Transforming Supply Networks in the

High Tech Industry

Partha Bose

SAP Labs

© SAP 2009 / 1

1. High Technology Industry

1.1. Trends

1.2. Supply Chain Challenges

1.3. Role of SAP High Tech Solution Management

2. Transforming Your Supply Network – Collaborative Demand and Supply Planning

2.1. Collaborative Demand Management

2.2. Collaborative Supply Planning

2.3. Sales & Operations Planning

3. Transforming Your Supply Network – Manufacturing Network Planning and Execution

3.1. Manufacturing Network Planning

3.2. Production Planning and Execution

3.3. Outsourced Manufacturing

3.4. Material Supply & Replenishment

4. Supply Chain Performance Management

5. Demo

6. Wrap-up

Agenda

© SAP 2009 / 2

Powerful Trends in the High-Tech Industry

Serving new customers, new

markets

Growing product

and network

complexity leading

to supply and

demand volatility

and risk

Increased consumerization

Demanding

customers require

rapid response to

demand signals

Increased pricing and margin pressures

Increased

outsourcing to

reduce cost and

increase scalability

© SAP 2009 / 3

The Consumer Electronics sector will slow down

in 2009

Source: Consumer Electronics Association (CEA) Jan 2009, Gartner Mar 2009

Global consumer electronics sales will grow only 4.3% in

2009 to $724B. In 2008, global sales grew by 13.7%.

NA and Western Europe account for 37.7% of revenue

while BRIC countries contribute 24%

2.5B units to be sold worldwide in 2009

Growth in key product categories in 2009

Mobile phone: 2.1% (vs. 13% in 2008)

TV: 2.6% (vs. 10.5% in 2008), switch to

digital signal will contribute

PC: 11.9% decline (vs. 10.9% growth in

2008), 9% growth in laptops, 31.9% decline in

desktops (March 2009 data)

Strong growth expected in MP3/digital media players and

portable navigation devices

© SAP 2009 / 4

Worldwide Semiconductor Sales fell 9.9% year-over-year in

Nov 2008. The sector may shrink by as much as a third in

2009.

Source: World Semiconductor Trade Statistics

Industry expected to decline by 25% in 2009, large drop in memory sales

20-30% revenue decline expected in Foundry and Assembly/Test segments

Potential consolidation on the Foundry front

10% decline expected in EDA revenue

EDA companies possible takeover targets

5% decline expected in solar panel revenue

© SAP 2009 / 5

Summary of High Tech trends

The global downturn is more synchronized and more severe than originally predicted in Q4 2008. High Tech

has been adversely impacted in all segments. Overall, global High Tech revenue expected to decline by 3% in

2009. Assuming that major economies start to recover in the second half of 2009, High Tech revenue will grow

again by 9% in 2010+. Relative to other industries, High Tech and adjacent sectors (E-Commerce and

Entertainment) are expected to do better#.

Trends by Segment

OEM-Consumer Moderate growth (4.3%**) in 2009 driven by Smartphones, HDTVs, High Def DVD players, Bluetooth & GPS devices

Netbooks (sub-$400) will be the fastest growing segment within PCs

Micro-segmentation and marketing via social networking tools will be more common

Software Moderate growth expected in enterprise software revenue in 2009 (6.6% according to Dec ’08 Gartner report)

Business Intelligence and Enterprise Applications remain top 2 priorities (Gartner)

SaaS deployment will accelerate in 2009 and 2010 (IDC)

OEM-Business Decline expected in 2009 with rebound starting late in the year (segment leader Cisco lowered 2009 estimates-Feb ’09).

Storage expected to fare better (virtualization technology). More emphasis on measures like ROA and TEI* for storage.

Investment in internet infrastructure (US) may provide impetus towards second half of 2009 and 2010

Semiconductor & Components Semiconductor segment expected to decline by 20-30%~ due to overcapacity and impact of downturn

Foundry and Assembly/Test will be hit the hardest (this sector typically leads the overall cycle)

IDMs with strong cash positions will continue to invest in innovation. Photovoltaic only bright spot.

EMS & ODM Flat growth expected in 2009 with slow recovery in 2010++

Following OEM trends, contraction expected in telecoms, PC and automotive sectors

Continued shift in EMS to Asia region; in ODM, Asia share to fall slightly as share of Eastern Europe increases.

*TEI: Total Economic Impact + Source: Forrester (Jan 2009) # Source: The Economist (Jan 2009) ** Source: Consumer Electronics Association (Jan 2009) ~Source: WSTS ++ Source: TFI (Q4 2008)

© SAP 2009 / 6

Trends across Industries for 2009

Source: The Economist, Jan 2009 (http://www.economist.com/theworldin/forecasts/displayStory.cfm?story_id=12621592). IT and related industries are highlighted in Red

Cloudy Fair Sunny

Automotive

Consumer Goods

Defence

E-Commerce

Energy

Entertainment

Financial Services

Food and Farming

Health Care

Information Technology

Media

Property & Construction

Raw Materials

Telecoms

Travel & Tourism

© SAP 2009 / 7

Snapshot of Outsourced Manufacturing

The iPhone Value Chain

Software

&Design

Apple

Assembly

Foxconn,

Quanta

LCD

Sanyo,

Epson,

Sharp

Glass

Panel

Balda

Distribution

AT&T,

Vodafone,

SingTel

Semiconductors - NA

National Semi - 1

Broadcom - 1

SST - 1

Skyworks - 1

Triquint - 3

Linear Technology -

1

Semiconductors

- EMEA

Wolfson - 1

ST Micro - 1

Infineon – 4

NXP – 1

Numonyx - 1

Semiconducto

rs - Asia

Samsung - 1

Manufacturing – In house and Sub-con

USA, Germany, Netherlands, Germany, Taiwan, China, Malaysia,

Singapore, Korea

© SAP 2009 / 8

Component

Suppliers

& CMs

Manufacturing

Material

Mgmt

HQ

Sales

Ops

Challenge: Slow, Inaccurate Responses to Short

Term Demand Changes or Supply Disruptions

Slow network response results in poor customer service, inflated inventories and supply

chain costs

Poor Orchestration of

Outsourced Manufacturing

Internal Manufacturing: Poor

Visibility of Critical Orders,

Line Disruptions Complex Mix of Internal and

External Manufacturing

Lack of Material Supply Flexibility

SC

operations

© SAP 2009 / 9

Component

Suppliers

& CMs SC

Operations

Materials

Management

HQ

SC

Operations

Integrated planning and execution across the supply network leads to better customer

service, lower inventory levels and reduced write-offs

Better Visibility, Tight

Integration with Outsourced

Manufacturing

Internal Manufacturing: Agile

Rescheduling, Higher Visibility

Agile Re-Planning Across

Network

“Pull-Based” Material Supply

Benefits of Transformation

Quicker Response to Demand and Supply Variability and

Shorter Lead Times

Manufacturing

© SAP 2009 / 10

SAP Customers in the High Tech Industry

Industry Sub-

Segment Sample Customers

Top 10

Market Share

Total

Customers

High Tech OEM 90% 1315

Semiconductor 90% 223

Component 80% 1006

Contract

Manufacturing

(EMS/ODM)

80% 51

Software 70% 779

Total High Tech 3503

Source: SAP as of Jan 2008

© SAP 2009 / 11 11

High Tech Executive Advisory Council

Summary

The High Tech Executive

Advisory Council is an invitation

only advisory group comprising

of senior executives from SAP’s

High Tech customers and

industry analysts

• HTEAC Charter

a. Share experiences and practices

with other members

b. Influence SAP’s product direction

c. Influence SAP Go To market and

Partnerships

• 2 FTF meetings (2.5 days – Spring

meeting in Europe, Fall meeting in US)

• Monthly calls to share information and

discuss direction

Recent Themes from HTEAC FTF meetings

Manufacturing, ESOA 2008

Spring

Business User (Business Objects), CRM,

SCM 2008

Fall

Business Suite 7, Supply Chain 2009

Spring

Customers

• CIOs and senior

executives of

SAP’s select HT

customers

• Industry analysts

SAP

• Led by Head,

High Tech IBU

• Participation by

senior SAP

executives

© SAP 2009 / 12

OEM OEM

Foundry

Software

Provider

The High Tech Ecosystem (represented in

HTEAC)

OEM

Distributor/

Reseller

End

Customer

Service

Provider Electronic

Distributor

EMS

Provider

Component

Manu-

facturer

IDM

(Semi)

Fabless

Semi

Jabil

Business:

IBM, HP,

Pitney,

NSN,

Cisco*,

Lexmark

Consumer:

Apple, RIM,

Bose,

Panasonic,

Samsung,

Nokia

nVidia, LSI

Intel,

TI,

Infineon

SAP

Molex

* Scientific Atlanta

The High Tech

Ecosystem is

represented in the

High Tech Advisory

Council

© SAP 2009 / 13

High Level Scenario Level Product Definition Level

High Level Investigation

Knowledge Sharing focus

Detailed Scenario Workgroup

Key Process definition

Product Definition Workgroup

Describe Process details

Workgroups driven by HTEAC

Business User

…

Workgroups:

Distributed Manufacturing - Shipment & Quality Collaboration

- Production Control/Multi-step

subcontracting

- Supplier Connectivity

Collaborative Fulfillment - Fulfillment models

- Usage guidelines, metrics, T&C,

collaboration process

Workgroups:

Business User / Business

Objects - Knowledge Sharing

- Prioritization of needs

Solution Business - OEM focus

- Selling Hardware, Software,

Services, Financing as Solutions

IT Governance – IT Value

Management

Workgroups:

Channel Management - Semiconductor focus

- Channel inventory, revenue

recognition, rebate integration

Supply Chain for

Semiconductor - Collaboration processes

- Best Practices

Warranty & Reverse Logistics

- Consumer Electronic focus

- Warranty management, Claims,

Repair operations

Research Topics

Supply Chain focus

© SAP 2009 / 14

1. High Technology Industry

1.1. Trends

1.2. Supply Chain Challenges

1.3. Role of SAP High Tech Solution Management

2. Transforming Your Supply Network – Collaborative Demand and Supply Planning

2.1. Collaborative Demand Management

2.2. Collaborative Supply Planning

2.3. Sales & Operations Planning

3. Transforming Your Supply Network – Manufacturing Network Planning and Execution

3.1. Manufacturing Network Planning

3.2. Production Planning and Execution

3.3. Outsourced Manufacturing

3.4. Material Supply & Replenishment

4. Supply Chain Performance Management

5. Demo

6. Wrap-up

Agenda

© SAP 2009 / 15

Collaborative Demand and Supply Planning

Collaborative

Demand Management

Collaborative Supply

Planning Sales and

Operations Planning

How do I overcome my

inflexible and unbalanced

supply, improve demand

visibility and shape

demand?

How do I balance demand

and supply to grow the

business profitably?

How do I improve my

demand visibility to enable

the manufacture of the right

products at the right time?

How do I keep service levels

up and the inventory low by

accelerating my supply

response?

Revenue Growth

Operating margin

Customer Satisfaction

Total Revenue

Perfect Order Rating

Profitability

Revenue Objectives

Customer Satisfaction

Forecast Accuracy

Delivery to Customer

Request Dates

Inventory Levels

Supply Chain Costs

Effective Demand and Supply Planning requires alignment between several stakeholders with

differing objectives

VP Supply Chain VP Sales COO VP Operations

© SAP 2009 / 16

Demand and Supply Planning is

an end-to-end, cross-functional process

Collaborative Demand and Supply Planning connects processes across departments to enable a

timely, profitable response to customer demand

Collaborative

Demand Management

Collaborative Supply

Planning

COO

Demand Shaping/

Promotion Planning

Sales

Supply Chain

Manufacturing

Procurement

Production

Capacity

Planning

Material

Planning

Sales

Forecasting

Collaboration Demand

Analysis &

Update

Finance

Inventory

Optimization

Production

Capacity

Analysis &

Update

Marketing

Supply

Analysis &

Update

Demand

Signal

Capture

Demand

Planning

Replenish

ment

Planning

Supply

Network

Planning

Budgeting and

Financial Analysis

Trading Partners Supplier

Managed

Inventory

Customer

Collaboration

Vendor Management

Inventory/Consigne-

ment Stock/CPFR

Supplier

Collaboration

Demand

and Supply

Alignment

VP Supply Chain VP Sales VP Operations

Sales and

Operations Planning

© SAP 2009 / 17

End-to-end collaborative demand management process including

various sources of information like customer forecast, channel,

inventory data as well as actual customer demand

Objective: Improve demand visibility and responsiveness across

the network

Consolidation of all relevant demand data and processes across enterprise and

functional boundaries on a single platform

Standard integration of demand signal repository into supply chain management solution

Specific forecasting algorithms for use with POS data to drive short-term forecasting and

replenishment

Supply Operations

Benefits: Better demand visibility and forecast accuracy

Collaborative Demand Management

Objectives, Capabilities and Benefits

© SAP 2009 / 18

Supply planning across distribution, manufacturing and partners

synchronizing delivery schedules both for finished products and

materials

Objective: Plan supply to have the right product at the right time across

all levels of the network

Integration of production planning, distribution and procurement planning across the

network

Advanced Safety Stock planning methods and multi-echelon Inventory optimization (as

needed)

Enable optimized or heuristic-based distribution planning and multiple deployment

strategies

Supply Chain

Benefits: Better responsiveness to demand and supply variability while minimizing supply

chain costs

Collaborative Supply Planning

Objectives, Capabilities and Benefits

© SAP 2009 / 19

Types of Supplier Managed Inventory Models

The customer sends a discrete purchase order (PO) to the supplier to trigger a product shipment. The

purchase order describes the lead times (ETA, ETD) ship to, ship terms, bill to, quantity, price and SKU.

The customer does not share a forecast with the supplier.

Supplier does not provide customer with visibility into supplier’s inventory buffer, just a commitment to ship

per the terms of the purchase order.

The customer sends a discrete purchase order to the supplier to trigger a product shipment within a

negotiated lead time, typically reduced, per the terms and conditions of the contract.

The customer sends a forecast to the supplier – both inside and beyond negotiated lead time.

The supplier does not provide the customer with visibility into supplier’s inventory buffer; just a

commitment to ship per the terms of the purchase order.

The customer sends a blanket purchase order.

The customer sends a forecast to the supplier for an agreed upon horizon at the agreed upon granularity.

There are flexibility terms and conditions built into the collaboration model; typically with a frozen horizon.

Shipments to customer are based on discrete Just in Time (JIT) signals (often embedded in forecast).

Purchase Order

(PO)

Forecast and PO

Forecast and

Release

The customer maintains a dedicated inventory buffer at the customer’s site or customer agent’s site.

The customer owns the inventory buffer, but replenishment of the buffer is planned by the supplier.

The customer sends a forecast (gross demand) and on-hand inventory information to the supplier.

The supplier plans and replenishes the inventory buffer based on agreed upon replenishment policy.

Standard Vendor

Managed Inventory

(VMI)

1

2

3

4

The supplier maintains a dedicated inventory buffer at the customer’s site or customer’s agent site.

The supplier owns and plans the inventory buffer.

The customer sends a forecast (gross demand) and inventory pulls to the supplier.

The supplier plans and replenishes the inventory buffer based on agreed upon replenishment policy.

The supplier maintains a dedicated (either virtually or physically segregated) inventory buffer at the

supplier’s site or supplier’s agent site. The supplier owns and plans the inventory buffer.

The customer sends a forecast (gross demand) to the supplier.

The supplier plans and maintains the inventory buffer based on agreed upon replenishment policy.

The supplier may rebalance inventory buffers across multiple customers as customer forecasts change.

Consigned Vendor

Managed Inventory

(VMI)

Dynamic Vendor

Managed Inventory

(VMI)

5

6

© SAP 2009 / 20

Objective: Provide all required information in an accurate and timely

manner to run an efficient cross-functional S&OP; avoid latency from

manual steps

Supply Chain

Benefits: A unified demand and supply plan that are both feasible and in line with company’s

financial goals and customer expectations

Provide all relevant demand and supply information in an unified environment with complete

visibility for all stakeholders

All stakeholders can view the data from their own perspective and make financially and

operationally sound decisions

Sign-Off balanced demand and supply plan for execution

Adjust the frequency and granularity of your S&OP process based on

demand and supply variability

Sales and Operations Planning

Objectives, Capabilities and Benefits

© SAP 2009 / 21

1. High Technology Industry

1.1. Trends

1.2. Supply Chain Challenges

1.3. Role of SAP High Tech Solution Management

2. Transforming Your Supply Network – Collaborative Demand and Supply Planning

2.1. Collaborative Demand Management

2.2. Collaborative Supply Planning

2.3. Sales & Operations Planning

3. Transforming Your Supply Network – Manufacturing Network Planning and Execution

3.1. Manufacturing Network Planning

3.2. Production Planning and Execution

3.3. Outsourced Manufacturing

3.4. Material Supply & Replenishment

4. Supply Chain Performance Management

5. Demo

6. Wrap-up

Agenda

© SAP 2009 / 22

Manufacturing Network Planning and Execution

Production

Planning &

Execution

Outsourced

Manufacturing

Manufacturing

Network Planning

How do I orchestrate alignment across supply chain functions to increase responsiveness while maintaining margins?

How do I coordinate

the supply network to

reduce lead times to

improve service and

reduce inventory?

How do I enhance flexibility and responsiveness at internal sites?

How do I enhance

flexibility and

responsiveness at

outsourced sites?

Revenue

Operating Margin

Customer Service Level

Customer Service

Level

FG Inventory Turns

Inventory Write

offs/Write Downs

Lead Times

Delivery to Commitment

Manufacturing Costs

Lead Times

Delivery to

Commitment

Competitive Costs

Chief Operating

Officer

COO

Material Supply &

Replenishment

How do I ensure material availability for maximum flexibility while reducing cost?

Manufacturing Supply

Service Level

Material Inventory Turns

Material Cost

Supply Chain Manufacturing Procurement

Supply Chain

Quicker response to demand and supply variability and shorter lead times lead to lower

inventory levels and improved customer service

© SAP 2009 / 23

Manufacturing Network Planning and Execution -

an end-to-end cross functional process

Chief Operating

Officer

Supply Chain Manufacturing

Supply Chain

Planning

Materials

Management

Internal

Production

Operations

Raw Material

Supplier

Contract

Manufacturer

Performance Management

Cross-Functional Supply Chain Performance Management

Production Execution &

Visibility

Outsourced Materials Visibility

Outsourced Materials Visibility

Production Planning & Scheduling

Outsourced Workorder

Process

Subass’y & Component Inventory

Optimization

Outsourced Workorder

Process

Plan/Source to Demand Signal

Plan/Source to Forecast

Collaborative Procure to Forecast

Supplier Managed Inventory

Collaborative Procure to Forecast

Supplier Managed Inventory

Process co-owned with Business Network Partner

Production Planning & Execution

Outsourced Manufacturing

Manufacturing Network Planning

Material Supply & Replenishment

MNPE integrates supply chain, manufacturing, and procurement to orchestrate a

responsive supply network.

© SAP 2009 / 24

Executes on a frequent cycle and integrates automatically and in real time

with internal plant scheduling and execution systems, as well as electronically

with outsourced manufacturing partners

Issues

Objective: Determine and source production requirements across a network

of internal and external sites to meet demand with minimum lead times

Fast capture of demand signal, translation to build requirements, and communication of

requirement to production

Visibility to internal and outsourced execution processes (with common underlying data

and assumptions)

Visibility to internal execution processes and outsourced collaboration processes

Balanced scorecard supply chain performance measures

Supply Chain

Benefits: Shorter lead times, better capacity utilization, lower inventory costs, higher service level

Manufacturing Network Planning

Objectives, Issues, Capabilities and Benefits

© SAP 2009 / 25

Benefits: Shorter lead times, rapid response to demand with minimum impact on cost and capacity

Planning integrated with scheduling and execution with consistent inventory, capacity, and

product data

Finite Capacity, optimal scheduling

Automated dispatch of released order to plant floor

Real-time visibility to production and resource status available for alerting and rescheduling

Production Planning and Execution

Objectives, Issues, Capabilities and Benefits

Manufacturing

Objective: Improve manufacturing flexibility through visibility and speed

New demands are released to a plant, scheduled, and dispatched to the plant floor in a seamless, integrated process, with production and resource status visibility to trigger exception handling if necessary

© SAP 2009 / 26

Automated electronic collaboration to rapidly communicate workorders as new

demand is received to negotiate and make adjustments necessary for

responsive execution

Objective: Orchestrate responsive execution of outsourced manufacturing

to shorten lead times without increased procurement cost

Supply Chain

Electronic publication or workorders, negotiation of delivery quantity and dates

Timely visibility of workorder progress updates execution systems and triggers alerts if

necessary

Notification of product shipment and generation of Advance Shipment Notice (ASN)

Benefits: Accurate commitments, early detection of exceptions, lower lead times, lower administrative

costs

Outsourced Manufacturing

Objectives, Issues, Capabilities and Benefits

© SAP 2009 / 27

Supply Chain

Enables suppliers to get automatic notifications of requirements and/or to get

real-time visibility of inventory and consumption plans for supplier-managed

replenishment

Objective: Manage materials availability to enhance manufacturing

flexibility while reducing cost

Component and sub-assembly multi-echelon inventory optimization

Collaborative Procure to Forecast automates and accelerates the process of communicating component requirements to suppliers

Automatically generated ASNs and material transactions

Benefits: Manufacturing flexibility, lower lead times, lower total inventory

Material Supply and Replenishment

Objectives, Issues, Capabilities and Benefits

© SAP 2009 / 28

1. High Technology Industry

1.1. Trends

1.2. Supply Chain Challenges

1.3. Role of SAP High Tech Solution Management

2. Transforming Your Supply Network – Collaborative Demand and Supply Planning

2.1. Collaborative Demand Management

2.2. Collaborative Supply Planning

2.3. Sales & Operations Planning

3. Transforming Your Supply Network – Manufacturing Network Planning and Execution

3.1. Manufacturing Network Planning

3.2. Production Planning and Execution

3.3. Outsourced Manufacturing

3.4. Material Supply & Replenishment

4. Supply Chain Performance Management

5. Demo

6. Wrap-up

Agenda

© SAP 2009 / 29

Supply Chain Performance Management

Key Challenges

Missing metrics that matter

Operations and corporate strategy not in tune

Lack of visibility

Unfavorable trade-off decisions

© SAP 2009 / 30

Supply Chain Performance Management

Business Need

© SAP 2008 / Page 30

4) Pick metrics that matter

1) Strategize and prioritize

2) Maintain visibility

3) Understand impact

© SAP 2009 / 31

1) Strategize and Prioritize

SCOR

Material

Acquisition Cost

Planning and

Finance Cost

+

Perfect Order

Fulfillment

Supply Chain

Management Cost - +

Outbound

Transportation Cost

Finished Goods

Warehouse Cost

Customer

Service Cost

Order

Management Cost -

Cascading hierarchies

Linking finance with operations

Driving accountability

“How does sourcing affect my supply chain cost?”

© SAP 2009 / 32

2) Maintain Visibility

Accurate

Timely

Collaborative

© SAP 2009 / 33

3) Understand Impact

Impact analysis

What-if scenarios

Simulations

© SAP 2009 / 34

4) Pick Metrics That Matter

Regulated

Best practices

Self-defined

© SAP 2009 / 35

SAP Supply Chain

Performance Management

Foster strategic alignment and accountability across your entire

supply chain network

Effectively balance risk, financial and operational goals for

optimal outcome

Link supply chain execution to financial and strategic

corporate targets and results

© SAP 2009 / 36

1. High Technology Industry

1.1. Trends

1.2. Supply Chain Challenges

1.3. Role of SAP High Tech Solution Management

2. Transforming Your Supply Network – Collaborative Demand and Supply Planning

2.1. Collaborative Demand Management

2.2. Collaborative Supply Planning

2.3. Sales & Operations Planning

3. Transforming Your Supply Network – Manufacturing Network Planning and Execution

3.1. Manufacturing Network Planning

3.2. Production Planning and Execution

3.3. Outsourced Manufacturing

3.4. Material Supply & Replenishment

4. Supply Chain Performance Management

5. Demo

6. Wrap-up

Agenda

© SAP 2009 / 37

1. High Technology Industry

1.1. Trends

1.2. Supply Chain Challenges

1.3. Role of SAP High Tech Solution Management

2. Transforming Your Supply Network – Collaborative Demand and Supply Planning

2.1. Collaborative Demand Management

2.2. Collaborative Supply Planning

2.3. Sales & Operations Planning

3. Transforming Your Supply Network – Manufacturing Network Planning and Execution

3.1. Manufacturing Network Planning

3.2. Production Planning and Execution

3.3. Outsourced Manufacturing

3.4. Material Supply & Replenishment

4. Supply Chain Performance Management

5. Demo

6. Wrap-up

Agenda

© SAP 2009 / 38

Resources

www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/uuid/10b2616a-5a37-2b10-58be-f4d0455cc55b

Richard Howells, “Don’t Just Survive, But Thrive, in a Networked Economy: Transform Your Static Supply Chain into Responsive Supply Networks” (July-September 2008).

www.sap.com/community/events/2008_07_28_LSC/index.epx

SAP Webcast – The Crucial Link in your Supply Chain

www.sap.com/community/events/2008_04_10_HTOM/index.epx

High Tech Outsourced Manufacturing Webcast

www.sap.com/usa/industries/hightech/large/businessprocesses/semiconductor/index.epx

SAP Executive Insight Report – Successful Manufacturing

www.sap.com/usa/industries/hightech/large/businessprocesses/oem/index.epx

Optimize Distributed Manufacturing White Paper

© SAP 2009 / 39

7 Key Points to Take Home

Respond quickly to demand and supply variability with shorter lead times and lower total supply chain costs

by:

Integrating internal and external forecasts, demand shaping inputs, and actual customer demand into the

demand management process

Implementing multi-echelon inventory management of components and sub-assemblies

Adjusting the frequency and granularity of your S&OP process based on demand and supply variability

Consolidated and fast planning/re-planning across your internal and outsourced manufacturers and

component suppliers

Supplier Managed Inventory to enable “pull-based” procurement – based on actual plant demand

Implementing automated electronic collaboration with outsourced entities to rapidly communicate

requirements to see WIP and to make adjustments

Linking KPIs across functions to get alignment and manage by exception!

© SAP 2009 / 40

How to contact me:

Partha Bose

Partha.Bose@sap.com

Thank you!

© SAP 2009 / 41

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