sap and the chemical industry
TRANSCRIPT
SAP and the Chemical Industry
SAP Industry Business Unit ChemicalsMarch 2009
1. SAP & Chemicals2. SAP & Associations, User Groups3. Industry Value Network4. Upcoming Solutions for Chemicals5. Customer Successes
Agenda
© SAP 2009 / Page 3
The Chemical Ecosystem – High Level View
Oil&Gas OrganicMaterials
InorganicMaterials Mining
ChemicalProcessing(Conversion)
BasicChemicalManufacturer
EndCustomers Exports Other
Manufacturers
SpecialtyChemicalManufacturer
DistributionNetwork
© SAP 2009 / Page 4
Petrochemicals Basic Chemicals Specialty Chemicals Chemical Distributors Chemical End Users
Chemicals Extended Ecosystem – A Networkof SAP Clients
Constrained Revenue Growth
Product Portfolio Management
Downward Margin Pressure
Supply Chain and NewProduct Efficiency
Increasing GovernmentRegulations
Sarbanes Oxley
EHS Compliance
FDA 21CFR part 11
Increased chemical trade& security regulations
REACh (Europeanregistration andevaluation)
Increasing GovernmentRegulations
Sarbanes Oxley
EHS Compliance
FDA 21CFR part 11
Increased chemical trade& security regulations
REACh (Europeanregistration andevaluation)
Chemical Industry Drivers & Implications
Macro-Economic EnvironmentPersistent low growthHeavy M&A activityDemand and pricing often cyclicalImpacted by feedstock & energy costs
Macro-Economic EnvironmentPersistent low growthHeavy M&A activityDemand and pricing often cyclicalImpacted by feedstock & energy costs
Intense Chemical Competition & High CostsSKU erratic demand/small batches/critical qualitycauses scheduling challengesMust tightly control working and fixed capitalCustomers moving production to AsiaHigh distribution costs
Intense Chemical Competition & High CostsSKU erratic demand/small batches/critical qualitycauses scheduling challengesMust tightly control working and fixed capitalCustomers moving production to AsiaHigh distribution costs
Increased CustomerPower
Pricing Challenge - valuein use pricing vs. retailerpower
Locked in formulas –barrier to entry
Increasing R&D pressurefor new productsCustomer servicerequests add to costs
Increased CustomerPower
Pricing Challenge - valuein use pricing vs. retailerpower
Locked in formulas –barrier to entry
Increasing R&D pressurefor new productsCustomer servicerequests add to costs
© SAP 2009 / Page 5
SAP Industry Solutions
Tailored to the standards, processes, andchallenges ofa specific industry
Based on best business practicesdeveloped with industry leaders
Portfolio of 28 industry solutions
Built on a consistent technology andapplication stack
Industry Solutions for...Aerospace & DefenseAutomotiveBankingChemicalsConsumer ProductsDefense & SecurityEngineering, Construction & OperationsFinancial Service ProvidersHealthcareHigher Education & ResearchHigh TechHospitality ServicesIndustrial Machinery & ComponentsInsuranceLife SciencesLogistics Service ProvidersMediaMill ProductsMiningOil & GasPharmaceuticalsPostal ServicesProfessional ServicesPublic SectorRailway ServicesRetailTelecommunicationsUtilities
© SAP 2009 / Page 6
100% of Global Fortune 500 chemical companies run SAP
35+ years of industry expertise – SAP‘s very first customer was ICI
Over 2,100 chemical customers with over 1,000,000 users
The top 15 global chemical companies run SAP
1,700 chemical midmarket companies run SAP globally
SAP in the Chemical Industry
© SAP 2009 / Page 7
Cov
erag
e C
hem
ical
requ
irem
ents
Evolution of SAP Solutions for the Chemical Industry
Definitionof first ERPfor SAPin Chemicals
ERP asbusinesssoftware
ERP as the basisfor new businessapplications
IntegratedBusiness Suite, xApps,and NetWeaverExpand Solution
2000sSAP has over 1500customers in the ChemicalIndustry
SAP Chemical Solutionenhancements include:Transportation Mgmt.Emission ManagementRecipe ManagementSample Management
1990sLaunched SAPChemicals Solutionand Best Practices forChemical companies.
CITA EstablishedPISUGCIDX
SAP is deeply rooted in the ChemicalIndustry
1980sSAP becomes theleading ERPvendor in theChemical industry
1970sFirst SAPcustomer is fromthe Chemicalindustry
© SAP 2009 / Page 8
WalldorfWalldorf
SingaporeSingapore
TokyoTokyoPhiladelphiaPhiladelphia
IBU Chemicals has global responsibilityfor the SAP Chemical solution
Development
RegionalField Org.
IBUChemicals
ISGChemicals
IndiaIndia
SAP‘s Industry Approach: IBU Chemicals
© SAP 2009 / Page 9
Chemical Solution Map
Suppliers &Partners
Customers &Channels
Develop Plan Source Make Deliver Sell & Serve
Enterprise Management & Support
Innovation ManagementR & D Management
Product Development
Supplier CollaborationStrategic Sourcing
Procure to Pay
Supply Chain Planning & ExecutionCollaborative Demand & Supply Planning
Logistics & Fulfillment PlanningWarehouse & Inventory Management
ManufacturingManufacturing Planning
Manufacturing Execution & CollaborationManufacturing Visibility
Enterprise Asset ManagementSales & Marketing
Sales and Operations PlanningOpportunity Management
Inquiry to ContractOrder to Cash
Customer Service & ComplaintManagement
Quality Management & ComplianceQuality Management
Environmental, Health & Safety ComplianceREACH Compliance Management
Corporate Compliance
© SAP 2009 / Page 10
© SAP 2008 / Page 11
SAP Best Practices for ChemicalsScenario Overview
Stock Handling: Rework, Scrap,Blocked (131)Repetitive Manufacturing with Co-Products and QM (906)Bulk Manufacturing (without PI Sheet)(907)Bulk Manufacturing with PI Sheet andOPC for Data Access (908)Make-to-Stock (Process Industry) withWM (909)Make to Order (Process Industry) (910)Multiple Product Campaign Run incl.MQC (911)Active Ingredient Processing (912)Blending (913)Repackaging (914)Relabeling (915)Storage Tank Management (916)Subcontracting (external&Internal)(918)
Enterprise Management &Support
General Ledger (156)Accounts Receivable (157)Accounts Payable (158)Period End Closing FinancialAccounting (159)Cash Management (160)Cost of Sales Accounting (161)Asset Accounting (162)Asset Acquisition for ConstructedAssets (Investment Orders) (164)Segment Reporting (166)General Cost Center Planning (175)Internal Order for Marketing and OtherOverhead Planning (180)Overhead Cost Accounting - Actual(184)Internal Order for Marketing and OtherOverhead Actual (186)Time-Recording (211)SAP ERP Reports for Accounting (221)Period-End Closing Activities (224)Operational Maintenance (929)Preventive Maintenance (930)Investment Management in PlantMaintenance (932)Parallel Accounting (leading HGB,+IFRS) (943)
Manufacturing Planning &Execution
Supplier Collaboration
Quotation for Procurement (128)Consumable Purchasing (129)Procurement of stock materials (130)Procurement Contract (133)Return to Vendor (136)Procurement & Consumption ofconsigned inventory (139)Procurement of batch managed stockmaterials (901)Procurement of WM stock materials(902)Procurement of pipeline materials (903)Procurement of external services (904)Quality Management in Procurement(905) Quality Management &
ComplianceEngineering Change Management(934)EH&S Products Safety (935)EH&S Dangerous Goods Management(936)EH&S Industrial Hygiene & Safety(937)EH&S Waste Management (938)EH&S Business Compliance Services(939)REACH: Substance Volume Tracking(940)
Supply Chain Planning &Execution
Lean Warehouse Management (124)Stock Transfer with Delivery (134)Stock Transfer without Delivery (135)Physical Inventory / Inventory Count &Adjustment (137)SAP ERP Reports for Logistics (222)Supply & Demand Planning (900)Tank Trailer Filling (919)Outbound Logistics (923)Totes Handling (927)Vendor Managed Inventory (928)
Innovation Management
Internal Order R&D Planning (177)Internal Order R&D Actual (185)Transformation of General Recipes(942)
Sales & Marketing
Third party with Shipping Notification(107)Credit Management (108)Sales Order Processing: Sale fromStock (109)Free-of-Charge Delivery (110)Returns and Complaints (111)Sales Quotation (112)Prospect Customers Sales OrderProcessing (113)Third Party without ShippingNotification (114)Sales of Bought-in Item (115)Debit Memo Processing (116)Sales Order Processing withCustomer Down Payment (201)Closing Operations SD (203)Credit Memo Processing (204)Samples Processing (917)Presales Activities (920)Sales Order Processing (incl. PoD andCoA) (921)Sales Order Processing with WM (922)Returns and Complaints (incl. BatchRecall and QM ) (924)Credit Management (incl. RiskCategories) (925)Rebates Handling (926)
1. SAP & Chemicals2. SAP & Associations, User Groups3. Industry Value Network4. Upcoming Solutions for Chemicals5. Customer Successes
Agenda
Chemical Industry User Group (CISUG)(American Chemistry Council)
Verband der Chemischen Industry (VCI)German Chemical Industry Federation
Adaptive Manufacturing & ManufacturingStandards Initiative based on ISA 95
Active CIDX member (Chem eStandardsTM)
Chemical Executive Advisory Board (CEAC)
SAPPHIRE and ASUG Tracks
SAP is a trusted Partner of the ChemicalCommunity
© SAP 2009 / Page 13
American SAP User Group(ASUG)
ASUG
SIG B SIG…CISUGSIG A
EastmanDuPontDow CorningDowNova ChemicalCelaneseAlbemarleRohm and Haas
SAP Representation:Ray Adams, IBU Chem.Frank Kochendoerfer, IBU Chem.
CISUG Steering Team
American SAP User Group (ASUG) / ChemicalIndustry SAP User Group (CISUG)
SpecialtyInterest
Groups (SIG)
InfluenceCouncils
Chapters
© SAP 2009 / Page 14
VCI
18 CIO’s
Information &TelecommunicationSteering Committee
Executive Board
Secretary
Service LevelAgreement
NetworksVCI SAPCybersecurity
BASFBayerDegussaHenkelBaiersdorfCelaneseRocheAlessachemieMerckWacker ChemieLanxessSolvaySGL CarbonBoehringer-IngelheimCognisSüd ChemieDowClariant
SAP Representation:Rainer Möckel (IBU Chemicals)
VCI Steering Team
eSolutions
•Manufacturing•MDM•SCM•Financial-Controlling•EAM•CRM•BIA•eSOA•EH&S (REACH)•QM/LIMS
VCI (German Chemical Association)
© SAP 2009 / Page 15
SAP for Chemicals – Landing Page
© SAP 2009 / Page 16
BPX Community for the Chemical Industry
© SAP 2009 / Page 17
1. SAP & Chemicals2. SAP & Associations, User Groups3. Industry Value Network4. Upcoming Solutions for Chemicals5. Customer Successes
Agenda
INDUSTRY ecosystems bringing together leading customers, partners & SAP
Creating VALUE by focusing on priority industry needs & opportunities
With strong NETWORK collaboration, combined expertise, resources & solutions
Industry Value Networks –SAP’s Unique Industry Ecosystem Initiative
SAPIVN Lead & Enabler
System IntegratorsIndustry Services & Solutions
Technology VendorsSupporting Technology
CustomersInnovation Needs &
Solution Validation
ISVsComplementary Solutions
© SAP 2009 / Page 19
The IVN for ChemicalsStrong industry-leading players coming together to drive value &industry growth
IVN lead & Enabler
Complementary Solutions
Industry Customer Needs
Industry Services & Solutions
Chemical customer groups(CISUG, CEAC, VCI…)Innovation Leaders
© SAP 2009 / Page 20
Partner Solution / Activity Status
SAP Price and Margin Management by Vendavo (SAP PMM)Set pricing strategy and objectivesSet optimal prices and policies for all segmentsAdminister and communicate price lists and booksNegotiate prices and terms for direct and channel businessExecute order to cash accurately
SAP Solutions for ComplianceSAP REACH [SAP Product]SAP Environmental Compliance (formerly Emissions Management) includingEnterprise Energy Management [SAP Product]Compliance for Products [SAP Product]Services:
– EH&S Content– Phrase Translation– Document Creation
Reseller
SAP Visual Information for Production by NRX (SAP VIP)Solves the “usability” issue by employing role-based, simplified functionalityUnifies critical functions and information into one workspaceIntegration of 3rd party information through SAP MII to provide a holisticmaintenance solution
Asset CenterCombined source of data for improved asset visibilityStandardized processes and asset master data
VIP =Reseller
Asset Hubtargeted forEBSA
= degree of completion of Reseller, Endorsed Business Solution agreement or PBNW certification
VIP
AssetCenter
IVN Partners for Chemicals - 1/3
© SAP 2009 / Page 21
Partner Solution / Activity Status
Manufacturing Process Optimization (MPO)Advanced process control (APC) technology that controls and optimizes the operationalproduction process using predictive performance metricsAdvanced decision making comparing future scenarios of production, economic and other data,integration with SAP ERP financial data, leveraging SAP xMII
PBNW,available,targeted forEBSA
Reliability Centered Maintenance & Optimization (RCMO)Provides the framework to define maintenance strategies based upon RCM and Failure Modesand Effects Analysis (FMEA) principlesIntegrates the recommendations from an RCM analysis into SAP maintenance plans in SAPERP (PM)Certified xApp
PBNW,available,targeted forEBSA
Enterprise Inventory Optimization (EIO)Multi-echelon inventory optimization (SmartOps MIPO)Advanced demand and supply profiling leverages SAP BW/BI and mySAP SCMTotal supply chain view and operational synchronizationCertified xApp
PBNW,available,targeted forEBSA
Manufacturing Workbench (MW)Advanced planning and scheduling Add-On solution for SAP R/3 (SAP ERP) and SAP SCM.Individualized configuration for improved visualization, usability and data integration
Real-Time Finance (RTF)Real-time accounting on a process unit, area, and plant basis of the entire manufacturing floorGraphical feedback of financial and strategic performance in the correct operational context
= degree of completion of Reseller, Endorsed Business Solution agreement or PBNW certification
IVN Partners for Chemicals - 2/3
© SAP 2009 / Page 22
IVN Partners for Chemicals - 3/3
Partner Solution / Activity / Status Status
Intellectual Property Manager (IPM)Docking Management - Guides legal business process for securing Intellectual Property rights &associated litigationIP Portfolio management - R&D and Marketing workspace for valuating IP & managing data anddocumentation.Modeling and Analytics - Executive reporting to monitor efficacy of IP strategy
PBNW,development inprogress
Inventory Reconciliation, Real-Time Performance ManagementData Reconciliation for inventory and energy balancesReal-time Reports of inventory, energy balances and unit balancesFacility Monitor
Joint solutionunderdiscussion
LIMS Connect (LC)Enterprise wide view of data from different LIMSComparison of laboratory analysis from different labs using different LIMSBuilt on SAP MII
Available asxApp built onxMII
Rapid SigmaContinuous improvementBased on the DMAIC methodology – Define, Measure, Analyze, Improve, ControlRoles and project basedBuilt on SAP MII
xMESManufacturing Execution engine including Plant Floor UI’sLeverages existing SAP Functionality & Infrastructure (MII)SOA architected, small footprint and “Out of the Box” configuration, xApp certified
= degree of completion of Reseller, Endorsed Business Solution agreement or PBNW certification© SAP 2009 / Page 23
1. SAP & Chemicals2. SAP & Associations, User Groups3. Industry Value Network4. Upcoming Solutions for Chemicals5. Customer Successes
Agenda
Importance of the Chemical Industry for SAP
Process Industries*
24%
Public Services10%
Consumer Industries17%
Discrete Industries23%
Service Industries20%
Financial Services6%
* incl. Life Sciences, as % of total revenue
© SAP 2009 / Page 25
Chemical RoadmapCurrent Plan Going Forward
2008Planned
Future Themes
Product Compliance
TransportationCompliance
Enhanced Supply andChain Planning
Resource and ProjectManagement Integration
MES CompositionCapabilities
Extended EnvironmentalCompliance
TransportationExcellence
Extended Demand andSupply Collaboration
Advanced Product andPortfolio Management
MES ContentEnhancements
Corporate Sustainability
ExtendedTransportation Mgmt.
Integrated BusinessPlanning
Open InnovationFramework
Closed-Loop ManufacturingPlanning & Execution
Enable efficient, innovative, and sustainableBusiness Networks
Note: subject to change
1. SAP & Chemicals2. SAP & Associations, User Groups3. Industry Value Network4. Upcoming Solutions for Chemicals5. Customer Successes
Agenda
SAP Has Broad Experience in the Midmarket
Select SAP Chemical Industry CustomersTotal: 2,100
© SAP 2009 / Page 28
Success Stories – Rohm and Haas (CRM)
© SAP 2009 / Page 29
Success Stories – Mosaic (RCM)
© SAP 2009 / Page 30
Success Stories – AZ Electronic Materials(Best Practices)
© SAP 2009 / Page 31
Success Stories – AZ Electronic Materials(Best Practices)
© SAP 2009 / Page 32
Success Stories – FutureFuel (Best Practices)
© SAP 2009 / Page 33
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changedwithout prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
SAP, R/3, xApps, xApp, SAP NetWeaver®, Duet™, SAP Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respectivelogos 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 and associatedlogos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express priorwritten permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intendedstrategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development.Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty ofany kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.
SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. Thislimitation shall not apply in cases of intent or gross negligence.
The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained inthese materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.
Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigungdurch SAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden.
Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.
SAP, R/3, xApps, xApp, SAP NetWeaver, Duet™, SAP Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Services sowie diedazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Alle anderen in diesem Dokument erwähntenNamen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zuInformationszwecken. Produkte können länderspezifische Unterschiede aufweisen.
Die in dieser Publikation enthaltene Information ist Eigentum der SAP. Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcherForm auch immer, nur mit ausdrücklicher schriftlicher Genehmigung durch SAP AG gestattet. Bei dieser Publikation handelt es sich um eine vorläufige Version, die nicht Ihrem gültigenLizenzvertrag oder anderen Vereinbarungen mit SAP unterliegt. Diese Publikation enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP®-Produkts. SAP entstehtaus dieser Publikation keine Verpflichtung zu einer bestimmten Geschäfts- oder Produktstrategie und/oder bestimmten Entwicklungen. Diese Publikation kann von SAP jederzeit ohnevorherige Ankündigung geändert werden.
SAP übernimmt keine Haftung für Fehler oder Auslassungen in dieser Publikation. Des Weiteren übernimmt SAP keine Garantie für die Exaktheit oder Vollständigkeit der Informationen,Texte, Grafiken, Links und sonstigen in dieser Publikation enthaltenen Elementen. Diese Publikation wird ohne jegliche Gewähr, weder ausdrücklich noch stillschweigend, bereitgestellt.Dies gilt u. a., aber nicht ausschließlich, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zweck sowie für die Gewährleistung derNichtverletzung geltenden Rechts. SAP haftet nicht für entstandene Schäden. Dies gilt u. a. und uneingeschränkt für konkrete, besondere und mittelbare Schäden oder Folgeschäden,die aus der Nutzung dieser Materialien entstehen können. Diese Einschränkung gilt nicht bei Vorsatz oder grober Fahrlässigkeit.
Die gesetzliche Haftung bei Personenschäden oder Produkthaftung bleibt unberührt. Die Informationen, auf die Sie möglicherweise über die in diesem Material enthaltenen Hotlinkszugreifen, unterliegen nicht dem Einfluss von SAP, und SAP unterstützt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewährleistungen oder Zusagen überInternetseitenDritter ab.
Alle Rechte vorbehalten.
Copyright 2009 SAP AGAll Rights Reserved