Casestudy 51

SEAL Consulting, Inc.
Building Strategic Partnerships
SAP Supply Network Collaboration (SNC) improve supplier efficiency and reduce costs
SEAL Consulting
Who We Are
Introduction to SAP SNC Basic PO Collaboration
MDM-V Project Kickoff
Contract Manufacturing Purchasing

November 27, 2007
Supplier Network Inventory Work Order Collaboration
Rapid Deployment of SNC (Jumpstarts)

SNC Success Factors
Copyright SEAL Consulting, Inc. All rights reserved.
Who We Are
An Edison, NJ based Corporation established in 1996 Edison-NJ, Toronto-Canada, West Chester-IL, Phoenix-AZ, San Mateo-CA International Dubai, Hong Kong, Chennai-India, Hyderabad-India, Mumbai-India
Dedicated 100% to SAP

A Global, Award winning, SAP Solutions and Services Partner
Strategy Consulting SAP strategy and program development, Enterprise systems strategy and portfolio management, Supply Chain Planning , e-Procurement, Human Capital Management, Business Intelligence and Portals SAP implementation services Solution design, application development, application management, hosting and outsourcing Specialists in SAP solutions SAP ERP, HCM, SCM, SRM, BI & Business Objects Solutions, NetWeaver (PI/XI, Portals, MDM, AS-ABAP, AS-JAVA), MII, LPO, ME, Retail All-in-One
Extensive industry best practices experience Pre-packaged industry solutions and services: SAP JumpStart (Quick Implementation Packages) Application Support Centers in North America & India
SEAL Consulting
Who We Are

November 27, 2007

SNC Success Factors
Supply Network Collaboration (SNC) - Overview
An application within SAPs SCM business suite which extends the speed and efficiency of your internal ERP system to external suppliers and end customers SNC is not really very complex .. Its an application that allows you and your trading partners i.e. yours suppliers and customers to work more closely together .. like you are on the same team Electronic messaging application similar in concept to EDI but using modern XML/XI technology and a web portal Enables traditional CPFR-related processes including VMI, collaborative demand forecasting, replenishment, etc. Offers advanced functionalities e.g., collaboration at mfg operation level; Kanban, etc. , truck load building, etc. Supports both B2B messaging as well as interaction via a shared web UI and file transfer Very broad business process scope is organized into multiple customer-side and supplier-side collaboration scenarios
*Image courtesy of SAP AG
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SNC Customer Collaboration Scenarios
SNC Supplier Collaboration Scenarios
Supply Network Collaboration (SNC) 12 Scenarios
Supply Network Collaboration (SNC) - Architecture
Supply Network Collaboration (SNC) User Interface
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SEAL Consulting
Who We Are

November 27, 2007

SNC Success Factors
11
SNC PO Collaboration Overview

PO Collaboration provides for real-time purchase order collaboration with suppliers features include:
Web-based electronic transmittal of purchase orders (POs) to the supplier Web-based updates from supplier automatically reflected in customers ERP system Suppliers alerts for new or changed PO either in web portal or via e-mail Suppliers can view of POs by status, enter free text notes, and print or download
Suppliers can enter confirmations or order responses indicating which date and quantity that can be committed to
At time of shipment the supplier can create ASN messages Business benefits include:
Improved PO accuracy avoiding just one PO error can save thousands of dollars
Improved PO cycle time - replaces legacy methods, such as phone, fax, or e-mail Lower TCO than EDI
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SNC PO Collaboration Message Flow

Purchase Orders send requirements to the supplier as POs Purchase Order Changes make real time changes to the Purchase Order ASN Maintenance supplier can create and publish ASNs as well as print labels Goods Receipt - closed loop goods receipt processing
Supplier
Alert:New/Change PO (Print&Download) PO Receive
Company
SAP SNC SAP ERP
PO Create/Send (MRP or Manual)
Check Availability
PO Confirmation
PO Update (Order Response)
Create SO
PO Update
PO Change
SO Confirmation/ Availability PO Update (ASN Notification)
Shipment/ASN (Goods Issue)
Create/Send ASN
Proof of Delivery Visibility
GR Update (ASN Close)
Goods Receipt
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SNC PO Collaboration User Interface
New Purchase Orders PO requirements automatically sent to the supplier Purchase Order Printing Supplier can print POs locally PO Confirmations Supplier can confirm POs electronically Purchase Order Changes Company can make real time changes to the PO ASN Maintenance Supplier can create and publish ASNs Proof of Delivery Supplier can see when customer has received goods
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SEAL Consulting
Who We Are

November 27, 2007

SNC Success Factors
15
SNC Contract Manufacturing Purchasing Overview

PO Contract Manufacturing and Purchasing (CMP) provides for real-time purchase order collaboration with subcontractors features include:
Extension of basic PO collaboration to handle subcontract POs (POs w/ BOM) Web-based electronic transmittal of subcontract purchase orders to the supplier Web-based updates from supplier automatically reflected in customers ERP system Supports collaboration for usage of components at subcontractor
Provides for approval of component consumption by customer

Suppliers can view of POs by status, enter free text notes, and print or download
Suppliers can enter confirmations or order responses indicating which date and quantity that can be committed to At time of shipment the supplier can create ASN messages
Business benefits include: Reduce cycle time for assembly/finished goods procurement - reducing your subcontract PO time by just 10% can have a significant reduction in component inventories across your extended supply network
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SNC CMP Scenario Message Flow
Supplier
Alert:New/Change PO (Print&Download) PO Receive
Company
SAP SNC SAP ERP
PO Create/Update (MRP or Manual)
Create SO
PO Confirmation/ Component Usage
PO Update
SO Confirmation/ Update Components
Approve Confirm/ Comp Consumption
Change Sched Lines Or Components
PO Update
Update SO
Update Components
Create Delivery
Create/Send ASN
PO Update (ASN Notification)
Subcontract PO company sends new or updated requirements Confirmation / Comp Usage supplier confirms PO request and sends component usage Approve PO Confirm/ Comp Consumption company approves PO confirmation component consumption Change Sched Lines / Components as required company changes PO schedule lines or components ASN Maintenance supplier can create and publish ASNs Goods Receipt - closed loop goods receipt processing
Proof of Delivery Visibility
GR Update (ASN Close)
Goods Receipt
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SNC CMP - User Interface
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SEAL Consulting
Who We Are

November 27, 2007

SNC Success Factors
19
SNC Supply Network Inventory (SNI) Overview

SNC Supply Network Inventory provides for the following:
Allows customers and suppliers to monitor the current and projected inventory situation for selected products in relevant locations Partners have the same view of critical components one version of the truth The scenario supports supply networks with multiple supplier tiers i.e., tier 1-n SNI Monitor provides a bucketed, time-series-based view of the demands, receipts, and inventories as well as in-transit quantities and subcontracting reservations Alerts are displayed when project stock is out of tolerance with min/max settings Business Benefits Better inventory visibility will help avoid stock outs, reduce buffers, increase ROA, and increase fill rates and turns
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SNC SNI Scenario Message Flow

Publish Company Planning Situation send forecast, planned and firm demands and receipts, inventory and subcontract reservations to SNC for display Publish Supplier Planning View send component demand, inventory, and firm and planned receipts to SNC for display
Supplier
Company
SAP SNC
Forecast Planned demand Firmed demand Planned receipts Firm Receipts Inventory Reservations
SAP ERP
Publish Company Planning Situation
Publish CM Planning View
Comp demand Inventory Planned Receipts Firm Receipts
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SNI User Interface
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SEAL Consulting
Who We Are

November 27, 2007

SNC Success Factors
23
SNC Work Order Collaboration Overview

The Work Order Collaboration scenario fits the situation where a customer/OEM provides components to a subcontractor who works on the components and provides the customer with an output material This scenario provides for the monitoring of production progress at a contract manufacturer using an SNC work order features include: BOM and routing collaboration with approvals/reject procedure
Monitoring of component quantities used, WIP, scrap, and finished product quantities
Calculation of projected end date/time and finished goods qty in mid production
Display of supporting documents e.g., production instructions, specifications and drawings Alerts to exception situations e.g., low actual and projected yield, insufficient component stocks, etc. Business benefits include: Improved control of your contract manufacturing network can yield significant reductions in scrap and component inventory and better on-time performance and service levels
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SNC Work Order Collaboration Message Flow
Supplier
Alert:New/Change PO (Print&Download) Create PO
Company
SAP SNC SAP ERP
PO Create/Update (MRP or Manual)
Create WO
Create SO
Send PO
Receive WO Request
Send WO
Send WO Confirmation
Receive WO Confirmation
PO Update
Send Actual WO Progress
Update WO Operation Lvl Status
Create Subcontract or standard PO Company sends new work requirements PO and WO created in SNC and sent to supplier Confirmation - supplier confirms WO request PO updated with WO info Report WO Progress Supplier reports WO actuals start end date/time and component consumption at operation level WO B2B Updates in Companys ERP (possible with SNC 7.0 and ERP Enh 4) ASN Messaging Goods Receipt Messaging
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WO Collaboration - User Interface
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SEAL Consulting
Who We Are

November 27, 2007

SNC Success Factors
27
SEAL Jumpstart Offerings

SEAL Jumpstarts are a range of pre-packaged implementation programs that offer fixed scope, duration and costs to a wide variety of SAP modules and domains
Utilize pre-configured templates based on SAP and SEAL best practices Onshore and Offshore resource mix Fully operational base implementations Can be extended at additional cost
Includes independent Quality Assurance reviews at key check points

Great way of getting to value quickly from a known and predictable deployment cost base
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Supply Chain Transformation SNC JumpStart Offerings

JumpStart Offerings
Basic Purchase Order Collaboration - provides for automated PO-related messaging flow (XML/IDOC) between a customer's SAP ERP and SNC systems and a supplier's SAP or non-SAP ERP system.
Duration (weeks)
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Cost ($)
$280,000
Contract Manufacturing Purchasing (CMP) provides for handling of subcontract purchase orders with component BOMs. Monitors component consumption at the subcontractor site.
Work Order Collaboration- provides for collaboration with the contract manufacturer at the operation level including updates on component quantities used, WIP, scrap, product quantities.
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$325,000
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$395,000
Note: we are preparing to announce JumpStart offerings for additional SNC scenarios including SNI, SMI, and RR. These are expected to be in the same duration/cost range as above.
We also offer Jumpstarts for APO DP, SNP, PPDS, GATP, and TPVS
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SEAL Consulting
Who We Are

November 27, 2007

SNC Success Factors
30
SNC Success Factors

If you already have EDI .. use the lower TCO to help bolster your business case
Rank your SNC-relevant trading partners by potential impact on your business Offer more costly B2B messaging to those with the highest impact only Map existing EDI messaging against standard SNC XML messaging
replace custom messaging with standard SNC messaging and / or SNC portal content
Consider implementing related SNC scenarios together e.g., SMI and SNI One scenario may not provide all the functionality you need Could be significantly less costly than sequential implementations More technical than typical ERP and APO implementations
XI Resources are critical to SNC dont underestimate staffing requirements

Look for SNC/XI resources with combined skills .. MM background for SMI, etc.
Performance can be an issue if environment is not optimized for SNC

plan for volume/stress testing Consider using web-based training for on-boarding of trading partners
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Contact Information
For more information please contact:
Charlie Bienvenu, SEAL SCM Practice Lead email: charlie.bienvenu@sealconsult.com cell: 936-827-6241 or office: 936-273-6827
105 Fieldcrest Ave, Raritan Plaza III Edison, NJ 08837 http://www.sealconsult.com Phone: (732) 417-9595 Fax: (732) 417-9655
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SEAL Consulting, Inc.

Building Strategic Partnerships

Introduction to SAP SNC Basic PO Collaboration

MDM-V Project Kickoff

Contract Manufacturing Purchasing

Supplier Network Inventory Work Order Collaboration

Rapid Deployment of SNC (Jumpstarts)

Copyright SEAL Consulting, Inc. All rights reserved.

Dedicated 100% to SAP

Copyright SEAL Consulting, Inc. All rights reserved.

Introduction to SAP SNC Basic PO Collaboration

MDM-V Project Kickoff

Contract Manufacturing Purchasing

Supplier Network Inventory Work Order Collaboration

Rapid Deployment of SNC (Jumpstarts)

Copyright SEAL Consulting, Inc. All rights reserved.

Supply Network Collaboration (SNC) - Overview

Copyright SEAL Consulting, Inc. All rights reserved.

SNC Customer Collaboration Scenarios

*Image courtesy of SAP AG

Copyright SEAL Consulting, Inc. All rights reserved.

SNC Supplier Collaboration Scenarios

*Image courtesy of SAP AG

Copyright SEAL Consulting, Inc. All rights reserved.

Supply Network Collaboration (SNC) 12 Scenarios

*Image courtesy of SAP AG

Copyright SEAL Consulting, Inc. All rights reserved.

Supply Network Collaboration (SNC) - Architecture

Copyright SEAL Consulting, Inc. All rights reserved.

Supply Network Collaboration (SNC) User Interface

Copyright SEAL Consulting, Inc. All rights reserved.

Introduction to SAP SNC Basic PO Collaboration

MDM-V Project Kickoff

Contract Manufacturing Purchasing

Supplier Network Inventory Work Order Collaboration

Rapid Deployment of SNC (Jumpstarts)

Copyright SEAL Consulting, Inc. All rights reserved.

SNC PO Collaboration Overview

Copyright SEAL Consulting, Inc. All rights reserved.

SNC PO Collaboration Message Flow

PO Update (Order Response)

SO Confirmation/ Availability PO Update (ASN Notification)

Shipment/ASN (Goods Issue)

Proof of Delivery Visibility

GR Update (ASN Close)

Copyright SEAL Consulting, Inc. All rights reserved.

SNC PO Collaboration User Interface

Copyright SEAL Consulting, Inc. All rights reserved.

Introduction to SAP SNC Basic PO Collaboration

MDM-V Project Kickoff

Contract Manufacturing Purchasing

Supplier Network Inventory Work Order Collaboration

Rapid Deployment of SNC (Jumpstarts)

Copyright SEAL Consulting, Inc. All rights reserved.

SNC Contract Manufacturing Purchasing Overview

Provides for approval of component consumption by customer

Copyright SEAL Consulting, Inc. All rights reserved.

SNC CMP Scenario Message Flow

PO Confirmation/ Component Usage

SO Confirmation/ Update Components

Approve Confirm/ Comp Consumption

Change Sched Lines Or Components

PO Update (ASN Notification)