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Business MaturityQ DATA GROUP

SAP Event Management

An Overview

April 25, 2011


Q Data SAP EM Webinar Series

4 Tuesdays at 1pm CST 1 EM Overview (Today)

2 EM Use Cases (4/26)

3 Mobile Track and Trace using the OER (5/3)

4 Exception Management in the Supply Chain (5/10)

Other Webinar series on Thursdays at 11am CST May - Reduce maintenance, shipping costs and labor costs and gain

Business Maturity

June - Middleware Technologies

July - SAP PI System upgrades and Performance Monitoring

August SAP Event Management

September - Reduce Inventory and MTTR by finding the right part, first time, every time using an Integrated Product Catalog

October - SAP Meets the iPhone and iPad

http://www.qdatausa.com


Agenda

What is SAP Event Management An Overview

The components

What comes pre-delivered?

Understanding events

What can SAP EM do for you?

Walking through a sample process

An SAP EM implementation Team

Wrap-Up


Supply Chain Event Management

Supply Chain Event Management is an application that supports control processes for managing events within and between companies. It consists of a set of integrated software functionality that supports five business processes: monitor, notify, simulate, control and measure supply chain activities. AMR Research, January 2000


What is SAP Event Management?

SAPs implementation of Supply Chain Event Management

A SAP standard tool to:

track the status of processes

measure compliance with process plans Uncover & report exceptions

give visibility of your processes to all involved

Found where?

SAP EM as part of SCM (standalone option)

SAP EM as add-on (using EM functionality with an existing app):

SAP AII 2007 (Auto-ID Infrastructure)

SAP SNC 2007 (Supplier Network Collaboration)

SAP TM 6.0 (Transportation Management)

SAP ERP 6.0

SAP EM as the core component (OER)

SAP AII 2007 (Auto-ID Infrastructure)

SAP EM was released for general availability in June 2004 as part of the SCM application


Business drivers for SAP EM

Risk mitigation Increased regulations

Track and Trace with authentication

Real-time exception notification Proactive notification & resolution

Visibility Increase customer satisfaction

Reduce costs

Minimize uncertainties

Reduce time to action

Transparency across dispersed supply chain

Process improvement Analytics / KPI

Partner performance


Components of SAP EM

ECC

Application Interface

SAP EM

Control Channel

Comms Layer

Reporting Layer

BW

SCM

Application Interface

`

Event Senders

Application System (AS) Execute data processing in

Application system. E.g. ECC

Application Interface (AI) Value add: Fast deployment

Basis Plug-in

SAP Event Management (SAP EM) React to Events / rules based

Business Warehouse (BW) Supply data for analysis

Value add: Tight integration

Event Senders Create event messages


Visibility

Process

Customers

Suppliers

Internal Ops

Management

Each relevant business process is represented in SAP EM as an Event Handler (EH) Includes attributes

Tracking IDs

Parameters

Planned milestones and measurements

The Plan

Actual events posted against the EH Measurements

Attachments (digital signature)

Changes to the plan

The actual

A little more detail

The Plan

The Actual

Exception


Understanding Events

Regular

Event

Actual Events

Regula

r E

ER

egula

r

Early / Late

event

Regula

r E

E

Late

Event

Early e

Vent

Unexpected

EventU

nexpecte

d

Unreported

eventU

nre

port

ed E

E

Planned / Expected Events

2 types of events: Events that you

expect to happen - Milestones

Events that actually happen

These can be broken down further: Regular event

Early / Late event

Unexpected Event

Unreported event



Visibility Processes Configuration / Development

SAP AS, SAP EM, SAP NetWeaver BI extraction

SAP Web UI (classic and standard)

Content

SAP NetWeaver BI & SAP NetWeaver PI

Documentation Scenario Description Configuration guide


SAP EM and TM

TM Challenges How can I increase transparency and reduce risk?

How can I reduce my supply chain operational costs?

Can I respond quickly to unexpected supply chain events and ensure customer SLA is maintained?

Are we compliant with regulations and compliance policies?

Order Management

Receive and create transportation requirements

Freight Planning & Tendering

Load, mode, schedule, route

Select carrier

Freight execution / monitoring

Documents, transport

Track & Manage

Freight Settlement

Charges, Pay, Invoice

Integrated SAP EM

Freight execution tracking Freight units, orders, bookings

Events: Loading POD

Pre-defined shipper, carrier, consignee views

Event Notification WebUI, Mobile, RFID

Rules-based follow on activities

Alert triggering Email, SMS, Fax, B2B

Overdue event monitoring

Analytics SAP BW

Integrated Exception status in SAP TM cockpit


SAP TM Ocean Carrier Booking

Book capacity on a ship for sea transportation use SAP EM to track the

individual process steps

Available exclusively for Transportation Management in Extended Warehouse Management (EWM).

Tracks the following events Container loaded on vessel

Departure of vessel

Arrival of vessel

Container unloaded from vessel

Visibility View booking requests and

shipments by status

Track transportation events

Container level

Communication with external partner

Track receipts, confirmations, rejects from partners

Track unexpected events

Change to booking order

Change to shipping instructions


SAP EM and SNC

SNC Challenges How well are my suppliers

performing?

Delivery

PO management

All suppliers are not equal Automation

Low performance

Are we collaborating with our suppliers?

Exception messaging

Integration with SAP EM Exception management

Alert framework Direct to supplier

Performance management

On time delivery

Visibility Processes

Responsive Replenishment

PO Process


Object Event Repository

Track and Trace Serialized items

Authentication

SAP OER

SAP PI

Line Controllers

Mobile for error handling (Online UI)

Data

Center

SAP AII Local

Sites

Forklifts and other Warehouse Equipments

Mobile for Shipping / Receiving etc.

SAP AII


Current SAP EM Uses

Order to Cash (Insight, HD Supply, Siemens)

Production Order process (Eclipse Aviation)

Procurement process (Movie Studio, HD Supply)

Returnable Transport Item (Large chip manufacturer)

Ocean freight logistics (BASF)

Supply Chain (Amanco)

Track and Trace (BAT, Green Cargo, Canada Post)

If its a business process worth tracking at an instance level then its a SAP EM candidate. If regulations restrict it If visibility and analytics on the process are key then it can be SAP EM enabled


SAP EM vs. BPM

BPM is more aligned with ccBPM and SAP Business Workflow SAP Business Workflow Automation of business processes within

1 SAP systems

ccBPM Automation of business processes spanning several SAP systems

BPM Automation of business processes spanning several disparate systems

SAP EM monitors any business process Tight integration to extract events from SAP systems

Tight integration with SAP NW BW for analytics

Provides Web Services to add or query data


Agenda


The components






Wrap-Up



Exception Management

Manage processes by exception With full visibility to process

Planned vs. Actual Events Planned vs. Actual Partners, Locations and Measurements

Proactive alert management

Alert Framework integration

Workflow integration

Reduced time to action

Reduce costs

Minimizing uncertainties

STEP 1

STEP 2

STEP 3

Planned Sequence: Step 1,2,3

STEP 4Actual Sequence: 1,3,4 => ALERT!!!



Status Management

Monitor processes by status With full visibility to process

Overdue, Early, Late, Unexpected events

Proactive alert management

If an undesirable status is reached a proactive alert can be issued

Enabler for exception management



Performance Monitoring

Analytical Reporting Capabilities How have my processes been performing?

Process Improvement

SAP NetWeaver BI integration

Measure internal and partner performance

KPI Reporting E.g. Average delay by carrier, Order to Cash cycle time by Order Type

Operational reporting capabilities How is my process performing right now?

Directly done within SAP EM



Visibility

Standard / Custom SAP EM Report WIMO

Status visibility

Analytics in SAP NW BW KPI visibility

Average cycle duration

Partner scorecards

% on time vs. early vs. late

Deviations as a % of total count

Alert & Workflow Inbox Exception Management


Summary

Exception management

+ Status management

+ Performance monitoring

+ Visibility

Process Improvement

Real Value!!!


Agenda


The components






Wrap-Up


Sample process described


The Plan in SAP EM


The Execution in SAP EM


Standard event


Unreported event


Standard event


Late event


Unexpected event


Parameter exception


SAP EM reporting


Agenda


The components






Wrap-Up


A SAP EM Implementation To Do List!!!

ECC Application System Set up comms to SAP EM

Implement BAdI (AI)

Define Event Manager

Configure the following:

Business Process Type (BPT)

Application Object Type (AOT)

Event Types

Code the following:

Relevance function

Extractor functions

ID extractors

Parameter extractors

Expected event extractor

Business Object extractor

BAdI for calling SAP EM

SCM SAP EM Set up comms to AS

Define Application System

Configure the following:

Event Handlers / sets

Tracking / Query Ids

Parameters

Status profiles

Expected / unexpected events

Event codes

Rules and Rule sets

Locations

Partners

WCL / Web UI layout

BW Config

Archive Config


Typical Project Team

Design: 1 x SAP EM Architect

Configure: n x SAP EM functional expert

Develop: n x ABAP developer with SAP EM knowledge

Develop: 1 x BI developer Queries and dashboard

1 x UI developer

1 x Project Manager


Customer Implementation: Procurement Process

The Challenge Track changes to Purchase Orders

Track PO acknowledgements, Goods Receipts and Invoice Receipts with changes

React immediately to changes outside tolerances

Track untimely or non-receipt of process events

Have the visibility to non-compliance of the process by supplier

Track supplier EDI success / failure

Understand how the procurement process is performing

Have the ability to set KPIs for the procurement process

We want to be able to track POs and any subsequent discrepancies caused by suppliers

changing the PO requirements, and immediately

react to these in order to keep our PO plan on

track


The Solution

Enhanced the standard Procurement Visibility Process

Expected events PO created

PO transmitted PO mapped to 850 OK PO 850 received at vendor

PO acknowledged

PO created + 2days PO goods receipt (GR)

Based on PO schedule PO invoice receipt (IR)

PO GR date + 7days Unexpected events

PO delivery date or quantity change

Based on tolerance PO acknowledged, GR, or IR amount,

quantity, or date change

Based on tolerance


Visibility and Status Management

SAP EM Web UI


Exception Management

Alert Framework Integration

Overdue Monitor Report


Performance Monitoring KPIs

Process cycle count

Deviations as a % of total count PO Acknowledgements

received with changes

PO GR not matching PO

PO IR not matching PO

Average cycle duration Total cycle

PO create PO Acknowledged

PO GR PO Invoice Receipt

% on time vs. early vs. late PO acknowledged

PO goods receipt

PO invoice receipt

Invoice received


Agenda


The components






Wrap-Up


BUSINESS VALUE COLLABORATION PROCESS RULES DATA INTEGRITY

Real-time transactions Data cleansing Inside the system System communications Partner and system

cooperation Data accuracy Data accountability Process accountability User confidence

Plan in the system Communications with

your partners Master data rules Define service levels

Internal and external Business measurements Define exceptions Status definition Data grouping Standard processes

Real-time operational exception management

Integrated notifications through workflow, alerts

Adaptive collaboration with partners

Proactive process realignment

Partner performance Track and Trace Status management Visibility Process, data,

performance Analytics

Reduced risk Improved service Reduced cost Reduced time to action Improved process

compliance Visibility to performance

goals, process, data Improved collaboration Improved cycle times Fewer exceptions Improved reliability

gained through trusted processes

HOUSEKEEPING

Manage by exception,

adapt processes,

realize benefits, set new

VALUE targets

MEASURE and ADAPT

Take control of your

processes through

monitoring, collaboration

and automation

SENSE and RESPOND

Get your data (Master and Transaction) clean with

consistent processes adopted to maintain it.

Get your processes integrated and into the system.

Refine your process points , set measurement goals

PLAN and EXECUTE

FUNCTIONALITY INTEGRATION

SAP EVENT MANAGEMENT

BUSINESS VALUE

Supply Chain Maturity


Q Data Group - SAP EM Practice

Just starting out with SAP EM? Self Assessment

Online questionnaire Are you ready for SAP EM? (http://www.qdatausa.com/selfassessment/register.asp)

1 Day Readiness Assessment

Helps companies make the correct decision as to whether SAP EM matches the need. Also checks if your organization is ready for SAP EM.

5 Day Assessment

An Overview presentation on what SAP EM and what it can do for you ( day)

Detailed generic training covering the configuration of SAP EM (1 days)

Standard EM Scenario Implementation (requires a working SAP EM system prior to on-site arrival) (1 day)

Conducting an analysis of your business processes (1 day)

Executive presentation covering opportunities and a project plan to realize those opportunities (1 day)


More Info

http://www.qdatausa.com/ Webinar series on SAP EM Tuesdays 4/19 5/10

SAP Event Management SAPs best kept secret available at Amazon.com or Genie Press at http://www.geniepress.com/qdata


Questions???

Kevin Wilson SAP EM Practice Lead [email protected] 760-809 1495 www.qdatausa.com

John D. McMahon Client Services SAP EM [email protected] 630-740 6685

A few of QDatas Clients