sap snc (supply network collab with snc 7.0)

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SAP SNC Supply Network Collaboration

Sunil Srinivasan Enterprise Solution Architect SAP India


1.Business Background and Big Picture 2.SAP SNC Product Overview 3.Customer Examples


1. 2. 3.

Business Background and Big Picture SAP SNC Product Overview Customer Examples

Customer Challenges and Trends Drive Strategy for Supply Chain CollaborationManual partner interaction: expensive, error-prone and slow Supplier On/off boarding Lack of Visibility Beyond the Four Walls

Poor Customer Service

Globalization and Outsourcing

How Is SAP Addressing the Challenges Enabling Adaptive Supply Chain NetworksGlobalization & OutsourcingUnderstand the Customer Demand Include your Suppliers into your Network Enable visibility into your outsourcing partners

VisibilityTreat suppliers, outsourcing partners, customers and service providers as an extension of your organization

Improve Customer ServiceSense and respond to real time supply and demand signals

It is all about adaptability and managing the network SAP Network Supply Collaboration

Combining Efficiency & Responsiveness Develop and Leverage Core Capabilities in the NetworkCollaborative Demand and Supply Planning

Streamline Logistics and Fulfillment

Increase Supply Network Visibility & Collaboration Manage Risk and Ensure Compliance Increase Real World Awareness

Success depends each Enterprise becoming Best in Class itself and leveraging the Best in Class capabilities of the Network

SAP Supply Network Collaboration A 360 View On Collaboration

Extend Your Enterprise to Encompass Suppliers, Contract Manufacturers and CustomersOut-of-the-Box Collaborative Business Processes Intuitive, Easy to Learn, and Easy to Use Web-User Interface Standards-Based & Service-Enabled Connectivity Between Your SAP ERP and Partner Systems

Suppliers360 Collaboration


My Company

Contract Mfg


1. 2. 3.

Business Background and Big Picture SAP SNC Product Overview Customer Examples

What is SAP SNC?Its a supply chain collaboration application, but it has several different dimensions: Collaboration & Visualization Layer to External PartnersShow e.g. POs, Forecasts and Inventory from internal systems (ERP), encompassing the use of exception management. Extending processes running in internal systems. Allow partners to update information and respond back to internal systems (e.g. PO confirmations, ASNs, Forecast Responses). Collaborate and capture commitments from partners. Consolidate many internal systems into one SNC system, provides one comprehensive, simplified and consolidated view to the outside world.

Enabler of New Business Processes on top of Internal SystemsResponsive Replenishment (next-gen VMI), Work Order collaboration with contract manufacturers and Supply Network Inventory providing cross-tier/cross-partner visibility to supply, demand and inventory that go above and beyond what ERP systems provide. New processes integrate to existing internal (ERP) systems on buy and sell side, adding process value.

Multi-Mode Communication Layer to External PartnersMessage-Based Communication like XML (B2B), File Sharing (Excel up/downloads), E-mail exchange w/ attachments and web UI allow a menu-based approach to reach full range of external partners. Is fully eSOA-enabled, utilizes NetWeaver PI (BW & EP optional) on top of WAS and using a web-based UI

SAP SNC Key Capabilities: Supplier Raw Mats/Components, Contract Mfg and Customer CollaborationFinished Goods Flows Responsive Replenishment Min/Max VMI Demand Collaboration

My CompanyRaw Material/Component Flows PO Process Release Process CMP (Subcon PO) Process Kanban Process Work Order Process SMI Process SNI Process DCM (Reorder) Process DR (Forecast) Process Contract Mfg:ing Flows

Key Capabilities: Raw Mat/Component Supply & Contract Mfg

My CompanyRaw Material/Component Flows PO Process Release Process CMP (Subcon PO) Process Kanban Process Work Order Process SMI Process SNI Process DCM (Reorder) Process DR (Forecast) Process Contract Mfg:ing Flows

Additional Features:Cross-tier Visibility of Demand and Inventory Enabled Via SNI. WO Allows for Automated Production Progress Updates Invoices (Supplier Creates Invoices via the Web), Includes Regular and ERS Invoices (Self-Billing) Alerts for Exceptions (Includes e-mail notifications) BW Reporting Content for Alerts and Supplier Performance based on Alerts

Supplier Collaboration with SAP SNC All Suppliers Are Not EqualTop Strategic SuppliersAutomated, optimized communication (e.g., EDI) with typical business pain points, such as: High spend, high-volume large suppliers Expensive connectivity efforts Poor visibility of mid/long-term forecasts, inventory, and capacity Low supplier performance accuracy Disconnect between public and private processes

Non-Strategic SuppliersUnstructured, not optimized communication (e.g., Phone, Fax) with typical business pain points, such as: Unsynchronized supply and demand situation Long order cycle times Disruptions from last-minute changes Immense maintenance efforts of data High supply risk and costs

Low spend, low-volume small suppliers

Reaching Long Tail of suppliers requires multiple modes of connectivityBUSINESS PARTNERSSuppliers and Contract Mfg:ersLow Volume Web BrowserWeb Web Browser Browser


Mid Volume File Up/Down Loads

Up/Down Up/Down Load Files Load Files


ERP Backend Systems

High Volume B2B IntegratedBackend Backend System System

Browser XML File Up/Down Load

Kanban DashboardThe DIMP Kanban Board displays Control Cycles for materials supplied through different suppliers.Create a new Kanban Jit Call

Supplier: AAT_BAMBE Supplier: AAT_TROY

Customer Collaboration with SAP SNCForecast Collaboration Promotion Planning Forecast and Short Inventory and Sales Term Forecast History

My Company

Replenishment Orders Planning

Promotion Orders

Truck Loads (PO and Sales Orders)


Responsive Replenishment . . .Is a real-time, demand-driven, replenishment scenario between supplier and customer including up and down shifts of orders and shipments in the short term (next generation VMI) Manages promotional items separately thru-out end-to-end replenishment process and optimizes truck loads

VMI Min/Max Replenishment . . .Allows for traditional VMI replenishment scenarios using maximum and minimum stock limits as driver Can be used without promotional and truck load building functionality

Demand Forecast Collaboration. . .Offers a time bucketed, on-screen, collaboration and workflow driven capability to reach a consensus forecast between customers and suppliers

Main Features: Customer Collaboration BenefitsBusiness Benefits1. Controlled Data Import 6. Order Processing & Delivery 2. Responsive Forecasting

5. Order Generation 3. Responsive Promotion Planning

Increased sales and lower lost sales through prevention of stock-outs, especially during promotions Improved responsiveness to short-term fluctuations to customer demand esp. during promotions Increased cash-flow through reduced inventory and faster order cycle times while increasing service levels Improved asset utilization through higher truck capacity utilization and increased user productivity

4. Replenishment & Transport Load Building

IT BenefitsPre-delivered scenario and lean implementation SAPs platform for Supply Network Collaboration (incl. customer & supplier Collaboration scenarios e.g. SMI, CPFR)

Supply Network CollaborationImproved CollaborationCollaborate in real time Fewer phone and fax inquiries Automated Processes

Enhance VisibilitySupply Network visibility Anticipate supply delays Respond to demand changes

Increase ControlManagement by exception Manage risk Better capacity utilization

Improve Customer ServiceIncrease order fill rates

Lower costs & increased revenuesReduced inventory levels Faster order-to-cash cycle Increased inventory turns Improved asset utilization


1. 2. 3.

Business Background and Big Picture SAP SNC Product Overview Customer Examples

SAP SNC (ICH) Reference Customers Feb 2009Customer Snapshot:460 + Global Customers 200 + Active Customers Appr.75 Live Customers Appr.25 Reference Customers

Notable Live Customers SAP SNC

Honeywell Colgate Embraer GE (Fanuc) Bell Helicopter Grundfos Roche Diagnostics Knorr-Bremse Nobel Biocare DirecTV Kraft Foods Flextronics BEML Kaeser Kompressoren

Thales Avionics P&G Sauer-Danfoss Sidel Alpine Electronics General Mills HP Kostal Novartis Philips Ritter Sport Weber Grills Rohde & Schwarz Festo

Medtronic Unilever Hindustan Kellogg Eli Lilly Cartier-Richmont Hans Grohe Wincor Nixdorf Mahle Bang & Olufsen Harman Becker Daikin Johnson & Johnson Consmr. Bayer

Notable In-Project Customers SAP SNC (OSS message-based)Ericsson Conair Coca-Cola Unilever England Rockwell Automation Yazaki Automotive Draeger Eli Lilly (upgrade) Ford LOrange Nortel Networks Philip Morris Siemens AstraZeneca Lexmark Lockheed Martin Perrigo Endwave Lennox Roto Frank Caterpillar Honeywell Melitta Osram Sappi Whirlpool Palm Pepsico Applied Materials Lexmark Eli Lilly Kimberly-Clark Johnson & Johnson Medical Daimler HP (roll-out) Nestle Panasonic Shell Novo Nordisk

SAP SNC / Manufacturing Network Planning and Execution Selected Customer ExamplesSuppliers are responsible for inventory management processes Increased visibility across the supply chain Autom