20111011 pro 01 logistics overview

Department of Finance and AdministrationOffice of the Mississippi Management and Reporting System

Workshop Presentation PRO_01 Logistics Overview

October 11, 2011

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1. Workshop Ground Rules2. Workshop Guiding Principles3. Workshop Objectives4. Workshop Agenda in Detail5. Workshop Roles6. Workshop Content7. Workshop Wrap-up

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AGENDA

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All participants should be familiar with the requirements and the topics to be covered;

The workshop scribe is responsible for documenting the parking lot issues and follow up questions;

The workshop facilitators are responsible for keeping the discussion centered on the topic being discussed. If an issue is determined that cannot be resolved during the workshop, the facilitator will note the issue for future resolution and enter it into the workshop output document; and

Parking of discussion item if the required knowledge is not in the room.

Workshop Ground Rules

Workshop Guiding Principles

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Workshop Participant

Demonstrate how requirements are met using Standard SAP functionality

Utilize standard SAP functionality (80/20 rule)

Avoid the what wont work mindset

Be attentive and open minded

Explore questions and answers

Encourage input from other participants

Refrain from absolutes and mandates

Focus on current issue being discussed

Avoid war stories

Manage cell phone, pagers & interruptions

Keep the conversations to one at a time

Essential to dos: Review Business Process Model Update/Create process Flow

Diagrams WS Output Documents Identify RICEFW Objects Document process

changes/implications Solution Manager:

Create Business Blueprint documents

Identify Issues and Risks

Workshop Objectives

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Identify Logistics related SAP components

Introduce SAP Logistics functionality and terminology

Establish a baseline for SAP Logistics

Workshop Agenda

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Date

Topics

Deliverables

Team Logistics

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Supplier Relationship Management (SRM) Scope Overview of Supplier Relationship Management (SRM) functionality ERP Central Component (ECC) Scope Overview of ERP Central Component (ECC) functionality Questions Wrap-up Plus / Delta

Workshop Minutes Parking Lot

Blueprint Workshop - Roles

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SAP Facilitator Jon Sanford, Jeanna Stafford

Customer Facilitator Brenda Benson

Scribe Wayne Liu

OCM Dorothy Preston

A successful workshop is the result of interaction and participation!

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What You Do Today

SAAS

SRM+ECC

System Crosswalk

Supplier Self-Service SUS/ Supplier Collaboration

Supplier registration Supplier questionnaire (gather company information, MWBE information, and update

company information Supplier view and respond to RFx

Self-Service Procurement

Create shopping carts Use of internal and external catalogs Workflow approvals Create purchase orders (automatic and manual creation) Services procurement Real-time Budget Checking

Supplier Relationship Management (SRM) Scope

Master Data Management (MDM )Catalog

Internal catalog (warehouse, furniture, technology, etc.) External catalog (punch-out/round-trip) Catalog creation Catalog maintenance (periodic pricing updates, URL updates for punch outs, etc.)

Contract Management/Strategic Sourcing

Sourcing Cockpit RFx Processing Contract creation Contract negotiation Contract review/approval Contract monitoring

Supplier Relationship Management (SRM) Scope

Supplier Relationship Management (SRM) ScopeDocument Builder

Included in the Operational Procurement, Public Tendering, Contract Management and Administration Scenarios

Ability to create and store legal clauses, term, conditions, and related business rules for applying them to documents

Data elements in clauses, with fill-in capability Output in Adobe PDF, XML, and MS WORD format Incorporates SAPSRM line item, header, business partner, in addition to other data

Netweaver Folders Management (Records Management)

A structured system for organizing information A single point of entry to transactions and related data and unstructured documents Able to contain and reference other Records Reportable + Searchable

Reporting

Standard reporting across SRM and ECC

Automates requisition and order management with easy to use catalog

Sourcing reduces cost and cycle times Contracts drive compliance to contract

policies Supplier connectivity enables transaction

efficiency Supplier qualification & evaluation enables

supplier management Spend reporting delivers ERP wide insight Integration with Business Suite/ ECC

SRM Delivers Efficiency, Flexibility, and Insight

Finance

Requisition & Purchase Order Management

Spend Reporting

Contracts

Supplier Qualification&

Evaluation

SupplierCollaboration

Sourcing

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Registration of Supplier (ROS)9 Easy to use Self-

Registration

9 Potential Supplier Maintenance by Purchaser

9 Supplier Questionnaire

9 Potential Supplier Screening

9 Master Data distribution

9 Supplier Self Maintenance

9 Easy to use wizard for end users

9 Generation of a requisition, reservation, or purchase order

9 Team purchasing concept

9 Availability check and assignment of sources of supply

9 Preferred vendor, contracts

9 Distribute account assignment

Self Service Procurement

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9 Robust Search by free text, supplier, category

9 Fuzzy search, linguistic search support

9 Robust catalog administration

9 Flexible catalog mapping

9 Image support9 Parametric

attribute search

9 Internal (stock item), Supplier, and Punch-out catalogs

SRM MDM Catalog

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9 Flexible approval flow to drive compliance

9 Spending limit, accounting access enforcements

9 Line item approval9 Mobile access9 Ad Hoc approvers,

Reviewers

9 Business rule based flows

9 Email notifications9 Delegations and

substitutes

Personal Object Work List (POWL)

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Order Management

9 Electronic purchase orders

9 Supplier self service (SUS)

9 Electronic service confirmations

9 Support for services

9 Check status of workflow

9 Change/ edit shopping carts

9 Track PO status9 Extensive

document search and sort

9 Related documents

Check Status

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RFx/Sourcing9 Robust sourcing

for Direct, Indirect and Services spend

9 Easy to use bidding engine

9 Electronic Supplier response

9 Collaboration to propose changes, chat and bid confirmation

9 RFx creation from SRM and demand from ECC

9 Multi-round processing

9 Bid Evaluation and Award

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9Contract repository and compliance across SRM and ECC9Payment Terms at

Header, Line item, and distribution level9Flexible alerts on

contract value, expiration date, qty etc.9Distribute contract

items to catalog9Document Change

& version management

Contract Management

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Supplier Self Service (SUS)9 Supplier

communication of key transactions

9 User friendly dashboard for suppliers

9 Administration to manage user access

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9SAP application that builds and maintains documents9Builds Documents

from one or more elements9Elements may be

organized in one or more containers9Elements are

associated to rules9Rule evaluation

determines whether the element is included in the resulting document

Document Builder

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9SAP application that integrates documents, data, and transactions9Ability to store and

access system transactions and their related documents9Searchable and

reportable9Process-oriented9 IS NOT

Content/Storage Repository

Netweaver Folders Management (Records Management)

9 Operational Reporting with data access across SRM and ERP Financials

9 Pre-packaged reports

9 Role-based reports

9 SAP NetWeaversupport for BI data extractors/ mapping, Portal, MDM data harmonization,

Reporting

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ERP Central Component (ECC)

ECC is Central System of Record for the State Accounting Logistics Human Resources Tools / System Administration

ECC Logistics Scope

Materials Management

Logistics Execution (Warehouse Management)

Plant Maintenance (Fleet Management)

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Materials Management

Purchasing (SRM) Inventory Management (IM) Logistics Invoice Verification (LIV) Physical InventoryMaster Data

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What You Do Today

Protg

SAP ECC

System Crosswalk

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Inventory Management

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Goods MovementGoods ReceiptGoods IssueTransfer Posting

Material Document

Reservation

EnvironmentStandard Inventory Reports

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Goods MovementMaterial DocumentReservationEnvironment

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Logistics Invoice Verification

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Document EntryEnter InvoicePark InvoiceEnter Invoice/Background Processing

Further ProcessingDisplayCancelReleaseList

Automatic SettlementEvaluated Receipt SettlementInvoicing PlanRevaluation

GR/IR Account MaintenanceMaintainDisplay/Cancel

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Document EntryFurther ProcessingAutomatic SettlementGR/IR Account

Maintenance

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Logistics ExecutionWarehouse Management

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Logistics ExecutionWarehouse Management

Inbound ProcessGoods ReceiptPutaway

Outbound ProcessGoods IssuePick

Internal Warehouse ProcessBins & StockTransfer RequirementPosting ChangeStock TransferPhysical Inventory

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Logistics Execution

Inbound ProcessOutbound ProcessInternal Warehouse Process

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Physical Invetory

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Physical Inventory

DocumentMaintainInitiate RecountPrint

Inventory CountsEnter Count ResultsChangeDisplay

DifferencesPost/Clear DifferencesList

Special ProceduresSamplingCycle Count

EnvironmentReportsRelated Master Data info

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Physical Inventory

DocumentInventory CountsDifferencesSpecial ProceduresEnvironment

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Master Data Material Master & Service Master

Service Master Record

Material Master Record

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Material MasterMaterial Master Record

Create/ChangeFlag for DeletionMass Change

Service MasterService Master Record

MaintainService List

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Material Master Service Master

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Reporting in Logistics

Fleet Management

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Planned Work Preventive Maintenance

Scheduled Work Calendar Mileage Hours

Unplanned Work Reactive Maintenance

Maintenance Notification Maintenance Work Order

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9 Common fleet attributes in Equipment Master

9 View profiles created for Fleet Type (object type)

9 Two tabs for fleet data with 4 sub-screen slots

9 Seven sub-screens for display fleet data

9 Identification9 Replacement data9 Engine data9 Fuel and lubricants

Fleet Management

Workshop Objectives

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Identify Logistics related SAP components

Introduce SAP Logistics functionality and terminology

Establish a baseline for SAP Logistics

Lets verify that we are on the same pageClarify any Strange JargonValidate Parking Lot ItemsRecord Key Decisions

Wrap-up

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Questions

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+sWhat worked well today?

sWhat can we improve for future meetings and project activities?

Plus/Delta

Thank you!

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MAGIC Project WORKSHOP MINUTES/ OUTPUT DOCUMENT

PROJECT IDENTIFICATION

Project Name CPI/Project Number Project Type (CBI, Implementation, CSS, Upgrade, Internal, other)

MAGIC Implementation

Customer Name Customer Number Planned Start/Finish

State of Mississippi 600260

SAP Customer Partner Project Sponsor Program Manager

SAP Project Director Customer Project Director Partner Project Manager

Bill Bevil Becky Thompson

GENERAL INFORMATION Workshop Title PRO_01 Logistics Overview Workshop Facilitators Jon Sanford, Jeanna Stafford, Brenda Benson Process Owner Scribe Wayne Liu Name (including Role/Organization) Brenda Benson DFA/MMRS Terri Ashley SPB/PSCRB Lance Fulcher DFA/OPTFM Willie Washington Jr. MDMH/MS State Hospital Marilyn Anderson MS State Hospital Peggy Gayle MS State Hospital Shuntel Taylor MS State Hospital Gale Taylor PEER Lampton Harry MS Dept of Rehab Hewitt Pittman MDAC Tressa Guynes Senate Carlos Galloway DFA/MMRS Shelley Walker - DFA/MMRS Logan Litchliter - DFA/MMRS Jim Hurst DFA/OFM Mary McNeill OSA James A. Hart MS Dept of Ed Candice Sardin MS Dept of Ed Retha Gregory MDOT Julie Ethridge MDOT Mark Valentine MDOT Donna Hales MS Dept of Ed Madeline Morris MS Dept of Ed Amanda Michael MMD Judith L. Eberhardt MMD Willie McAfee MDE Lois Lee Dept of Health Ross Campbell DFA/OPTFM Rosie Frazier DOM Aleisha Caldwell MDOT Jeanette Crawford ITS Tina Wilkins ITS Lynn Ainsworth ITS Paula Conn ITS

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Judy Miller DFA Preston Ware MSH Kenneth Dixon MSH John Carroll MDAH Bobby Husbands Archives & History Kristi Mullen Attorney General Glen Kornbrek Bureau of Buildings Milo Crabtree DFA/OPTFM Rick Snowden DFA Tanya Rass Attorney General Carol Allgood Supreme Court Melanie Wakeland Medicaid Terrance Jones DFA/MMRS Jack Ladhur STA Nathan Frey STA Tammy Rankin DFA/MMRS Dorothy Preston DFA/MMRS Judy Henley MS Dept of Mental Health Jackie Bailey MS Dept of Mental Health Charlotte Robinson Dept of Wildlife, Fisheries and Parks Gina Eady Attorney General Jesse Graham MSPB Jackie Robinson EMSH Catherine Gillispie EMSH Rick Entrekin EMSH SUMMARY OF THE MEETING REFERENCE DOCUMENTS

FOR DETAILS REFER TO THE FOLLOWING BUSINESS PROCESS DESIGN DOCUMENT

8:30 a.m. - Meeting started with Jon Sanford and Brenda Benson welcome the audience. 8:35 a.m. Jon begins the workshop presentation.

Link to download the Slide Presentation: https://sapmats-us.sap-ag.de/download/download.cgi?id=Q8R7YO5OQ52CF8ZCD9OCRP5JB94XHUK4VE9CJQXNIW8HN7VQFT

Question: Will users have the ability to view documents (i.e. contracts) in a side-by-side view in records management i.e. invoice and PO? Response: Wayne Liu answered Yes.Question: Will we convert all existing information as it pertains to existing suppliers/vendors? Response: Jon Sanford answered that all existing vendors information will be migrated over to the SAP system, and new suppliers will need to follow the new process to register in SRM. The detailed process steps will be determined during a follow-on blueprint (BP)session. Question: Will the system support multiple vendor addresses (i.e. remit to address opposed to ordering address). Response: Jon Sanford answered that the system can handle multiple addresses. Question: When we need to add a new vendor, will vendors be required to complete the systems vendor registration process? Some vendors who do not have computers, or are mentally ill, or will just refuse to fill out the registration form. Response: Brenda answered that we will work through that during the detailed BP session. Question: Will the system have the ablility to capture a vendor as a minority vendor?

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Response: Jon answered that this will be captured/handled in the registration process. Question: Will the system have the ablility to provide a confirmation that the vendor has received a purchase order? Attendees explained that they have a current issue with WebProcure purchase orders not being recevied by a vendor due to the vendor not updating the contact set up to receive the purchase order after someone has left the company. Therefore the orders are getting dispatched to the email address that is invailid, and the vendor does not receive the order. Response: Jon Sanford adding this issue to Parking Lot for further discussion in the related blueprinting session. Question: Will have a comparison view of items from mutiple external catalog (i.e. Staples, Office Depot) like what is available in an internal catalog. Response: Jon Sanford answered that there is 3rd

party application where that may be possible, but that is not in scope.

Question: How will the approval process be set up?. Response: Wayne Liu answered that approval processes will be discussed in one of the upcoming blueprinting sessions, but briefly answered that the supervisor/management line will be established and approval process will be defined in the process based sessions. Question: Will there be a special workflow process for capitalized assets or a way we can flag the item as an asset so that the asset record gets created? Response: Jon Sanford answered that will be handled in subsequent sessions, but explained that system will handle this in an automated manner. Question: Will the entire approval process will be handled in a workflow? Response: Jon Sanfrod explained that the Display Purchase Order screen gives a history. Question: Will the invoice be displayed from the PO by clicking on a link? Response: Jon Sanford answered yes. Question: Will the online dialog/chat between buyer and vendors in RFx process be availale for all vendors to see? Can it be utilized for certian types for bids or at certian point in the RFx process? Response: Jon Sanford added this to the Parking Lot issues list as an item for further blueprint discussion. 9:40 am, 10 minutes break 9:50 am Jeanna Stafford started ECC workshop presentation

Question: Will all invoices have to be received electronically in they system. Response: Jeanna Stafford answered no, that invoices can be entered different ways. Brenda Benson asked for a show of hands to find out how many have a need for Inventory Management. There were approximately 5 or 6 hands raised. Brenda will meet with these individuals after the meeting to gather more information. Question: Will the the user have the ability to set the terms or will there be a

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default? Response: Jeanna said that the system will have the terms defaulted in the system, but users have the flexibility to go in and override and do a manual payment if needed. Question: Will the system allow partial payments? Response: Jeanna Stafford responded Yes. Question: Will the system have the capability to attach a scanned copy of the invoice? Response: Jeanna Stafford answered Yes. Question: Will the system provide us with the ability to set and recevie Reorder Point notifications for inventory items? Response: Jeanna Stafford answered yes, this is handled in Material Master. Question: Will the system provide the ablity to generate a billing for warehouse items that are ordered? Response: Jeanna Stafford said you can, but its not really done through a billing process, but that is more of a finance transaction and is done as a transfer. Questions: Will you have the ablility to set a specific site or location to identify where a light bulb, etc.. is placed? Response: Jeanna Stafford explained how Reservations worked and that that system will be able to handle this. Question: Will the security access on a warehouse or location be set by agency? Response: Jeanna Staffor respondes Yes, you can limit what other agencies can see. 10:30 am, Terry started Fleet Management workshop presentation Question: Will the system send out a notice to the person assigned to the vehicle letting them know that planned maintenance work needs to be done? Response: Terry Heinze answered No, not as such. But a report could be run at any time with a specific time range for users to see what maintenance is due. Question: When damage is done to a vehicle, is there a standarized process for tracking a vehicle was wrecked? A place where you can go in and make a notation to details about the accident or damage to the vehicle etc. Response: Terry Heinze said you have options where you can notate in the area for reactive maintenance or you can even attach scanned documents where it can become part of the vehicles history record. Question: When you need starters, batteries, tires, etcinstalled or removed from a vehicle, will the system provide the ablilty to track what items are installed or removed from a vehicle, so you dont have any missing items? Response: Terry Heinze answered yes. You will always have a work order. Question: Does the system provide the ability to track additonal equipment issued to a vehicle (may or may not be permenantly installed) for example, a law enforcement vehicle may have a GPS issued to the vehicle? Response: Terry Heinze said you can create an equipment record for each

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vehicle and assign all the additional parts to the vehicle. Question: Can planned mantenance be done ahead of schedule if it makes sense to included it during an unplanned repair? Response: Terry answered yes. SAP will allow you to alter the maintenance schedule for vehicles as needed. Question: How will we determine the maintenance schedule for vehicles? Will we use the current schedule maintenance criteria or will that be changing? Response: Terry Heinze stated that most clients go out to the Internet and get the manufacturers recommendations for maintenance scheduling. This will be deteremined in the related blue printing session. Question: Will the information on the equipment record be entered manually, or will some of it automatically entered/displayed (i.e. if you buy 100 Chevrolet 1 ton trucks, will the basic information if its identical, be pre-populated so you dont have to enter it each time). Response: Terry Heinze explained that some information can be automatically filled. Question: Can all equipment maintenance be managed in the system? Response: Terry Heinze answered yes. The Fleet maintenance process Fleet means equipment like boats, heavy equipment, etc.. not just vechicles and trucks. 11:00 wrap up

It was noted that there were some acronyms used in the session that are not on the listing that was sent out ahead of time. Jon Sanford responded that the listing we sent out was only for SRM. An SAP Glossary can be found at http://help.sap.com/saphelp_glossary/en/index.htm . The SAP Help Portal provides additional information on many subjects and can be accessed at http://help.sap.com/ .

Participants asked if the slide presentations could be e-mailed out with the meeting notes that will be sent to the participants after each session. Brenda Benson said we would take this as an action item. The link to download the slide presentation is included at the top of this section of the minutes document and here as well: https://sapmats-us.sap-ag.de/download/download.cgi?id=Q8R7YO5OQ52CF8ZCD9OCRP5JB94XHUK4VE9CJQXNIW8HN7VQFT

11:10 Plus / Delta One attendee noted that the room was not large enough for the number of participants. Brenda explained that subsequent meetings will be much smaller, and this was the biggest group expected and the largest meeting we had available. Some participants said that they could not see the entire screen from the back of the room. Brenda said we would re-look at how we set up the room. A couple of participants suggested we we post the name of the session outside the room.

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11:15 Thank you. The following agenies said they had a need for Inventory Management: Dept. of Health: Lois Lee Dept. of Public Safety: Mark Valentine Dept. of Transportation: Retha Gregory Dept. of Agriculture and Commerce: Hewitt Pittman Sandy Havard MS State Hospital: Preston Ware Kenneth Dixon

DECISIONS ANSWERED REFERENCE DOCUMENTS

FOR DETAILS REFER TO THE FOLLOWING KEY DECISION DOCUMENT

ID ACTION/PARKING LOT ITEM OWNER DUE DATE 01 Question & Answer Functionality in RFx

This functionality will be addressed in PRO-13 RFx 1 of 2 Jon Sanford 12/06/2011

20111014_PRO_01 Logistics Overview.pdfPRO-01 Meeting Minutes_2LO_PRO_01 Logistics Overview_v2.pdf

PRO-01 Meeting Minutes_2