Whats New and Coming Soon Slides

SAP Supply Chain
SAP Order Promising and Response Planning Update
Every Second Counts!

2015 SAP SE or an SAP affiliate company. All rights reserved.
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2014 SAP AG. All rights reserved.
Internal
Agenda
SAP SCM Strategy Thumbnail 5
gATP Status and Roadmap 10
gATP mini-demo 5
IBP for response and supply Status and Roadmap 10
IBP for response mini-demo 5
Q/A 10
Wrapup
Demand Networks
Transform Supply Chain & Logistics into Demand Networks
Planning Matters
Aggregated demand leads to short-term forecast accuracy < 70%*
Business Concept: 3 Dimensional Planning
Be Responsive
< 10%* of suppliers are directly connected with their customers supply chain
Business Concept: Business Networks
Fulfill to Please
About 10%* of world-wide GDP is related to Logistics spending
Business Concept: Connected Logistics
PLAN RESPOND DELIVER
*Source: Several SAP Benchmarking Reports and Industry Analyst Reports
Response and Supply Management

Enable companies to re-plan supply
and match supply to demand
across the network quickly and
responsively.
Response Planning & Allocation Management

Respond quickly with fast, rules-driven
planning, re-planning and Simulation.
Order Promising
Provide real-time order commitments
based on allocated material & capacity.
5,6%
Higher On-time Delivery
With integrated material and capacity

order promising
40%
Shorter Lead Times
With flexible rules-driven supplydemand matching
Replenishment & Deployment Planning

Enable intelligent staging of inventory
across all locations and automate
replenishment and deployment.
Manufacturing Network Planning
Plan production and procurement
across the extended supply network.
* Source: SAP ASUG Benchmarking Survey

Demand Networks
Customer Centricity Demand Networks Plan/Respond/Deliver
managed cloud
public cloud
Real-time Network Insights
Plan
Respond
Deliver
SAP Business Suite 4 HANA

SAP HANA Platform
on-premise
Plan
Sales, Inventory and Operations Planning

Demand Management
Demand Network
Respond
Response and Supply Management

Production Planning and Scheduling
Response Network
Deliver
Warehouse Management
Transportation Management
Logistics Network
Agenda
gATP mini-demo 5
Q/A 10
Wrapup
gATP Solution At a Glance

The global ATP ensures the availability of a requested product at the requested time in the
quantity requested by the customer.
Business Requirement
What is customers pain?
n Inaccurate delivery dates
n High order processing costs and time
n Long order to cash cycles
n Slow response to demand and supply changes
What are customers needs?
n Accurate and reliable order promise dates
n Streamlined order fulfillment process
n Reduced finished goods inventory
n Analyze order confirmation overview and quickly drill down to
problematic areas
Business KPIs
n Increased customer satisfaction
n Improved order fill rates
n Effective sourcing across entire supply network
n Reduced logistic costs
SAP
2015
oraffiliate
an SAP
affiliate
All
2014
AGSAP
or anSE
SAP
company.
All company.
rights reserved.
rights reserved.
Solution
Solution Description
Online information about the most recent state of supply allows order
promising that will execute according to the customers expectations
Powerful batch and interactive back-order processing allows for
diagnosing and canceling back-order situations.
Transportation and shipment scheduling guarantees consistent
automatic scheduling in shipping and transportation processes.
Real Time operational ATP analytics for management to understand
fulfillment performance and identify and remedy issues
Business Processes
n Rule Based Availability Check for flexible sourcing and substitution
n Batch and Interactive Backorder Processing
n Product Allocation
n Multi-level ATP for MTO/CTO order promising based on
components
n Capable to Promise for capacity-based order promising
n Advanced Operational Analytics
8
Selected global Available to Promise Use Cases

Order from one channel; fulfill from
another channel
Fast queries of available to sell for

webpage
Web or Mobile
Channel
B2B
Omni Channel
B2B
B2C
B2C
Review real-time order commitment

analytics
Take orders online and commit in realtime

Call Center
B2B
Simultaneous order promising for multiple

orders for same product
B2C
Measure
Performance
B2B
Receive orders in batch via EDI and

committing in batch (daily or subdaily
Process highcycles)
volume orders
B2B
Periodically processing backlog to adjust for customer

priorities and changing supply situation
Backlog
Management
B2B
B2C
B2C
9
Respond Quickly and Accurately to Orders

Impact of Best Practice Adoption
on Performance
Organizations where intelligent commitments
(e.g., based on inventory, manufacturing and
supply constraints) can be made to accurately
schedule delivery dates in real time, to fulfill
orders have on average 38% fewer Orders
Backordered (in %) (MTS)
Make order commitments in real time when orders

are captured online or in call-centers
Make order commitments in batch mode overnight,
according to customer prioritization rules, when orders
are captured via B2B
Automatic backorder processing is set up to manage
backlogs effectively, according to customer priorities
Orders Backordered (in %) (Make-To-Stock)

Note on Methodology: Performance metrics represent a comparison of results from companies that have high adoption of process-related best practices vs. companies that do not.
Source: SAP Order-to-Cash Benchmarking Survey, covering more than 120 companies across 20 industries.
10
Apply Flexible Sourcing and Substitution Strategies

on Performance
Organizations where intelligent
commitments (e.g., based on inventory,

manufacturing and supply constraints)
can be made to accurately schedule
delivery dates in real time, to fulfill orders
have on average 32% fewer Orders Cancelled
(% of orders backordered)
Driven by rules, alternate sourcing locations and

product substitutions can be offered
Consideration of Transportation and Shipment

Scheduling time
Orders Cancelled (% of orders backordered)

Source: SAP Order-to-Cash Benchmarking Survey, covering more than 120 companies across 20 industries.
11
Plan and Manage Allocations

on Performance
When the product is in limited quantity,
organizations are able to prioritize customers,
commit an allocation quantity and then honor
that commitment as product becomes
available thus having an average 24% lower
Expedited Transportation Spend (% of
revenue)
Allocate quantities to key customers or regions, on

defined logic (vs. first-come, first served logic).
Simultaneous consideration of Product Allocation and

Product Availability
Expedited Transportation Spend (% of revenue)

Source: SAP Supply Chain Planning Benchmarking Survey, covering more than 370 companies across 20 industries.
12
APO Example: gATP Deployment success

Transformation of committing , sourcing and allocation business process
Real Customer example with several Product lines deployed on the standard tool.
Key Metric improvement example : Delivery to first commit. ( DTFC ) improved

significantly immediately following go live
Deployment
13
global Available to Promise Executive Demo
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Agenda
gATP mini-demo 5
Q/A 10
Wrapup
31
SAP Supply Chain Planning Vision

Key Benefits of the New Simplified and Harmonized Solution Architecture
One consistent data model

One single source of truth, avoiding any latency due to integration efforts and
leveraging the SAP ERP data model
State-of-the-Art business processes

Leverage new technologies to enable new business processes with highly
flexible UIs
Connected planning processes

Break down planning silos through connected and integrated planning
processes
Supply Chain Control Tower
Leverage end-to-end visibility
Sales & Operations Planning
End-to-end visibility on tactical, operative and execution level
Faster planning cycles
Demand
Inventory
Supply
Response
SAP HANA Platform
React faster to changes in the business through less integration,

one user experience
32
Integrated Business Planning and Supply Chain Monitoring

Available and Planned Products
Mobile-Enabled User Experience
Supply Chain Monitoring

public cloud
AVAILABLE
managed
cloud
Integrated Business Planning (IBP)

IBP for
sales and operations
IBP for inventory
AVAILABLE
IBP for demand
AVAILABLE
AVAILABLE
on-premise (future)
IBP for supply
AVAILABLE
IBP for response & supply
PLANNED
SAP HANA Platform

This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided
without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
33
SAP Integrated Business Planning for response & supply

PLANNED
Fast, flexible supply planning supporting a variety of

approaches, suitable for many industries, including

Sales and Operations
Inventory
Demand
Response & Supply
Support of tactical (rough cut) supply planning in conjunction

with S&OP as well as operational supply planning
What-if analysis of actual or hypothetical changes to demand
and/or supply
Pegging and gating-factor analysis
Constrained optimization, constrained priority rules-driven
heuristic, and/or unconstrained demand propagation
Optionally generate and provide allocations to ATP and
reschedule sales orders
Production and distribution (deployment) use cases
without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
34
Response Management: Key capabilities
Demands
(forecasts, orders)
Order Commits
Rules
Fast
Demand Prioritization
Supply Sourcing
Fair-Share
Rules-driven
Allocations
Heuristic
Order
Promising
Supply-Demand Match
Allocation
Scenarios,
What-If Analysis
Supply Proposals
Supply
(material, capacity)
2014
2015SAP
SAP
SE
SEororanof
anSAP
SAPkind,
affiliate
affiliate
company.
company.
AllAll
rightsreserved.
reserved.
without
a warranty
any
either
express
orrights
implied,
including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
3535
Make to Stock - Different Roles / Different Views
DC
customer
Plant or
hub DC
DC
DC
Spoke
DC
customer
customer
Supply Planner
2014
2015SAP
SAPSE
SEororananSAP
SAPaffiliate
affiliatecompany.
company.AllAllrights
rightsreserved.
reserved.
Fulfillment Manager
3636
PRELIMINARY AND SUBJECT TO CHANGE
Roadmap: Response and Supply Planning
Supply
Planning
and
Simulation
Available
Planned
Future
SAP APO Supply Network Planning
Integrated Business Planning for

response & supply 6.0
Operational supply plan at order
level
Near real-time replication-based
integration with ERP
Rules-based priority-driven
heuristic, unconstrained heuristic
Material constraints
Lot sizes on orders
Pegging and Root cause analysis
Generation of Supply Proposals,
Allocation plans, and Order
confirmation updates
Integrated Business
Planning for response &
supply x.x
Optimizer for order-based
planning
Capacity constraints
Deployment planning
Multiple transportation
methods per lane, with
specific lead times
Characteristics-based
planning
Product & Location
substitution
Pull-based replenishment
Configured products
Optimization, Heuristic, PriorityBased Heuristic (capable to match)

Production, Deployment planning
SAP APO global Available to
Promise
Global rules-based order promising
Component level order promising
Capable to promise
Integrated Business Planning for
supply 5.0
Interchangeability at any level
Aggregated optimizer constraints
Target Days of Supply
Version specific master and
transactional data
User specific simulation scenarios
2015without
SAP SE
or an SAP
company.
All rights
reserved.
37
a warranty
of affiliate
any kind,
either express
or implied,
including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
PRELIMINARY AND SUBJECT TO CHANGE
ATP Roadmap
Future
Planned
Today
gATP supported minimum through 2025
gATP on HANA option
Option to deploy on ERP instance
Enhanced BOP performance on HANA
Supply Chain Infocenter on HANA
with gATP analytics
Enhanced Interactive BOP (EBOPI)
gATP integration with IBP

IBP Response plans allocations and
sends to gATP for on line promising
IBP Response offers additional option for BOP with
priority driven heuristics
Flexible APO deployment options (HANA/nonHANA, own instance/co-deployed with ERP)
IBP for
Response
IBP co-deployment option in cloud or on-prem

New advanced ATP in ERP/HANA
IBP Response plans allocations and sends to
advanced ATP
IBP Response offers additional option for BOP
with priority driven heuristics
ATP analytics available in Control Tower
Ctrl
Tower
HANA
Allocations
SAP FIORI
InfoCenter
HANA incl.
Live-Cache
CIF
ERP
SAP FIORI
APOgATP
InfoCenter
HANA incl.
Live-Cache
CIF
HANA
HANA
Allocations
SAP FIORI
APOgATP
IBP for
Response
ERP
Advanced
ATP/HANA
HANA
HANA
ERP
APO gATP option continues for customers with

strong APO foundation and non Hana
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any
or implied,
including
but not limited
to, the
implied warranties of merchantability, fitness for a particular purpose, or non-infringement
kind,
2015either
SAPexpress
SE or an
SAP affiliate
company.
All rights
reserved.
38
Executive Speed Demo
This is not a demo of the actual IBP/Response product.

It is a speed demo based on an actual running prototype built using FIORI on top of the CTM engine.
The real operative demo is available, on request, to be run by Product or Solution Management.
Internal link: http://iwdfvm4772.wdf.sap.corp:8080/speeddemo/demo/116230

External link: http://demo.tdc.sap.com/SpeedDemo/ab6031027613ab53
39
Response and Supply Orchestration

Executive Summary
Grow revenue with enhanced customer service,

and operate with lower cost and inventories
50% Improved Efficiency

Via real-time integrated supplier
collaboration
20% Reduced Stocks levels & WIP

Where customer due dates are integrated
with real time manufacturing conditions *
5.6% Higher On-time Delivery

20% Lower Inventory
With automated collaborative
customer replenishment
With integrated material and capacity order

promising *
15% Lower Lead Times

With concurrent material and capacity
constrained planning
2015
SAPSAP
SE SE
or an
affiliate
company.
All rights
reserved.
2015
or SAP
an SAP
affiliate
company.
All rights
reserved.
* Source: SAP ASUG Benchmarking Survey
40
Thank you
Mike Lipton
Supply Chain Management Solution Management
SAP SE
michael.lipton@sap.com
41

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SAP Supply Chain

SAP Order Promising and Response Planning Update

Every Second Counts!

2014 SAP AG. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

PLAN RESPOND DELIVER

*Source: Several SAP Benchmarking Reports and Industry Analyst Reports

2015 SAP SE or an SAP affiliate company. All rights reserved.

Response and Supply Management

Response Planning & Allocation Management

Higher On-time Delivery

With integrated material and capacity

Shorter Lead Times

With flexible rules-driven supplydemand matching

Replenishment & Deployment Planning

* Source: SAP ASUG Benchmarking Survey

Real-time Network Insights

SAP Business Suite 4 HANA

Sales, Inventory and Operations Planning

2015 SAP SE or an SAP affiliate company. All rights reserved.

Response and Supply Management

2015 SAP SE or an SAP affiliate company. All rights reserved.

gATP Solution At a Glance

Selected global Available to Promise Use Cases

Fast queries of available to sell for

Review real-time order commitment

Take orders online and commit in realtime

Simultaneous order promising for multiple

Receive orders in batch via EDI and

Periodically processing backlog to adjust for customer

2015 SAP SE or an SAP affiliate company. All rights reserved.

Respond Quickly and Accurately to Orders

Make order commitments in real time when orders

Orders Backordered (in %) (Make-To-Stock)

2015 SAP SE or an SAP affiliate company. All rights reserved.

Apply Flexible Sourcing and Substitution Strategies

commitments (e.g., based on inventory,

Driven by rules, alternate sourcing locations and

Consideration of Transportation and Shipment

Orders Cancelled (% of orders backordered)

Plan and Manage Allocations

Allocate quantities to key customers or regions, on

Simultaneous consideration of Product Allocation and

Expedited Transportation Spend (% of revenue)

APO Example: gATP Deployment success

Key Metric improvement example : Delivery to first commit. ( DTFC ) improved

global Available to Promise Executive Demo

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.