Whats New and Coming Soon Slides

2015 SAP SE or an SAP affiliate company. All rights reserved. 1

SAP Supply ChainSAP Order Promising and Response Planning Update

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

Every Second Counts!

2014 SAP AG. All rights reserved. 2Internal

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without thepermission of SAP. This presentation is not subject to your license agreement or any other service or subscriptionagreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any relatedpresentation, or to develop or release any functionality mentioned therein. This document, or any related presentationand SAP's strategy and possible future developments, products and or platforms directions and functionality are allsubject to change and may be changed by SAP at any time for any reason without notice. The information in thisdocument is not a commitment, promise or legal obligation to deliver any material, code or functionality. Thisdocument is provided without a warranty of any kind, either express or implied, including but not limited to, the impliedwarranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informationalpurposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in thisdocument, except if such damages were caused by SAPs willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differmaterially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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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 NetworksTransform Supply Chain & Logistics into Demand Networks

Planning MattersAggregated 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 chainBusiness Concept: Business Networks

Fulfill to PleaseAbout 10%* of world-wide GDP is related to Logistics spendingBusiness Concept: Connected Logistics PLAN RESPOND DELIVER

*Source: Several SAP Benchmarking Reports and Industry Analyst Reports



Response and Supply Management

Enable companies to re-plan supplyand match supply to demandacross the network quickly andresponsively.

Order Promising

Provide real-time order commitmentsbased on allocated material & capacity.

Response Planning & Allocation Management

Respond quickly with fast, rules-drivenplanning, re-planning and Simulation.

Replenishment & Deployment Planning

Enable intelligent staging of inventoryacross all locations and automatereplenishment and deployment.

Manufacturing Network PlanningPlan production and procurementacross the extended supply network.

Higher On-time DeliveryWith integrated material and capacityorder promising

Shorter Lead TimesWith flexible rules-driven supply-demand matching

40%

5,6%

* Source: SAP ASUG Benchmarking Survey


Demand NetworksCustomer Centricity Demand Networks Plan/Respond/Deliver

Sales, Inventory and Operations Planning Demand Management Demand Network

Response and Supply Management Production Planning and Scheduling Response Network

Warehouse Management Transportation Management Logistics Network

man

aged

clou

d

public cloud

on-premise

Plan Respond Deliver

SAP HANA Platform

SAP Business Suite 4 HANA

Plan Respond Deliver

Real-time Network Insights



Agenda



gATP mini-demo 5



Q/A 10

Wrapup

2015 SAP SE or an SAP affiliate company. All rights reserved. 8 2014 SAP AG or an SAP affiliate company. All rights reserved. 8

gATP Solution At a Glance

Business Requirement Solution

What is customers pain?n Inaccurate delivery datesnHigh order processing costs and timenLong order to cash cyclesnSlow response to demand and supply changes

What are customers needs?nAccurate and reliable order promise datesnStreamlined order fulfillment processnReduced finished goods inventorynAnalyze order confirmation overview and quickly drill down to

problematic areas

Business KPIsn Increased customer satisfactionn Improved order fill ratesnEffective sourcing across entire supply networknReduced logistic costs

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 ProcessesnRule Based Availability Check for flexible sourcing and substitutionnBatch and Interactive Backorder ProcessingnProduct Allocationn Multi-level ATP for MTO/CTO order promising based on

componentsn Capable to Promise for capacity-based order promisingnAdvanced Operational Analytics

The global ATP ensures the availability of a requested product at the requested time in thequantity requested by the customer.


Selected global Available to Promise Use Cases

Call Center

Take orders online and commit in real-time

Simultaneous order promising for multipleorders for same product

Web or MobileChannel

Fast queries of available to sell forwebpage

Omni Channel

Order from one channel; fulfill fromanother channel

MeasurePerformance

Review real-time order commitmentanalytics

Process high-volume orders

Receive orders in batch via EDI andcommitting in batch (daily or subdailycycles)

BacklogManagement

Periodically processing backlog to adjust for customerpriorities and changing supply situation

B2B B2C

B2B B2C

B2B

B2B B2C

B2B B2C

B2B B2C


Respond Quickly and Accurately to Orders

Impact of Best Practice Adoptionon Performance

Organizations where intelligent commitments(e.g., based on inventory, manufacturing andsupply constraints) can be made to accuratelyschedule delivery dates in real time, to fulfillorders have on average 38% fewer OrdersBackordered (in %) (MTS)

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.

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

Make order commitments in real time when ordersare captured online or in call-centers

Make order commitments in batch mode overnight,according to customer prioritization rules, when ordersare captured via B2B

Automatic backorder processing is set up to managebacklogs effectively, according to customer priorities


Apply Flexible Sourcing and Substitution Strategies


Organizations where intelligentcommitments (e.g., based on inventory,manufacturing and supply constraints)can be made to accurately scheduledelivery dates in real time, to fulfill ordershave on average 32% fewer Orders Cancelled(% of orders backordered)

Orders Cancelled (% of orders backordered)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.

Driven by rules, alternate sourcing locations andproduct substitutions can be offered

Consideration of Transportation and ShipmentScheduling time


Plan and Manage Allocations


When the product is in limited quantity,organizations are able to prioritize customers,commit an allocation quantity and then honorthat commitment as product becomesavailable thus having an average 24% lowerExpedited Transportation Spend (% ofrevenue)

Expedited Transportation Spend (% of revenue)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 Supply Chain Planning Benchmarking Survey, covering more than 370 companies across 20 industries.

Allocate quantities to key customers or regions, ondefined logic (vs. first-come, first served logic).

Simultaneous consideration of Product Allocation andProduct Availability


APO Example: gATP Deployment successTransformation 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


global Available to Promise Executive Demo


Agenda



gATP mini-demo 5



Q/A 10

Wrapup


SAP Supply Chain Planning VisionKey Benefits of the New Simplified and Harmonized Solution Architecture

Connected planning processesBreak down planning silos through connected and integrated planningprocesses

Faster planning cyclesReact faster to changes in the business through less integration,one user experience

One consistent data modelOne single source of truth, avoiding any latency due to integration efforts andleveraging the SAP ERP data model

State-of-the-Art business processesLeverage new technologies to enable new business processes with highlyflexible UIs

Leverage end-to-end visibilityEnd-to-end visibility on tactical, operative and execution level Demand Inventory Supply Response

Sales & Operations Planning

Supply Chain Control Tower

SAP HANA Platform


Integrated Business Planning and Supply Chain MonitoringAvailable and Planned Products

man

aged

clou

d

public cloud

on-premise (future)

Mobile-Enabled User Experience

IBP for demand

IBP forsales and operations

IBP for response & supply

SAP HANA Platform

IBP for inventory

Supply Chain Control Tower AVAILABLE

AVAILABLE

AVAILABLE

AVAILABLE PLANNED

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 providedwithout 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

Integrated Business Planning (IBP)

Supply Chain Monitoring

IBP for supply

AVAILABLE


SAP Integrated Business Planning for response & supply


Fast, flexible supply planning supporting a variety ofapproaches, suitable for many industries, including 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 demandand/or supply

Pegging and gating-factor analysis

Constrained optimization, constrained priority rules-drivenheuristic, and/or unconstrained demand propagation

Optionally generate and provide allocations to ATP andreschedule sales orders

Production and distribution (deployment) use cases

DemandInventory

Response & Supply

Sales and OperationsSupply Chain Control Tower

PLANNED

2015 SAP SE or an SAP affiliate company. All rights reserved. 3535 2014 SAP SE or an SAP affiliate company. All rights reserved.

Rules

Demand Prioritization

Supply Sourcing

Fair-Share

Allocation

Fast

Rules-driven

Heuristic

Supply-Demand Match

Scenarios,

What-If Analysis

Demands(forecasts, orders)

Supply(material, capacity)

Order Commits

Supply Proposals

Allocations

OrderPromising

Response Management: Key capabilities


2015 SAP SE or an SAP affiliate company. All rights reserved. 3636 2014 SAP SE or an SAP affiliate company. All rights reserved.

Make to Stock - Different Roles / Different Views

Plant orhub DC

DC

DC

DC SpokeDC

customer

customer

customer

Supply Planner Fulfillment Manager


Roadmap: Response and Supply Planning

Available Planned Future

SupplyPlanningandSimulation

SAP APO Supply Network Planning Optimization, Heuristic, Priority-

Based Heuristic (capable to match) Production, Deployment planningSAP APO global Available toPromise Global rules-based order promising Component level order promising Capable to promiseIntegrated Business Planning forsupply 5.0 Interchangeability at any level Aggregated optimizer constraints Target Days of Supply Version specific master and

transactional data User specific simulation scenarios

Integrated Business Planning forresponse & 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 Orderconfirmation updates

Integrated BusinessPlanning for response &supply x.x Optimizer for order-based

planning Capacity constraints Deployment planning Multiple transportation

methods per lane, withspecific lead times

Characteristics-basedplanning

Product & Locationsubstitution

Pull-based replenishment Configured products


PRELIMINARY AND SUBJECT TO CHANGE


ATP Roadmap

HANA incl.Live-Cache

ERP

APO-gATP

HANA

Info-Center

SAP FIORI

CIF

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 anykind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

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)

Planned 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/non-

HANA, own instance/co-deployed with ERP)

Future 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

HANA incl.Live-Cache

ERP

APO-gATP

HANA

Info-Center

SAP FIORI

CIF

IBP forResponse

Allocations

ERP

HANA

AdvancedATP/HANA

SAP FIORI

IBP forResponse

Allocations

CtrlTowerHANA HANA

APO gATP option continues for customers withstrong APO foundation and non Hana

PRELIMINARY AND SUBJECT TO CHANGE


Executive Speed Demo

Internal link: http://iwdfvm4772.wdf.sap.corp:8080/speeddemo/demo/116230

External link: http://demo.tdc.sap.com/SpeedDemo/ab6031027613ab53

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.


Response and Supply OrchestrationExecutive Summary

Grow revenue with enhanced customer service,and operate with lower cost and inventories


5.6% Higher On-time DeliveryWith integrated material and capacity orderpromising *

20% Reduced Stocks levels & WIPWhere customer due dates are integratedwith real time manufacturing conditions *

* Source: SAP ASUG Benchmarking Survey

15% Lower Lead TimesWith concurrent material and capacityconstrained planning

50% Improved EfficiencyVia real-time integrated suppliercollaboration

20% Lower InventoryWith automated collaborativecustomer replenishment


Thank youMike Lipton

Supply Chain Management Solution ManagementSAP SE

[email protected]


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