VMI Consulting Service

Customer presentation

Vendor Managed Inventory

with APO

Service Offering

Michael Mack,

Tobias Teuber

Customer presentation© SAP 2009 / Page 2

Business problem

What’s the best practise VMI process?

How can I design and implement VMI?

What’s the right application for me?

How can I deploy the solution to my customers?

What is the best starting point for my company?

Value to Customer

Vendor Managed Inventory Processes create customer value and

offer competitive advantages.

Packaged offering can be sliced and diced to customer’s needs:

Lean VMI

VMI with Kit Process

SOA SNP Master Data Cockpit for VMI

Vendor Managed Inventory with SCM APO

Executive Summary

Goal

Evaluate SAP APO VMI for your business

Enable decisions: GO or NOT GO with APO VMI

Prototype as a foundation for the productive rollout

Discuss implementation scope and strategy based on the prototype

Target Customers

Customer reach SCM-APO customer

Internal/DC or store-level replenishment

Prerequisites ERP, SCM-APO

Target Industry Chemicals, Pharma, Telco, Life Sciences,

High Tech.

Any industry with replenishment that can be

modeled as a customer – supplier relationship

Organizational information

Success Stories edel music, Panasonic, Nokia, sonopress,

Melitta, Sony, SC Johnson ...

Contacts Tobias Teuber, Michael Mack, Christian

Boos

Customer presentation

SNP Master Data

Cockpit for VMI

APO KIT VMI

APO LEAN VMI

© SAP 2009 / Page 3

Structure of APO VMI Consulting Service

VMI Pilot Go-Live

Offer of Scoped Consulting Pack

Scoping Workshop

Customer Visit

Testing & Go-live preparation

Basis configuration

support to load

stock and sales

data via flat file or

IDoc

Additional APO

functionality (SNP)

IDoc integration to

customer system

BI & Web

Reporting

POS data monitor

Variable

component

for connectivity

Variable

components for

add. functionality

Business Assessment

Fixed-price

components


SAP APO Vendor Managed Inventory (VMI)

APO LEAN VMI

Business Problem Key Benefit

High replenishment costs for small lot

sizes or slow movers

No system integration of demand

planning and physical replenishment

No visibility of customers stocks,

bullwhip effect

Vendor managed inventory planning not

integrated with overall supply chain

planning process

Use standard EDI scenarios to integrate

inventories and daily movements on

store level

Plan replenishment for your customer

Improved collaboration with customers

Increased visibility of customer

demand

Visible in-transit inventory

Improved delivery service level, lower

safety stocks

Less stock-outs, rush orders and

supply bottlenecks

Improved transport planning

Lower transportation costs due to

efficient truck loads

Full integration with sales and logistic

execution processes in SAP ERP


Scope of Consulting Package

APO LEAN VMI

Implementation of a prototype for Vendor

Managed Inventory with the following scope:

Receive stock and sales data from a pilot store

via IDoc or flat file

Replenishment calculation running in

SCM APO on a business data

warehouse

User monitor

Lean setup of Supply Network

Planning

Create sales orders in ERP based on

replenishment calculation



APO LEAN VMI

APOERP CustomerOptional Step

Mandatory Step

Replenishment

Planning

APO-SNP

Transmit up-to-date

Sales, Forecast &

Stock Information

Analyse

Customer Forecast

APO-CFM

Post Goods Issue.

Create

Outbound Delivery

Sales Order

VMI Delivery

In Transit

Demand

Planning

APO-DP

Post Goods Receipt

Purchase

Order

ASN


SNP Master Data Cockpit

Business Problem Key Benefit

Increased Master Data Quality leads

to more accurate Planning results

Supply Planner can maintain Master

Data Objects in a more efficient way.

Cockpit helps planner to see relevant

information at one user friendly

screen.

Accelerate and simplify APO-SNP

projects

Central application for maintaining

APO-SNP master data

Create APO-DP and APO-SNP

master data in one step

Not all APO relevant master data

can be created automatically by CIF

APO specific Planning Parameters

have to be maintained manually

Mass maintenance of master data

objects

Maintain transportation lanes in

APO



SNP Master Data Cockpit

Create Customer Location Products

Maintain Transportation Lanes

Maintain Replenishment Parameters

Enterprise Services

Consume enterprise services

and compose new services

Flexible UI for rich user experience

Co

mp

osite

A

pp

lic

atio

n

ERP SCM



APO Kit VMI

Correlation with gATP

Create and consume reservations in ECC

Fair Share for kit components

Based on APO Lean VMI or stand alone

Consider structured products in APO VMI:

APO KIT VMI


Master data handling as the basis for APO KIT VMI:

• KIT and its components are defined in R/3 BOM (Bill of Material)

• To enable Fair Share and Correlation during APO VMI process, leading item (one

component) has to be defined

• Transfer Sales BOM as DP-PPM (Production Process Model) to APO

• APO Customer location product master contains leading item flag

ECC

KIT

4 C2

1 C1

Sales BOMAPO

DP-PPM

APO KIT VMI process

BOM Transfer

4 C2

1 C1

Flag Transfer

APO KIT VMI: Kit with BOM

Transfer kit master data to APO


Further services available on request

Enhance APO Lean VMI

Bypass or enhance Supply Network Planning

Classification for products and stores (sound media

specific), synchronized with the SCM master data

process

Customer ECC integration (PO)

Collaborative planning and forecasting (CPFR)

Web reporting (in cooperation with BI

consulting)

Logistic and Sales reporting based on SAP Business

Intelligence

Internet reporting as accounting service for your

customers

POS data monitor based on BI

Enhance the scope of APO Vendor Managed

Inventory by the following:

APO KIT VMI


SAP Products

NetWeaver PI can be used as hub for message exchange with external partners

(customer‘s customers)

Supplier collaboration with SCM SNC can be a next step

SOA show cases

An existing or extended BI system can be levared to handle big volumes in reporting and

POS data

Consulting

Consulting offer as fixed price project with low risk

Additional packages will be billable on a Time & Material basis

SAP Hosting

Hosted VMI solution is possible.

Global Delivery:

Upgrade service is available.

Door-Opener for Innovations


Contacts

Dr. Tobias Teuber

SAP Deutschland AG & Co. KG

Hasso-Plattner-Ring 7

D-69190 Walldorf

F +49-6227-78-35260

M +49-160-360 33 41

S +49-6227-763458

[email protected]

www.sap.de

Michael Mack

SAP Deutschland AG & Co. KG

Hasso-Plattner-Ring 7

D-69190 Walldorf

F +49-6227-78-41753

M +49-151-168 10 232

[email protected]

www.sap.com

mailto:[email protected]

mailto:[email protected]

Documents

VMI Consulting Service