SCM Software:SAP

Moses, Ali, John

AGENDA

- Introduction- Modules - SAP SCP- Cloud Computing - Target Market - Competitive Advantage - Market Analysis - The FUTURE of SCM - Questions

SCM Software Solutions The Essence of SCM Software in Supply Chain

Operations

Maintain Low Production Costs

Quickly Adapt to Customer needs

Make end-to-end chain of supply economical - Business Software Solutions (2015)

SAP SAP has actually stood for two separate things.

The original acronym at the company's founding was "System Analysis and Program Development,“

Which was later changed to “Systems, Applications and Products.”

by Mark Aspillera – June 3, 2013

SAP at a glance: Company information

SAP is the world leader in enterprise applications in terms of software and software-related service revenue.

Based on market capitalization, we are the world’s third largest independent software manufacturer.

Headquarters: Walldorf, Germany

Founded: April 1, 1972

More than 282,000 customers in 190 countries

74,406 employees worldwide – and locations in more than 130 countries (12/31/2014)

120 nationalities worldwide

nearly 80 nationalities at headquarters

A 42-year history of innovation and growth as a true industry leader

Annual revenue (IFRS) of € 17.56 billion

Listed under the symbol "SAP" on stock exchanges, including the Frankfurt Exchange and NYSE

Key SCM Features in SAP

- Supply Chain Planning

- SaaS Solution (Cloud Computing)

- On Premise Solution

- Inventory Management

- Order and Billing Management

- Logistics and Transportation

- Warehouse Management

- Real Time Supply Chain Visibility

- Supplier Collaboration

Modules in SAP

CO Controlling SD Sales and Distribution

MM Material Management

Production Planning

QM Quality Management

PS Project Systems

PM Plant Maintenance

HR Human Resources

Financial Accounting

Product Costing

Sales order Processing and

Monitoring Purchasing

Production Planning

Incoming Inspection

Project Planning

Maintenance Planning

Organizational Management General Ledgers

Periodic Allocations Shipping Inventory

Management

Production Order

ProcessingProcess

Inspection Project

Monitoring Breakdown

Maintenance Personnel

Administration Accounts Payable

Profitability Analysis Bill/Invoice Generation Inventory Valuation

Demand Management

Final / Delivery Inspection Project Costing

Preventive Maintenance fdsa Accounts Receivable

Cost Center Accounting Credit Management Vendor Evaluation

and Rating

Materials Requirement

Planning Quality Reports /

Certificates Milestone

Based Billing

Predictive Planning

Manamgement Personnel Cost

Bank and Cash Management

Profit Center Accounting Bill of Material

Invoice Varification

Shop Floor Control

Quality Notifications

Handling of WBS Elements

Planning Budgets

Budgeting and Monitoring

Pricing and DiscountsStatutory

Requirements

Capacity Requirements

Planning Payroll Benefits Compensation Withholding Tax

Statutory Requirements

Information System

Management Personnel Asset Accounting

Development Training and

Event Management Funds Management

Travel Management Treasury Management

SAP R/3 Major Modules

Source : Developed by Group 1 Members, SCM, Spring Semester 2015

SCM Modules

Source : Wang, W. (2012). Supply chain management systems benefits: the expectation-confirmation theory perspective.

Supply Chain Planning

With SAP SCM, Organizations can model their existing supply chain structures and set goals.

Wang, W. (2012). Supply chain management systems benefits: the expectation-confirmation theory perspective.

Supply Chain Planning SCP includes seven key functional capabilities that are able to support and integrate processes of:

- Sales and operations planning (S&OP)

- Demand planning

- Inventory planning

- Replenishment planning

- Order processing

- Production planning

- Manufacturing scheduling

SCM CLOUD COMPUTINGWhy ?

REASONS :

Reduction of costs

Universal access

Continuous Up to date software

Flexibility in the choice of applications.

Yes SAP uses cloud computing….

TARGET MARKET

SAP target Market includes :

- Oil and Gas

- Manufacturing

- Pharmaceutical

- Mining

- Wholesale and Distribution

- Retail

- Entertainment e.g Sports

Sizes of Industries Small Scale companies

Medium Scale companies

Large Corporations

Transnational

Competitive Advantage * Out of 20 major SCM software, only four other

companies offer SCM, WMS, MES/WMP and TMS.

Market Competition

http://www.mmh.com/article/top_20_supply_chain_management_software_suppliers_2014

http://www.forbes.com/sites/greatspeculations/2014/09/18/sap-cloud-sales-should-benefit-from-growing-saas-erp-and-scm-offerings/

Opportunities through Cloud Computing offering and Business Analytics

• Major acquisition, Interms of Business analytics and Cloud computing

• Ariba and Fieldglass

• Ariba is a cloud-based procurement company that helpsbusinesses cut costs and grow sales through better collaboration with trading partners

• Fieldglass is a vendor management system operator that provides temporary workforce requirements to businesses.

http://www.forbes.com/sites/greatspeculations/2014/09/18/sap-cloud-sales-should-benefit-from-growing-saas-erp-and-scm-offerings/

http://clearwaterinternational.com/wp-content/uploads/2014/07/Global-SCM-Software-Market-Report.pdf

SWOT

Strength

Internal External Strength :

• The bundled offering combines CRM, ERP, HCM, PLM and SCM software packages in the Business Suite and provides businesses with an all-in-one package to capture and analyze data points from various departments powered by the in-memory HANA platform.

• Bundled Offerings Boost Customer Adoption• Customer Services and Powerful APO engine

for Supply chain planning.

• SAP reported having more than 1,200 customers on Business Suite powered by SAP HANA with large customer wins such as eBay, Siemens, Bosch, Carlsberg and Giorgio Armani.

Opportunities:

• Cloud computing would allow SAP to break into the small scale markets in the nearest future

• Lots of professional users

Weakness:

• Each customer has a much larger and complex IT footprint than a suite of products tailored to a specific industry

• Without the ERP solution, SAP SCM becomes a less likely candidate

Threats :

• Uncertainties regarding SAP HANA adoption.

http://www.forbes.com/sites/greatspeculations/2014/07/15/sap-q214-preview-cloud-revenues-and-operating-margins-in-focus/

FUTURE This new strategy, centered on supporting more global,

complex and volatile supply chains, merges cloud, in-memory computing, mobile, scale, speed, multi-enterprise networks, and new integrated planning and execution paradigms

REFERENCES Business Software . (2015, January). SCM Software Solutions . Retrieved March 5, 2015, from Business Software: http://www.business-

software.com/search/?q=SAP

Business Software Solutions . (2015, January). What does SAP Mean? Retrieved March 5, 2015, from Business Software: http://www.business-software.com/question/what-does-sap-mean/

Clearwater International. (2014, December). Global Supply Chain Management Software report. Retrieved March 3, 2015, from Clearwater International report: http://clearwaterinternational.com/wp-content/uploads/2014/07/Global-SCM-Software-Market-Report.pdf

E-Science City. (2014, March). Why Use Cloud? Retrieved March 7, 2015, from Cloud Lounge: http://www.cloud-lounge.org/why-use-clouds.html

Forbes Inc. (2014, September 8). SAP Cloud Sales Should Benefit From Growing SaaS ERP And SCM Offerings. Retrieved March 9, 2015, from Forbes: Investing: http://www.forbes.com/sites/greatspeculations/2014/09/18/sap-cloud-sales-should-benefit-from-growing-saas-erp-and-scm-offerings/

Gartner Incorporated. (2015, January). SAP's New SCM Strategy Puts Hana in the Spotlight. Retrieved March 2, 2015, from Gartner: https://www.gartner.com/doc/2701717/saps-new-scm-strategy-puts

Good Logo Inc. (2011, October). SAP. Retrieved March 9, 2015, from Good Logo: http://goodlogo.com/extended.info/sap-logo-2789

Kumar, A. (2014). About SAP Modules. Retrieved March 4, 2015, from SAP Online Tutorials : http://www.saponlinetutorials.com/about-sap-modules-sap-modules-list-overview/

Payne, T. (2014). What is Demand Driven. In G. Reports, My Purchasing Centre (p. March). Chicago, http://www.mypurchasingcenter.com/files/1214/0312/0554/newlevelsofprecisionvisibility_11459667.pdf: Blue Ridge.

SAP. (2010). Our Compnay. Retrieved March 3, 2015, from SAP Corporate : http://www.sap.com/corporate-en/about/our-company/index.html

Wang, W. (2012). Supply chain management systems benefits. In W. Wang, The expectation-confirmation theory perspective.

QUESTIONS ?

THANK YOU