SAP ERP Logistics & Operations Overview Rudolf Zens Product ERP SAP AG
What Is Logistics & Operations? New Functions in mysap ERP 2004 and SAP ERP 6.0 Enhancement Package Concept and Roadmap Customer Example: esoa at OSRAM Opto Semiconductors Summary
SAP ERP Solution Map 2005 Edition End-User Service Delivery Analytics Strategic Enterprise Financial Analytics Operations Analytics Workforce Analytics Financials Financial Supply Chain Financial Accounting Accounting Corporate Governance Human Capital Procurement and Logistics Execution Product Development and Manufacturing Talent Workforce Process Workforce Deployment Procurement Production Planning Supplier Collaboration Manufacturing Execution Inventory and Warehouse Enterprise Asset Inbound and Outbound Logistics Product Development Transportation Life-Cycle Data SAP NetWeaver Sales and Service Sales Order Aftermarket Sales and Service Professional-Service Delivery Global Trade Services Incentive and Commission Corporate Services Real Estate Project Portfolio Travel Environment, Health & Safety Quality Scope of Logistics & Operations for SAP ERP SAP AG 2007 / Logistics and Operations / 3
What Is Operations? Subcontractor Logistics Provider Make Source Operations Deliver Design Supplier Customer SAP AG 2007 / Logistics and Operations / 4
What Is Logistics & Operations? New Functions in mysap ERP 2004 and SAP ERP 6.0 Enhancement Package Concept and Roadmap Customer Example: esoa at OSRAM Opto Semiconductors Summary
SAP ERP Includes Additional Functionality Streamlines invoicing and payment processes Motivates employees to achieve and designs innovative reward strategies Self-service portal increases flexibility and productivity Ensures adherence to new legal obligations Extensive analytics are intuitively accessible from portal(s) Supports full procureto-pay process Analytics Financials Human Capital Procurement and Logistics Execution Product Development and Manufacturing End-User Service Delivery Strategic Enterprise Financial Analytics Operations Analytics Workforce Analytics Financial Supply Chain Financial Accounting Accounting Corporate Governance Talent Workforce Process Workforce Deployment Inventory and Supplier Inbound and Transportation Procurement Warehouse Collaboration Outbound Logistics Production Planning Manufacturing Enterprise Asset Life-Cycle Data Product Development Execution SAP NetWeaver Empowers employees Aggregates and analyzes information across technology and the organization with SAP NetWeaver Exchange Infrastructure SAP NetWeaver Mobile connects people Unique set of valueadded services to improve management of resources and assets Sales and Service Corporate Services Sales Order Real Estate Aftermarket Sales and Service Project Portfolio Professional-Service Delivery Travel Global Trade Services Environment, Health and Safety Incentive and Commission Quality Models, executes, and monitors processes across technology and the organization Includes Internet sales to boost revenues Uses RFID to connect the physical world to business applications Includes Collaboration Projects (cprojects) suite to develop more reliable products in less time and at lower cost Open system architecture enables easier integration The following slides highlight the new and enhanced capabilities... SAP AG 2007 / Logistics and Operations / 6
SAP ERP Solution Map 2005 Edition End-User Service Delivery Analytics Strategic Enterprise Financial Analytics Operations Analytics Workforce Analytics Financials Financial Supply Chain Financial Accounting Accounting Corporate Governance Human Capital Procurement and Logistics Execution Product Development and Manufacturing Talent Workforce Process Workforce Deployment Procurement Production Planning Supplier Collaboration Manufacturing Execution Inventory and Warehouse Enterprise Asset Inbound and Outbound Logistics Product Development Transportation Life-Cycle Data SAP NetWeaver Sales and Service Sales Order Aftermarket Sales and Service Professional-Service Delivery Global Trade Services Incentive and Commission Corporate Services Real Estate Project Portfolio Travel Environment, Health & Safety Quality SAP AG 2007 / Logistics and Operations / 7
Procurement and Logistics Execution Overview of Major New and Enhanced Capabilities Procurement Supplier Collaboration Inventory and Warehouse Inbound and Outbound Logistics Transportation mysap ERP 2004 Procurement Self-service requisitioning with intuitive user interface (UI); full communication, integration, and catalogs Supplier collaboration Enables closed-loop procurement process All communication is electronic and workflowbased Hosted sales order management capability for suppliers Inbound and outbound logistics Enabled RFID data processing in supply chain scenarios (shipping, receiving, and packing), maintenance, and retailing Comprehensive and integrated portfolio of SAP Auto-ID Infrastructure enabled applications Receive and process RFID and SAP Auto-ID Infrastructure data streams from readers Write data to RFID tags Automatic RFID-handling EIC SAP ERP 6.0 Procurement Buyer Role React on exceptions and problems immediately Quick access to personalized work lists Analytical Insight Basic functions and general developments SAP SRM will run on the same client as SAP ECC (only supported with ERP 6.0 and SRM 5.0) A new Master Data Synchronization synchronizes common objects: business partner, vendor and product, and material Supported scenarios Self-service procurement Supplier collaboration (additional engine pricing) Catalog access in ME21N and ME51N Use of catalogs during creation of purchase requisitions and purchase orders Supplier Collaboration Design Collaboration with Suppliers based on cfolder Improves productivity and collaboration with partners and suppliers during the product design phase. SAP AG 2007 / Logistics and Operations / 8
Example Role Buyer Single Point Of Entry Different Areas of Activity Current Workload SAP ERP Makes Users More Productive Intuitive role based central point of access Relevant Information actively pushed to user Guided procedures guide users through common tasks Embedded analytics for better decision making Reports Execute Tasks SAP AG 2007 / Logistics and Operations / 9
POWL Single Point of Access to all Work Lists Workload Work List SAP AG 2007 / Logistics and Operations / 10
Benefits The role Buyer provides the following benefits for the end-users: User Productivity: Improved user productivity through an easy-to-use and intuitive user interface Personalization: Quick access to personalized work lists Speed: User can better and faster react on exceptions Analytical Insight: Fast preparation and distribution of purchasing analyses. Analytical information is available where it is needed for the IT department: Flexibility: User Interface can be adopted to the business processes of the company Acceptance: Better acceptance of end-users TCO: Reduced costs for end-user training Deployment Options: Content or at least part of the content of this portal roles can also be rolled-out for other user groups like Procurement Manager, Project Manager, Replenishment Planner, Dispatcher or Stock Planner SAP AG 2007 / Logistics and Operations / 11
SAP ERP Solution Map 2005 Edition End-User Service Delivery Analytics Strategic Enterprise Financial Analytics Operations Analytics Workforce Analytics Financials Financial Supply Chain Financial Accounting Accounting Corporate Governance Human Capital Procurement and Logistics Execution Product Development and Manufacturing Talent Workforce Process Workforce Deployment Procurement Production Planning Supplier Collaboration Manufacturing Execution Inventory and Warehouse Enterprise Asset Inbound and Outbound Logistics Product Development Transportation Life-Cycle Data SAP NetWeaver Sales and Service Sales Order Aftermarket Sales and Service Professional-Service Delivery Global Trade Services Incentive and Commission Corporate Services Real Estate Project Portfolio Travel Environment, Health & Safety Quality SAP AG 2007 / Logistics and Operations / 12
Product Development and Manufacturing Overview of Major New and Enhanced Capabilities Production Planning Manufacturing Execution Enterprise Asset Product Development Life-Cycle Data mysap ERP 2004 Manufacturing execution Manufacturing intelligence dashboard for plant manager Documentary batch to store the where-used data of materials used for production and trace product information without managing inventory by batches Enterprise asset management Maintenance cost budgeting (MCB) Mobile asset management Product development CAD desktop Development collaboration (cfolders) Life-cycle data management SAP Easy Document for managing personal and group document structures and documents DMS connector for knowledge management Product modeling for configurable products (PME) Recipe and trial management SAP ERP 6.0 Manufacturing execution Manufacturing intelligence dashboard for plant manager and production supervisor Dashboards for the new roles of maintenance technician and quality inspector to promote collaboration on the shop floor Shop-floor Integration Enterprise asset management Role maintenance technician: after-the-event recording for maintenance work that was not planned in advance Flexible work order enables flexible customization of the order layout Mobile asset management Product development CAD desktop integration in product development Development collaboration (cfolders) Work center development collaboration Life-cycle data management Document management and SAP Easy Document DMS connector for knowledge management Product structure management based upon integrated product and process engineering Engineering change management (ECM) Recipe and trial management Product modeling for configurable products (PME) SAP AG 2007 / Logistics and Operations / 13
SAP Manufacturing Dashboards The SAP Manufacturing Intelligence Dashboard is a configurable rolebased entry page that delivers: Integrated planning and execution decision support Relevant manufacturing/business content Real-time exception detection and management Analytics and reporting Key Benefits: Real-time snapshot of factory and production line operations at a glance Support proactive response to exceptions Execution on production plans on time and within budget Access to KPI s needed to continuously improve performance Integration of external systems SAP ERP + Enterprise Portal SAP BI & Analytics Manufacturing Planning Manufacturing Execution Quality Maintenance Environment, Health & Safety SAP XI + SAP xmii SAP AG 2007 / Logistics and Operations / 14
SAP xapp for Manufacturing Integration and Intelligence (xmii) SAP NETWEAVER Other SAP Bus. Solu tions Manufacturing Intelligence Dashboards SAP Manufacturing SAP xmii Manufacturing Intelligence Manufacturing Integration SAP BI The SAP xapp Manufacturing Integration and Intelligence (xmii) is a packaged composite application that delivers: Manufacturing Intelligence: Real-time analytics engine that aggregates and delivers unified visualization of events, alerts, KPIs and decision support to production personnel thru role-based dashboards Manufacturing Integration: A single ISA-95 compliant layer enabling SAP ERP connectivity into real-time plant floor apps. (MES, SFA, legacy apps.) to drive plant-toenterprise business process interoperability MES Manufacturing Execution Systems, EMI Enterprise Manufacturing Intelligence, BW Business Warehouse (from SAP) SFAC Shop Floor Automation & Control, SAP AG 2007 / Logistics and Operations / 15
SAP ERP Solution Map 2005 Edition End-User Service Delivery Analytics Strategic Enterprise Financial Analytics Operations Analytics Workforce Analytics Financials Financial Supply Chain Financial Accounting Accounting Corporate Governance Human Capital Procurement and Logistics Execution Product Development and Manufacturing Talent Workforce Process Workforce Deployment Procurement Production Planning Supplier Collaboration Manufacturing Execution Inventory and Warehouse Enterprise Asset Inbound and Outbound Logistics Product Development Transportation Life-Cycle Data SAP NetWeaver Sales and Service Sales Order Aftermarket Sales and Service Professional-Service Delivery Global Trade Services Incentive and Commission Corporate Services Real Estate Project Portfolio Travel Environment, Health & Safety Quality SAP AG 2007 / Logistics and Operations / 16
Sales and Service Overview of Major New and Enhanced Capabilities Sales Order Aftermarket Sales and Service Professional-Service Delivery Global Trade Services Incentive and Commission mysap ERP 2004 Sales order management Role: internal sales representative New role for sales in mysap ERP Overview of actual workload Direct execution to corresponding functions Analytics SAP E-Commerce for mysap ERP Multimedia product catalog Comprehensive order management and fulfillment Real-time availability check Powerful pricing and product configuration Interaction channel for order, delivery, and invoice tracking. Mobile sales for handheld Customer management Sales order management Materials management SAP Incentive and Commission Settlement schedules Actual commission Threshold values in settlement run Ending commission contracts Importing business object categories Encapsulated condition technique SAP ERP 6.0 Sales order management Role: internal sales representative Work center concept and enhanced analytics Personal object work list (POWL) New UI for sales documents SAP E-Commerce for mysap ERP Enhancements in quotation and order management; user and shop management (super-user concept) Selling with ebay Enhanced Internet pricing configuration (IPC) The IPC is integrated to allow configuration within mysap ERP sales documents Professional-service delivery New resource planning application to staff projects Multilevel controlling and cost planning for cprojects Risk assessment for projects Full deployment capability in mysap ERP 2005 SAP Global Trade Services (SAP GTS) Automated and streamlined management of complex import and export processes SAP Incentive and Commission Target agreements Partnerships Valuation by copy services Portfolio assignments and transfer Entitlement and liability transfer Retroactive case processing SAP AG 2007 / Logistics and Operations / 17
What Is Logistics & Operations? New Functions in mysap ERP 2004 and SAP ERP 6.0 Enhancement Package Concept and Roadmap Customer Example: esoa at OSRAM Opto Semiconductors Summary
SAP ERP as Platform for Logistics Processes SAP NetWeaver Extended Warehouse (EWM) Supply Chain Event (SCEM) Web Channel (E-Commerce) cfolders Self-Service Procurement Supplier Self-Service SAP AG 2007 / Logistics and Operations / 19
SAP NetWeaver Master Data SAP NetWeaver SAP NetWeaver MDM Master Data Integration Master Data Distribution Master Data Harmonization Master Data SAP AG 2007 / Logistics and Operations / 20
Business Intelligence SAP NetWeaver - Business Intelligence SAP NetWeaver BI Business Analytics Data Warehousing Web-based and Formatted Reporting Master Data SAP AG 2007 / Logistics and Operations / 21
Business Warehouse SAP NetWeaver - Process Integration SAP NetWeaver XI Application-to-Application Integration (A2A) Message brokering, adaptation Business-to-Business Integration (B2B) Message brokering, connectivity Industry standard partner integration Business Task (BTM) Automate collaborative tasks and workflows across the enterprise Exchange Infrastructure Master Data SAP AG 2007 / Logistics and Operations / 22
Business Warehouse SAP NetWeaver SAP NetWeaver The Docking Station for SAP xapps SAP xcqm(cost and Quotation ) SAP xmii (Manufacturing Integration & Intelligence) SAP xem SAP xpd (Emissions ) (Product Definition) SAP xrpm (Resource and Portfolio ) Exchange Infrastructure Master Data SAP AG 2007 / Logistics and Operations / 23
SAP NetWeaver Composition Framework SAP NetWeaver Exchange Infrastructure Business Warehouse xmiixyz xrpm Master Data SAP AG 2007 / Logistics and Operations / 24
SAP NetWeaver Enterprise Service Enablement SAP NetWeaver E Inf xch ras an tru ge ctu re B Wa usin reh ess ou se Z xy Ma Ma ster na Da ge t me a nt SAP AG 2007 / Logistics and Operations / 25 xr I xm I PM
SAP NetWeaver User Interface SAP NetWeaver E Inf xch rac an str ge utu re B Wa usin reh ess ou se Z xy Ma Ma ster na Da ge t me a nt SAP AG 2007 / Logistics and Operations / 26 xr I xm I PM
SAP ERP 6.0 The Go-To Release Enhancement Packages SAP ERP 6.0 SAP NetWeaver Quick Facts About SAP ERP 6.0 Launched in June 2006 Fastest adoption since SAP R/3 4.6C Built on SAP NetWeaver 7.0 Platform upon which SAP will deliver future software innovations Software innovation without disruption via SAP Enhancement Packages Standard Maintenance until March 2013 Customers Adopt Innovation at their Pace Process and User Interface Simplification Industry-Specific Enhancements Enterprise SOA Cross-Industry Enhancements SAP AG 2007 / Logistics and Operations / 27
ERP Operations Roadmap 1 2 3 4 5 Q4 2006 Q3 2007 Q4 2007* Q3 2008* Q4 2008* Automatic Roles Order-to-Cash Procure-to-Pay SAP NetWeaver Manufacturing Operations Support SIMPLIFICATION Customer Fact Sheet Order-to-Cash Procure-to-Pay Complete esoa enablement ENTERPRISE SOA MES Integration SCM Enablement SRM Enablement Innovation Innovation FUNCTIONALITY Retail Service Industries Trading Industries Discrete Industries Process Industries INDUSTRIES * Intended Enhancements: Subject to Change SAP AG 2007 / Logistics and Operations / 28
ERP Simplification Process Simplification Create Quotation xprint & Send for internal Approval Approve Quotation Print & Send to Customer Transaction Simplification Workflow Automation Access Simplification Role-based Access SIMPLIFICATION ENTERPRISE SOA TREX Search Power List FUNCTIONALITY Fact Sheet INDUSTRIES SAP AG 2007 / Logistics and Operations / 29
ERP Enterprise SOA 1 2 3 4 5 Delete from database Rollback inventory Adjust Planning SOA Order to Cash Cancel Order Send Notify Notification Suppliers Cancel Shipment Cancel Invoicing ENTERPRISE SOA Order to Cash Cancel Order SIMPLIFICATION ENTERPRISE SOA Manually built Low reusability No governance Leads to chaos Productized services Business semantics Unified repository Ensures integrity FUNCTIONALITY INDUSTRIES SAP AG 2007 / Logistics and Operations / 30
ERP 6.0 EhP 1 Simplification SAP Portal Service Map 1 Q4 2006 Automatic Roles SAP Easy Access Menu Customer Fact Sheet MES Integration Retail SAP AG 2007 / Logistics and Operations / 31
ERP 6.0 EhP 1 Enterprise SOA Customer Fact Sheet @ enterprise SOA 1 Q4 2006 Automatic Roles Customer Fact Sheet MES Integration Retail SAP AG 2007 / Logistics and Operations / 32
ERP 6.0 EhP 1 Functionality 1 Q4 2006 Automatic Roles Customer Fact Sheet MES Integration Retail Connect external Manufacturing Execution Systems (MES) through enterprise SOA SAP AG 2007 / Logistics and Operations / 33
ERP 6.0 EhP 2 - Simplification 2 Q3 2007 SIMPLIFICATION Order-to-Cash ENTERPRISE SOA FUNCTIONALITY INDUSTRIES Order-to-Cash SCM Enablement Service Industries Simplify Order-to-Cash Work Centers for Customers Sales Order Fulfillment Billing / Complaints Roles for Internal Sales Representative, Credit Manager, Cash Manager SAP AG 2007 / Logistics and Operations / 34
ERP 6.0 EhP 2 - Enterprise SOA 2 Q3 2007 SIMPLIFICATION ENTERPRISE SOA Order-to-Cash Order-to-Cash Planned Enterprise SOA Bundles Order-to-Cash (Basics) Customer Service Execution FUNCTIONALITY SCM Enablement INDUSTRIES Service Industries SAP AG 2007 / Logistics and Operations / 35
ERP 6.0 EhP 2 - Functionality 2 Q3 2007 Functional Enhancements SIMPLIFICATION ENTERPRISE SOA FUNCTIONALITY Order-to-Cash Order-to-Cash SCM Enablement SCM Integration Enablement of New SCM Functionality through SAP ERP Subcontracting in Supply Network Collaboration Lean Maintenance INDUSTRIES Service Industries SAP AG 2007 / Logistics and Operations / 36
ERP 6.0 EhP 3 - Simplification 3 Q4 2007 SIMPLIFICATION Procure-to-Pay SAP NetWeaver ENTERPRISE SOA Procure-to-Pay FUNCTIONALITY INDUSTRIES SRM Enablement Trading Industries Simplify Procure-to-Pay Simplification of Purchase Requisition creation and handling Work Centers and Power Lists SAP AG 2007 / Logistics and Operations / 37
ERP 6.0 EhP 3 - Enterprise SOA 3 SIMPLIFICATION ENTERPRISE SOA FUNCTIONALITY Q4 2007 Procure-to-Pay Procure-to-Pay (Basics) SAP NetWeaver Supplier Collaboration Procure-to-Pay SRM Enablement Planned enterprise SOA Bundles: Service-enabled SRV Outsourced Manufacturing Inventory Asset Configuration INDUSTRIES Trading Industries SAP AG 2007 / Logistics and Operations / 38
What Is Logistics & Operations? New Functions in mysap ERP 2004 and SAP ERP 6.0 Enhancement Package Concept and Roadmap Customer Example: esoa at OSRAM Opto Semiconductors Summary
OSRAM Opto Semiconductors OSRAM Opto Semiconductors is a wholly owned subsidiary of OSRAM, one of the world s two leading lighting manufacturers in the world. It offers its customers solutions based on semiconductor technology for lighting, sensor and visualization applications. The company employs more than 3,500 people worldwide and operates sites in Regensburg (Germany), San Jose (USA) and Penang (Malaysia). We shape the future of light by advancing solutions for illumination, visualization and sensing
The Business Challenge Complex systems and the need for instant customer information takes time and money Customer demands for instant online information about order transactions Customer provides fragmentary information about the order Complex systems impede a sufficient overview of the order-to-cash process Improve transparency of the order-tocash process Enable customer service to provide customer with information in a consolidated and efficient manner Provide an ATP check for materials Implement a Customer Service Cockpit to better serve customers by having a complete real time overview about the relevant customer activities
Implementation Architecture Service Consumption WebDynpro (navigation within a single application) Process Composition Layer (UI centered and backend processes) Customer Service Cockpit Web Dynpro UI Layer Custom ABAP classes and proxies Service Proxies ABAP Classes Local Logic Layer Custom Services CFS Services Service Provisioning ERP
Implementation Selection Screen Material Search Document Search Customer Specific Search Document List Inquiry, Quote or Order List Phase 1 Phase 2/3 Document Flow Stock/Requirements List Customer... Order # Stock Overview From Inquiry to Invoice including detailed document information Implementation based on the SAP Enterprise Services Bundle Customer Fact Sheet on SAP ERP 2005 Enhancement Package 1 UI: ABAP WebDynPro
Implementation Phase 1 (Layout)
Summary of Project Experience First contact with Enterprise SOA and Enterprise Services Enterprise Services are easy to find, understand and use Leverage existing investment in SAP ERP and SAP NetWeaver to provide a better solution to support the order-to-cash business process Provide business users from different LOBs access to the same services ensures coherency and accuracy of information provided to customers Success factors Ramp-up project Support from SAP Development and SAP Consulting In-house competencies in business process knowledge and IT (SOA, SAP NetWeaver and SAP ERP)
What Is Logistics & Operations? New Functions in mysap ERP 2004 and SAP ERP 6.0 Enhancement Package Concept and Roadmap Customer Example: esoa at OSRAM Opto Semiconductors Summary
Simplify, Optimize, Innovate with SAP ERP Operations Simplify your Business Processes your System Landscape your End User s life Optimize Innovate ENHANCEMENT PACKAGES SAP ERP 6.0 SAP ERP Operations as Logistics Platform without interruption SAP AG 2007 / Logistics and Operations / 47
Further Information SAP ERP Operations sap.com/erp and service.sap.com/erp SAP ERP Solution Browser http://solutionbrowser.erp.sap.fmp media.com SAP Upgrade Info Center service.sap.com/upgrade SAP Upgrade Services service.sap.com/upgradeservices SAP ERP Upgrade service.sap.com/upgrade-erp SAP AG 2007 / Logistics and Operations / 48
Questions? Rudolf Zens Product ERP SAP AG rudolf.zens@sap.com SAP AG 2007 / Logistics and Operations / 49
SAP AG 2007 / Logistics and Operations / 50 THANK YOU FOR YOUR ATTENTION!
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