Center for Enterprise Resource Planning (ERP) -...

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Center for Enterprise Resource Planning (ERP) Center for Enterprise Resource Planning (ERP) Company 2007 Revenue 2007 Market Share (%) 2006 Revenue 2006 Market Share (%) 2006-2007 Growth (%) Worldwide Supply Chain Management Software Revenue Estimates for 2007 (Millions of U.S. Dollars) Value Chain Network Complexity Value Chain Network Complexity SAP 1,334.4 22.4 1,011.6 20.0 31.9 Oracle 955.2 16.0 757.5 14.9 26.1 JDA Software 229.6 3.9 137.2 2.7 67.4 Ariba 160.3 2.7 150.7 3.0 6.3 Manhattan Associates 152.2 2.6 134.6 2.7 13.0 Others 3,131.5 52.5 2,878.5 56.8 8.8 Total 5 963 2 100 0 5 070 1 100 0 17 6 Managing Complexity Integrate and continuously SCM is coordination of d t/ t il if ti SD Sales & Distribution MM Materials Mgmt. PP Production Planning QM FI Financial Accounting CO Controlling AM Fixed Assets Mgmt. PS SAP Strategic Enterprise SAP B2B Procure- ment SAP Sales SAP Marketing SAP Service Info DB SAP CRM BW Functional Complexity Enterprise Complexity Ability to Manage Supply Chain Complexity Functional Complexity Enterprise Complexity Ability to Manage Supply Chain Complexity Total 5,963.2 100.0 5,070.1 100.0 17.6 improve: operational excellence Compress the supply chain to eliminate wasted time and inventory product/material , information and Payment flows. Five major SCM decision areas: 1. Location Decisions 9 Quality Management PM Plant Maintenance HR Human Resources PS Project System WF Workflow IS Industry Solutions Management Management Cockpit SAP Logistics Execution System SAP BI SAP SCM SAP APO BW Ability to Manage Supply Chain Relationships Integration Collaboration Synchronization Ability to Manage Supply Chain Relationships Integration Collaboration Synchronization Create new reserves to allow flexible response to the unexpected Managing Relationships Integrate technologies to extend into li d t 2. Production Decisions 3. Inventory Decisions 4. Transportation Decisions 5. Information Supply Chain intelligence consists of four basic analytical domains, each based on broadly defined set of supply chain functions. These domains are: Production Planning Transportation Planning Global ATP Collaborative Planning Demand & Supply Planning suppliers and customers Buy, build & borrow new capabilities from the best companies Supply chain human performanceengaging your people Build demand chain synchronization Inventory Analysis Procurement Analysis Supplier Production Analysis, and Sales and Logistics Analysis The domains map to the key functional areas where analytics can provide significant value Data Warehouse ERP CRM SEM Integration Layer Plug-In’s, Business Connector, APX, BAPI, XML, … liveCache InfoCube Solvers Online Store capabilities Main DC Plant 1 Prio 2 Capacity: 200 Prio 2 Prio 1 analytics can provide significant value. Store Plant 2 Supplier B Customer Japan Supplier A (Comp C) Demand: 300 Prio 2 Capacity: 400 Prio 1 Local DC Supplier B (Comp C&D) Customer Australia Demand: 500 Customer Collaboration Plan Supply Chain Performance Management Measure ERP Supply Chain Analytics Private Exchanges Vendor Customer Supplier Relationship Source Deliver Availability Check (ATP) Make Production Planning/ Demand Planning (DP) Supply Network Planning (SNP) Dyn. Supply Chain Coopply Chain Cooperation Private Exchanges Partners Supplier Collaboration Partner Partner Management (SRM) Scheduling agreement release (ATP) Transportation Planning (TP/VS) Detailed Scheduling (PP/DS) Supply Chain Event Management Monitor peration Dyn. Sup Shared Information Data source: SAP AG Gartner Group Principles and Tools for Supply Chain Management by Scott Webster 1st Edition 2008 McGrawHill Center for ERP Center for ERP Director : Dr. Bih Director : Dr. Bih-Ru Lea ([email protected]) Ru Lea ([email protected]) 107B Fulton Hall, Rolla, MO 65409 107B Fulton Hall, Rolla, MO 65409-0320 Phone: 573 0320 Phone: 573-341 341-6436 Fax: 573 6436 Fax: 573-341 341-4812 4812 Center Email: [email protected] Web: http://web.mst.edu/~erpcenter Center Email: [email protected] Web: http://web.mst.edu/~erpcenter Data source: SAP AG, Gartner Group, Principles and Tools for Supply Chain Management by Scott Webster , 1st Edition 2008. McGraw Hill

Transcript of Center for Enterprise Resource Planning (ERP) -...

Center for Enterprise Resource Planning (ERP)Center for Enterprise Resource Planning (ERP)

Company2007

Revenue2007

Market Share (%)

2006 Revenue

2006 Market

Share (%)

2006-2007 Growth (%)

Worldwide Supply Chain Management Software Revenue Estimates for 2007 (Millions of U.S. Dollars)

Value ChainNetwork

Complexity

Value ChainNetwork

Complexity

SAP 1,334.4 22.4 1,011.6 20.0 31.9Oracle 955.2 16.0 757.5 14.9 26.1JDA

Software229.6 3.9 137.2 2.7 67.4

Ariba 160.3 2.7 150.7 3.0 6.3ManhattanAssociates

152.2 2.6 134.6 2.7 13.0

Others 3,131.5 52.5 2,878.5 56.8 8.8Total 5 963 2 100 0 5 070 1 100 0 17 6

Managing ComplexityIntegrate and continuously SCM is coordination  of 

d t/ t i l i f tiSD

Sales &Distribution

MMMaterials

Mgmt.PP

ProductionPlanning

QM

FIFinancial

Accounting

COControlling

AMFixed Assets

Mgmt.

PS

SAPStrategic

Enterprise

SAP B2BProcure-

ment

SAP Sales

SAP Marketing SAP Service

Info DB

SAP CRM

BW

FunctionalComplexity

EnterpriseComplexity

Ability toManageSupply Chain

Complexity

FunctionalComplexity

EnterpriseComplexity

Ability toManageSupply Chain

Complexity

Total 5,963.2 100.0 5,070.1 100.0 17.6improve: operational excellenceCompress the supply chain to eliminate wasted time and inventory

product/material,  informationand Payment flows.

Five major SCM decision areas:

1. Location Decisions

9

QualityManagement

PMPlant

Maintenance

HRHuman

Resources

PSProjectSystem

WFWorkflow

ISIndustrySolutions

Management

ManagementCockpit

SAP LogisticsExecution

System

SAP BISAP SCM

SAP APO

BW

Ability to Manage Supply Chain RelationshipsIntegration Collaboration Synchronization

Ability to Manage Supply Chain RelationshipsIntegration Collaboration Synchronization

yCreate new reserves to allow flexible response to the unexpected

Managing RelationshipsIntegrate technologies to extend into 

li d t

2. Production Decisions3. Inventory Decisions4. Transportation Decisions5. Information

Supply Chain intelligence consists of four basic analytical domains, each based on broadly defined set of supply chain functions. These domains are:

ProductionPlanning

TransportationPlanning

GlobalATP

CollaborativePlanning

Demand & SupplyPlanning

S l

suppliers and customersBuy, build & borrow new capabilities from the best companiesSupply chain human performance‐engaging your peopleBuild demand chain synchronization pp y

‐ Inventory Analysis‐ Procurement Analysis‐ Supplier Production Analysis, and ‐ Sales and Logistics Analysis  

The domains map to the key functional areas where analytics can provide significant value

DataWarehouse ERP CRM SEM …

Integration LayerPlug-In’s, Business Connector, APX, BAPI, XML, …

liveCache

InfoCube

Solvers

Online

Store

capabilities

Main DCPlant 1

Prio 2

Capacity: 200

Prio 2

Prio 1

analytics can provide significant value. Store

Plant 2

Supplier B

Customer JapanSupplier A (Comp C)

Demand: 300

Prio 2

Capacity: 400

Prio 1

Local DC Supplier B (Comp C&D) Customer Australia

Demand: 500Customer

CollaborationPlan

Supply Chain Performance ManagementMeasure

D n

ERPSupply ChainAnalytics

Private

Exchanges

Vendor Customer

Supplier RelationshipM t

Source DeliverAvailability Check

(ATP)

Make

Production Planning/

Demand Planning(DP)

Supply Network Planning

(SNP)

Dyn. Supply C

hain Coop pp

ly C

hain

Coo

pera

tion

Private

ExchangesPartners

SupplierCollaboration

Partner Partner

Management(SRM)

Scheduling agreement release

(ATP)Transportation Planning

(TP/VS)

gDetailed Scheduling

(PP/DS)

Supply Chain Event Management

Monitor

peration

Dyn

. Sup

SharedInformation

Data source: SAP AG Gartner Group Principles and Tools for Supply Chain Management by Scott Webster 1st Edition 2008 McGraw‐Hill

Center for ERPCenter for ERPDirector : Dr. BihDirector : Dr. Bih--Ru Lea ([email protected])Ru Lea ([email protected])107B Fulton Hall, Rolla, MO 65409107B Fulton Hall, Rolla, MO 65409--0320 Phone: 5730320 Phone: 573--341341--6436 Fax: 5736436 Fax: 573--341341--4812 4812 Center Email: [email protected] Web: http://web.mst.edu/~erpcenterCenter Email: [email protected] Web: http://web.mst.edu/~erpcenter

Data source: SAP AG, Gartner Group, Principles and Tools for Supply Chain Management by Scott Webster , 1st Edition 2008. McGraw Hill