SAP Sales and Operations Planning Software Product (xsop) Ray Adams IBU Chemicals March 20 th, 2007
S&OP Overview Functions in xsop Demonstration Wrap-up
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
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 0005-02a
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
S&OP Overview Functions in xsop Demonstration Wrap-up
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
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
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 e-mail 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
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 email 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
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
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
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
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
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
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 email 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
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
S&OP Overview Functions in xsop Demonstration Wrap-up
Version Overview for S&OP Manager SAP AG 2006, Title of Presentation / Speaker Name / 19
Version Detail Screen SAP AG 2006, Title of Presentation / Speaker Name / 20
xsop Screenshot Version Detail Screen with drilldown SAP AG 2006, Title of Presentation / Speaker Name / 21
xsop Screenshot Supply Plan for S&OP Planner SAP AG 2006, Title of Presentation / Speaker Name / 22
xsop Screenshot Process Management Overview SAP AG 2006, Title of Presentation / Speaker Name / 23
S&OP Overview Functions in xsop Demonstration Wrap-up
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
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