BTS CP Business Best Practice Process Design. Carola Feind-Just Head Consumer Products MEE Business Transformation Services

Transcription

1 BTS CP Business Best Practice Process Design Carola Feind-Just Head Consumer Products MEE Business Transformation Services

2 SAP CP Business Best-Practices are the pre-defined reference content for defining, managing and measuring processes Goal of the approach Implement systematic business process management and performance monitoring based on business best practice information Design industry best practice buiness processes without separate As Is process analysis Bridge the gap between IT and business based on SAP business best practices Available Business Best Practice content as basis for process management Extensive business best practice process content available out-of-the-box Quick and efficient blueprinting is enabled Business best practice content is available for all CP core process areas Content is based on SAP experience with major global CP customers 2013 SAP AG. All rights reserved. 2

3 Business process management needs to consider process flows, organizational structures and IT support SAP Business Best Practice Content Process flows Organizational structure Process standards and rules Defined KPI s and PPI s Roles/ Responsibilities Meeting structures IT support Applications supporting the processes Extensions, user exits, modifications 2013 SAP AG. All rights reserved. 3

4 Key element of the business best-practice content are out-of-the box available described business rules & principles for processes, organization and IT Process flows Organizational structure IT support Which rules & principles need to be followed for a business process to be bestpractice? KPI / PPI trees to measure process performance Benefits to be expected by implementing the bestpractice Customer Examples of best-practice implementation 2013 SAP AG. All rights reserved. 4

5 2011 SAP AG. All rights reserved SAP AG. All rights reserved. 17 Process Objective Process Steps (Level 4) Receive order Order entry Executing Role Sales desk manager Sales desk manager/ Process Objective Process Steps (Level 4) Receive order System Order entry System R Customer Service R/A R/A Credit Management, Supply Chain Executing Role C Sales desk manager C Sales desk manager/ System Sales, Shipping Department I I System R Customer Service KPIs 09 St or age & Dist ribution Delivery planning & mgm t Tr ansp. planing & execut ion Outbound logistics Returns & r ef usals mgmt Description/ Rules& Principles/ Variants Automated order entry has to follow the principle to reduce the number of touches for the whole organization. 08 Sales Or der mgmt &execution Claim smgmt A customer order can be received via EDI, web, fax, , phone call. R/A R/A Credit Management, Supply Chain C C Sales, Shipping Department I I 10 Finance Cr edit mgmt Sales Stocks m gmt Or 03 der mgmt Account &execution sreceivable Claim 04 Fact smgmt or ing KPIs 09 St or age & Dist ribution Delivery planning & mgm t Tr ansp. planing & execut ion Outbound logistics Returns & r ef usals mgmt Description/ Rules& Principles/ Variants A customer order can be received via EDI, web, fax, , phone call. Automated order entry has to follow the principle to reduce the number of touches for the whole organization. 10 Finance Cr edit mgmt Stocks m gmt Account sreceivable Fact or ing BTS CP best practice methodology is an efficient approach to design to-be processes and identify process optimization initiatives Best Practice Interviews Process Design Interviews/ Workshops Initiatives Reference Process Framework Pre-defined bestpractice content Process Documentation Templates Evaluation Criteria for Initiatives SAP OneWorld Consumer Products Process Map Level Level 1 Level 2 Level 3 Level Supply Chain Planning Demand planning Sales history evaluation Clean up sales history data Maintain promotion samples Uplift planning (Optional) Determine basis for new promotion Create new promotion Maintain influence of promotion on baseline Review of current promotions Baseline planning Adapt Data for new, dropout & seasonal products Select forecast model Generate statistical forecast Finalize sales forecast Reconcile Demand & Promotion Plan Demand plan consensus Achieve Demand Plan Consensus Release DP to supply planning Vendor managed inventory Release DP to supply planning Retailer consolidates & sends data to manufacturer Load retailer DC or store level data (sales, inventory, etc.) Load retailer or manufacturer promotion data Cleanse & harmonize data To ensure the success of One Face to the Customer, internal alignment is essential (1/2) Illustrative Key Principles & Rules Exception-based Order Management and Order Meeting Monitoring (1/2) Meeting Meeting Topics Frequency Participants Discuss and resolve Rules order & Principles exceptions : Exception-based Order Management CS AR and Order Monitoring (1/2) Daily Discuss and resolve credit blocks with Credit Control CS P Discuss (1) and resolve Customer product Service availability is monitoring issues order status on a regular basis at defined points in time (daily schedule) Analyze (2) reasons Orders for are order monitored fulfillment throughout failure for entire main customers order cycle from order CS entry and scheduling to delivery, billing Discuss and solve and payment deductions, credit notes, and overdue accounts CS AR S Weekly Analyze (3) and Exceptions define actions are for raised claims, automatically returns, refusals by the order management CS AR system PL S and feed into CS work list Agree on (4) action Customer plan for Service products frequently in short supply reviews exception reporting CS and work P S lists as part of a daily activity Update on promotions/events, schedule including customer e.g.: prioritization etc. CS S Consider planned i. Warehouse EDI errors to and identify Transportation errors in order issues transmission process ii. Inaccurate Orders (e.g. EDI input doesn t match system determined values) Analyze KPI s iii. and reasons Non-confirmed for failure, order plan lines improvement report to identify I.e. stock-out CSsituations PL P (including S allocation, ATP Monthly Review trade failures debtors non-authorised and risk categories products) CS AR PL P S iv. Review at risk orders (orders committed against expected inventory) Review sales forecast against demand & supply planning CS AR S v. Blocked orders with reason codes for further analysis and action (e.g. credit block) vi. Business rules compliance check (efficient unit loads, order quantities etc.) Demand Customer Accounts vii. Returns report to identify Physical not processed returns CS AR PL P Supply S Sales Service Receivable viii. Physical Logistics Logistics issues with real-time visibility ix. Proof-of-Deliver (POD) confirmation report Planning x. Delivery discrepancies report Receive and enter order Process Description Receive and enter order Process Description RACI RACI Cost reduction potential high medium low Low hanging fruits Long-term benefits Value Realization Time Simulate data Statistical forecast Understand key process differences between the customer s business units / countries Define rules & principles for to-be processes based on best practice material Design to-be processes according to agreed rules & principles Prioritize identified optimization initiatives (e.g. tools to be implemented, processes to be rolled out) As-is processes and key differences understood Rules & Principles for to-be processes defined To-be processes documented Optimization initiatives prioritized 2013 SAP AG. All rights reserved. 5

6 1 SAP BTS provides a Consumer Products Process map to structure Process Analysis and Design Business Best Practices are integrated in the different process areas Industry process map SAP internally aligned across all key Business units Based on industry standards Can be mapped to industry standards like AFPQ, SCOR, Excel process map 2013 SAP AG. All rights reserved. 6

7 2 All Business Best Practices are described in a standard format and will be discussed in workshops with business participation Each of the business best practices consists of a set of key rules and principles which have to be discussed during the workshops and assessed regarding adoption, modification, variants 2013 SAP AG. All rights reserved. 7

8 Best-Practice rules & principles are adapted to fit the customer s situation Rules & Principles : Exception-based Order Management and Order Monitoring (2/2) (5) Reasons for exceptions need to be documented systematically with reason codes to be able to analyze cause and to initiated corrective actions (6) Original and the final order details (qty., delivery date, plant, shipping point, prices, etc.) need to be kept to facilitate audit compliance and reporting (7) In case of any potential issues CS proactively communicates to customers. (8) Rules to systematically evaluate orders and determine exceptions are defined and implemented (9) Clear roles and responsibilities for processing exception work lists are defined for Red: different to be people discussed or groups (to avoid duplication of work and/or omission of tasks) Blue: potentially irrelevant (10) Effectiveness of check rules and exceptions are regularly reviewed and adjusted in for order Company to improve process effectiveness of checks and improve process efficiency (11) CS is tracking the number of exceptions to manage workloads and workforce planning (12) CS is measured upon exception resolution rate and resolution time (13) Automated order entry (EDI, Web-ordering) is encouraged, orders flow through the remaining process (credit check, fulfillment, billing) without manual interventions (14) Customer Service Cockpit is available as comprehensive entry point to all OM related activities (e.g. handle order monitoring and exceptions on one screen, customer data, communication with customer, invoices, shipping documents, claims, returns) (15) Workflow processes support involvement for different functions to resolve exceptions effectively 2013 SAP AG. All rights reserved. 8

9 3 Adopted Business Best Practices are transferred into level 4 processes based on the workshop results and the reference process map Consumer Products industry process map level 1-4 Processes affected by best practices discussed during the workshop Organizational units, roles/ responsibilities affected by best practices discussed during the workshop 2013 SAP AG. All rights reserved. 9

10 System Customer Service Credit Management, Supply Chain Sales, Shipping Department 08 Sales Order mgmt & execution Claims mgmt 09 Storage & Distribution Delivery planning & mgmt Transp. planning & execution Outbound logistics Returns & refusals mgmt 10 Finance Credit mgmt Stocks mgmt Accounts receivable Factoring To-Be processes are then documented in the format agreed with the customer Level 3 process Receive and enter order Process Description Identfication of the process in overall order-to-cash scope Level 3 process description and objective Process Objective KPIs Relevant KPIs to measure process quality Process Steps (Level 4) Executing Role RACI Description/ Rules& Principles/ Variants Level 4 process steps Receive order Sales desk manager R/A C I A customer order can be received via EDI, web, fax, , phone call. Description of level 4 to-be process, directly reflecting rules & principles that have been defined on level 3 Role executing the process step Functions involved in the process step Order entry Sales desk manager/ System R R/A C I Automated order entry has to follow the principle to reduce the number of touches for the whole organization SAP AG. All rights reserved. 10

11 4 All potentials are described in detail to provide the basis for the prioritization of the initiatives to be implemented Description of the potential and the relevant process area Benefit description Description of change impacts each subcompany Description of measures to realize potential effort Business & IT implications Relation to overall program goals Status discussion on benefits 2013 SAP AG. All rights reserved. 11

12 Integration Integration Main focus of process and organizational design are process levels 3 and 4 Process level 1 08 Sales Process level Order management & execution Business Ownership Process level 3 Process level Order receive, enter and validation Enter order Process level IT Ownership Process level SAP AG. All rights reserved. 12

13 Clear and well structured Top-Down-Approach has to be adopted Integration input input System Ccustomer Service Credit Management, Accounts Receivable Integration Main focus of process and organizational design are business process and sub-process levels Process levels 1-2 Strategic guidelines, general operating model of the company Rules & Principles: Reverse Logistics (1/3) Business Process Level Organization and Planning Reverse Logistics (1) Customer Service is a single point of contact for all customer Returns and is responsible to coordinate resolution with involved parties and communication to the customer (2) Business rules are defined for Returns defining requirements for documentation, authorization and maximum resolution time (3) Where possible, Reverse Logistics strategy is planned for new product launches as a part of the product strategy (4) Clear instructions on company s return policy are defined with customers where possible and are easily accessible for customers (available electronically and where appropriate on product packaging, with delivery documents or through product managers) (5) The 'no returns' policy is implemented with customers where appropriate, and is strictly controlled to ensure that all non-saleable goods are destroyed. Customer audits on product disposal compliancy are conducted (6) Where appropriate, in case of product discontinuation by the company or customer, clear guidelines are communicated internally and externally on how to process Process Steps RACI Description/ Rules& Principles/ Variants Typically no systematic definitions or documentation on business process and subprocess levels available Sub-process Level Interface Perform credit check Credit Management R A C Credit check uses the centrally defined credit check rules as input that are developed in Credit Management Credit Limits Management: Central credit limit is defined by cross-functional team (see slide XX) and cascaded to the companies dealing with the customer through a defined logic Credit Master Maintenance: credit check rules that are maintained in the customer credit master are required as input for the credit check Credit check rules refer to credit-relevant information from the customer account and include, but are not limited to customer credit limit, dunning level, days sales outstanding Interface R A C Credit check uses the customer open items as well as other creditrelevant data (e.g. dunning transactions, oldest open item, last payment, DSO) maintained in Accounts Receivable as input for credit check Accounts Receivable Normally, open items are reported to Credit Management once each day after all incoming and outgoing payments have been processed in AR Customer credit exposure and payment behaviour summary are updated based on this information and the current order value Process Activity Level Multiple formats throughout the company Typically documentation available from system implementations 2013 SAP AG. All rights reserved. 13

14 SAP Business Best Practices are mapped to end-to-end processes Procure-to-Pay 05 Purchasing Operational Procurement Supplier Settlement Purchase Agreemt. Mgmnt 06 Manufacturing & Quality Mgmt 10 Finance Inbound Logistics Accounts Payable Potentially excluded from P2P scope Efficient Procurement Organization Manage Purchasing Agreements Spend Category Management P2P Best Practices Efficient Procurement of Services and Indirect Materials Inbound Material Management (operational) Efficient Invoice Management Streamline & Automate AP Processes Vendor Returns / Claims 2014 SAP SE All rights reserved. 14

15 Best-practice methodology is used to meet customer challenges in continuous improvement No defined continuous improvement process, processes are not systematically adapted to changing environments Multiple small IT and Process optimization projects are running without clear link to a template solution Customer challenges No process performance framework / KPIs in place Process ownership is not systematically defined Business processes not systematically documented Roll-outs are not as efficient and fast as they could be Benefits vs. costs of process improvement projects cannot be tracked and evaluated No clear description of roles and responsibilities, no clear process governance No common documentation standards, different business processes based on IT solution Roll-out efforts are up to 30% higher than they could be with a structured template Best-practice information is the efficient baseline for establishing a business process management framework 2013 SAP AG. All rights reserved. 15

16 Initiatives are prioritized at the end of Design, based on pre-defined criteria Initiative COM CO FI HR OPS PUR RM 1 Harmonize operational supply planning 2 Harmonize tactical sales and supply planning 3 Harmonize and streamline structures within sales 4 Increase automation of purchasing processes 5 Harmonize and streamline order to cash process 6 Centralize & improve master data management processes 7 Standardize & further professionalize FI & CO processes 8 Harmonize subcontracting processes 9 Harmonize supplier management Initiatives are prioritized based on the benefits and harmonization achievement Functional dependencies are strongly considered 10 Optimize material groups 11 Harmonize sales contract management 12 Harmonize intercompany trade Initiative lead streams Initiative affected streams Very high harmonization benefit Harmonization benefit for Template Optimization 2013 SAP AG. All rights reserved. Internal 16

17 Contact Contact information: Carola Feind-Just Head Consumer Products MEE Business Transformation Services