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May 7 – 9, 2019
Intelligent Demand Driven Supply Chain withSAP IBP, Ariba & Azure
Chris Sakchalathorn, Senior PM Manager, MicrosoftDhaval Desai, Principal Solution Architect, SAP
Srinivas Nemalipuri, Software Engineer, Microsoft
Session ID # 82629
About the Speakers
Chris SakchalathornSenior PM Manager, MicrosoftHead of Supply Chain PlanningEngineering group at Microsoftresponsible for E2E solution design &deployment
Srinivas NemalipuriSoftware Engineer, MicrosoftResponsible for the support of all supplychain planning application at Microsoftincluding IBP, Ariba, ECC, APO, MDG,Solution Manager
About the SpeakersDhaval Desai
Principal Solution Architect, SAPLeading successful Supply Chain transformations as a systems & solutionarchitect covering IBP, S/4 HANA, IoT, Block Chain, ML and supply chain thoughtleader at SAP MaxAttention customersAuthor of the book ‘Setting Up and Running Order-Based Planning with SAP IBP’
Watch out for:• E2E automated testing of all SAP IBP applications [Q3 2019]
Dhaval DesaiPrincipal Solution ArchitectDigital Supply Chain PlanningSAP DBS – Center of Expertise
SAP America Inc.Newtown SquareEmail: dhaval.desai@sap.com
Key Outcomes/Objectives
1. How to transition from connected (APO, legacy)to predictive, intelligent and empowered (IBP,Ariba, Azure) supply chain
2. Reference Architecture for Intelligent & DemandDriven Supply Chain
3. Partnership with SAP
Agenda
• Intelligent Supply Chain Transformation (Why)• Reference Architecture (How)• Capabilities (What)• Partnership with SAP
Surface LaptopSurface Book SurfaceStudioSurface Hub
Xbox FamilyHololensCustom Controllers
Microsoft Devices Supply Chain Portfolio
Surface Pro
6
Microsoft Devices Supply Chain Today
122Countries Served
>390Suppliers
(includes component suppliers)
~$8BAnnual Spend
1Devices Centralized Data Lake
1.3MShip To Locations
1.7M+Annual Retail and Commercial
Sales Orders
33Mfg & Distribution Operations
>42,000Active Configurations
2.0M+Annual SAP Deliveries
>~200MUnits Manufactured & Shipped
StrategicSourcing
CustomerRepairs &
Self-ServiceCare
Manufacturing
Market Opportunity &New Product Introduction
Order Mgmt,& Logistics
Transformation,Technology &
Analytics
Channel Sales &OperationsPlanning
Safety,Compliance
& Sustainability
Growing needs for an Intelligent Demand Driven Supply Chain
• More devices, each with 1-2 year life• Increasing COGS• Larger channel & promotional footprint• Increasing customer service expectations
• Build to Order• Mass Customization
Implement intelligentforecasting andreplenishment to achievescale
Connected Supply Chain todrive customer experience,efficiency and visibility
Adopt advancedtechniques to establishagile processes
Our ResponseOur ResponsePressures
Opportunities
Impacts• Stock outs -> low % of confirmed orders• Excess Inventory -> High E&O• Manual Forecasting -> Low Accuracy• Outdated Architecture -> manual
subjective & siloed supply chain
Hybrid Approach: Machine Learning + Human Collaboration
Final Forecast = Base Forecast (ML Models) + Adjustments (e.g. Promos)
Forecasts at DC Level
SAP IBP Manufacturing
MS Sales Data Pricing Data
Data Representation Work
Azure Platform
Product Age, Seasonality,Promos
Feature Engineering
ML/Time Series Models
Model Development
Forecast Results in IBP
SAP IBP
Benefits Achieved in the initial cycles
+10%
ForecastAccuracy
-87%
Cycle Time
-50%
ManualAdjustments
-65%
Excess &Obsolescence
Intelligent Planning with SAP IBP, Ariba and Azure
Data availability inorder of curation
SAP viaBODS
Aribavia API
IBP viaAPI
DistCenter
viaAzure
Retailervia
Azure
Raw
Gold
Cooking
AzureDataLake
Supply Chain +Azure DataWarehouse
Catalog createdand published
Data published toCubes for analytics
Data available tousers via PowerBI
Connected Supply Chain
CustomerOrders SAP IBP PowerBI &
Visualizations
Connected Supply ChainDrives customer experience by
mitigating the risks due to executiondisruptions/changes
PowerBI &Visualizations
Microsoft’s journey to Supply Chain Transformation
AllocationPlanning forOrderManagement
Subsidiarylevel DemandPlanning inIBP
SupplyPlanning inIBP – Build &Ship model
Account LevelPlanning (forkeyCustomers)
Care DemandPlanning
AggregateSupplyPlanning(replacingAPO)
Care PlanningS&OPScenarioPlanningExtendControl TowerCapabilities(DriverlessSupply Chain)
Adoptedsince Mar
2017
Adoptedsince
Sep-2018
Adoptedsince May-
2018
Adoptedsince Oct-
2018Adoptionfrom Mar-
2019
Adoptionfrom Mar-
2019
Azure Platform Enables Digital Supply Chain Foundation
Fulfillment And LogisticsShop Floor Control SystemBOM Management
CommerceDevice Telemetry CRM
SubscriptionsProductCatalog
Sales
Microsoft Corporate Systems
Point of Sales EnterpriseServices
Supplier ERP
Supply Chain Cloud
Supply Chain Services
Azure APIManagement Microservices
Azure ApplicationInsights
Supply Chain Partner Systems
Data & Advanced Analytics Platform
EventHubs
Azure DataFactory HD InsightAzure Data
Lake Power BI
Care
Source Deliver CareTradePlanSupply ChainCollaboration
IntegratedBusinessPlanning
on Azure
SAP & Microsoft Partnership – Path to Success
StrengtheningECC-IBPintegration story
Microsoft influenceddevelopment ofenterprise ready,secure and robustintegration model
Programmaticpermissionsmanagement inIBP
Enabled easyintegration ofpermission filtersfrom externalsystems via API
System & ProcessMonitoring
Co-innovated on anative connectionbetween Solman andIBP to monitor end-to-end processes in ascalable manner
Alert Overview
MSFT deeplyinvolved in featurerequirements, userstudies andworkshops
IBP AribaIntegration
Co-innovated SupplyChain collaborationwith SAP IBP andSAP Ariba
Strong partnershipbetween Microsoft& SAP MaxAttention
Early involvement inCo-Design,Architecture & Build
Deep functional &technical expertise &thought leadership
Collaboration with SAP powered by MaxAttention
Co-Innovationand
alignment
Join solutiondesign • Innovative solution that bridges gaps in the standard
product and effectively meets Microsoft’s requirements
• Solution design aligned with IBP product managementand roadmap
• Functional and technical expertise in a hybrid environment• Facilitation with multiple SAP product teams
MaxAttention
Team AzureECC,APO,MDG,Solution Manager on
IntegratedBusiness Planning
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Access the slides from 2019 ASUG Annual Conference here:http://info.asug.com/2019-ac-slides
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