SAP for Wholesale Distribution: Enabling Profitable...
Transcript of SAP for Wholesale Distribution: Enabling Profitable...
SAP for Wholesale Distribution: Enabling Profitable Growth
Paul Pretko
Industry Principal, Wholesale Distribution
© SAP AG 2002, 2
Wholesale Distribution is Different
Enabling technology is required to drive profitable growth as the wholesale distribution
industry continues to consolidate
Profitable Growth
Disruptive Growth
Survival
TotalCompany
Value
Technology Adoption
© SAP AG 2002, 3
Different Business Issues
Increasing Profitability (ROA) by Addressing : Improve Gross Margins (Reduce COGS)
Need to take advantage of all order optimization (line buy) opportunitiesNeed to take advantage of all investment buy opportunitiesNeed to reduce days chargebacks and rebates outstanding
Increase RevenueNeed to reduce days sales outstanding and deductionsNeed to improve service levels and speed new product offering to marketNeed to charge for new value added services
Reduce Operating Expenses (60% is Payroll)Need to improve accounting and controlling process efficienciesNeed to increase warehouse productivity (50% of Payroll)Need to improve inventory turns
© SAP AG 2002, 4
Different Signature Processes
Procure to Pay
Inbound Logistics
•Purchase Pricing•Demand Planning•MRP•Strategic Sourcing•Purchase Order Mgt•Line Buy & Deal Buy•Receiving•Supplier Contracts•Rebates•Invoice Verification
Outbound Logistics
Order to Cash
Internal Processing
•Value Added Services•Sales Pricing•ATP & Allocation•Distribute-to-Order•Sales Order Mgt•Chargebacks•Returns•Warehouse Management•Backorder Processing•Customer Contracts
• Accounts Payable• Inventory Management• EDI Processing• Cost Management• Credit Management• Accounts Receivables• Mass Maintenance• Price Protection• Physical Inventory• DRP & Deployment
© SAP AG 2002, 5
and Different Challenges . . .
Source: Russell Reynolds
© SAP AG 2002, 6
. . . requiring Different Solutions
mySAP ERP
+
© SAP AG 2002, 7
SAP for Wholesale Distribution - Value Chain
PLANPLAN
SELLSELL
ANALYZEANALYZE
SOURCESOURCE
STORESTORE
OPTIMIZE
MARKET
mySAP Business SuiteScenarios=
= mySAP ERPScenarios
SAP forWholesale
Distribution
© SAP AG 2002, 8
SAP for Wholesale Distribution - Solution Map
Strategic Planning Strategic Enterprise Management Accounting Controlling Business Reporting Profitability Analytics
Sales & Marketing Account Management Marketing Customer
Service Field Sales Telesales Internet Sales Route Sales
Procure-to-Pay Management Supplier Management Product Management Self Service Procurement Procurement
Supply Chain Planning Strategic Planning & Optimization Demand & Supply Planning Advanced Planning Order Optimization
Order-to-Cash Management Sales Order Management Value Added Services Trade Management
Supply Chain Execution Direct Store Delivery Transportation Management Warehouse Management Fulfillment Planning
Business Support Financial Supply Chain Management Human Resource Management Commissions & Chargeback Management
© SAP AG 2002, 9
SAP NetWeaver in Wholesale Distribution
mySAP ERP
PPPP
SD IPSD IP
FI COFI CO
MMMM
WMWM
Commission
Inv
Time
Non SAP DisruptiveGrowth
Profitable Growth
SAP
Net
Wea
ver
© SAP AG 2002, 10
Non Durables Customer Examples
© SAP AG 2002, 11
Durables Customer Examples
AmericanAmericanWood Wood MouldingMoulding
© SAP AG 2002, 12
Myth Busting through References
Fact
On time and on budget
Personalized for their industry
Two-thirds of our customers are midsize
Flexible hosting options
Easy to configure (IMG & GUIXT)
SAP NetWeaver is an integration platform
Approx. 57% of ASUG members are midsize
61% of implementation take less than 9 months
Myth
Expensive to purchase
Very complex
Designed for very large companies
Requires a large IT staff
Inflexible
Hard to integrate with other applications
Smaller companies have no influence
Take to long to implement
“This was going to be the largest single investment in the companies history, and we wanted to make sure we selected the safest and most reliable partner for our future”
Ron Blevins, The Wolf Organization