with barcode scanning

 

Tandeep wrapped the session up nicely by providing us with the key things that should be taken away from his presentation.

  • Trends such as increased global sites and suppliers, more competition and higher customer expectations are driving supply chains to be more efficient
  • Prototyping is crucial in projects introducing new technologies
  • Get hands-on experience as soon as possible
  • Do extensive testing to discover where the issues are with your process and technology as early as possible
  • Avoid customizing the system to a point where it cannot accommodate the future roadmaps
  • Ensure there is enough support from the business and IT to resolve possible integration issues
  • There are significant advantages to a well-tested integrated solution

 

It was great to hear yet another customer talk so positively about how SAP have enabled their business to achieve targets that were previously beyond their reach. Many attendees went up to Tandeep after the session to thank him for providing an insight into the Bombardier journey, I would like to express my gratitude too for the fascinating story of his experience with SAP.

 

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Hi,

 

We have arequirement to extract data (Live Cache orders) from Live Cache (RRP3 Screen ) to (Infocube) SAP APO BW.

Is there any standard process to extract the data please let me know.

 

Thanks in Advance.

 

Thanks & Regards,

Murali

Transforming Supply Chain into a Demand Network

 

 

Join us for the much-awaited International SAP Conference on Supply Chain on 1-2 October 2015 in Darmstadt, Germany.

This is a business-focused, customer-centric event where you will learn supply chain best practices on how to drive greater ROI. This year the conference is going to be co-located with two other events: SAP for Manufacturing and SAP for Product Lifecycle Management.

Also being part of our International SAP Conferences on Extended Supply Chain, this event is packed with exciting new customer case studies, latest news, networking opportunities, and workshops.

 

 

Gaining greater transparency and control over your complex supply chain through the use of innovative technological solutions and applications – for better decision making and results – is essential to ensure that growth objectives are met.

 

 

Take this valuable opportunity and join us to hear from senior executives in leading companies on how they transformed their supply chains to demand networks, and benefited from implementing SAP SCM solutions to improve customer service, facilitate collaboration, and lower costs.

 

Visit the conference web site: http://goo.gl/JOFK1h

Last week at Sapphire I had the chance to listen to Ron Gilson the CIO and Paul Townsend, a BI Manager at Johnsonville Sausage talk about his company’s deployment of SAP Demand Signal Management.

First Ron gave a brief overview of Johnsonville Sausage who are a family owned company who have been in business since 1945. They consist of about 1,500 members and have six manufacturing facilities in the United Sates, one in Singapore and sales offices in Mexico, Canada, Japan, and China.

A few facts Ron shared highlighted the dominance Johnsonville have in their market:

  • 3 out of 4
  • 1 out of 3 Italian sausages sold in the U.S. are Johnsonville
  • 2 out of 5 fresh breakfast links are Johnsonville
  • Leading brand in U.S. – Bratwurst, smoked-cooked links, fresh breakfast links and patties, Italian sausage

 

Ron explained the broad SAP application landscape that spans ERP, Sales and Distribution, Planning, VMI, PLM, HR, Plant Maintenance, Production Planning & Detailed Scheduling, Trade Promotions and the topic of this presentation, Demand Signal Management.


Using Point-of-Sale Data for Real-Time Consumer Demand Visibility

Ron explained that “Demand Signal Managements primary roll is the be common data repository for all demand signal data, social, weather, POS , and Neilson syndicated data”. Ron continued. “This is important to Johnsonville as part of a larger trade promotion optimization initiative” to better anticipate consumer demand, improve forecast accuracy, help ensure on-shelf availability, mitigate risk of lost sales, and improve trade promotion.

 

Business Value Drivers

Ron walked through some of the business drivers of this initiative:

  • Trade Promotions Optimization - Creating 3 years of demand data from POS and Nielson history to create a solid foundation of statistical results.
  • Trade Promotions Execution and post promotion analysis – Moving from being currently based on shipment data to being driven based on POS data.
  • Supply Chain Visibility – Johnsonville were losing visibility to inventory in the supply chain once the product leaves our DC/3PL and were looking to achieve “Plant to Store Supply Chain Visibility” by capturing “retailer data that includes store and retailer DC inventory”.
  • New Product Launch Execution – The current Nielsen Data was “11,12 130 days old” , so capturing POS information means you can see yesterdays (or worst case, last week) actual demand. As Ron highlighted, “We know what scanned at the retailer yesterday AND what current inventory levels are at Store and DC”.
  • Simplified Reporting and Analytics – The goal was to eliminate the current effort required to harmonizing customer POS, Nielsen, shipment and other internal data and to simplify end user experience and increase user adoption by dramatically reducing the number of tools used to report and analyze data.

Paul explained the “current state of the project” where they are currently capturing all internal shipments and finished goods inventory as well as daily POS data from Walmart, SamsClub, FoodLion and Hannafords.

As Paul stated, “the benefit of this master data harmonization is to talk to the Walmart people in Walmart terms, and to talk to internal sales people in their terms. We can also do cross retailer reporting to initiate cost savings”. 

Paul continued, ”some key reporting that we are looking at is ship vs scan as well as the full supply chain visibility to see a full inventory picture and understand what days of supply looks like at a customer’s DC, and giving greater visibility into what we should be forecasting to reduce forecast error, and helping us with new product launches” .

This was a great overview, so thanks to Ron and Paul for sharing the Johnsonville Sausage journey.

To watch the complete presentation click here.


Carl Sandburg's Chicago was

 

Hog Butcher for the World,

Tool Maker, Stacker of Wheat,

Player with Railroads and the Nation's Freight Handler;

Stormy, husky, brawling,

City of the Big Shoulders:

 

Chicago may be a slightly different place now, but no one can deny that the manufacturing and maker spirit still runs strong in Chicago. So what better place to hold the SAP Manufacturing Industries Forum than Chicago to kickoff the Summer of 2015 (June 23-25).

 

SAP Manufacturing Industries Forum is one of the premier events in the country for business and technology leaders and practitioners from manufacturing organizations, including automotive, consumer products, high-tech, medical devices, life sciences, industrial machinery, building materials and chemical companies.

 

SAP Manufacturing Industry Forum is bringing together thought leaders and practitioners from industry, analyst community and academia to share best practices, analyses and case studies on innovation, supply chain and operational excellence in manufacturing industries. The event includes engaging and educational workshops, keynote sessions and customer case studies related to

 

  • Innovation and New Product Development in Discrete and Process Industries
  • Connected and Agile Manufacturing
  • Integrated Business Planning for Supply Chain Excellence
  • Logistics Excellence
  • Internet of Things for Connected Assets and Operational Excellence

 

Don't miss the opportunity to learn, share, network and to take away new insights as well as practical knowledge that you can apply to help your organization grow.

 

Register now and get invited.

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