• No results found

SAP BUSINESSOBJECTS SUPPLY CHAIN PERFORMANCE MANAGEMENT IMPROVING SUPPLY CHAIN EFFECTIVENESS

N/A
N/A
Protected

Academic year: 2021

Share "SAP BUSINESSOBJECTS SUPPLY CHAIN PERFORMANCE MANAGEMENT IMPROVING SUPPLY CHAIN EFFECTIVENESS"

Copied!
12
0
0

Loading.... (view fulltext now)

Full text

(1)

SAP Solution in Detail

SAP BusinessObjects Enterprise Performance Management Solutions

The SAP® BusinessObjects™

Supply Chain Performance Management application helps companies make their supply chains more ef- fective and responsive in the face of complex and fast- changing market conditions.

By focusing on the right pro- cess metrics, companies can track performance, diag- nose bottlenecks, and un- cover opportunities. This way, companies can take informed action towards im- proved supply chain perfor- mance. Enhanced supply chain performance will in turn improve financial per- formance by reducing costs, increasing working capital, and strengthening customer loyalty.

SAP® BUSINESSOBJECTS™

SUPPLY CHAIN PERFORMANCE MANAGEMENT

IMPROVING SUPPLY CHAIN

EFFECTIVENESS

(2)
(3)

4 Improving Supply Chain Effectiveness

4 Standards-Based End-to-End Process Visibility

4 Know Your Supply Chain Performance, at Any Time 5 Focus on Metrics that Matter 6 Automated Data Collection from

Operational Systems

7 Insights Derived from Actual Business Processes

7 Business Agility, While Assuring Information Integrity

7 Proactive Diagnostics 8 Uncover Interdependencies

Across the Supply Chain Network

8 Deliver Alerts About Deviations from Performance Targets 9 SAP BUSINESSOBJECTS

Enterprise Performance Management Solutions 9 Find Out More

CONTENT

(4)

manufacturers, and logistics services providers. To succeed, you require actionable and timely insights into your entire supply chain performance across end-to-end business processes.

The SAP BusinessObjects Supply Chain Performance Management application helps you measurably im- prove the effectiveness of supply chain operations and better deliver on corporate mandates such as lowering costs and improving return on working capital. In addi- tion to providing a more ac- curate measure of whether you are meeting your supply chain goals, the application can warn you of potential bottlenecks and identify new opportunities.

Know Your Supply Chain Performance, at Any Time

SAP BusinessObjects Supply Chain Performance Management provides you with much-needed visibility into supply chain processes such as order to cash. You stay clearly informed about performance metrics such as shipment reliability, perfect-order fulfill- Actively managing the performance of

your supply chain has never been more important. Increased globalization, vola- tility in demand and commodity costs, regulatory requirements, and greater dependency on suppliers and other partners have significantly increased the risk of doing business. Knowing your inventory positions, delivery dates, and fill rates is not enough. You must also understand the impact of supply chain changes on total cost or cash flow and optimize supply chain effectiveness for better corporate results. This requires end-to-end visibili- ty into factors that drive performance – such as cash-to-cash cycle time, over- all supply chain cost, or the quality of your order fulfillment.

There is no shortage of data for this purpose. However, much of this critical information may be buried within your enterprise systems and dispersed across multiple documents, system records, and databases. You may not even know what data you need to make crucial decisions. Your supply chain metrics may also lack formal definitions and standards common in finance and other areas of your business. In addi- tion, it’s likely that neither your busi- ness managers nor your IT department has the time to create the modern and flexible information architecture your enterprise requires to address its evolving supply chain needs.

The SAP® BusinessObjects™ Supply Chain Performance Management appli- cation helps you measurably improve the effectiveness of supply chain oper-

ations and better deliver on corporate mandates such as lowering costs and improving return on working capital. In addition to providing a more accurate measure of whether you are meeting your supply chain goals, the application can warn you of potential bottlenecks and identify new opportunities. Func- tions for root-cause diagnostics let you take measured responses where needed.

As a packaged application, SAP BusinessObjects Supply Chain Perfor- mance Management can significantly reduce the complexities, cost, and risk associated with deploying this type of solution. Relying on best-in-class tech- nology, embedded data-integration functionality, a calculation engine, and an intuitive user experience, the appli- cation has been purpose built, precon- figured, and preintegrated to work effectively. Built from a business per- spective, the application contains data models and metadata based on leading industry standards. It can automate data collection wherever it is available and proactively diagnose a given situa- tion. This means faster time to value at a significantly reduced price point and lower risk versus custom-built

applications.

Standards-Based End-to-End Process Visibility

Today, you may design, manufacture, ship, or sell products almost anywhere in the world. At the same time, you may deal with a complex network of business partners including suppliers,

IMPROVING SUPPLY CHAIN EFFECTIVENESS

TO OPTIMIZE ITS IMPACT ON ENTERPRISE

PERFORMANCE

(5)

ment, or supply chain cost (see Figure 1). Furthermore, you get to understand the underlying factors such as produc- tion cycle times, order backlogs, or warehouse cost, and even correlations and mutual impacts of one on the other.

These insights help you to take immedi- ate action for short-term benefits – adjusting batch sizes to compensate for fuel cost increases, for example – and to improve supply chain effectiveness, responsiveness, and performance in the long run. Enhanced supply chain performance will in turn improve finan- cial performance by reducing costs, increasing working capital, and strengthening customer loyalty.

Focus on Metrics That Matter In today’s IT-heavy supply chain net- works, there is no shortage of data points. In any given situation, however, only a few numbers are truly important.

Unable to identify the right key perfor- mance indicators (KPIs), managers may focus only on improving the measures under their immediate control – an approach that fosters silo thinking and frequently sacrifices overall supply chain network effectiveness for depart- mental efficiency. For example, isolated focus on capacity utilization may result in excess inventories. Likewise, merely reinforcing departmental efficiencies such as reducing departmental cost may simply shift costs across departments.

Figure 1: Sample Scorecard

As a packaged

application, SAP

BusinessObjects Sup-

ply Chain Performance

Management can signif-

icantly reduce the com-

plexities, cost, and risk

associated with deploy-

ment of this type of

solution. Relying on

best-in-class technolo-

gy, embedded data-

integration functionality,

a calculation engine,

and an intuitive user ex-

perience, the applica-

tion has been purpose

built, preconfigured,

and preintegrated to

work effectively.

(6)

With the right metrics architecture, an organization can break down functional silos and align stakeholders behind common goals – such as improving cash-to-cash cycle time, reducing total supply chain cost, or delivering on perfect-order goals. The SAP BusinessObjects Supply Chain Perfor- mance Management application helps you identify and monitor the metrics that really matter for your organization (see Figure 2). At the enterprise level, these might be perfect-order fulfillment rate, forecast accuracy, or supply chain cost. At the department level, such metrics might include on-time delivery by suppliers, plant utilization, or order- cycle time.

The prebuilt metrics architecture within the application is based on the supply chain operations reference (SCOR) model and other industry standards frameworks, yet is flexible enough to meet your particular requirements.

Metrics are defined, documented, and associated with specific individuals within your supply chain network. This fosters accountability – a key premise for strategy-aligned supply chain execu- tion. In the end, the right metrics drive individual behavior, and behavior drives enterprise performance. And when it comes time to upgrade, the metrics you’ve defined will still be intact.

Automated Data Collection from Operational Systems

Transactional IT systems are optimized for efficient document processing, not for easy information access. Vital data is captured in enterprise systems across multiple points along the order management process, from order cap- ture over goods issue, shipment, invoicing, and accounting. Unlocking this information is key to accurately measure supply chain performance, to proactively identify opportunities and bottlenecks, and hence to improve sup- ply chain effectiveness. However, the traditional way to capture this informa- tion is via extensive, custom-built busi- ness intelligence projects, involving business requirement analysis, data modeling, and custom development.

This approach is risky and expensive, often prone to failure or budget over- runs. As a result, despite significant advances in business intelligence tech- nology, many business users still can access only basic supply chain informa- tion because development time is so long. And all too often, information is not presented in the proper context because of lack of time and business user expertise. For example, dash- boards could highlight only primitive data – such as line-item details of a shipping notice or its aggregated num- ber for a specific plant.

Diagnostic metrics Level 3 metrics Level 2 metrics Level 1 metrics

Strategic Goals

Supply Chain

Effectiveness

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 -

Fuel Cost Express freight Returns Invoices outstanding

Figure 2: Example of a Metrics Hierarchy Within the SAP® BusinessObjects™ Application Strategic Goals

Level 1 Metrics

Level 2 Metrics

Level 3 Metrics

Diagnostic Metrics

Supply Chain Effectiveness

Perfect Order Fulfillment

Supply Chain Management

Cost

Order Management

Cost

Material Acquisition

Cost

Planning and Finance Cost

Outbound Transportation

Cost

Finished Goods Warehouse

Cost

Customer Service Cost +

+

-

-

Invoices Outstanding Express

Freight Returns

Fuel Cost

(7)

Insights Derived from Actual Business Processes

SAP BusinessObjects Supply Chain Performance Management uncovers hidden information from enterprise sys- tems by retrieving and semantically linking relevant pieces of information across supply chain management and related financial processes. The appli- cation then automatically calculates the resulting metrics, providing you with a full picture of supply chain performance across end-to-end business processes.

For detailed analysis, you can even drill down into operational detail in the underlying enterprise resource planning system to display, for example, a sales order that had to be delivered via express shipment.

This automated data collection and analysis is delivered at a fraction of the cost and with considerably less IT proj- ect risk than associated with traditional custom-built solutions. And because the data is based on reliable sources (through prepackaged integration with SAP transactional software, for instance), you can be confident in its accuracy and relevance. Various busi- ness scenarios are supported, such as collaborative demand and supply plan- ning; manufacturing network planning and execution; and logistics and fulfill- ment management.

Business Agility, While Assuring Information Integrity

With change the only constant today, you must adjust enterprise strategies and tactics more frequently than in the past. If, for example, raw-material pric- es spike unexpectedly, you must review your cost management strategies. Sim-

ilarly, increased competition or new market opportunities may force a new product strategy. It pays to stay agile and responsive in such environments.

SAP BusinessObjects Supply Chain Performance Management helps IT stay in control and react swiftly to changing market requirements – with- out lengthy project-change requests.

Business users can define new metrics (see Figure 3), adjust threshold values, and customize dashboard views – with- out draining scarce IT resources. If the impact of fuel costs on transportation costs declines with the introduction of hybrid vehicles, for example, the appli- cation can immediately reflect those changes. Business users can change relationships and definitions for KPIs and immediately see the results of those changes. It is also possible to change scorecard contexts as the sup- ply chain strategy evolves – for exam- ple, moving from a geographical orien- tation to a category orientation. As business requirements and metrics

architectures evolve, the data struc- tures built into the application assure information integrity, without expensive project rework.

Proactive Diagnostics

In a dynamic marketplace, changes in a single parameter (intentional or not) may significantly affect your entire sup- ply chain – as well as your financial position and market capitalization.

Changes in safety stock may simulta- neously impact supply chain cost, on- time delivery, and carrier utilization.

How do you set the right target values for your supply chain strategy? How do you handle transportation costs that rise to unacceptable levels? Supply chain practitioners must often choose among competing requirements and understand why programs fail. They must know the right questions to ask and have the right diagnostics function- alities, as well as proper alerts and con- textual guidance, to identify potential problems as quickly as possible.

Figure 3: Example of

Metrics Management

Functionality

(8)

Uncover Interdependencies Across the Supply Chain Network

Functions for impact analysis within SAP BusinessObjects Supply Chain Performance Management help you qualify relationships between supply chain metrics (see Figure 4). You can tie back performance issues (such as increase in overall transportation cost) to functional issues (such as an in- crease in fuel cost by a certain carrier or an increase in express freights for a certain region). That helps identify possible root causes for breakdowns or potential bottlenecks, and then improve the success rate of decisions by understanding broader decision impact.

Deliver Alerts About Deviations from Performance Targets

Today’s supply chain managers and executives are busy people. They don’t want to spend time surveying dash- boards, no matter how well-designed.

Instead, they need to manage by exception – driving immediate attention to the real issues requiring informed action.

With SAP BusinessObjects Supply Chain Performance Management, devi- ations are indicated via alerts, and interdependencies across metrics are clearly marked. In addition to knowing that there is an issue, you can gain

insights into the underlying operational drivers – and their possible resolution – by analyzing interdependencies across the supply chain network. Besides up- to-date information on current supply chain metrics, the application can pro- vide alerts based on historical trend analysis, plan-versus-actual compari- sons, and internal or external bench- marking comparisons.

SAP BusinessObjects Supply Chain Performance Management helps you identify and monitor the metrics that really matter for your organization. At the enterprise level, these might be perfect-order fulfillment rate, forecast accuracy, or supply chain cost. At the department level, such met- rics might include on-time delivery by suppliers, plant utilization, or order-cycle time.

Figure 4: Example of

Impact Analysis

Functionality

(9)

SAP BUSINESSOBJECTS ENTERPRISE

PERFORMANCE MANAGEMENT SOLUTIONS

IMPROVED EFFECTIVENESS AND PERFORMANCE CONTROL

SAP BusinessObjects Supply Chain Performance Management is part of SAP BusinessObjects enterprise per- formance management solutions – a comprehensive set of solutions that help your company capitalize on the value of your existing data assets. The solutions can make your enterprise more agile – with the greater organiza- tional alignment, visibility, and confi- dence you need for optimal control and competitive advantage. The solutions are built on a proven intelligence plat- form, and are designed to integrate smoothly with SAP Business Suite software; SAP BusinessObjects gover- nance, risk, and compliance solutions;

and SAP BusinessObjects information management solutions. This lets you maximize business profitability, manage risk and compliance, and optimize your corporate systems, people, and processes.

Find Out More

For more information on SAP

BusinessObjects Supply Chain Perfor- mance Management, please call your SAP representative or visit us online at www.sap.com/sapbusinessobjects /epm.

Functions for impact analysis within SAP BusinessObjects Supply Chain Perfor- mance Management help you qualify rela- tionships between supply chain metrics.

You can tie back per- formance issues (such as increase in overall transportation cost) to functional issues

(such as an increase

in fuel cost by a cer-

tain carrier or an in-

crease in express

freights for a certain

region).

(10)
(11)
(12)

QUICK FACTS www.sap.com /contactsap

50 093 909 (09/03)

©2009 by SAP AG.

All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries. Business Objects is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifi cations may vary.

These materials are subject to change without notice. These ma- terials are provided by SAP AG and its affi liated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and

Summary

The SAP® BusinessObjects™ Supply Chain Performance Management application helps companies measurably improve supply chain effectiveness, for more responsive supply chain networks and improved cost control. By focusing on the right process metrics, com- panies can identify and diagnose bottlenecks and uncover opportunities to take informed action towards improved supply chain performance.

Business Challenges

• Misaligned targets due to lack of understanding of the impact of supply chain activities on enterprise performance

• Lack of timely visibility into end-to-end operational processes such as order to cash

• Daily surprises and firefighting due to lack of proactive insights Key Features

• Business content – Comply with leading frameworks such as the supply chain operations reference (SCOR) model

• Data extraction and transformation – Access data and gain insight more quickly thanks to preintegration with transactional systems and precalculation of metrics

• Analysis and reporting – Produce more useful reports with semantically consistent navi- gation across information

• Impact analysis – Qualify relationships between supply chain metrics

• Metrics management – React quickly to changing market conditions by readily defining or refining metrics and threshold values

Business Benefi ts

• Insight into operational and related financial performance while complying with perfor- mance management standards, thanks to standards-based support for end-to-end processes

• Relevant and timely information with automated data collection derived from actual busi- ness processes

• Full understanding of operational drivers, opportunity discovery, and timely awareness of deviations from performance targets thanks to proactive diagnostics

For More Information

Call your SAP representative or visit us online at www.sap.com/sapbusinessobjects/epm.

References

Related documents

The lectures of the Executive MBA Real Estate at this elite university are interactive: course participants discuss specific projects with re- nowned lecturers of the Harvard

RESOLVED, that the Board of Directors of the Presbyterian Church (U.S.A.), A Corporation (“Corporation”) hereby approves the Grant Policy, attached as

A comparison between data from real flight trials and data from the simulation showed, FACTS2 is able to simulate air traffic nearly as good as in reality and, thus, the best

(We refer to both genes below simply as DIE5 , given that 196 of 199 aa are conserved between them, and we used the DIE5a sequence in the design of all functional

The molecular and atomic cross sections comprising the POSEIDON opacity database are pre-computed separately to transmission spectra calculations. Each cross section is calculated

This report begins by reviewing the recently published official Work Programme performance data, to assess how the programme is performing for different groups of customers in

As stated elsewhere in this article, prior to the year 1942 employer contributions to non-qualified deferred compensation plans were deductible under the general