Johnsonville Sausage Global Trade Services

Session Agenda

Introductions

itelligence/Johnsonville Overview

Session Purpose

Selection Process

What was the selection process?

Why did we make the decision we did?

What did we learn?

Business Problems, Key Project Objectives and Anticipated Business

Benefits

Scope

Best Practices and Solution Overview

Closing

8 years SAP experience

SAP GTS Senior Consultant

Full time SAP consulting with itelligence in February, 2011

BA in information Systems -Accounting - University of Cincinnati– 2007

Experience in SAP Best practices in procure-to-pay, quality management, warehouse management, and

global trade services.

Industry process experience includes:

Consumer Packaged Goods, Retail-apparel and footwear, FDA regulations, Aerospace and Defense.

Import and Export functions

Compliance with license, license exceptions and denied party screening

Automated electronic filing with Saggitta and US.

Clients

Cintas (Retail- apparel and footwear)

Mead Johnson Nutrition (Consumer Packaged Goods)

Align Aersopace (Aerospace and Defense)

Johnsonville Sausage, LLC (USDA regulated-consumer packaged goods)

Thought Leadership

Winter 2014 byline, ”Looking Ahead,” in Supply Chain World magazine

April, 2014 SAP MFG Forum Chicago- “Johnsonville Sausage Finds the Right Export Package”

June, 2014 ASUG/Sapphire- “How Mead Johnson Nutrition Enhanced Its Supply Chain Automation to Streamline Imports and Exports for One Global View”

Years SAP = 8, Years Business = 8, Years Consulting = 3 Elisha Herrmann

14 years experience

6 Years of SAP Order to Cash and Web Development experience with Kohler Company

Experience rolling out applications in China and North America

5 Years of Order to Cash at Johnsonville

Fully lifecycle rollout in the US and France

3 Years as an IT Business Partner (current role) with Johnsonville

Experienced IT Program Lead for Finance and Supply Chain

Solution and Strategy Development for Finance and Supply Chain

Coach / Manage Functional IT Analysts

Experience in SAP Best practices around Order to Cash and Finance

Education

BA, Computer Science - Lakeland College - 2001

MBA, Finance - University of Wisconsin Whitewater - 2010

MCPM - University of Wisconsin Madison - 2011

Thought Leadership

February 2013 – High Radius / Credit Research Foundation – “Johnsonville’s Case for utilizing Receivables Management and High Radius Cloud Accelerators”

April, 2014 SAP MFG Forum Chicago- “Johnsonville Sausage Finds the Right Export Package”

June, 2014 ASUG/Sapphire- “From Soup to Nuts, Building the Case and Installing SAP Receivables Management to Streamline

Johnsonville Sausage’s Accounts Receivables”

SAP Protein Council

Jason Beyersdorf

4/25/2014 © itelligence 5

Customers Our Goal: Long-term Cooperation

Partnership Together, we achieve more

Competence Solutions for the Future

Global Global Capabilities and Local Presence

is unique

itelligence

Portfolio Industry-Specific SAP Innovation Thought Leadership

6

itelligence | What to remember

We have been around 1989:Founded in Bielefeld, Germany

2007:We are an NTT DATA/NTT Communications Company

Strong talent pool More than 3,400 employees worldwide

Proven More than 5,000 customers worldwide in 43 countries

9.7 / 10.0 customer satisfaction rating

We meet all SAP needs Global Certified SAP partner for all service offerings:

Consulting Services, Hosting, AMS, Reseller

History of Innovation HANA, BI, BPC, Advanced Supply Chain, GRC, Mobility

North America

Chicago (IL), Cincinnati (OH), Irvine (CA), Atlanta (GA)

Montreal & Toronto (Canada)

Germany

Bautzen, Berlin, Bielefeld, Cologne, Dortmund,

Dresden, Frankfurt, Hamburg, Munich, Stuttgart, Walldorf

Western Europe

Aarhus / Horsens, Barcelona, Berne, Brussels,

Eindhoven, Glasgow, London, Lyon, Oslo, Paris,

Vienna, Zurich

Eastern Europe

Bratislava, Brno, Budapest, Katowice, Kiew,

Moscow, Poznan, Prague, Warszawa

Asia

Cyberjaya (Malaysia), Hong Kong (China), Shanghai (China), Shenzhen (China)

itelligence locations itelligence projects

7

NTT SAP Headcount By Region

US 700

Europe 2000

APAC 1500

South America 6000 (Partner network)

Japan 800

Global | Global Locations and Deployments

Remains a private, family owned company since inception in 1945

Employs approximately 1,400 members

Has 6 Manufacturing Facilities in the United Sates and Sales Offices in France, Mexico, Canada, Japan

Has products available in approximately 43 stadiums and arenas

Is available in all 50 states and about 30 countries outside the United States

Johnsonville Today...

3 out of 4 brats sold in the U.S. are Johnsonville

1 out of 3 Italian sausages sold in the U.S. are Johnsonville

1 out of 5 fresh breakfast links are Johnsonville

Leading brand in U.S. in U.S.

Bratwurst

Smoked-cooked sausage links

Fresh breakfast links and patties

Italian sausage

Brand Strength

SAP ECC 6.0

MM/WM – Materials/Warehouse Management

FI/CO – Financials/Controlling

PP/PI – Production Planning / Process Industries

SD – Sales and Distribution

QM – Quality Management – HACCP

HR/PR – HR and Payroll

Portal and cFolders

DMS – Document Management

BW & Business Objects

APO DP/SNP and VMI (Demand Planning, Supply Network Planning)

CRM – IT Service Desk

PLM – Specification Database

BP – Business Planning

Success Factors – Learning and E-Recruiting

PM – Plant Maintenance

RM – Receivables Management

PPDS – Production Planning Detailed Scheduling

Open Text

Afaria for Device Management

TPM – Trade Promotion Management

Current Environment

BW on HANA

DSiM – Demand Signal Management

BOBJ – Lumira, Explorer, Predictive Analytics, Analysis, Design Studio

GTS – Global Trade Solutions

BPC – Business Planning and Consolidations

Fiori

Enterprise Workspaces

Personas

In Process

Presentation Objectives

Review Project Objectives and Business Drivers

Provide Overview of Solution Selection Process and Criteria

Provide Lessons Learned on our Journey

Discuss the Project Scope and Future Deliverables

Review Best Practices for SAP Global Trade Solution

Business Drivers

Support Significant Growth in Export Business With No Increase in

FTE’s

Manual Paper Based Process is Inefficient and Error Prone

Off Site Long Term Storage for Paper Records – Compliance Packets

Manual Processes Can Result in Missing or Incomplete Documents

Containers Have Been Held Up At The Border / Difficulty Clearing Due to Paperwork

Compliance Issues

Inability to Integrate With Freight Forwarders and Government Certified Solutions

Opportunity to Re-Engineer our Export Business Processes

Project Objectives

Maintain current headcount while support a rapidly growing portion of the business.

• Supporting Rapid Growth

• Document Automation

• Increased Accuracy and Productivity

• Electronic Connectivity (i.e. freight forwarders, government)

• Reduce Compliance Risk

• Metrics/Reporting capabilities

• Reduction in documentation storage fees – bring in-house with OpenText

• Support Foreign Production, Warehousing (Scalable, certified solution we can take to other countries)

• Transition from Tactical to strategic positions (Ex. Coord)

• Drive towards a long term end to end no touch solution for our export team

Anticipated Business Benefits

At Go Live

Get away from the tactical daily work

Focus on strategic projects, supply chain alignment with our customers and vendors

Automated forms coming out of GTS and ECC

Simplified USDA meat certificate printing process

Laser printer

Information pulling from ECC

Eliminate having to double check forms – trust the data

Integration with our freight forwarders

OpenText Integration

Support future growth

Grow our members by educating on our export processes and system solution

Improved processes by challenging current state.

Anticipated Business Benefits Cont.

Future (Long Term)

Standardized Metric Reporting from BOBJ

Series B, Order Fill, Costs for Transportation, Order Stages to End

Destination (container visibility), International Volume, Methods of

Shipping, Status of Shipments and Audit Reports

Document collaboration with our international sales members and

freight forwards using OpenText

Automation of the USDA process

AES filing

Further data automation via EDI with our external partners

Selection Criteria

SAP First Applications Strategy

Select an SAP Solution if Core Functionality Requirements are Met at a Competitive Cost to Alternatives

Leverage Our Investment in Infrastructure and Human Capital

Simplify Our Overall Application Landscape – Minimize Integration and Support Costs

Total Cost of Ownership

Evaluate Total Cost over 5 Year Time Horizon

Selection Process

Began researching solutions in 2011.

Initial Assessment and Proposal for GTS Was Not Accepted From an

ROI Perspective

Utilized Gartner Resources to Identify Alternative Solutions – both

Cloud and On-Premise Solutions.

Two Cloud Based Solutions Were Identified As Suitable Alternatives to

GTS

Selected Primary Alternative Solution from Original 2

Detailed Design (Blueprint) and Proposal Developed for

Implementation of Alternative Solution

Ultimately Chose to Go With SAP GTS after Comparing Functionality

and Long Term TCO

Why Did We Choose SAP GTS?

Fit With IT Application Strategy/Landscape

Integration with ECM Strategy and Solution

Full Integration with ECC and TM

Integration with Business Objects Reporting and Analytics

Best Fit to Johnsonville Requirements

The Total Cost of Ownership for the GTS solution was much lower than

the cloud providers

Cloud Pricing Models Based on Document Types and Volume Not Competitive As

Volume and Document Counts Increased

High fees for follow on builds of documents and processes versus the one time up front

consulting fee’s for the SAP GTS implementation

Can Be Maintained and Enhanced Using Existing Internal Resources

Cloud Providers Charged Additional Annual Service Fees for Each Interface

Increaseing Costs As We Integrate to Additional 3rd Parties and Internal Systems

Lessons Learned Do your homework and understand TCO if you are looking at a cloud solution.

The costs are buried in the integration and expansion.

Utilize 3rd Party Experts to understand who the key players are in the space

(customer base, length of service, investment back in the product, etc.)

Important to Understand Integration Requirements – these drive scope and

cost

Make sure the product is scalable for long term growth

Understand Limitations of Cloud Solutions in terms of flexibility and extensibility.

Learn about the products and make sure they can handle all of the core

requirements (assessment and system demos). We take a “prove to us that you

can do it” approach.

If you have reporting needs, make sure it fits within your reporting strategy.

This is a document heavy solution, make sure that it fits within your ECM

strategy.

Project Scope

House Product Classification: Schedule B codes and HTS codes (1 for each item)

Automate HTS codes update from third party data providers

Ability to store weights in different units of measure in GTS Product Master

Generate standard export documentation (SLI, Commercial Invoice, etc.)

Ability to customize and create new export forms (meat inspection certificate as an example)

Delivery (F8 Proforma) Integration between ECC and GTS.

EDI transmission with our brokers to pull in information and pass information.

ECC form automation

OpenText document integration and retention policies

BW integration and BOBJ reporting.

Best Practices

Reduce Manually Driven Processes EDI Output

Automatic form Generation

Aligning multiple party actions Export Specialists

Production

US Governing Bodies

Transportation Management

“One View” of all supply chain related activity Supply Chain Activity

Product Classification

Data Analytics to focus on KPI’s Supply Chain Finance

Transportation Management

Deploying Commercially Driven Technology Integrates in to Core ERP

Integrates to data, analytics and mobility

23

Solution Overview

Scope Best Practice GTS

Master Data

Transactional

Processes

GTS Service

Metrics

Audit/Document

Storage

Integration with

ECC ECC Plug In

Customs Declaration

is a collector for all

export related activity.

Aligning multiple party

actions

OpenText document

integration and

retention policies

Delivery (F8 Proforma)

Integration between

ECC and GTS

Deploying

Commercially Driven

Technology

BW integration and

BOBJ reporting.

Data Analytics to focus

on KPI’s GTS Info Cube

integrated with ECC

House Product Classification:

Schedule B codes and HTS

codes (1 for each item) from

third party providers

.

One View of All Supply

Chain Related Data

.

Central repository for

master data to update

via worklist

.

Generate standard

export documentation

(GTS/ECC)

Ability to customize and

create new export forms

EDI transmission with

our brokers

.

One View of All Supply

Chain Related Data

Reduce Manually Driven

Processes

.

US Customs certified

AES filing and related

documents such as SLI,

COO and Commercial

Invoice. GTS was built

will a standard platform

and interface to allow for

customer specific

scenarios.

.