How B.Braun, A Global Medical Products Company, is Leveraging SAP SRM 7.0 to Achieve Procure-to-Pay Optimization Rainer Schimpf CIO Asia Pacific Lalitha Rajagopalan Sr.Director, SAP Global Marketing
Agenda SRM 7.0 - Quick recap of highlights Who is B.Braun Business Challenges and Opportunities Objective & Solution Why SAP SRM? SAP SRM at B.Braun Project Scope & Timeline PO Project Highlights Implementation Highlights Key Success Factors Benefits Highlights SRM 7.0 EhP1 What s New Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 2
Operational Procure to Pay Enables Realized Savings & Increased Productivity Operational Procure to Pay Enables the standardized requisitioning, ordering, supplier collaboration and invoice/payment processes for all categories of spend and dramatically improves productivity Capabilities Self-service requisitioning from catalogs or ad hoc, including services procurement Plan-driven procurement from MRP Supplier collaboration on transactions Any source invoice management Shared service platform across diverse system landscape Rapid Deployment Solution available for a fixed scope and fee for rapid time to value Key Benefits Touch free procurement and adherence to allowed items Automated execution of required direct material Drives efficiency and visibility in supplier interactions Supports compliance and exception management Standardizes best practices regardless of # of back ends Customer Success Single system to manage all of procurement Leveraging SRM as a shared service solution Increased buyer productivity by 100%; reduced order to response times by 50% Go-live on SAP SRM 7.0 in under four months Improved compliance with government regulations Dramatically decreased cycle times 2011 SAP AG. All rights reserved. 3
SAP SRM 7.0 Procurement Stable Core - Summary Improved fully integrated procure to pay offering for core procurement processes Excellence in end to end collaborative services procurement Increased investments to extend scalability, flexibility and reduce TCO Procurement Excellence Unified Access and Information Centralized Global Operational Contracts Process Enhancements Document Search Across Source Areas Services Procurement Collaborative End to End Process Specific Industry Category Focused Enhanced Sourcing Enablement Services Repository and Specification Foundational Investments Extended Workflow Capabilities TCO Reduction Enhancement Pack Enablement Procurement Core 2011 SAP AG. All rights reserved. 4
SAP SRM 7.0 Unified Access and Information User friendly Personalized Object Worklist (POWL) Harmonization of roles across the Business Suite Consolidated access to ERP and SRM business documents and queries Quick links to application services 2011 SAP AG. All rights reserved. 5
SAP SRM 7.0 - Centralized Contracts Harmonization of Global outline agreements and Purchasing Contracts in SRM and multiple ERPs Sophisticated and efficient grouping of contract line item distribution across different locations of the same back-end system Revision levels in SRM Mass change of contracts Currency flexibility on the distribution level Upload contracts in record management Audit trail for contract condition changes 2011 SAP AG. All rights reserved. 6
SAP SRM 7.0 - Centralized Sourcing Automatic creation of temporary contact person Support for services procurement in sourcing Line-item revision level on all documents Confirmation of bidder s participation Chat Response modification Withdrawal of bids Versioning of bids One bid per supplier company 2011 SAP AG. All rights reserved. 7
SAP SRM 7.0 Delivering on Services Procurement Services-based catalog Plan-driven and selfservice requests Hierarchical definition of services requirements Catalog integration Service master integration Limits based unplanned services Demand aggregation Advanced sourcing PO and Contract creation Service confirmations 2011 SAP AG. All rights reserved. 8
Agenda SRM 7.0 - Quick recap of highlights Who is B.Braun Business Challenges and Opportunities Objective & Solution Why SAP SRM? SAP SRM at B.Braun Project Scope & Timeline PO Project Highlights Implementation Highlights Key Success Factors Benefits Highlights SRM 7.0 EhP1 What s New 2011 SAP AG. All rights reserved. 9 9
Who is B.Braun? German based company founded 1839 as pharmacy Fully private owned stockholding company 42,000 employees world wide Annual turnover 2010 of 4.4 Billion EUR equal to about 6.3 Billion USD Over 30,000 different products Supplies the global healthcare market with products for anesthesia, intensive medicine, cardiology, extra corporeal blood treatment and surgery, as well as services for hospitals, general practitioners and the homecare sector Operating in 56 countries with 160 sites world wide Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 10
Some of the products Surgical instruments Dental instruments Infusion solutions Blood test devices Needles w/wo security feature Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 11
Some of the products cont. Infusion/nutrition center Dialysis machine Nutrition pump Infusion pump Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 12
B.Braun SAP System Landscape SAP ERP : ECC 6.0 (FI, CO, AM, SD, MM, QM, WM, PS, PM, PP, HR) 3 System Landscape Single Development System Separate Quality Assurance System and Separate Production Systems per region Europe, Asia Pacific, North America & South America SAP SRM 7.0 SAP Procurement Catalog BI: Business Intelligence PI: Process Integration EP: Enterprise Portal APO: Advanced Planning and Optimization Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 13
SAP System Landscape CMS 3PL interfaces e-commerce APO PP Production Planning MM Material Management QM Quality Management PM Plant Maintenance SD Sales and Distr. HR Human Resources ECC6 Client / Server PI ABAP/4 Java FI Financial Accounting CO Controlling IS Industrial Solution MyMediset WF Workflow AM Asset Management PS Project system HR Cognos TM1 SRM 7.0 Procurement Catalog Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 14 BO Product and company names, service names or logos mentioned in this page are protected by their respective owner s copyrights, trademarks and trading names.
Motivation Provide overview of worldwide procurement processes and procedures Streamline global purchasing processes to optimize purchasing volume efficiencies Manage quality of suppliers Optimize vendor contract management Improve the cycle times of order to pay process Time consuming manual process leading to long and costly procurement cycle time To gain visibility of the supplier performance globally Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 15
Motivation Provide overview of worldwide procurement processes and procedures Streamline global purchasing processes to optimize purchasing volume efficiencies Manage quality of suppliers Optimize vendor contract management Improve the cycle times of order to pay process Time consuming manual process leading to long and costly procurement cycle time To gain visibility of the supplier performance globally Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 16
Objective and Solution Create efficient, best-practice global purchasing processes by implementing a centralized purchasing system to provide a transparent view of all procurement activities The solution: SAP Supplier Relationship Management (SRM) 7.0 on premise Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 17
Why SAP and SRM? Alignment of procurement processes with industry best practices Proven global functionality Integration with all types of Software not only SAP Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 18
SRM 7.0 Architecture Overview Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 19
SAP SRM at B.Braun Implementation Scope Vendor Evaluation Invoice Management (In Progress) Contract management Order Management Self-service Procurement Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 20
Project Scope Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 21
Project Scope Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 22
Project Organization Project management Business Germany Business Malaysia IT Malaysia & Germany Bristlecone Steering Committee Sponsor (Global Director SCM) VP SCM Malaysia Director SCM Germany CC Leader SCM CIO Asia Pacific Purchase Order Management IT Malaysia IT Germany Business Malaysia Bristlecone Supplier registration & Evaluation IT Malaysia IT Germany Business Malaysia Bristlecone Supplier Assessment IT Malaysia IT Germany Business Malaysia Bristlecone Contract Management IT Malaysia IT Germany Business Malaysia Bristlecone Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 23
PIT = Project in IT B.Braun s standard execution of IT projects Service projects Small projects Large projects Project phases Gates Pre Phase G 1 Analysis G 2 Planning G 3 Realization G 4 Delivery G 5 Closing G 6 Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 24
1st Project Plan Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 25
Overall SRM Project Schedule & Deliveries Volcano eruption Iceland Release Change from SRM 5.0 to SRM 7.0 Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 26
Overall SRM Project Schedule & Deliveries (revised) Extension of scope Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 27
Project Scope Invoice Process in MM-SUS Scenario Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 28
Objectives for Purchase Order Management Reduce Process Costs for Order Handling by using SRM-Portal Increase transparency for Order Handling (e.g. Confirmation, Advanced Shipment Notification) Go-Live August 1 st 2010 Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 29
Major results of last phase PO & Confirmation * Purchase Order Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 30
Major results of last phase ASN Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 31 * Advanced Shipment Notification
Accomplishments next phase Implementation of SRM module Purchase Order Management in week 21 to 24 Preparation of SRM server (Production) by Basis Team in week 25 Testing & Error Correction PO Management in week 24 to 30 Upgrade SRM 5.0 DEV to Release 7.0 in week 24 SPAU and error correction for upgraded system in week 25 / 26 System copy SRM 5.0 QAS in week 26 Upgrade SRM 5.0 QAS to Release 7.0 in week 27 Function Testing / Error correction for upgraded system in week 28 / 29 Blueprint Contract Management in week 24 Blueprint Confirmation Contract Management in week 25 / 26 Blueprint Supplier Evaluation in week 26 Blueprint Confirmation Supplier Evaluation in week 27 / 28 Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 32
Major Results of the last phases Order Management Implementation, Function Testing and Integration Testing Done User Acceptance Testing Malaysia & Germany Done Implementation of 10 open issues raised in the User Acceptance Tests for Purchase Order Management Done End User Training Malaysia & Germany Done Training for selected Supplier in Malaysia - Done Take over to First Level Support Done Contract Management Contract Management Blueprint - Done Confirmation Of Blueprint for Contract Management - Done Finalization of Implementation Done Function and Integration Testing IT Team Done Presentation of the system to the Business Key Users Done Gate 4 Steering Committee Meeting Done Acceptance Testing Done Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 33
Accomplishments of Delivery Phase Contract Management Cut Over Tasks to Production (BI Team and Bristlecone) User Acceptance Test Malaysia / Germany IT Malaysia / IT Germany End User Training Malaysia / Germany Coordinated by Key Users Take over to First Level Support Implementation Team Go Live Implementation Team Supplier Assessment Cut Over Tasks to Production (BI Team and Bristlecone) User Acceptance Test Malaysia / Germany IT Malaysia / IT Germany End User Training Malaysia / Germany Coordinated by Key Users Take over to First Level Support Implementation Team Go Live Implementation Team Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 34
Implementation Highlights Tight project schedule Exceptional collaboration between Bristlecone, SAP and B.Braun IT Flexible and creative collaboration between B. Braun s German headquarters and its principal Asian subsidiary High-quality implementation delivered on time, under time pressure Quick implementation of a full range of SRM tools High level of support from knowledgeable partners before, during and after the project Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 35
Key Success Factors Management Commitment from B.Braun & Bristlecone SAP SRM product with industry best practices in Procurement Bristlecone expertise in SAP SRM requirements Successful SRM Implementati on Developed Enhanced solution for Supplier collaboration Developed a holistic solution for vendor evaluation by integrating performance scores from ERP and SRM into one platform Enhanced Contract Management solution to meet B.Braun s specific requirements Customized SRM MDM catalog system to meet B.Braun s specific requirements Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 36
Key Success Factors Management Commitment from B.Braun & Bristlecone SAP SRM product with industry best practices in Procurement Bristlecone expertise in SAP SRM requirements Successful SRM Implementati on Developed Enhanced solution for Supplier collaboration Developed a holistic solution for vendor evaluation by integrating performance scores from ERP and SRM into one platform Enhanced Contract Management solution to meet B.Braun s specific requirements Customized SRM MDM catalog system to meet B.Braun s specific requirements Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 37
Benefits Highlights More effectively negotiate pricing for raw materials Reduce operating costs Reduce product costs Improve communication between the company and its suppliers Enhance operational transparency for management Improved visibility of suppliers performance globally Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 38
Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 39
The SAP Procurement Portfolio Is Rapidly Innovating in Many Dimensions Cloud / On Demand Private Cloud Usability In-Memory Computing Embedded Analytics Mobile On-Premise Rapid Deployment 3 rd Party Partner Solutions 2011 SAP AG. All rights reserved. 40
SAP Procurement Portfolio What's New Solution by Solution Relevant mobile apps (shopping cart and contract approvals) SAP Sourcing OnDemand Strategic Sourcing Contract Lifecycle Management Supplier Management SAP BusinessObjects Spend Performance Mgmt SAP Sourcing & SAP Contract Lifecycle Mgmt SAP SRM SAP ERP SAP Invoice Management by OpenText * Supplier Network / Connectivity via Crossgate and Hubwoo* * Partner solution 2011 SAP AG. All rights reserved. 41
SAP SRM and SAP Spend Performance Management: Rapid Deployment Solutions SAP brings together software and services in new offerings that provide you compelling SRM and Spend Performance Management functionality quickly and affordably Out of the box pre-configured software based on best practices Rapid delivery with packaged services, Go-Lives in 10 weeks Affordable, flexibly priced solutions Affordable licensing Low TCO SRM is optional as a One-Client deployment. Built as add-on to your existing ERP functionality 2011 SAP AG. All rights reserved. 42
Operational Procure to Pay Enables Realized Savings & Increased Productivity Operational Procure to Pay Enables the standardized requisitioning, ordering, supplier collaboration and invoice/payment processes for all categories of spend and dramatically improves productivity Capabilities Self-service requisitioning from catalogs or ad hoc, including services procurement Plan-driven procurement from MRP Supplier collaboration on transactions Any source invoice management Shared service platform across diverse system landscape Rapid Deployment Solution available for a fixed scope and fee for rapid time to value Key Benefits Touch free procurement and adherence to allowed items Automated execution of required direct material Drives efficiency and visibility in supplier interactions Supports compliance and exception management Standardizes best practices regardless of # of back ends Customer Success Single system to manage all of procurement Leveraging SRM as a shared service solution Increased buyer productivity by 100%; reduced order to response times by 50% Go-live on SAP SRM 7.0 in under four months Improved compliance with government regulations Dramatically decreased cycle times 2011 SAP AG. All rights reserved. 43
SAP SRM 7.0 EHP1 with SAP ECC 6.0 EHP 5 What is New? Value Proposition Strengthen the central purchasing hub: support orchestration of local and central procurement ERP e-procurement functionality: Pushing the SAP Supplier Relationship Management (SAP SRM) application to all our installed base SAP ERP customers Increased supplier collaboration: Extend the reach outside company boundaries Central Purchasing Hub Highlights Usage of central contract also for services Functional improvement in the bidding engine Embedded contract analytics for central contracts Highlights SAP ERP E-procurement New shopping cart as part of ERP Employee Self- Services Additional scenarios for the one-client deployment Usage of SAP SRM without a portal installation Preconfigured scenarios for BAiO customers Supplier Collaboration Highlights Offline bidding via SAP Interactive Forms software by Adobe Bid response processing within Supplier Self- Services Enhanced supplier registration, qualification and on-boarding 2011 SAP AG. All rights reserved. 44
Additional Enhancements in EHP 1 for SAP SRM 7.0 and EHP5 for SAP ERP 6.0 Innovation without disruption: Configurable background processing for reports ERP documents referenced via a direct link within SAP SRM Usage of smart forms for shopping cart, RFx, and contracts Enhanced approval processes for parallel approving Improved TCO with simpler SAP SRM implementation ERP procurement: New shopping cart as part of the ESS role Additional scenarios for one-client deployment Pre-configured scenarios for BAiO customers Lines of business owner s perspective: Bid response processing within SUS Support informatory lines Default values for delivery address and account assignment for PO items Procurement for public sector: Performance enhancements to very large, complex procurement document handling Reduced # of screens and clicks for activities, including approvals and changing documents Country version for public sector France 2011 SAP AG. All rights reserved. 45
Operational Procurement Enabled by SAP SRM Self-Service Procurement One screen for the entire process New shopping cart UI Simple cross-catalog search Easier-to-review catalog search results 2011 SAP AG. All rights reserved. 46
One Screen Shopping: Shopping Cart 2011 SAP AG. All rights reserved. 47
Centralized Sourcing Enabled by SAP SRM Offline Bidding Enable large pools of suppliers to submit price quotes in simple offline SAP Interactive Forms by Adobe Suppliers receive an e-mail with a PDF attachment to fill in 2011 SAP AG. All rights reserved. 48
Centralized Sourcing Enabled by SAP SRM Offline Bidding SAP Interactive Forms by Adobe for offline bidding Data validation and error handling for incoming offline responses E-mail alert to purchaser for incoming online bids 2011 SAP AG. All rights reserved. 49
Embedded Contract Analytics
Service Procurement Enabled by SAP SRM Central Contract w Hierarchy Central contract in SAP SRM with service hierarchies 2011 SAP AG. All rights reserved. 51
Services Procurement Enabled by SAP SRM and SAP ERP Usage of Central Contract Purchase requisition in SAP ERP 6.0 source determination Services PO in SAP ERP 6.0 with reference to SAP SRM 7.0 central contract Release documents tracked centrally in SAP SRM 2011 SAP AG. All rights reserved. 52
Simplified Implementation and Operation SAP NetWeaver Portal Independent Navigation Frame 2011 SAP AG. All rights reserved. 53
SAP Procurement Portfolio What's New Solution by Solution Relevant mobile apps (shopping cart and contract approvals) SAP Sourcing OnDemand Strategic Sourcing Contract Lifecycle Management Supplier Management SAP BusinessObjects Spend Performance Mgmt SAP Sourcing & SAP Contract Lifecycle Mgmt SAP SRM SAP ERP SAP Invoice Management by OpenText * Supplier Network / Connectivity via Crossgate and Hubwoo* * Partner solution 2011 SAP AG. All rights reserved. 54
SAP SRM Mobile Shopping Cart Approval 2011 SAP AG. All rights reserved. 55
And join a large and experienced club Over 25,000 customers managing procurement with SAP Spend Visibility Sourcing Contract Lifecycle Management Operational Procurement Supplier Management 2011 SAP AG. All rights reserved. 56
Why Do Chief Procurement Officers Choose SAP? 1. Only solution provider that delivers on cost savings across the entire source to pay process 2. Proven value in delivering increased speed of savings and productivity across a company s diverse organization 3. Provides support to deliver on reduced supplier risk and improved supplier management 4. Delivers effective governance and compliance, with quick wins and low risk 5. Extends the value of your SAP investments by providing integrated processes across all categories of spend 2011 SAP AG. All rights reserved. 57
Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 59
Thank you very much for your attention! Rainer Schimpf CIO Asia Pacific B.Braun Medical Industries Sdn. Bhd. rainer.schimpf@bbraun.com Information Technology Rainer Schimpf Leveraging SAP SRM 7.0 Page 60