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Week 1: Supply Chain Setup

Unit 1: Introduction to SAP Business ByDesign


Introduction to SAP Business ByDesign Human
Financials
Meet SAP Business ByDesign – An end-to-end cloud suite Resources
for your growing business

▪ Turn growth potential into real results


▪ Connect core functions and people to time-
tested best practices
▪ Get the foundation to scale and compete
without the complexity and cost CRM Integrated Supplier
▪ Grow your business your way Cloud Suite

Supply Project
Chain Management

+ Solution Extensions
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Introduction to SAP Business ByDesign
SAP Business ByDesign is the platform that growing businesses trust

Suite in a Box Insightful Built for Growth Continuous Innovation

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3


Introduction to SAP Business ByDesign
SAP Business ByDesign – Flexibility to adapt and extend

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


Introduction to SAP Business ByDesign
SAP Business ByDesign – In over 120 countries
Examples of Partner
SAP Delivered Countries SAP Tax Basic and Customer Localizations
Australia France Denmark ▪ More than 90 countries
Austria Germany Switzerland ▪ Basic tax codes Albania Ecuador Oman

Italy
▪ Tax number validation Algeria El Salvador Panama
Belgium Netherlands
India
▪ Generic tax return
Canada New Zealand Bahrain Guatemala Peru

China South Africa Spain Belarus Guinea Poland

Japan UK Bosnia Honduras Qatar

Mexico U.S. Bulgaria Kazakhstan Romania

Chile Kuwait Serbia


Algeria Norway Sweden
SAP Pre-localized Columbia Lebanon Slovenia
Egypt Finland Lithuania
Enhances Tax Basic by: Costa Rica Montenegro Sweden
▪ Default country scoping Morocco Latvia Estonia
Croatia Morocco Ukraine
▪ Additional tax codes Kuwait Greece Hong Kong Thailand
Czech Rep Egypt
▪ Withholding tax (if applicable)
Romania UAE Thailand
▪ Customer-facing forms
▪ Country specifics (if applicable)
Malaysia* Singapore*
On Roadmap Plan*
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5
Introduction to SAP Business ByDesign
Supply chain management with SAP Business ByDesign

Inter /Intra
Shipping Receiving Production Company
6 1

3
2

5 Customer Manufacturer Supplier

3 4
3PL

Pure Picking Rack/High Rack

Internal Supply Chain External Supply Chain

Goods & Financials Value Chain

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6


Introduction to SAP Business ByDesign
Supply chain management with SAP Business ByDesign – Part of the modeled business process platform

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7


Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 1: Supply Chain Setup
Unit 2: Solution Overview
Solution Overview Human
Financials
An end-to-end cloud suite for your growing business Resources

▪ Turn growth potential into real results


▪ Connect core functions and people to time-
tested best practices
▪ Get the foundation to scale and compete
without the complexity and cost CRM Integrated Supplier
▪ Grow your business your way Cloud Suite

Supply Project
Chain Management

+ Solution Extensions
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Solution Overview
Supply chain management business scenarios

Main Scenarios: Additional Scenarios:


▪ Order-to-Cash ▪ Demand Planning
▪ Make-to-Stock ▪ Materials in Projects
▪ Procure-to-Pay ▪ Physical Inventory Management
▪ …

Order-to-Cash
Handling an Creating Creating Creating Initiating Processing Creating Processing
Incoming Sales Sales Sales Outbound Outbound Customer Receivable and
Customer Quotes Contract Orders Delivery Delivery Invoices Payments
Inquiry

Marketing-to- Creating Down Processing Processing


Opportunity Customer
Payment Request- Receivable Inspections Returns
Customer and Payments
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3
Solution Overview
Functional scope

Sales Service Demand Project


Planning Management

Supply Inventory
Supply Chain Valuation
Planning and Finance
Design and Product
Control
Costing

Warehouse Quality
Production Purchasing
Management Assurance

SCM
only

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


Solution Overview
Connecting business scenarios with functions

Procure-to-Pay

Processing
Processing Processing Processing Inbound Processing Processing Processing
Planning Initiating Purchase Requests for Purchase Delivery Inbound Supplier Receivables and
Supply Purchasing Requests Quotations Orders Notifications Deliveries Invoices Payments

Supply Planning Warehouse


Purchasing Management Purchasing Finance
and Control

Quality
Assurance
Processing
Inspections

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


Solution Overview
System demo

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6


Solution Overview
Solution principles

Consider the Complete Supply Chain: Work Efficiently:


▪ Demand and supply transparency across ▪ Automated work distribution and uniform
all locations task execution
▪ Multi-level supply chain from supplier to ▪ Process automation via mass data runs
customer ▪ Exception-based planning and execution
▪ Out-of-the-box intercompany processes monitoring

Integrate the Value Chain: Leverage the Ecosystem:


▪ Cost transparency (planned and ▪ Out-of-the-box integration to other supply
actuals) chain parties (e.g. shipping service
▪ Up-to-date inventory valuation providers, 3PL)
▪ Tight process integration to Financials ▪ Multiple interfaces to other solutions (e.g.
E-Shop, CAD)
▪ Built-in and side-by-side solution
adaptation capabilities
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7
Solution Overview
Summary

▪ Business scenarios overview


▪ Functional scope overview
▪ How to change solution scope
▪ Solution principles

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8


Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 1: Supply Chain Setup
Unit 3: Modeling the Company
Modeling the Company
Supply chain entities – Company and business residence

Business
Residences of
Company Almika
Business
Residence of
Company Innovat

Headquarters

Warehouse

Production

Sales

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2


Modeling the Company
Organizational management overview

Holding
Organizational unit definitions:
▪ Company
▪ Business residence ( site) Company Company
Almika Innovat

Organizational unit functions: Business


Business
▪ Reflect what org unit does Residence
(…) Residence /
Sales Org
▪ Integrate an org unit into a business process

Sales Org / Business


Sales Unit Residence
Organization
Function
Sales Unit Definition
Function & Definition

Unified Organizational Structure


© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3
Modeling the Company
System demo

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


Modeling the Company
Materials, services, assets

Tangible ‘things’ Intangible ‘things’


Supply Chain Materials Other Materials Service

Office
Finished material
goods
Fixed Assets
Intermediate / Inspections Consulting
component Equipment
Fixed Asset
Raw
Notebooks
material Software

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


Modeling the Company
Tangible ‘things’

Supply Chain Materials: Fixed assets:


▪ Inventory managed (warehouse) ▪ Managed in fixed asset inventory
▪ Value based on quantity in stock ▪ Value reduced over time (depreciation)

Office supply, consumables:


▪ Non-inventory managed
▪ Directly expensed (costs)

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6


Modeling the Company
Tangible ‘things’

Supply Chain
Materials:

▪ Inventory managed Fixed assets:


(warehouse) ▪ Managed in fixed
▪ Value based on asset inventory
quantity in stock ▪ Value reduced over
time (depreciation)
Office supply,
consumables:
▪ Non-inventory managed
▪ Directly expensed (costs)

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7


Modeling the Company
System demo

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8


Modeling the Company
Summary

▪ Org unit definitions and functions


▪ Materials, services, and fixed assets
▪ Material master data
▪ Grouping of materials for different purposes

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9


Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 1: Supply Chain Setup
Unit 4: The External Supply Chain
The External Supply Chain
Business partners in the supply chain Externally
Managed (3PL)

Business
Residences of
Company Almika
Business
Residence of
Company Innovat

Headquarters

Warehouse

Production

Sales

Freight
Customer
Forwarder
Supplier

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2


The External Supply Chain
Business partners in SAP Business ByDesign

Business Partners Business Partner Roles

Account
Service Agent
Person Contact
Supplier Roles
(…)

Supplier
Account Freight Forwarder
Supplier Warehouse Provider
Organization (…)
Bidder

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3


The External Supply Chain
Business partners and company

Both companies modeled in same tenant Company modeled outside


same tenant

Company Company
Almika Innovat
Business Partner:
Supplier Account

Account Supplier Account Supplier


Partner Company

Sell / Buy (Intercompany)

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


The External Supply Chain
System demo

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


The External Supply Chain
Distribution network and ship-from determination

Business
Residences of
Company Almika
C Shipment of
Goods

Headquarters
A
Warehouse

Production
B
Sales

Customer

Supplier

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6


The External Supply Chain
Transport zones and lanes

Transport ∑ Countries, regions, postal codes


Zone ∑ Individual customers

2 days Transport lane from site to transport zone 


Shipment of goods to customers

3. Allowed products?
1 2 4. Product masters per site? Use case 1
5. Priority?

1 day Transport lane between two sites 


intracompany stock transfer
Use case 2

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7


The External Supply Chain
System demo

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8


The External Supply Chain
Summary

▪ Business partner types and role concept


▪ Relationship between company and business partner
▪ Partner company concept
▪ Distribution network using transport zones and lanes

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9


Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Week 1: Supply Chain Setup
Unit 5: The Internal Supply Chain
The Internal Supply Chain
1 Unload & Check
Material movements within a site 2 Put Away
3 Replenish
4 Remove
5 Pick
6 Load

Shipping Receiving Production


6 1

3
2

3 4

Pure Picking Rack/High Rack

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2


The Internal Supply Chain
From simple to sophisticated modeling

▪ Process Automation
▪ Efficiency Shipping Receiving Production
1
▪ Human Errors 6
▪ Transparency 3
▪ Effort 2

Warehouse Production 3 4

Pure Picking Rack/High Rack

Location Layout &


© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Logistics Model 3
The Internal Supply Chain Site
Location layout – Overview

Storage
Location = Production Equipment
= Logistics Area (LOA)
= Inventory-Managed LOA

Layout

Warehouse Production

Goods Receipt Goods Issue Aisle 1 Aisle 2 Prod. Area 1 Prod. Area 2

Bin 1.1 Bin 2.1 Supply Supply

Bin 1.2 Bin 2.2


Output
Bin 1.3 Bin 2.3
Drill Press Assembly Machine

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4


The Internal Supply Chain
System demo

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5


The Internal Supply Chain
Modeling of logistics processes

1. Example: ‘Ship goods to customer’ 2. Example: ‘Bring components to production supply area’

Logistics Model: Site P1100, Type Standard Logistics Model: Site P1100, Type Replenish
Shipping

Pick Load Replenish

Layout Layout

Storage Shipping Staging Storage Replenishment Rules

Logistics Use = Logistics Area


© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6
The Internal Supply Chain
Source and destination LOA determination rules Site Material Flow
Rules (MFR)

Use case Logistics Model Layout


‘One-step shipping’: Pick
LOA MFR

Storage LOA
LOA
Use MFR on site
LOA

Use case LOA


Logistics Model
‘Replenishment’: LOA
Replenish
LOA
Storage Replenishment Rules
LOA MFR
Use MFR of lowest possible LOA (…)

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7


The Internal Supply Chain
System demo

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8


The Internal Supply Chain
Summary

▪ Location definitions
▪ Location layout
▪ Logistics model and interaction with location layout
▪ Material flow rules

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9


Thank you.
Contact information:

open@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

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