SAP Line of Business Digital Supply Chain

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1 SAP Line of Business Digital Supply Chain

2 Introduction to the Digital Supply Chain, Powered by SAP Leonardo Companies everywhere face volatile customer demand and heightened expectations for responsiveness, while supply chains grow more complex and extend their reach across the globe. Innovative technologies can help resolve these issues by providing vital business information across the network, improving real-time data analysis, and enabling better collaboration across departments and companies. SAP Leonardo provides an innovative solution portfolio that enables companies to not only realize digital transformation of existing end-to-end business processes, but also enable them to evolve new business models to run digitally. Digital transformation led by the Internet of Things As objects become intelligent and interconnected, business processes will improve and change dramatically. New business models will emerge based on the information generated by goods, machines, and vehicles. These models will impact industry structures and require an entirely new collaboration paradigm among enterprises. Given the abundance of contextual information on weather, traffic, social media trends, and demand signals, those who manage operations will have to rely on instant information to anticipate new opportunities and challenges. This is the entry point to Live Business, where entire value chains will become fully transparent, and where machine learning will allow us to predict trends and optimize operations. And it will revolutionize the world of business. Leveraging the Internet of Things (IoT) for Live Business will require enterprises to connect things to business processes. Digital Supply Chain Value Map 2017 Digital Business Planning Sales, Inventory and Operations Planning Demand Management Demand Insights Digital Response and Supply Management Response and Supply Planning Response Orchestration Supply Networks Digital Logistics Warehouse Management Transportation Management Logistics Networks Digital Products and Projects Project and Portfolio Management Compliant Product Lifecycle Management Product and Project Insights Digital Manufacturing Manufacturing Operations Manufacturing Execution Manufacturing Networks Digital Operations Asset Operations and Maintenance Environment, Health, and Safety Asset Network

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4 Digital Business Planning Transform your supply chain into demand network with demand-driven business planning Align strategic, financial, commercial, and operational goals with SAP solutions for demand-driven business planning. Develop short-, mid-, and long-term views of expected demand across channels. Plan through cross-functional collaboration, analysis, and optimization of real-time demand signals, supply constraints, and inventory requirements. Extend planning by collaborating with customers, partners, and suppliers. Translate the plan into actionable targets for fulfillment systems. Sales, Inventory and Operations Planning Helps companies anticipate change and make the adjustments to manage risks and opportunities Integrating processes for sales, inventory, and operations enables collaborative decision making across the enterprise by balancing demand and supply profitably and pursuing optimal product availability. In turn, inventory and working capital are significantly reduced, service levels are optimized, and profitability and customer service are improved. Demand Review Demand, Supply, and Finance Alignment Inventory Optimization Management Review and Analysis Product Review Service-Level Determination Supply Review Demand Management Manage and analyze demand streams to feed operational planning and drive greater productivity and customer satisfaction Match supply more closely with demand using SAP software for demand management to improve efficiency, productivity, and customer satisfaction levels. Collect internal and external demand streams, analyze their input, and use the resulting insight to create rational demand plans and update them as needed. Integrate internal and external demand data across sales and supply functions as a foundation for trade promotion activities and other means of demand shaping. Demand Planning Multilevel Replenishment Promotion Planning and Optimization Service Parts Planning Demand Insights Empower your supply chain, sales, and marketing with real-time demand network visibility Support supply chain, sales, and marketing professionals with insightful and actionable analytics throughout their demand network using SAP software. Use a single source of real-time, high-fidelity, and granular demand signals to facilitate profitable demand response. Connected Goods Demand Sensing Sense and Respond to Demand Insights

5 Digital Response and Supply Management Gain long-term advantage by meeting short-term demand with a digital response and supply Respond quickly to global demand changes with software for digital response and supply management. Our software helps you plan supply and production to meet multichannel demands, meet demand priorities with allocation planning and intelligent order confirmation, and reduce supply chain latency by collaborating with suppliers, manufacturers, and customers. Response and Supply Planning Improve the agility of your global supply network by optimizing response and supply planning Run a fast, flexible supply network by aligning planning and execution in real time with response and supply planning solutions from SAP. Our solutions help you match supply to demand, so you can streamline allocation management, order promising, deployment, replenishment, and manufacturing supply planning to turn inventory faster and boost revenue. Manufacturing Supply Network Planning Replenishment and Deployment Planning Response Planning and Allocation Management Response Orchestration Integrate order planning, scheduling, promising, and execution through response orchestration Meet delivery commitments on time every time with streamlined response orchestration. Gain visibility into inventory, capacity, and product data by integrating order planning, scheduling, promising, and execution in real time. This helps you optimize inventory management and production planning, so you can quickly and accurately respond to new demands. Advanced Order-to-Promise/ ATP Constraint-Based Production Planning Production Scheduling Supply Networks Manage, control, and respond to changing conditions with a digital operations center for response Reduce planning cycle times and inventory levels and increase service quality by extending the supply chain to the business network with a digital operations center for response from SAP. Connect more easily with suppliers, customers, and outsourced manufacturers for enhanced collaboration across demand, supply, and inventory. Collaborative Planning SAP Ariba Supply Chain Collaboration Demand and Supply Collaboration Sense and Respond to Supply Insights

6 Digital Logistics Balance customer service and delivery costs through efficient digital logistics and order fulfillment Optimize freight, shipping, and warehouse operations by gaining the visibility needed to make efficient logistics and order fulfillment decisions. With SAP solutions you can improve speed, efficiency, and sustainability by aligning distribution and fulfillment processes and collaborating with logistics participants. Warehouse Management Improving planning and optimization of warehouse operations SAP software helps warehouse and logistics managers fully automate traditional warehouse and distribution operations, including inbound processes, outbound processes, storage, and inventory management and distribution. Additional warehouse management features support the management of resources and assets; on-demand and planned cross-docking; workforce management, including task interleaving for each individual worker; and the management of warehouse space and equipment. By automating processes for full control of warehouse operations, companies can improve asset utilization, increase throughput, and ensure on-time and accurate order fulfillment. Basic Warehouse Management Dock Appointment Scheduling Extended Warehouse Management Goods Issue Goods Receipt Mobile Inventory Management Transportation Management Reduce costs and improve service with streamlined transportation management processes Support the complete transportation management lifecycle for both domestic and international freight to improve customer satisfaction. Manage the transportation requirements by planning, optimizing, tendering, and settling freight; booking carriers; managing forwarding orders; and complying with international trade and hazardous goods requirements. Basic Shipping Carrier Booking Freight and Forwarding Order Settlement Freight Planning and Optimization Freight Tendering Strategic Freight Management Transportation Execution and Monitoring Transportation Requirements Management Logistics Networks Maximize supply chain logistics strategy and comply with regulations with SAP Leonardo IoT Bridge Manage, control, and predict logistics costs with SAP Leonardo IoT Bridge. Optimize customer service levels and track inventory end to end with enhanced supply chain logistics. Resolve issues quickly and lower operating costs and excess inventory for more on-time deliveries. Increase visibility into yard logitiscs to streamline goods flow in real time. Item Serialization and Product Traceability Sense and Respond to Logistics Insights Yard and Hub Logistics

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8 Digital Products and Projects Don t just make products sell performance Design and deliver products to win market share, satisfy consumers, and meet regulatory and quality requirements. Manage business- and consumer-driven innovation, while breaking down silos to integrate processes. Project and Portfolio Management Developing new products and services based on value-driven investment decisions SAP software provides manufacturers with a business value-driven approach to developing innovative products and services. With SAP, manufacturers can create a framework that can help them align product strategy and development, streamline development processes, manage production costs, and simplify operational complexity. Our software enables them to respond faster to customer inquiries, leverage the capabilities of employees and partners, and coordinate resources across a project s entire lifecycle, as well as across several business functions. Manufacturers can also access the performance metrics they need for making business decisions about strategically optimizing investments in product innovation. Idea Management Portfolio Management Project Connectivity Project Management Resource Management Compliant Product Lifecycle Management Collaborate across silos and integrate product development to get to market first with innovative, compliant products Develop new products quickly and go to market faster than your competitors with SAP software that integrates product development processes across functional silos and locations. Collaborate effectively across functions, streamline the ramp-up process, and develop products that comply with regulations. With visibility into product costs, you can continuously reduce those costs, protecting revenue margins while you develop innovative products that preserve brand value. Authoring Tool Integration Handover to Manufacturing Model-Based Enterprise Product Costing Product Development Recipe Development Dangerous Goods Management Product Marketability and Chemical Compliance Safety Data Sheet and Label Management Product and Project Insights Stimulate innovative, collaborative design through a design information network Give engineering teams the flexibility and visibility they need to collaborate across the extended supply network with SAP software. Tap into extensive data management, visualization, and change management capabilities to smoothly launch innovative, high-quality products or react quickly to issues. Compliant Product Network Product and Design Networks Sense and Respond to Design Insights

9 Digital Manufacturing Become more responsive to customers Develop real-time visibility and transparency over manufacturing operations, optimize manufacturing processes, and collaborate in global networks while lowering total manufacturing costs. Manufacturing Operations Identify and prioritize critical material issues and maximize enterprise-wide visibility across supply, production, inventory, and demand Integrate and embed intelligence in manufacturing processes with a single source of live information. Control production processes, with manufacturing solutions that integrate core processes across the digital supply chain covering all aspects of the manufacturing cycle from planning to the shop floor. Boost manufacturing throughput and first-pass yields, reduce work in process, and get more predictable, shorter cycles. Automate data collection to build and maintain as-built records, manage exceptions, and address nonconformance with embedded quality and compliance controls. Constraint-Based Production Planning Production Scheduling Production Execution Production Warehouse Quality Management and Compliance Manufacturing Execution Connect, monitor and tightly control manufacturing processes and operations by integrating business and manufacturing systems to enable lean, high-quality production on the shop floor Leverage manufacturing execution and industrial IoT to optimize manufacturing processes and provide real-time visibility and transparency across multiple plants, vendors and machine types. You can then tie this information back to the business context of the order, quality, and performance. Connect supply chain networks to manufacturing processes and operations while lowering total manufacturing costs in scalable, flexible, cost-effective deployment options. Enterprise Performance Management Lean Manufacturing Machine Manufacturing Analytics Shop Floor Control Manufacturing Networks Efficiently address customer demands by connecting supply chain solutions with the 3D printing/iot capabilities, machine learning and real-time operations insights through a global manufacturing network Identify and resolve any issues across the extended supply chain to increase fulfillment of delivery commitments, manage changes to existing and new product introductions, and share process improvement ideas across your enterprise. Establish a collaborative network with B2B connectivity for proficient supply chain collaboration. Find hidden production capacity in your existing resources for greater success and rapidly scale production up or down based on market demand in a cost-effective way. Digital Manufacturing Insights Direct Manufacturing Product Genealogy Demand and Supply Collaboration SAP Ariba Supply Chain Collaboration

10 Digital Operations Foster reliable business growth Reduce risk, improve operational safety, enhance product quality, maximize return on production assets, avoid unplanned downtime, and gain competitive advantage by optimizing energy use. Asset Operations and Maintenance Asset retention or restoration maintenance for optimal performance of required functions Uncertain economic times call for tough decisions by asset managers. Staying competitive means looking for new ways to get the most out of an asset assuring uptime, ensuring safety, mitigating risks, and reducing maintenance costs. Many organizations struggle with excessive downtime, low return on assets, and wasted time and resources that drive up maintenance costs. Excessive downtime is often caused by ineffective maintenance procedures, inefficient information retrieval, unavailable parts, wrong spare parts in inventory, service delays, and maintenance service PO processing. Overcoming these challenges requires having the right systems and processes in place. Asset operations and maintenance encompass a series of steps required to assure that an asset will retain, or be restored, to a state in which it can perform its designated function. Asset Strategy and Performance Maintenance Execution Maintenance Planning and Scheduling Mobile Asset Management Environment, Health, and Safety Reduce environment, health, and safety risks to help ensure safety and business continuity Organizations can mitigate environment, health, and safety risks by performing thorough risk assessments, measuring and reporting emissions, designing effective controls, and communicating safe work practices. Testing these controls, capturing incidents, and learning from events support intelligent change and continuous improvement. Environment Management Health and Safety Management Incident Management Maintenance Safety and Permit to Work Management of Change Asset Network Optimize asset information by collaborating on asset data, predictive maintenance, procurement of spaces and services Take advantage of market-leading applications and technology to streamline asset management. SAP Leonardo IoT Bridge supports the transformation to the digital world by enabling new business models and helps companies gain a competitive advantage through increased speed, transparency, and insights. Asset Information Collaboration Asset Information Governance Predictive Maintenance and Service

11 Get Started Today As a market leader in enterprise application software, SAP helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 335,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably.

12 THIS DOCUMENT IS PROVIDED FOR INFORMATION PURPOSES ONLY AND DOES NOT MODIFY THE TERMS OF ANY AGREEMENT. THE CONTENT OF THIS DOCUMENT IS SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE. THIS DOCUMENT SHALL NOT BE FORWARDED TO ANY PARTY OTHER THAN THE ORIGINAL RECIPIENT. This document outlines our general product direction and should not be relied on in making a purchase decision. This document is not subject to a license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this document. This document and SAP s 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 any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. SAP assumes no responsibility for errors or omissions in this document and shall have no liability for damages of any kind that may result from the use of or reliance on these materials, except if such damages were caused by SAP intentionally or by SAP s grossly negligent acts SAP SE or an SAP affiliate company. All rights reserved.

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