product & demand networkssapvod.edgesuite.net/ussapsupplychainforumpaloalto2015/...digitizing...
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Product & Demand Networks Connecting your company strategy with your customer and product strategy
Hans Thalbauer Senior Vice President, Extended Supply Chain, SAP
© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 2
Source: The Chief Supply Chain Officer Report 2014, Sep 2014, SCM World
Social Media
Catalogs Web Sites
Mobile
Smart Devices
Kiosks
Retail
Customer Centricity Multi Channel Strategy requires Demand Networks
45% of enterprises are building direct-to-customer fulfillment capabilities
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Personalized Solutions Lot size of One requires Product Networks
Source: The Chief Supply Chain Officer Report 2014, Sep 2014, SCM World
52% of manufacturing companies expect to be highly vertically integrated in the next five years
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“Help the world run better and improve people’s lives”
“To help people save money so they can live better.”
“…charting the course for a stronger, more sustainable future...”
“…dedicated to…enriching people’s lives”
“…to create a more prosperous society…”
Improve People’s Lives Speed to fulfill individualized customer demand requires Internet of Things
Source: The Chief Supply Chain Officer Report 2014, Sep 2014, SCM World
87% of supply chain officers consider Internet of Things as important or interesting technology
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Business Strategies Translating Business Realities to Business Strategies
Customer Centricity Transform Supply Chain & Logistics into
Demand Networks
Personalized Solutions
Connect Products, Assets & Machines to
Product Networks
Improve People’s Lives Gain real-time network insight to action with
Internet of Things
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Demand Networks Transform Supply Chain & Logistics into Demand Networks
Planning Matters Aggregated demand leads to short-term forecast accuracy < 70%* Business Concept: 3 Dimensional Planning
Be Responsive < 10%* of suppliers are directly connected with their customer’s supply chain Business Concept: Business Networks
Fulfill to Please About 10%* of world-wide GDP is related to Logistics spending Business Concept: Connected Logistics PLAN – RESPOND – DELIVER
*Source: Several SAP Benchmarking Reports and Industry Analyst Reports
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Product Networks Connect Products, Assets and Manufacturing to Product Networks
Individualize Products ~ 70%* of businesses have disconnected product development and launch processes Business Concept: Product Innovation Platform
Produce to Demand Only 25%* of businesses will continue with outsourced manufacturing strategies Business Concept: Industry 4.0
Create Solutions, not Products More and more businesses are introducing “pay as you go” principles Business Concept: Predictive Maintenance DESIGN – PRODUCE – OPERATE
*Source: The Chief Supply Chain Officer Report 2014, Sep 2014, SCM World
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Internet of Things Gain Real-Time Network Insights to Action with Internet of Things
Things
Things Things
50 Billion Things by 2020
Always On � Only 20%* of supply chain professionals say that they have information they need, to make decisions � Business Concept: Insight to Action
*Source: Several SAP Benchmarking Reports and Industry Analyst Reports
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9 Strictly Confidential
Digitizing the Extended Supply Chain
Customers & Markets
Suppliers & Logistics
Products & Assets
People & Resources Resource Scarcity
Sustainability
Individualized Products Industry 4.0
Customer Centricity Omni-Channel
Sharing Economy Business Network
Design R
espo
nd
Thank you
Contact information: Hans Thalbauer Senior Vice President, Extended Supply Chain, SAP [email protected]
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 11
© 2015 SAP AG. All rights reserved.
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SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 12
Extended Supply Chain Value Map 2015
Sustainable Product Innovation
Project and Portfolio Management
Design Orchestration
Demand Driven Business Planning
Sales, Inventory and Operations Planning
Demand Management
Response and Supply Orchestration
Response and Supply Management
Design Network
Automated Agile Manufacturing
Responsive Manufacturing
Production Operations Management
Efficient Logistics and Order Fulfillment
Warehouse Management
Transportation Management
Operational Excellence
Environment, Health, and Safety
Asset Operations and Maintenance
Production Network
Real-Time Network Insights Product Safety and Stewardship
Demand Network Response Network Logistics Network
Asset Network
Extended Supply Chain Insights
Production Planning and Scheduling
Supply Chain Integrity