SAP Sales and Operations Planning Software Product (xsop)

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1 SAP Sales and Operations Planning Software Product (xsop) Ray Adams IBU Chemicals March 20 th, 2007

2 S&OP Overview Functions in xsop Demonstration Wrap-up

3 Why is Sales & Operations Planning needed? Constrained Revenue Growth Challenges Downward Margin Pressure Reduced Operating Efficiency require Balance Sales and Operations Planning is a process that enables the balancing of demand and supply within financial boundaries and a strategic plan. Commitment The results of that plan are measured, communicated and mandatory for all organisations like sales, marketing, financials, procurement, manufacturing and logistic operations. Adaptiveness In case of changing market conditions it identifies the impacts to all areas and interdependencies of resolution strategies. SAP AG 2006, Title of Presentation / Speaker Name / 3

4 Integrated Business Management S&OP Process MANAGEMENT BUSINESS REVIEW STRATEGY BUSINESS PLAN PERFORMANCE SUPPLY REVIEW PRODUCT MANAGEMENT REVIEW DEMAND REVIEW SAP AG 2006, Title of Presentation / Speaker Name / 4 OWI a

5 S&OP: Supported by Current SAP Software 5. Management Evaluation & Analysis Supply Chain Analytics and Visibility (Supply Chain Performance Management SCPM) APO Demand Planning (DP) Event Management (SCEM) 1. Strategic Planning Strategic Enterprise Management (SEM) Business Intelligence - Business Warehouse Business Planning & Simulation (BW BPS) BW (CRM Analytics) Pricing and Margin Management (Vendavo ) 2. Demand Planning APO Demand Planning (DP) Sales Planning (BW/CRM) 4.Supply/Demand Balancing APO Demand Planning (DP) APO Supply Network Planning (SNP) 3. Supply Planning APO Supply Network Planning (SNP) Supply Network Collaboration (Inventory Collaboration Hub ICH) SAP AG 2006, Title of Presentation / Speaker Name / 5

6 S&OP Overview Functions in xsop Demonstration Wrap-up

7 Goal of SAP xsop To compliment current SAP planning tools and provide an easy to implement tool that consolidates data, provides pre-defined analytics and assists with managing the S&OP process. SAP AG 2006, Title of Presentation / Speaker Name / 7

8 S&OP gets all stakeholders on the same page All departments can see the same data at the same time from their own perspective. Customers and product families Channels and brands Products and sources Marketing Sales Products and destinations Procurement Customer Products, sources, capacity and destinations Revenues, margins and working capital Manufacturing And logistics Finance SAP AG 2006, Title of Presentation / Speaker Name / 8

9 x-sop: Innovate the Supply Chain C-Level Finance Product Dev. Sales & Marketing perations S&OP Enterprise Services Repository ASUG S&OP Cross-industry Influence Council with Oliver Wight collaboration Manage S&OP Process with task/action item mgmt and notifications All departments see the same data at the same time in their resp. role Provide analysis, KPI s and process tracking tools for demand, supply, inventory and financials Simple simulation and calculation of price, supply or demand changes Leverages current SCM 5.0 and BW implementations, but not necessary. Ramp-up customers needed for anticipated March 2007 release!!! ERP CRM SCM BW SCEM SAP AG 2006, Title of Presentation / Speaker Name / 9

10 Key Functionality S&OP Integration and Technology KPIs and Analytics Process Management Document Management SAP system connectivity SCM 5.0 ERP 2005 Netweaver BI 2004S SCM 4.x (RFC) Characteristic Mapping Product Hierarchy Mapping Key Figure Mapping Ability to add additional Key figures Change calculations for KPIs Organize graphs and group KPIs Separate views for each aspect of S&OP process Demand Supply Inventory Create tasks and assign to users Create Action Items for followup in next S&OP process Update task completion Notify via when tasks are assigned Group tasks into Process Steps to model process gates or meetings Store documents by Business Unit/Region/ Version Document risks, assumptions, decisions Use of cfolders technology for storing and retrieving documents SAP AG 2006, Title of Presentation / Speaker Name / 10

11 Integration and Technology Delivered Characteristics Business Unit Region Product Family Product Sub-Family Location Resource Configuration options Characteristic texts can be configured Characteristics are analytic application dependent Mapping tables are provided to derive characteristic values SAP AG 2006, Title of Presentation / Speaker Name / 11

12 Integration and Technology xsop Analytic Applications Data Storage S&OP Calculations and Data Mapping ERP BW SCM SAP AG 2006, Title of Presentation / Speaker Name / 12

13 Data flow Non-SAP Supply Chain and xsop BW Financial Data Budget (projected) Price Cost xsop Compare Scenarios Planning Data Demand Plan Supply Plan Compare Supply to Demand Planning Data Supply Plan Supply Planning System Planning Data Demand Plan Demand Planning System Compare Supply to Budget Update Demand Plan SCM 4.1 Planning Data Demand Plan Supply Plan Update Supply Plan Proposed Solution: Subject to change by SAP SAP AG 2006, Title of Presentation / Speaker Name / 13

14 Data flow SAP SCM 5.0 and xsop BW SCM 5.0 Financial Data Budget (projected) Price Cost Planning Data Demand Plan Supply Plan Updates to Plans Demand Plan xsop Compare Scenarios Compare Supply to Demand Compare to Budget Update Demand Plan Update Supply Plan Proposed Solution: Subject to change by SAP SAP AG 2006, Title of Presentation / Speaker Name / 14

15 xsop KPIs Delivered Demand Oriented Demand Plan Accuracy Demand Plan Bias Inventory oriented Total inventory value ($) Inventory Turns ($ and Units) Days Supply (DOI) Comparisons to Targets Target Inventory Target Turns Target Margin Target Capacity Utilization Production/Receipts Oriented Production to Schedule Delivery to Schedule (procurement) Delivery to Schedule (customer) Capacity Utilization Financial Overall Margin Comparison to Budget (financial plan) SAP AG 2006, Title of Presentation / Speaker Name / 15

16 Key Functionality Integration and Technology KPIs and Analytics Process Management Document Management Create tasks and assign to users Create Action Items for follow up in next month s S&OP process Update task completion Notify via when tasks are assigned Grouping of tasks into Process Steps to model process gates or meetings SAP AG 2006, Title of Presentation / Speaker Name / 16

17 Key Functionality Integration and Technology KPIs and Analytics Process Management Document Management Store documents by Business Unit/Region Document risks, assumptions, decisions Use of cfolders technology for storing and retrieving documents SAP AG 2006, Title of Presentation / Speaker Name / 17

18 S&OP Overview Functions in xsop Demonstration Wrap-up

19 Version Overview for S&OP Manager SAP AG 2006, Title of Presentation / Speaker Name / 19

20 Version Detail Screen SAP AG 2006, Title of Presentation / Speaker Name / 20

21 xsop Screenshot Version Detail Screen with drilldown SAP AG 2006, Title of Presentation / Speaker Name / 21

22 xsop Screenshot Supply Plan for S&OP Planner SAP AG 2006, Title of Presentation / Speaker Name / 22

23 xsop Screenshot Process Management Overview SAP AG 2006, Title of Presentation / Speaker Name / 23

24 S&OP Overview Functions in xsop Demonstration Wrap-up

25 Key Points 1. S&OP is an integral part of SAP s SCM vision and strategy 2. xsop allows users to see data in a manner that is pertinent to their role in the company 3. xsop supports not only the S&OP meetings, but the overall business process of S&OP 4. xsop allows for configuration of screens and analytics 5. Multiple sources of data are used within the xsop application SAP AG 2006, Title of Presentation / Speaker Name / 25

26 Copyright 2006 SAP AG. All Rights Reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iseries, pseries, xseries, zseries, z/os, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM Corporation. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without 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. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages. SAP AG 2006, Title of Presentation / Speaker Name / 26

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