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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.
Legal disclaimer
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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
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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
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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
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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
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2015 SAP SE or an SAP affiliate company. All rights reserved. 7
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
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.
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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
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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
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Apply Flexible Sourcing and Substitution Strategies
Impact of Best Practice Adoptionon Performance
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
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Plan and Manage Allocations
Impact of Best Practice Adoptionon Performance
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
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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
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global Available to Promise Executive Demo
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2015 SAP SE or an SAP affiliate company. All rights reserved. 19
2015 SAP SE or an SAP affiliate company. All rights reserved. 20
2015 SAP SE or an SAP affiliate company. All rights reserved. 21
2015 SAP SE or an SAP affiliate company. All rights reserved. 22
2015 SAP SE or an SAP affiliate company. All rights reserved. 23
2015 SAP SE or an SAP affiliate company. All rights reserved. 24
2015 SAP SE or an SAP affiliate company. All rights reserved. 25
2015 SAP SE or an SAP affiliate company. All rights reserved. 26
2015 SAP SE or an SAP affiliate company. All rights reserved. 27
2015 SAP SE or an SAP affiliate company. All rights reserved. 28
2015 SAP SE or an SAP affiliate company. All rights reserved. 29
2015 SAP SE or an SAP affiliate company. All rights reserved. 30
2015 SAP SE or an SAP affiliate company. All rights reserved. 31
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
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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
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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
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SAP Integrated Business Planning for response & supply
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
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
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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
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
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
2015 SAP SE or an SAP affiliate company. All rights reserved. 37
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
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
PRELIMINARY AND SUBJECT TO CHANGE
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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
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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.
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Response and Supply OrchestrationExecutive Summary
Grow revenue with enhanced customer service,and operate with lower cost and inventories
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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
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Thank youMike Lipton
Supply Chain Management Solution ManagementSAP SE
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