Sap Scm Plm

SAP PLM for SCM driven CPG Industries 3/03/07 By Chandu Kamisetty Contact: [email protected]

1

Contents „ CPG Industry - Key Business Drivers „ Key SCM-PLM Initiatives „ What is PLM? „ CRM-PLM-SCM in Manufacturing

Environment „ SAP PLM-SCM Possibilities for Fast Moving CPG C G industries dust es „ PLM SCM Leverage points „ Detailed capabilities „ Thank You!

2

CPG Industry –Key Key Business Drivers „ Fast p paced industry y „ Time to market „ Supply chain management „ Maintain Market share with new products „ Leadership through innovation – R & D, Market „ „ „ „

research and consumer insight Culture of continuous product and process innovation customer & supplier intimacy; operational excellence; and product leadership Low cost, highly efficient & flexible operations Stream line day to day operations 3

CPG Industry –Key Key Business Drivers „ Market p penetration with high g q quality yp products,, p price „ „ „ „ „ „ „

point strategy. Master data / Product information management Effective change management Risk Management and FDCA, FDA, etc regulatory and safety compliances. compliances Product availability whenever, wherever, however. Consumer communication,, Globalization and out sourcing Focus on People, Process, information, Brands, P d t Products. Digitalized product information

4

Key SCM-PLM SCM PLM initiatives „ Develop p efficient NPDI p process. „ Develop internal and external collaboration „ Leverage Supply chain by integration with product „ „ „ „ „ „

life cycle Recipe Management - continuous and integrated process PLM for Life cycle data and process management Standardization of Internal and External Master Data Cost reduction Increase business / product visibility to Technical / Purchasing / Supply Chain / Marketing. 5 Reduce and Optimize Processes gaps

What is PLM? „ Set

of solutions that facilitate more efficient product collaboration between functions within the enterprise: Sales, Marketing, Engineering, Purchasing, Supply chain, Manufacturing, Planning, Forecasting, Service, Customer S Support t and d external t l to t the th enterprise t i with ith the th companies' i ' suppliers and customers. „ Streamlines all the activities and data involved with a product th throughout h t it's it' entire ti lifecycle, lif l including i l di product d t concept, t design, d i sourcing, Supply chain, manufacturing, transportation, storage, promotion, sales, support, maintenance, retirement, and even recycling There is a significant amount of data associated with recycling. the product, the programs and projects, and the people and functional areas involved in this set of complex processes. „ PLM - is an essential tool for coping with the challenges of more demanding global competition and ever-shortening product and 6 component lifecycles.

PLM-SCM-CRM in Manufacturing Environment

7

SRM-PLM SRM PLM Integration (1)

8

NPDI (PLM)–SCM (PLM) SCM Integration (2)

9

PLM-SCM PLM SCM Integration (3)

10

Product development PLM PLM-SCM SCM (4)

11

Master data PLM – SCM (4)

12

SAP PLM-SCM Possibilitiesfor Consumer Packages Goods „ Product Definition / Innovation NPDI „ Project Collaboration

(cProject & cFolders Suite)

„ Portfolio and Project management „ Document Management System „ Recipe Management

(xPD) P

(xRPM)

(DMS)

(RM)

„ Engineering Change Management

(ECM,

ECR/ECO))

„ FDA / FDCA, GMP, EHS

(Compliance Mgmt)

„ Master Data Management „ SAP Workflow

(MDM)

( process flow for above components)

13

PLM SCM Leverage points (1) „ Project and resource Mgmt: Clear definition of project phases and milestones, tasks, deliverables, roles, and responsibilities makes coordination of all development, supply chain, marketing, sales, and production activities more effective. „ xPD: PD A known k product d t structure t t h l identify helps id tif the th best b t locations l ti f infor i house production or suitable suppliers. Make or buy decisions are supported and demand planning and supply network planning p simplified. „ Strategic Sourcing: By bringing R&D, product, and sourcing closely together, product costs are optimized at the early design stage. The strategic sourcing process is accelerated using cFolders and SAP Bidding Engine „ Prototyping and Production Ramp-Up: Process prototyping is used in parallel to product development to ensure technical feasibility and d optimize ti i th production the d ti process. Integration I t ti enables bl th mostt the effective ramp-up of a recipe for production of higher volumes. 14

PLM SCM Leverage points (2) „ Master Data Management: MDM is designed to create a single enterprise thesaurus. Supply chain synchronization, new product introduction, multi-channel sales and support, trade reconciliation, risk management, and compliance are just some of the drivers that are compelling companies to be more strategic about managing their information assets. „ Workflow: Deploying Workflow makes sure the process gaps are removed and manual errors are minimized. „ Lot more…

15

Detailed capabilities (1) „ Idea / Concept development and NPDI. „ „ „ „

Idea / concept management Product development Development Collaboration Classification

„ Life Cycle Data Management „ „ „ „ „

Document Management ECM (ECR/ECO) management Product Structure Management Specification Management Change and Configuration management

16

Detailed capabilities (2) „ Recipe Management „ cProject Suite „ „

„ „ „

Formula / Specification Product, ingredient and allergen labeling Regulatory compliance NPDI Multilevel recipe and specification management

„ „ „ „ „ „ „ „

APQP / Phase gate approach Development collaboration S Supply l N Network t kC Collaboration ll b ti Strategic sourcing Outsourced Manufacturing Purchase order Collaboration Invoice Processing Account and Payment information

17

Detailed capabilities (3) „ Project / Portfolio Management „ „ „ „ „ „ „ „

Project Planning Project Execution Project Accounting Resource and Time management P t Typing Proto T i and dR Ramp up Development Collaboration Workflow Related Document / change Management

18

Detailed capabilities (4) „ Master Data Management „ „ „ „ „

(MDM)

Labeling Shopping cart Product Catalogue / Web publishing Manage g Product master g globally y Global Data Synchronization (GDS) „ „ „ „

„ „

30% error rate between manufacturer and retailer content M lti l systems Multiple t and d iinterfaces t f Conflicting product definitions Proprietary SKUs numbers VS Standard EAN/UPC Numbers (GTINs) Enables rapid product updates Minimizes Incorrect / returned shipments

19

Detailed capabilities (5) „ Process integration „ „ „ „ „

Document management Bill of materials / Ingredients Sourcing Status triggered gg workflows Collaborative and Competitive scenarios

„ Workforce Deployment p y „ „ „ „

Project Resource Planning Port folio management g Staffing and assignments Scheduling

20

Detailed capabilities (6) „ EHS Compliance „ „

FDA / FDCA, ISA Other regulations and safety standards

„ Quality Management „ „ „ „

Quality Engineering Quality improvement Quality Assurance Audit Management

„ Accounting „ „

Project accounting Product cost accounting

21

„ References: „ „

www.sap.com www.sdn.sap.com

Thank you Chandu.Kamisetty contact: [email protected] 22