richard den ouden every angle
DESCRIPTION
Transforming Your Procure-to-Pay Process from Chaos to Order: Best Practices to Optimize Standard SAP. Richard den Ouden Every Angle. In This Session …. Learn how it will be easier for your purchasing department to deal with: Unreliable suppliers Bad quality of supplied materials - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/1.jpg)
© Copyright 2013Wellesley Information Services, Inc.
All rights reserved.
Transforming Your Procure-to-Pay Process from Chaos to Order: Best Practices to Optimize Standard SAP
Richard den OudenEvery Angle
![Page 2: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/2.jpg)
2
In This Session …
• Learn how it will be easier for your purchasing department to deal with: Unreliable suppliers Bad quality of supplied materials Delay in internal processes Priority purchase requisitions and POs Communication with planning department Master data management
• If they are not only focusing on finding the cheapest vendor!
![Page 3: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/3.jpg)
3
What We’ll Cover …• Optimizing the procure-to-pay processes • Demonstrating real life examples • Sharing tips and best practices• Discussion• Wrap-up
![Page 4: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/4.jpg)
4
The Complexity of P2P Processes
• Dependency on good master data Material master Vendor master Info records and source lists
• Key issues What is “good” => 3C’s
Compliance to business rules Complete Consistent
Ownership => who is responsible Setup of master data checks
![Page 5: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/5.jpg)
5
The Complexity of P2P Processes (cont.)
• Managing demand fluctuations BOM changes Sales order changes Forecast and independent requirements changes
![Page 6: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/6.jpg)
6
The Complexity of P2P Processes (cont.)
• Monitoring unpredictable events Delays in sourcing
Internal process Delays in delivering
External suppliers or delivering plants Delays in receiving
Warehousing Quality control
![Page 7: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/7.jpg)
7
The Complexity of P2P Processes (cont.)
• Escalations and bottlenecks Decibel planning
Who screams the loudest?! What is really needed?
Customer demand (late sales orders?) Production requirements (production stop?) Maintenance and project requirements Preventing stock outs (lost sales?)
![Page 8: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/8.jpg)
8
The Complexity of P2P Processes (cont.)
• Many companies are left with the dilemma of how to move from chaos to structured and optimized processes:
![Page 9: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/9.jpg)
9
The Need and the Solution
• The need Up-to-date information Single version of the truth Process visibility (across decoupling points) Structured follow-up, clear procedures Clear responsibilities and ownership
• The solution with the following characteristics Plug and play (low TCO) SAP ERP is the “single version the truth” Save, secure, and maintainable/supportable Replacing and preventing Z-reports, ABAP, Excel, SE16, …
![Page 10: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/10.jpg)
10
Characteristics of Architecture
• Extractor Data extraction using an SAP-certified function module No-risk, plug and play, fast, safe, and secure
• Server Built-in business process logic (supply chain analysis) Built-in SAP ERP knowledge (based on SAP ERP customizing)
Third-PartyExtractor
Third-PartyServer
![Page 11: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/11.jpg)
11
Characteristics of Architecture (cont.)
• Client Thin-client desktop Windows application
• EA03: display transaction in SAP GUI No load in SAP ERP system!
• DLL Integration with DW/BI tools (i.e., SAP BW/BO)
Third-PartyExtractor
Third-PartyServer
![Page 12: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/12.jpg)
12
Order Network Calculation
![Page 13: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/13.jpg)
13
What We’ll Cover …• Optimizing the procure-to-pay processes • Demonstrating real life examples• Sharing tips and best practices• Discussion• Wrap-up
![Page 14: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/14.jpg)
14
Real Live Examples (Demonstration)
• Master data Vendor master Material master
All material master views Inforecords
With material and vendor master included Remark easy to add
Classification characteristics Customer-specific fields (Z-fields, appends)
![Page 15: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/15.jpg)
15
Real Live Examples (Demonstration) (cont.)
• Closed purchase orders Supplier reliability Spend analysis Overview of cancelled POs Lead time analysis
![Page 16: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/16.jpg)
16
Real Live Examples (Demonstration) (cont.)
• Open purchase documents Work-in-Process
Split by document type, and any other SAP fields Back orders & Pollution
Status of PO in delivery & confirmation process Priorities based on:
Planned requirements (SAP MD04) Historical demand
Over planned POs Without demand Link to master data settings
![Page 17: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/17.jpg)
17
The Best Real Live Example?
• Question: Is there anything in your procure-to-pay process that you want
to see, based on your own SAP ERP data?
![Page 18: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/18.jpg)
18
What We’ll Cover …• Optimizing the procure-to-pay processes • Demonstrating real life examples• Sharing tips and best practices• Discussion• Wrap-up
![Page 19: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/19.jpg)
19
KPIs
• Keep them limited and process relevant Focus and do not copy/paste from standard KPI libraries
• Make the business responsible for definition Acceptance is key
• Always be able to drilldown to individual documents Ad hoc analysis => Agility, responsiveness
• Link KPIs to operational actions Measuring alone is not enough!
![Page 20: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/20.jpg)
20
Processes and Organization
• Make processes clear to everybody Define processes precisely => “process bible”
• Describe how to deal with deviations and disruptions Murphy is always right: what can go wrong, will go wrong
• Have clear and up-to-date exception lists available For all people (roles and responsibilities) Procedures (what activities)
• Focus on real problems Prevent “decibel” management Find the root cause (prevent repetition)
![Page 21: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/21.jpg)
21
SAP (ERP, SCM, SRM, ...)
• Make sure the system contains all relevant information• Master data is key for an automatic and reliable process
![Page 22: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/22.jpg)
22
What We’ll Cover …• Optimizing the procure-to-pay processes • Demonstrating real life examples• Sharing tips and best practices• Discussion• Wrap-up
![Page 23: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/23.jpg)
23
Topic 1: Relevant Data in SAP
• Do you have all relevant data maintained in SAP? Master data (e.g., lead times) Purchase requisition releases PO confirmations
Tip: Use different purchase confirmation categories
![Page 24: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/24.jpg)
24
Topic 2: Reliability of Outcome of Planning
• How reliability is the outcome of the planning? Are 99% of the purchase requisitions converted into a PO?
With the same date and quantity? Are all purchase orders created based on a purchase
requisition? If not, why not?
![Page 25: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/25.jpg)
25
Topic 3: Using Relevant Information
• How do you get the relevant information out of SAP? Open POs and backlogs by status Priorities of open POs and purchase requisitions (MD04) Master data checks Supplier reliability
• How to use this information the correct way? Clear follow-up actions and procedures Roles and responsibilities
![Page 26: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/26.jpg)
26
What We’ll Cover …• Optimizing the procure-to-pay processes • Demonstrating real life examples• Sharing tips and best practices• Discussion• Wrap-up
![Page 27: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/27.jpg)
27
Wrap-Up
• Purchasing is more than finding the cheapest vendor• Cross-process visibility is key for:
Bottleneck detection (what is going wrong?) Cause detection (why?) Priority (impact?)
• SAP MD04 should 100% correct (stocks + issues/receipts)• Proactive process monitoring really makes a difference• Information is key for effective decision making, but distinguish
Operational information (process-based, current and future) Management information (period-based, historical)
![Page 28: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/28.jpg)
28
Where to Find More Information
• MD04 MRP List and Stock/Requirements List
http://help.sap.com/saphelp_46c/helpdata/en/f4/7d2f3844af11d182b40000e829fbfe/content.htm
Order Display in the Current Stock/Requirements List http://help.sap.com/saphelp_erp60_sp/helpdata/en/d0/44b36865bf1
1d385dc0000e8200b4c/content.htm• Set Up Confirmation Control
http://help.sap.com/saphelp_46c/helpdata/en/c2/1c4b6e5733d1118b3f0060b03ca329/content.htm
• “Supply-Chain Operations Reference-Model” (Supply-Chain Council). http://archive.supply-chain.org/galleries/default-file/SCOR%2080%20O
verview%20Booklet2.pdf
![Page 29: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/29.jpg)
29
7 Key Points to Take Home
• Purchasing is about the availability, not only about costs/spend• First, look at your company before blaming vendors• Limit the number of KPIs you are measuring• Focus on open POs with demand, not on backlog• Invest time in master data improvement• Make sure SAP MD04 shows the correct and complete information• Define a “process bible” with clear steps/activities, roles and
responsibilities, KPIs, and action lists
![Page 30: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/30.jpg)
30
Your Turn!
How to contact me:Richard den Ouden
Director Every [email protected]
Please remember to complete your session evaluation
![Page 31: Richard den Ouden Every Angle](https://reader035.vdocuments.us/reader035/viewer/2022062812/5681634b550346895dd3e01a/html5/thumbnails/31.jpg)
31
Disclaimer
SAP, R/3, mySAP, mySAP.com, SAP NetWeaver®, Duet®, PartnerEdge, 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 in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Wellesley Information Services is neither owned nor controlled by SAP.