SAP Value Proposition for Discrete Manufacturing

Transcription

1 SAP Value Proposition for Discrete Manufacturing Leveraging Key Trends for Competitive Advantage Pete Bussey SAP High Tech Industry Team

2 Agenda Discrete Manufacturing Session 1:00 pm SAP Value Proposition for Discrete Manufacturing Pete Bussey, SAP 1:30 pm BreconRidge: A Case Study in Growth Jeff Paddison, CIO, BreconRidge 2:30 pm Customer Panel: Competitive Advantage with SAP Junior Ali VP Supply Chain, Sony of Canada Jean Mathieu VP Client Services, Progistix Jeff Paddison CIO, BreconRidge 3:30 pm Closing Remarks Pete Bussey, SAP SAP AG 2003, Title of Presentation, Presenter 2

3 Leveraging Trends for Competitive Advantage Key Industry Trends Leading Edge Solutions for Discrete Manufacturing Key Take-Aways SAP AG 2003, Title of Presentation, Presenter 3

4 Dynamic Market Forces are Driving Change Customers Increased Competition Customized Solutions Reduced time-tomarket Time Pressures Shorter Product Life-Cycles Discrete Manufacturing Industrial Mach. & Components High Tech A&D Accelerated Quoting Partners Component Suppliers Contractors Support / Retention Multiple Sales and support channels Distributed Product Design Outsourced manufacturing and fragmented inventory OEMs Distributors & Resellers Globalization SAP AG 2003, Title of Presentation, Presenter 4

5 Hyper-competition Demands Connected Processes Enhance customer satisfaction & win rate Improve forecast accuracy Enable revenue growth Customer Intimacy & Solution Integration Today s Web-enabled Competitive Space Traditional Competitive Spaces Improve delivery performance Optimize inventory Improve ROA Enhance engineering productivity Reduce time to market Better leverage existing IP Operational Excellence (Price/Value) Product Innovation SAP AG 2003, Title of Presentation, Presenter 5

6 Outsourcing Demands Supply Chain Collaboration SAP AG 2003, Title of Presentation, Presenter 6

7 Discrete Winners Require Segment Specific Solutions Fabless Design/ IP House Software Provider System Design House Raw Material Supplier Distributor Technology Reseller Capital Equipment Manufacturer Semiconductor Manufacturer Component Manufacturer System OEM End User Indirect Supplier Distributor Service Provider Foundry Assembly & Test EMS Provider One Size Does Not Fit All in Discrete!! SAP AG 2003, Title of Presentation, Presenter 7

8 SAP High Tech Customers: Leaders in Each Segment Software: Microsoft, Synopsys, Autodesk, Cadence, Capital Equip Manufacturers: Applied Materials, LAM Research, Subcontract Manufacturers: Semiconductor: Fabless Semiconductor: Distributors/Resellers: EMS Providers: Original Equipment Mfgs : TSMC, UMC, OSE, ASE, AMD, Motorola, IBM, National Semiconductor NEC, LSI Logic, Analog Devices, Micron, Toshiba, Texas Instruments, Philips, Adaptec, Fujitsu, Infineon, Lucent, Atmel, nvidia, Sharp, Adaptec, Cirrus Logic, Conexant, Fujitsu Shinko, SMSC Avnet, Tech Data, EnPointe, Jabil Circuit, Omni Venture, Celestica, HP/Compaq, IBM, Sony, Nokia, Ericsson, Hitachi, Siemens, Matushita, Toshiba, Alcatel, Samsung, SAP AG 2003, Title of Presentation, Presenter 8

9 IM&C Customers a Selection SAP AG 2003, Title of Presentation, Presenter 9

10 A&D Customers - a Selection SAP AG 2003, Title of Presentation, Presenter 10

11 Leveraging Trends for Competitive Advantage Key Industry Trends Leading Edge Solutions for Discrete Manufacturing Key Take-aways SAP AG 2003, Title of Presentation, Presenter 11

12 Industry Solution Portfolio- High Tech Enabling the High Tech Value Chain Value Chain Element: 1 Value Chain Element: 2 Value Chain Element: 3 Value Chain Element: 4 Value Chain Element: 5 Value Chain Element: 5 Design Sell Buy Make Move/Store Service Enterprise Strategic Enterprise Business Analytics Business Intelligence & Decision Support Accounting Employee Relationship & Workforce Analytics Sales, Marketing & Service Marketing Sales Service Analytics Semiconductor & Component Manufacturing Product & Process Technology Development Design Win Order Collaborative Supply Chain Planning Manufacturing Logistics Execution Electronic Manufacturing Services Product Data Supply Chain Planning Order Component Procurement Production/Asse mbly Logistics Execution Service Original Equipment Design & Manufacturing Product Data Supply Chain Planning Component & Services Procurement Order Contract & Inhouse Manufacturing Distribution IBase & Upgrades Software Provider Custom Development Specification Software Development Professional Services Product Data Order Maintenance License & Installed Base Value Added Distribution & Resale Product Collaborative Planning Sourcing Sales/Mass Customizing Solution Kitting, Assembly & Integration Distribution Installed Base Business Support Employee Life- Cycle & Transaction Procurement Financial Supply Chain Fixed Asset Incentive & Commission Foreign Trade/Legal Services RosettaNet Support SAP AG 2003, Title of Presentation, Presenter 12

13 Industry Solution Portfolio- Industrial Machinery & Components Enabling the IM&C Value Chain Value Chain Element: 1 Value Chain Element: 2 Value Chain Element: 3 Value Chain Element: 4 Value Chain Element: 5 Value Chain Element: 5 Design Sell Buy Make Move/Store Service Enterprise Strategic Enterprise Business Analytics Business Intelligence & Decision Support Accounting Employee Relationship & Workforce Analytics Marketing, Sales & Service Market Research & Analysis Product & Service Marketing Sales Cycle Installation & Start Up Service Product Research & Development Program & Project Design, Concept & Specification Engineering, Prototyping & Product Development Life-Cycle Data Change & Configuration Make-To-Stock Product Demand Planning Production Planning & Scheduling Production & Procurement Execution Order Processing, Shipping & Billing Make-To-Order Component Demand Planning Configuration & Sales Cycle Production Planning & Scheduling Production & Procurement Execution Shipping, Assembly & Order Billing Engineer-To-Order Concept & Product Development Sales Cycle Project Planning & Engineering Project driven Production & Procurement Shipping, Assembly & Project Billing After Market Sales & Service Installed Base & Contract Customer Interaction & eservice Service Order Processing Service Parts Warranty Service Analytics Business Support Procurement Inventory Quality Asset Life Cycle Environment, Health and Safety Fixed Asset Treasury / Corporate Finance Employee Life-Cycle & Trans-action SAP AG 2003, Title of Presentation, Presenter 13

14 Industry Solution Portfolio- Aerospace & Defense, Manufacturing Enabling the A&D Value Chain Value Chain Element: 1 Value Chain Element: 2 Value Chain Element: 3 Value Chain Element: 4 Value Chain Element: 5 Value Chain Element: 5 Design Sell Buy Make Move/Store Service Enterprise Strategic Enterprise Business Analytics Business Intelligence & Decision Support Accounting Employee Relationship & Workforce Analytics Sales & Marketing Sales Marketing Service Analytics Project Manufacture (R&D/MTO/ETO relevant) Project Definition Quotation & Project Data Program Contract Costing Project Planning Project Execution Research & Development Project Set-Up Design, Concept & Specification Engineering, Prototyping & Product Development Hand Over & Contract Verification Make to Order Product Development & Configuration Inquiry & Quotation Processing Order Entry Processing Ma nufacture, Assembly & Shipping Quality Control Engineering To Order Inquiry & Quotation Processing Concept & Product Development Project Manufacture, Assembly & Shipping After-Market / InService Support Preparation of InService Support Data Spare Parts Warranty / Guarantee Processing Business Support Employee Life-Cycle & Transaction Procurement Financial Supply Chain Fixed Asset SAP AG 2003, Title of Presentation, Presenter 14

15 SAP Discrete Industry Solution Examples Connected Service Collaborative Demand Planning SAP AG 2003, Title of Presentation, Presenter 15

16 Service Value Chain Installed Base & Contract Customer Interaction & eservice Service Order Processing Service Parts Warranty Service Analytics Some Pain Points Day-to-day control over operations Field force productivity Cost of service parts logistics Maximize customer lifetime value Strategic control over the business Value Creation Opportuntities Seamless service process management Optimize people and material resources Streamline supply chain processes Enterprise 360 degree view for proactive customer relationship Real-time visibility for decision support SAP AG 2003, Title of Presentation, Presenter 16

17 Creating Value with SAP Service Sales & Marketing Customer Intelligence Pricing & Contract Channel E-Selling mysap CRM Focus on relationship benefits and long-term customer value Customer Intimacy Customer and Field Service Customer Service & Support Service Operations Field Service E-Service Asset Service Product / Configuration Technical Asset Preventive & Predictive Maintenance Service Parts Demand Visibility & Forecasting Parts Planning & Optimization Parts Procurement Repair Center Global Parts Logistics Product Leadership Focus on providing and servicing leading edge products mysap PLM Operational Excellence Focus on business process optimization and efficiency mysap SCM SAP AG 2003, Title of Presentation, Presenter 17

18 Case: Southern Pump and Tank Installed Base & Contract Customer Interaction & eservice Service Order Processing Service Parts Warranty Service Analytics Customer Example, Service Order Processing Value Added Distributor of Liquid Handling Equipment Focus on Petroleum and Industrial Markets Sell, Design, Build, Service Established in 1935 $60 million in revenue 210 employees Headquartered in Charlotte, NC 11 Branch locations in Southeast SAP AG 2003, Title of Presentation, Presenter 18

19 Business Drivers and Strategy Changing Times; Changing Business.... Customers are getting larger and customer base was shrinking Distribution business squeezed by the primary vendor and the customer No place in the marketplace for a pure distributor Solutions were becoming more important than the products Products are becoming more complex Our Vision... Leader in our industry We want to own the relationship with the customer Achieving the vision... Total solution provider Enhance value added services Promote our products Expand offerings More effectively deliver Better business information Technology as an enabler Service business was growing with higher margins SAP AG 2003, Title of Presentation, Presenter 19

20 Southern Pump and Tank- ROI Results Financially... Reduction in inventory 28%, reduced slow and non-moving 70% $1.2M to $330,000 Reduced days from job completion to invoice generation to 3 days from 8 days Financial close reduced from 20+ days to 5 days Increased average gross margins Streamlined service processing Improved service call dispatching and management of calls Confirmation of service billing First trip fix increased by 9% Ability for customers to track equipment and warranty information on their sites. Web enabled order entry and service request and status Operationally... Seamlessly added three new operational branches Business management through real-time reporting Integrated web-enablement Accountability SAP AG 2003, Title of Presentation, Presenter 20

21 SAP Discrete Industry Solution Examples Connected Service Collaborative Demand Planning SAP AG 2003, Title of Presentation, Presenter 21

22 Collaborative Demand Planning Streamlined collaborative forecasting processes Single demand plan between business partners Liability management for forecast partners Balance between avoiding stockouts and minimizing inventory Multi-level planning Data analysis Statistical forecasting Value Increased sales revenue Increased service levels Reduced forecast cycle times Improved forecast accuracy Reduced inventory carrying costs SAP AG 2003, Title of Presentation, Presenter 22

23 Proven Business Value with SAP Planning cycle time reduced by 50%, improving overall supply chain plan quality and stability Increased inventory turns from 6 to 10 times and decreased channel inventory by 32% while maintaining customer service levels, achieving stronger sales growth, and reducing stock-outs Decreased cash-to-cash cycle time from 23 to 14 days SAP AG 2003, Title of Presentation, Presenter 23

24 Leveraging Trends for Competitive Advantage Key Industry Trends Leading Edge Solutions for Discrete Manufacturing Key Take-aways SAP AG 2003, Title of Presentation, Presenter 24

25 Key Takeaways Building on 30 years of experience, SAP is helping discrete manufacturing companies meet business challenges by: Providing Industry- and Segment-specific Solutions for A&D, IM&C, and High Tech Offering an integrated package of solutions which enables customers to manage complete, end-to-end business processes Incorporating proven industry best practices to solve problems and streamline processes to enable faster and more effective execution, management, and measurement of critical business functions Lowest Total Cost of Ownership Rapid Incremental Solution Roadmap Scalability SAP is the right choice for small and medium sized companies SAP AG 2003, Title of Presentation, Presenter 25

26 Thank You! Thank You for Your Attention! SAP AG 2003, Title of Presentation, Presenter 26

27 Customer Panel: Competitive Advantage with SAP Junior Ali, VP Supply Chain, Sony of Canada Jean Mathieu, VP Client Services, Progistix Jeff Paddison, CIO, BreconRidge Manufacturing Solutions