Using Sales Proposal Manager to Drive Order Management Process at The Estée Lauder Companies

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1 Orange County Convention Center Orlando, Florida June 3-5, 2014 Using Sales Proposal Manager to Drive Order Management Process at The Estée Lauder Companies Paul Keraga The Estée Lauder Companies Viktor Szekeres - Joint Consulting Inc.

2 Introduction - Presenters Paul Keraga The Estée Lauder Companies Director of SAP Solutions Event and Order Management Global Solutions Architect 14+ years of designing and implementing SAP solutions SMI Global Deployment 38 Countries OTC, D2B, P2P, B2R, C2M, D2R Viktor Szekeres Joint Consulting Inc. Solutions Architect / Developer 19+ years of designing and implementing SAP solutions SMI Global Deployment

3 The Estée Lauder Companies Overview Founded in 1946 Corporate Headquarters in New York ELC products are sold in more than 150 countries and territories 40,000+ Employees Revenue 10.2B* Prestige beauty company with more than 25 brands Skin Care Makeup Fragrance Hair Care *Figures are as of FY13

4 LEARNING POINTS How can we maximize the ROI to the business and deploy best practices? Increase Fill Rate Meet / Exceed Customer Expectations Maximize the potential of our SAP investment How can we increase efficiency to unlock trapped costs? Management of Exceptions Only Alignment of Critical Dates and Processes Reduce Duplicate Shipments to Customers How can we improve the user experience in SAP? Reduce Key Strokes Improve Interface Access to Information

5 Challenge In Sales Order Management, orders are received / created from a variety of methods: EDI Interfaces Manual Creation System Generated In addition orders can be received from a variety of sources: Global Affiliates Internal and External Systems Many Channels Customers, Consumers, Partners, Employees

6 Challenge cont d Complex rules need to be applied to the data: ELC has a High Touch company with a lot of business complexity with the ways we go to market Split / Combine Validate Edit Transform Process is often done in systems and processes external to SAP: Pre-validation / Satellite Systems Different Systems Depending on the Channel B2B, B2C Increase in Support Cost Process is in the hands of IT, Not the Business Middle Ware / Mapping Applications

7 Key Success Factors Key Success Factors: Enablement of the Business to Manage The End to End Order Cycle Standardization of Business Processes and Systems Scalable and Flexible to Meet Global Requirements Provide Better Business Capabilities Ensure a High Level of Consistency No Matter How the Order was Received Management of Exceptions only Empower the Business Users by Providing simple and powerful User Experience Tight Integration with Existing Functionality Centralize Business Logic Reduce System Topology Leverage core SAP investment whenever possible (maximize its potential)

8 Options Reviewed Keep / Expand Local Satellite Systems Build logic in Global pre-sap System Build Logic in Middleware Build a lot of SAP User-Exits / Point Solutions Sales Proposal Manager (SPM) Decision Matrix

9 Sales Proposal Manager SPM Sales Proposal Manager (SPM) Business Centric Console Seamless to the User (Look at Feel like SAP) Installed and Managed directly inside SAP ECC Centralized Business Logic Highly Configurable and Flexible Tightly integrated into other core applications Leverage Standard Master Data and Functionality Capable of being interfaced from external systems or called from internal processes

10 SPM Solution Components Solution Components SPM Console Management Reporting Configuration Data Model and Business Logic Authorization Objects Supporting Functions Function Modules Management Tools Supporting Programs

11 Sales Proposal - Concept Sales Proposal A container or transaction containing a group of sales data that will be manipulated and modified according to business rules and finally posted as sales transactions. Sales Order RFC Sales Proposal Level: SP Header SP Orders SP Items Note Each Level Has Its Own Status

12 SPM High Level Functionality Receive Sales Order Data Data Locking and Status for Guaranteed Delivery Simple Create Batch Create Accept all data Create Sales Order Data Quick Order Entry Mass Order Create Excel Upload Excel Mapper Copying and reusing existing data

13 SPM High Level Functionality cont d Special Processing Material Number Conversion (i.e.. UPC to SAP Material Number) Substitutions Pre-Processing Splitting Simple Split Complex Split Order Type / PO Number Rules

14 SPM High Level Functionality cont d Edits and Validations Validate Business Rules Trigger a specified outcome Applied in both SPM and manually created / changed orders (VA01 / VA02) Translation Translates Values that are received and entered into other values Posting Creation of sales order based on Sales Proposals Timing and method is configurable Parallel Processing Post Processing

15 SPM High Level Functionality cont d Messaging Capture Messages Translate Messages Send Messages Reporting SPM Operational Reporting Proposal Overview Proposal Detail Open to Buy Date Model Available to extract to BI Transactional Data Captured

16 SPM High Level Concept Flow SAP SPM Material Conversion External Sales Data Internal Sales Data Sales Proposal Data (Sales Proposal) Order Splitting PO Rules Edits and Validations Sales Orders SPM Generated Sales Data Translation Posting

17 SPM Console EDI Example High Level Flow Customer 1 16 Send EDI Receive Message Customer Service 8 Search for Sales Proposal by Status/ Notifications 9 Review and Correct and needed 15 Receive Message SAP 12 Sales Orders Created SAP - SPM 2 Sales Proposal Created 3 Special Processing (Material Conversion, Apply PO Number etc.) 4 Preprocessing 5 Splitting 6 Order Type /PO Rules 7 Edit and Validation 10 Posting 11 Translation 13 Post Processing 14 Messaging

18 SPM Console

19 SPM Console EDI Example Search

20 SPM Console EDI Example Search

21 SPM Console EDI Example cont d Sales Order Data Received Material Conversion Splitting Edits and Validations

22 SPM Console EDI Example cont d Sales Order Data Received Material Conversion Splitting Edits and Validations

23 SPM Console EDI Example cont d Posting Post Processing

24 SPM Console EDI Example cont d Posting Integration of SPM Data into Sales Order Transaction

25 SPM Console EDI Example cont d Post Processing Messaging

26 SPM Console EDI Example cont d Administrative Data

27 SPM Console EDI Example cont d Change History SPM Data Available and used by other processes and Reporting in SAP

28 SPM Console Review Required Example Search for Proposal By Status

29 SPM Console Review Required Example cont d Search for Proposal By Status

30 SPM Console Review Required Example cont d Correct Issues

31 SPM Console Review Required Example cont d Correct Issues

32 SPM Console Review Required Example cont d Post Sales Proposal

33 SPM Console Manual SPM Creation Manual Sales Proposal Creation Quick Order Entry Mass Order Create Excel Upload Excel Mapper Copying and Reusing Existing Sales Proposal Copying existing Sales Orders

34 SPM Console Excel Example

35 SPM Console Excel Example cont d

36 SPM Console Excel Example cont d

37 SPM Console Excel Example cont d

38 SPM System Integration Internally Generated Sales Proposals Sales Order Mass Change Manager Event Management Console POA Manager Document Distribution Console SD Processes i.e. Outputs, Reporting BI

39 Integration - Sales Order Mass Change Manager

40 Integration - Event Management Console

41 Integration - POA Manager

42 Integration Document Distribution Console

43 Delivering on Key Success Factors Business Enabled End to End of Sales Order Cycle Exception Processing is in the Hands of the Business not IT (Presentation of Business Data Not Technical Data) Transaction Cost Reduction Increase Service to Customer Deployed Globally One Global Process One Global Tool Centralized Business Logic Greatly Reduced System Topology Consistency across Processes Millions of Sales Proposals Processed Tightly Integrated with Strategic Applications and Process Leveraging core SAP investment Positive Feedback from user community Ease of Use Management of Exceptions Focus on the Business not repetitive transactions

44 KEY LEARNINGS Design / Implement solutions with a Global Perspective Design for future growth and requirements Configurable Solution Reusable components Always Consider the User Experience Standardize global processes Reduces System Complexity Reduces User Training Integration through core SAP

45 Other Solutions Examples to Underscore Key Learnings Sales Proposal Manager Interactive Output Manager Event Management Console Sales Order Mass Manager Product Allocations Workbench Cash Applications Console Document Distribution Console POA Manager Points Management Console

46 Questions Questions and Answers

47 Contact Information Paul Keraga Viktor Szekeres

48 FOLLOW US

49 THANK YOU THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 1305 For ongoing education on this area of focus, visit

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