0 Copyright 2010 Fujitsu America, Inc.
Fujitsu Capabilities' & Solutions
1 Copyright 2010 Fujitsu America, Inc.
Introductions
John V. Counts Sr.Vice President Enterprise Solutions
SAP years: 18 years
Manufacturing: 22 years
Certification: B.S. Industrial Engineering, MBA
Logistics, SAP Certified, Six Sigma (Black Belt),
APICS Certification, CPIM / CSCP.
Expertise: Consumer Products Food & Beverage,
Automotive, Life Science, High Tech, Industrial
Machine & Component , Mill Products and
Catchweight, Lean Manufacturing & Wholesale
Distribution.
Key Clients: Ford, Lenovo, Tyson Foods, Smithfield
Foods, Pilgrim’s Pride, Dean Foods, Perdue Farms,
Coca Cola, Pepsi Cola, Brown Forman, Southern
Wine, John Deere, Caterpillar, WR Grace, Gilbarco-
Veeder Root, Volvo, Owens Corning, Novus, DHL,
Bosch, Hearthside Foods etc.
“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”-Aristotle
2 Copyright 2010 Fujitsu America, Inc.
Agenda
Fujitsu Project Approach
High Level Presentation of Selected Solutions
3 Copyright 2010 Fujitsu America, Inc.
Agenda
Fujitsu Project Approach
High Level Presentation of Selected Solutions
4 Copyright 2010 Fujitsu America, Inc.
1. Analyze and plan Cost and profitability analysis
Comprehensive sales planning
and monitoring
2. Procure Inventory/stock visibility
Compare vendor quotations
5. Deliver and
service Complete support for
product returns
Complaint management and
track and trace capability
3. Manufacturing Support for multistage
manufacturing processes
Integrated costing and quality
management
4. Market and sell Capable to promise/
available to promise
Product allocation
Third-party sales drop-ship
Fujitsu’s Core Ability to Integrate Systems
Creates Tangible Value in All Key Areas
5 Copyright 2010 Fujitsu America, Inc.
Macroscope®Program Methodology with ASAP Extension
• PROVEN
• PRACTICAL
• INTEGRATED
• SCALABLE
• CUSTOMIZABLE
• SUPPORTED
Processes What do we do? Who does it?
When? In what sequence?
Tailoring guidelines
Roles Clear roles and responsibilities
Team dynamics
Role perspectives on process
Deliverables What work products are required?
Suggested content
Which techniques can help me?
Techniques How do I do this?
How to capture the results?
What notation should I use?
Accelerators Deliverable Assistant
Templates and examples
Checklists and Worksheets
Annotation and support material
Other productivity tools
Learning Resources Role-based Training
Case Studies
Examples
Printable Guides
5
6 Copyright 2010 Fujitsu America, Inc.
ASAP Integrated with Macroscope
Leveraging the strength of our experience and successful approaches
7 Copyright 2010 Fujitsu America, Inc.
Rapid Implementation Design
Design is an on-going activity
Design in Lean IT is not static – it is incremental and responds
to learning
Do the simplest thing that can possibly work at
each point: Passes all known tests
Contains no duplication
Communicates intent clearly
Is a small as possible – fewest classes, methods, lines of code
No speculative development (YAGNI) Always develop things when you actually need them, never when you
just foresee that you might need them
Simple designs reduce friction and surface area
7
8 Copyright 2010 Fujitsu America, Inc.
Globalization vs. LocalizationUsing the Fujitsu Global ASAP methodology, global enterprises can streamline multisite implementations through the
development and subsequent rollout of a global template. By conducting an analysis of your business processes and
requirements, you are able to define which are common to all sites and which are sites-specific. The global template
includes those processes common to all sites. Use of this template enables quick, repeatable multisite
implementations. Local requirements such as site-specific processes and local statutory requirements are then
incorporated into your global template at the appropriate local level during rollout.
Local
Elements15-20%
Global
Elements80-85%
Documen-
tation
Structures
and settings
GlobalConfiguration Org structure
Master data
documents
Language& Currency
Statutory Regulations
Global and inte-
grated processes
Other
STANDARD DATA
STANDARD PROCESS
STANDARD METRICS
STANDARD PERFORMANCE
Fujitsu’s
Global
Template
9 Copyright 2010 Fujitsu America, Inc.
Agenda
Fujitsu Project Approach
High Level Presentation of Selected Solutions
10 Copyright 2010 Fujitsu America, Inc.
3rd Party Warehouse
Feedlots
Retailers
Consumers
Co-Packers
Distributors
Industry Customers
Service/Maintenance
Transport
Authorities
CPGManufacturers
Farmers, Feed Suppliers, etc.
Suppliers
SAP CWM-based Solution:
More Efficiency, Customer Satisfaction & Profitability
Accurate calc. of weight: Freight costs Reloading/Unloading
Accurate Prod. Planning: Yield Overstock Efficiencies
Relevant Unit/Quantity-based planning: Overstock Sell-off need
Inventory visibility in Parallel Quantities: Out-of-stock situations Re-measuring
Actual weight-based Invoicing & Payments: Efficiency
Prod. Costing on dedicated valuation unit: Accounting impact on
manufacturing Control & profitability info Correction of books
Actual weight-based billing: Customer disputes = lower costs Customer satisfaction Give-away = more profitability
Communication of shipped goods in parallel quantities incl. packing: Customer Satisfaction Re-weighing effort Efficiencies
Pre-configured Solutions
11 Copyright 2010 Fujitsu America, Inc.
Innovative Solutions for Clients - Samples
Poultry: Fujitsu was chosen by a major poultry company to migrate to SAP ECC
6.0 and implement Financials and Business Intelligence. Customer is the
number-one brand of premium chicken in the Eastern U.S., entered into their
SAP Upgrade’s realization phase in June 2010. The project presented both the
challenge and opportunity to build a sophisticated SAP O2C-based solution for
upgrading SAP 4.6C (IS-Oil) to SAP ERP 6.0 with EhP 4 (Catch Weight
Management).
Wholesale Distribution Solution: Fujitsu developed an automated chargeback management system for a Major Wholesale Distributor leveraging the Vistexproduct. Fujitsu team also developed a unique Online Order Guide. This innovative solution has provided immediate ROI by streamlining order entry and chargeback management. Chargeback cycle reduced from 30–90 days to 14–21 days, and eliminating loss from manual recovery of chargebacks
Catch Weight Management (CWM) solution: Fujitsu partnered with SAP and deployed the first successful CWM solution for a major food group allowing them to manage their inventory and financials in multiple units of measure. Fujitsu also partnered with SAP for the first successful deployment of OutlookSoft (now BPC) significantly improving the company’s ability to obtain accurate, timely and detailed financial statements.
12 Copyright 2010 Fujitsu America, Inc.
Identify, Quantify & Reduce Catch Weight Loss
Accurately identify and quantify catch weight loss at various points in the supply chain where it was not previously possible.
Implement technologies and processes designed to reduce catch weight loss.
Enable more accurate reporting and accounting of catch weight value throughout the supply chain, helping to increase revenue realization
Reduce product time-to-market, enhancing your competitive advantage and revenue potential.
The special challenges in food processing operations and their supply chains have often forced companies to accept
a high degree of product loss along with accounting inaccuracies as product moves to market. Fujitsu offers deep
business expertise in delivering Enterprise Resource Planning (ERP)-platform solutions such as Catch Weight
Management. Fujitsu helps you identify and assess opportunities in your internal operations and processes, as well
as your broader supply chain where our tailored solution will drive new standards for performance.
For food companies
Manufacturing: Consumer Products Foods Solution Template Catch Weight Management
Improve Operational Performance
Improve revenue realization through increased reporting and accounting accuracy of catch weight value throughout the supply chain.
Reduce the effort required for repeated weighing operations by linking actual weights to handling units.
Improve the visibility of costs and reduce the total cost of ownership (TCO).
Improve the visibility of margins with new flexibility in the management of inventory prices.
Increase channel partner and customer satisfaction through more accurate billing of actual weight shipped.
• With CWM, the fullfilment of purchase orders can be recorded and controlled more accurate for catch-weight materials: Goods receipt is posted in 2 units of measure (UoM) in parallel, the logistics unit of measure (e.g. pieces) and the valuation unit of measure (e.g. kg). If the pricebase of the purchase order-item is defined using the valuation UoM, verification of the receipt invoice is performed against the real catch-weight quantity, which is more precise than without CWM, where only planned conversion factors are available
Procure to Pay
• With CWM, the fullfilment of customer orders can be recorded and controlled more accurate for catch-weight materials: Goods issue is posted in 2 units of measure (UoM) in parallel, the logistics UoM (e.g. pieces) and the valuation UoM (e.g. kg). If the pricebase of the sales order-item is defined using the valuation UoM, creation of the sales invoice is performed based on the real catch-weight quantity, which is more precise than without CWM, where only planned conversion factors are available.
Order to Cash
• With CWM, the goods issues and goods receipts related to PP- or PP-PI orders can be recorded and controlled more accurate for catch-weight materials: all movements are posted in 2 units of measure (UoM) in parallel, the logistics UoM (e.g. pieces) and the valuation UoM (e.g. kg).Manufacturing
Inbound & Outbound Logistics
Inventory Accounting
With CWM, all material movements for catch-weight materials are posted in 2 units of measure (UoM) in parallel, thelogistics UoM (e.g. pieces) and the valuation UoM (e.g. kg). Accordingly, Inbound and outbound delivery for catch-weight materials are also recorded in both UoMs. If handling unit management is in place, also postings related tohandling unit-items are performed in both UoMs.
In warehouse managment, transfer orders are used to report quantities in both UoMs in order to enable inventorymanagement to update inventory in both UoMs.
Inventory Accounting for CWM supports valuation of goods movements and material inventory based on parallel unitsof measures as used with Catch Weight Management scenarios. For each CW relevant material either the logisticsunit of measure (e.g. pieces) or a parallel unit of measure (e.g. kg) can be chosen as base for the valuation. Materialmovements can be valuated online with either moving average price or standard price. In addition balance sheetvaluation functionality allows the calculation of periodic prices based on different procedures like FIFO or marketprice. All prices are held in the flexible price manager which supports daily or periodical prices and introduction ofadditional prices types required for additional purposes. Besides material inventory also work in process is valuatedimmediately with the costs incurred for the production or process order. Remaining variances after goods receipt canbe settled periodically as also remaining variances from procurement processes can be cleared periodically.
Business Processes
ECC 6.0 CWM Business Case
13 Copyright 2010 Fujitsu America, Inc.
Fujitsu Preconfigured Solutions
Procure to Pay
Live Stock Procurement
Catch Weight Management
Production Planning
Production Execution
Production
Sales Order Processing
Indirect Sales
Direct Store Delivery
Empties Management
Rebate and Bonus
Management
Sales Returns
Meat Sales Processing
Traceability & Food Safety;
Quality Management
Inventory Management
Excise Duty
Contribution Margin Planning
Financials and Controlling
14 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Improving efficiency of purchasing activities Realizing savings in purchased value Allowing visibility into vendors’ conditions and
services Ensuring tracking and traceability Ensuring quality of all materials and
components used in manufacturing
Business Benefits Automate operational tasks Improve vendors’ selection and price
comparison through quotation handling Formalize agreements by introducing contract
management and relating it to quotations Introduce batch management for tracking and
traceability of components Guarantee quality check through goods receipt
inspections
Efficient purchasing is a top task for food & beverage companies today. SAP ERP supports price comparison of
vendors’ offers, incorporating flexible pricing processes for the actual value of the raw ingredients delivered. Provided
are tools to gain greater spend visibility in procurement, to automate operational tasks, and to help manage
quotations, contracts, batch handling, and quality.
For food & beverage companies
Solution
Procurement
Request for
quotation, for
Proposal
Price
Comparison
Purchase
requisition,
Purchase order
Warehouse
Management
Quality
Inspection
Batch
Management
Vendor
Evaluation
Returns
Subcontracting
Contracts
Contract
Management:
Vendor,
quantity, value
and validity
period
Monitoring
contracts
Invoice
verification
Rebates
Sourcing and ProcurementProcure To Pay
Third-Party
Procurement
Info records
Scheduling
agreements
Delivery
Schedule
Management of
vendor
consigned stock
Invoice receipt
from
Consignment
Withdrawel
Outgoing
payment
15 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Highly volatile prices in purchasing livestock
Extreme margin dependence based on efficiency in procurement
Unknown quality levels in meat
Less transparency in payment process
Different, complex, and individual procurement processes
Risk of purchasing infected meat
Business Benefits Improved transparency in meat procurement
Increased procurement processing efficiency
Raised quality standards by integrated quality management
Reduced operating costs and increased efficiency by efficient procurement processes
Enhanced communication with farmers/ suppliers
This is a focused solution for livestock procurement. The SAP® ERP packaged solution for the meat industry featuresa powerful livestock procurement function that you can use to purchase efficiently, process the goods receipt, andsettle. It includes efficient procurement of livestock, compliance with high-quality standards and traceabilityrequirements at all process stages, calculation of payments based on quantity and quality characteristics, monitoringof the procurement and payment processes, and release of reports to the supplier.For meat companies.
Meat Purchasing
Set up contracts
with supplier (e.g.,
conditions,
quantity, time
frame)
Set up quality
criteria for
valuation
Enter market prices
Purchase live
animals
Trade meat
Manage order
Sourcing and Procurement
Livestock Procurement
Solution
Creation of lot
number with direct
reference to PO
and supplier
Sampling
management in
goods receipt
Capturing weight
and quality criteria
Monitoring of
supplier
relationship status
Livestock settlement
calculation based on
quantity and quality
criteria
Evaluated Receipt
Settlement (ERS) –
automatic invoice
creation
Report with overview
of delivered livestock
and its quality
SettlementGoods Receipt
16 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Reducing time-to-market in CD&HA
manufacturing Ensuring quality checks over the entire
manufacturing process Improving manufacturing efficiency
Business Benefits Create and modify bill of materials easily
and quickly Identify quality-noncompliant lots by
defining product inspection lots and related usage rules
Calculate and monitor production costs
SAP ERP gives the flexibility to manage multistep manufacturing processes. It incorporates in-process and post-
process quality management. The solution also includes cost-object controlling, such as preliminary costing,
simultaneous costing, and period end closing.
For food & beverage companies
Production
Planning
Sales and Operation Planning
Transferring data to Demand Management
Planned independent requirements
Long-term planning
MRP run
Generation of planned orders
Planning table
Capacity planning
Conversion of planned orders into
production orders
Manufacturing: Consumer Products Foods Solution Template Production Planning
Solution
17 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Reducing time-to-market in CP
manufacturing Ensuring quality checks over the entire
manufacturing process Improving manufacturing efficiency
Business Benefits Create and modify bill of materials easily
and quickly Identify quality-noncompliant lots by
defining product inspection lots and related usage rules
Calculate and monitor production costs
SAP ERP gives the flexibility to manage multistep manufacturing processes. It incorporates in-process and post-
process quality management. The solution also includes cost-object controlling, such as preliminary costing,
simultaneous costing, and period end closing.
For food & beverage companies,
Manufacturing: Consumer Products Foods Solution TemplateProduction Execution
Production
Execution
Production order creation
Bill of material management
Make-to-Stock Production – Process Industry
Make–to–Stock Production – Discrete Industry
Repetitive Manufacturing
Make-to-Order Production w/o Variant Configuration
Rework processes
Quality management
Batch Management
Product costing
Inventory update
GMP compliance
Lean manufacturing
Kanban
Heijunka (Production Leveling)
Solution
18 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Increasing competitive pressure from retailing/growth
of private labels
Short-term notice of customer demand
Variable demand due to seasonality
Difficult management of production planning and
execution due to high product complexity
Transparency in yield and cost on a timely base
Multistage complex production environment
Traceability throughout production
Business Benefits Improve transparency in dairy production
React flexibly to fluctuating demand
Realize higher demand accuracy
Reduce operating costs and increase efficiency by
efficient production processes
Calculate and monitor production costs seamlessly
SAP ERP gives the flexibility to manage multistep manufacturing processes. It incorporates in-process and post-
process quality management. The solution also includes cost-object controlling, such as preliminary costing,
simultaneous costing, and period end closing.
For meat companies.
Slaughtering
Manufacturing: Consumer Products Foods Solution Template Production
Segmentation
SolutionSecondary
Processing
Secondary
processing
schedule
Sample
management
Post-process
quality
management
Packaging raw
and processed
meat
Capturing data for
traceability
Production order
costing
Label printing with
weight, batch,
date, etc.
Segmentation
schedule
In-process and
post- process
quality
management
Material up- and
downgrading
Shop-floor data
acquisition
through user-
friendly interface
Capturing data
for traceability
Segmentation
costing
Segmentation
statistics
Slaughtering
schedule
Recording grade
and weight of
slaughtered
livestock
Capturing data for
traceability
Slaughter costing
Source of origin
19 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Managing variable pricing conditions by different
customer/product combinations Shortening order cycle times Meeting customers’ requests for improved services
(such as order fulfillment, invoicing, and payments methods)
Business Benefits Define standard and ad hoc price lists easily and
quickly Improve the sales execution timeline by implementing
a seamless process and the timely availability of key information
Improve order fulfillment through stock availability checks
Provide the customer with alternative services and methods for invoicing and payments
SAP ERP can effectively manage the entire customer order process – variable pricing, delivery, invoicing, and
payment. You can focus on shortening order cycle times, make on-time and in-full deliveries, and provide customers
with optimal payment methods.
For food & beverage companies
Extended Sales
Order
Processing
Sales order
creation
Third-party
sales order
Delivery
creation
Picking
Goods issues
posting
Down payment
Billing creation
Billing
documents
display
Availability
checks and
batch
determination
Customer
Consignment
Processing
Consignment
fill-up
Consignment
issue
Consignment
pickup
Manufacturing: Consumer Products Foods Solution Template Sales Order Processing
SolutionEDI
Inbound sales
order via EDI
Outbound
billing
document via
EDI
20 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Obtaining usable and relevant data about
customers through third-party wholesalers Allocating promotional spend efficiently Securing correct rebate processing across
a complex supply chain
Business Benefits Understand better those customers that are
serviced by a third-party wholesaler due to improved data quality and availability
Allocate promotional spend more efficiently by collecting and analyzing valuable customer information
Process rebates and commissions correctly due to improved data quality and availability
Obtaining customer information through a third-party wholesaler can be a challenge for many food companies. The
SAP™ ERP packaged solution enables food companies to gain a more complete understanding of their business
performance by allowing them to track their sell-through in different channels and to specific accounts.
For food & beverage companies
Indirect Sales Data
Management
Maintain information
about wholesalers’
customers
Create template for
data requirements
Create requests for
sales reports
Receive indirect
sales data (volume,
quantity, and value)
from wholesalers
Confirm and
validate received
data for rebates
calculation
Analyze indirect
sales data
Perform periodic
partial settlement
Rebate Agreements
Define rebate
agreements
Track rebate
obligations for
both direct and
indirect sales
Take contractual
agreements into
consideration
Set up reserves
based on
planned sales
Settle indirect
agreements
Manufacturing: Consumer Products Foods Solution Template Indirect Sales
Solution
21 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Succeeding in the face of intense
competition between brands Establishing direct contact with customers,
such as retailers, restaurants, and pubs Improving operational efficiencies in a
complex system
Business Benefits Improve customer service through better
service levels and multiple points of access Increase revenue by improving order fill
rate and reducing shrinkage Reduce operating costs and increase
efficiency by reducing administrative functions
Lower working capital by reducing inventory carrying costs
Visit Control and
Scheduling
Picking, Packing,
and Loading
Manufacturing: Consumer Products Foods Solution Template Direct Store Delivery
Solution
Group customers
in visit plans
Assign visit
calendar and
routes
Schedule
deliveries
Optimize
shipments daily
Create visit list
Calculate
workload
estimates
Complete goods
issue process
Check-in/check-out
Balance materials
and payments
Perform settlement
process incl. post
goods issue
receipts
Credit or debit
customer and
driver accounts
Route
Accounting
Direct Store Delivery (DSD) is a business process that is used to distribute goods directly to the customer. It makes
materials quickly available to stores and customers (for example, food, drink, flowers, nnewspapers'). DSD ooptimizes
process settlement in sales and in distribution as well as logistics costs by using efficient visit planning .
For food & beverage companies
22 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Tracking empties assets
Obtaining holistic view of empties across
entire supply chain
Revaluating of empties on customer side
This process paints a detailed picture of your entire empties situation after the manufacturing process, showing you
the location and status of your crates, kegs, or pallets, and helping you optimize your return logistics. It also lets you
quickly access each customer’s empties account as well as print delivery notes or invoices that record the empties
involved in a delivery.
For food & beverage companies
Empties
Management
Manufacturing: Consumer Products Foods Solution Template Empties Management
Solution
Empties bill of materials (BoMs)
Including of empties into credit
control
BOM explosion in sales
processes
Managing empties at customer
locations
Empties on deposit
(charge and credit for
deposits)
Empties accounts (track
running empties balance)
Business Benefits
Decrease costs by controlling high value
empties assets
Increase control by managing empties at
customers side
23 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Organizing numerous parties
(e.g. wholesalers, retailers)
Maintaining potentially complex
rebate/bonus structures
Enabling a multitude of transactions
Paying of bonus as separate invoice is a risk due
to Russian legislation
Business Benefits Drive increased volume through effective bonus
programs
Increase efficiencies by automatically managing
the entire rebate process for both direct and
indirect rebates
Increase rebate accuracy and customer
satisfaction by collaborative agreement to indirect
sales volumes
Control rebate costs through tight management of
the entire process
Rebate and bonus agreements, including coupon agreements, are critical to enhancing relationships between
beverage manufacturers, wholesalers, and customers. With the SAP® Beverage application, you have the tools you
need to easily and accurately manage large, complex partner constellations with any number of bonus arrangements
for direct or indirect sales.
For food & beverage companies
Rebates and Bonus
Agreements
Coupon
Management
Manufacturing: Consumer Products Foods Solution Template Rebate & Bonus Management
Solution
Create internal order
Maintain planned
costs (incl. accruals)
Procure, distribute
and redeem coupons
Carry out coupon
settlement with
retailer or clearing
house
Compare actual
/planned costs
Run profitability
analyses
Define rebate agreements
Track rebate obligations for
both direct and indirect
sales
Transfer calculated sum
into SD as a discount for
future period and track
payment
Calculate the exact scales
(interval scales) periodically
Make multiple rebate
payments to various rebate
recipients
Set up accruals based on
planned sales
Use pendulum list for
indirect sales volume
update
Settle direct and indirect
agreements
24 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Obtaining usable and relevant data about
customers through third-party wholesalers Allocating promotional spend efficiently Securing correct rebate processing across
a complex supply chain
Business Benefits Understand better those customers that are
serviced by a third-party wholesaler due to improved data quality and availability
Allocate promotional spend more efficiently by collecting and analyzing valuable customer information
Process rebates and commissions correctly due to improved data quality and availability
Obtaining customer information through a third-party wholesaler can be a challenge for many beverage companies.
The SAP™ ERP packaged solution enables beverage companies to gain a more complete understanding of their
business performance by allowing them to track their sell-through in different channels and to specific accounts.
For food & beverage companies
Indirect Sales Data
Management
Maintain information
about wholesalers’
customers
Create template for
data requirements
Create requests for
sales reports
Receive indirect
sales data (volume,
quantity, and value)
from wholesalers
Confirm and
validate received
data for rebates
calculation
Analyze indirect
sales data
Perform periodic
partial settlement
Rebate
Agreements
Define rebate
agreements
Track rebate
obligations for
both direct and
indirect sales
Take contractual
agreements into
consideration
Set up reserves
based on
planned sales
Settle indirect
agreements
Selling and DeliverySales Returns
SolutionRebate
Agreements
processing of credit
memos in case of
complaints
returned goods go
through a quality
evaluation
Centralized
processing of
subsequent
inventory and billing
activities based on
multiple analysis
results
Generation of
settlement
documents in
background
processing
25 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Perishable products, spoilage in warehouse
Order management with customer-specific criteria
Monitoring stocks in warehouse
Traceability through delivery to the customer
Unplanned inventory due to short-term production schedule
Monitoring weight losses
Business Benefits Improved sales order processing and distribution of meat
Reduced effort in delivery creation and packaging by
automatic batch determination
Detailed overview and tracking of batch information with
batch recall capability
Increased service level for customer
Integration of real-time financials and costing reports
Weight loss capture from production to customer
The sales and distribution cycle encompasses sales order processing, delivery, billing, and payment. The picking and
delivery process has been specifically designed to address shelf-life management of meat products. Customer
requests such as minimum remaining shelf-life are processed within order management and during the picking
process. Additionally, overstocked meat can be easily sold using a push approach.
For food & beverage companies
Selling and DeliveryMeat Sales Processing
Solution
Sales order processing
Push-sales management
Product substitution
Handling unit
classification (to record
weight)
Customer-specific batch
determination
Shelf-life management in
finished goods
warehouse
Prevent shipping of
suspect batches
Transportation planning
with capacity checking
and batch split
Batch recall
Rebate agreements
and monitoring
Sales order creation
Delivery creation
Picking and packing
Goods issues posting
Integrated
transportation costs
(with minimum freight)
Billing creation
26 Copyright 2010 Fujitsu America, Inc.
Operational End-to-End ScenariosTraceability & Food Safety; Quality Management
Industry Challenges Being fully compliant with food regulations, such as EU
(Article 18 of Regulation 178/2002), U.S. (The
Bioterrorism Act of 2002), HACCP (Hazard Analysis and
Critical Control Points)
Addressing growing food-safety concerns from
consumers
Business Benefits Minimize risk of losing customer trust by professionally
managing a possible recall of a defective batch Minimize risk of noncompliance with food regulations Enable effective batch-specific returns processing Monitor materials planning, sales and distribution,
procurement and production
Solution
Food safety requirements are becoming more stringent across the food industry, which means that food companies
must have track-and-trace capability for all products, as well as the ability to recall a defective batch. The SAP™ ERP
solution allows companies to meet the industry requirements for food safety and traceability and to reduce
operational risk significantly.
For food & beverage companies
Quality
Management
Batch
Management
Handling Unit
Management
Plan for quality
Inspect for
quality
Record
laboratory
analyses
Create reports
on quality
Improve quality
Monitor
procurement,
production,
distribution
processes
Manage automatic
batch creation,
determination,
status, and batch-
where-used-list
Track defects
Recall batches
and create follow-
up activities
Manage batch
specific return
processing
Manage batches
based on shelf-life
expiration and
other usability
differences
Manage
production
processes with
HUM
Handle Serial
Shipping
Container Code
(SSCC) numbers
Integration with
quality
management and
batch
management
Supply Chain Traceability & Monitoring Process
27 Copyright 2010 Fujitsu America, Inc.
Transportation
Management
Plan transports
Monitor
execution
Calculate costs
Manage
transportation
settlement
Industry Challenges Maintaining low inventory levels Avoiding out-of-stock situations at
retailer Establishing visibility to inventory levels
throughout the entire supply chain
Business Benefits Reduce working capital by keeping
inventory levels low Increase sales by reducing out-of-stock
situations Improve consumer retention due to
product availability
Managing inventory levels efficiently, that is, maintaining low inventory levels while avoiding out-of-stock situations,
is a high priority for food companies. The SAP™ ERP packaged solution enables food companies to optimize both
inventory levels and storage space based on inventory planning and turnover. At the same time, quality checks can be
performed in combination with warehouse management and transportation management.
For food & beverage companies
Inventory
Management
Achieve full
integration with
accounting
Receive and
issue goods
Manage
different stock
categories
(available,
blocked, in QA)
Valuate
inventory
Warehouse
Management
Manage goods
receipt, storage,
goods issue
Manage and
inspect for
quality
Manage return
of goods
Pick goods
Manage
materials in
batches
Operational End-to-End ScenariosInventory Management
Solution
28 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Meeting local legal and fiscal requirements
(chapter 22 of the Tax code of the Russian Federation)
Processing of several tasks in on-line mode
Preparation for obligatory EGAIS implementation in near future
Business Benefits Integrated solution
Full support of Russian legislation
On-line transfer of accounting data
When alcoholic material is purchased, moved, or sold, the accompanying processes become tax-relevant with respect
to the excise duty. The SAP™ ERP packaged solution includes the excise-duty processing that provides monitoring
and reporting functions on excise-duty-relevant material movements in the vendor-manufacturer-customer
relationship.
For food & beverage companies
Goods
Movements
Reporting /
Financials
All Movements of
tax relevant
materials between
tax warehouses
are reported:
- Goods Receipt
- Goods Issue
- intercompany
- Subcontracting
- Returns
- Scrapping
Used for trading
goods and
materials from
production
Definition of
excise payers
Definition of
taxation periods
Terms of
payment
Creation of Tax
report/declaration
Initiating payment
Operational End-to-End ScenariosExcise Duty
Solution
29 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Evaluate the profitability of markets, channels,
products and customer segments
Layer on cost-of-goods-sold (COGS) from prduct cost accounting to construct a contribution margin model
Multi-dimensional profitability reporting
Business Benefits Integration to sales, financials, controlling and
production
Use of automatic functionality for planning
Data can be planned in spreadsheet
Avoid bottlenecks, over- and under-absorption
in production.
Material requirements planning as a basis
for purchasing contracts
This scenario provides CO-PA enhancement for the consumer products and wholesale industries. The focus here is to
provide planning on contribution margins and sales figures. Furthermore the revenue and the costs are planned on
product and customer levels. The scenario is integrated in the complete planning cycle. The costs are received from
CO-PC and cost center planning and the planned quantities are transferred to SOP.
For food & beverage companies
Contributin Margin
Planning
Revenue Planning
Material Cost
estimation transfer
Transfer planned
overhead costs to
CO-PA
Execute CO-PA
Report about
Contribution
Margins
Additional master
data
(characteristics
and value fields
Calculation of
contribution
margins based on
standard costing
and actual costing
Enterprise Management & Support
Contribution Margin Planning
Solution
Revenue Planning
Revenue planning
on basis of
historical data
Cost calculation
Transfer to SOP
Quarterly plan
Sales quantity
planning on the
basis of actual
data
Transfer to SOP
Create sales plan
Sales quantities
transfer to SOP.
Rough cut capacity
planning
to check against
bottleneck
resources
Feed data into
Long term planning
Generation of
production plan
MRP run in
simulated mode
Calculate the total
utilization of the
manufacturing
work centers
Sales &
Operations
Planning
Quarterly Plan/
Revenue Plan
30 Copyright 2010 Fujitsu America, Inc.
Industry Challenges Meeting local legal and fiscal requirements
Improving efficiency of administrative activities
Maintaining focus on most profitable customers and brands
Business Benefits Implement an ERP solution fully compliant
and continuously updated with local legal and
fiscal requirements
Improve efficiency in accounting activities due
to a seamless process integration across the
business which eliminates double checks and
redundancies
Enhance company profitability analysis
through profit and loss calculation by
customer and brand
All food companies need to manage financial requirements and enterprise profitability. The SAP® ERP packaged
solution for the meat industry helps to gain insight into all aspects related to accounting and controlling and provides
streamlined functionalities that allow visibility, increase productivity, and help meat companies regain control of their
business processes.
Financials
Enterprise Management & Support
Financials and Controlling
Solution
Standard cost and profit center
accounting
Profitability analysis
Product costs planning
Product cost controlling
Controlling
General ledger
accounting
Accounts
payable
accounting
Accounts
receivable
accounting
Bank
accounting
Closing
activities
Cash
management
Assets
management
31 Copyright 2010 Fujitsu America, Inc.
Questions and Answers
Copyright (C) 2009 Fujitsu America31
32 Copyright 2010 Fujitsu America, Inc.
Fujitsu Preconfigured Solutions
Procure to Pay
Live Stock Procurement
Catch Weight Management
Production Planning
Production Execution
Production
Sales Order Processing
Indirect Sales
Direct Store Delivery
Empties Management
Rebate and Bonus
Management
Sales Returns
Meat Sales Processing
Traceability & Food Safety;
Quality Management
Inventory Management
Excise Duty
Contribution Margin Planning
Financials and Controlling
33 Copyright 2010 Fujitsu America, Inc.
Thank You!
34 Copyright 2010 Fujitsu America, Inc.
Appendices
35 Copyright 2010 Fujitsu America, Inc.
What is it?
Documented global business requirements
Business scenarios representing global best
practices
A configured system enabling common
business processes
Support for multiple business models and
solution requirements (e.g. manufacturing,
final assembly and service)
Master Data Strategy & Definition
Enterprise Data Warehouse Strategy
Test Cases
Implementation Kit - guidelines, training
materials & project standards
Once completed, individual business operations
may implement the needed solution elements
with minor configuration changes to support
local VAT, legal and other business-justified
extensions.
Global or Deployment Template Definition
Why?Enable quick, repeatable, and cost-efficient project
implementations
Define common and potentially shareable core
business processes
Allow transfer of leading practices across all lines of
business
Deliver flexible business solutions that utilize
integrated applications, common technology, and
standardized data
Eliminate investment in redundant system
development, interfaces, and support
The establishment of a standard set of global
processes to serve all business components
Establishment of a Master Data Set for all facilities
leveraging single instance capability if desired
Incorporation of regional differences to the Global
Template (currency, language, statutory
requirements)
Enables manufacturing cross-region flexibility with
focus on supply chain improvements
Common processes enable reduced new product
introduction timeframes
Enables global visibility to inventory, cost,
profitability
More rapid ROI
36 Copyright 2010 Fujitsu America, Inc.
Drive for quick, repeatable project implementations Project methodology Compliance check Documentation of standards
Define common core business processes Efficient centralized definition and pre-configuration of global / harmonized elements Setup of multiple templates in parallel
Allow transfer of leading practices across all lines of business Re-use of customizing on local components Version management Comparison and adjustment of template versions
Deliver flexible business solutions that utilize integrated applications, common technology and standardized data
Minimize investment in redundant systems development, interfaces, and support
Global / Pre-Configured Template, “What Do I Get”.
Approach is to standardize at least 80%-85% of processes across organization and make that the
global template. Gaps (15%-20%) will be addressed in local templates. First implementation
would be global template plus at least one local deployment
37 Copyright 2010 Fujitsu America, Inc.
Business ObjectivesHow Do You Fit with the Global / Pre-Configured Template
Business
Objectives include:End State
View:
Business
Transformation and
Standardization
Develop template to bridge the
gap Current state and End
state
Move to single global template and supporting platform, increasing agility and transparency across all business units
Standardize and improve globally and locally to meet business objectives
End-to-end factory solution supporting mixed modes of manufacturing
Robust product configuration capabilities
Global view of spend, inventory, capacity, and profitability
Enhanced support of and interaction with customers and suppliers
Increased user productivity via enhanced functionality, analytics, workflow, and alerting
Single solution with common global processes
38 Copyright 2010 Fujitsu America, Inc.
Platform Consolidation End State View
Global Template
Single Corporate SAP Business Suite Instance
Centralized IT support function
An ERP architecture provides the flexibility to centralize functions, standardize business process,
leverage scale and reduce cost of ownership
Single SAP instance consistent business processes and enabling global real time
analytics
39 Copyright 2010 Fujitsu America, Inc.
Example of a Global / Plant Roll-out Roadmap
Roadmap reflects the plan, dependencies and ERP high level estimate of duration and benefit
Deployment Site
Global Template Design
Deployment 1
Deployment 2
Deployment 3
Deployment 4
Site 2
By sequential implementation and factoring in ease of implementation, readiness, SAP Global
Template, risks, and a close governance , we would achieve global roll-out within 4 years
Site 3
Site 4
Site 5
2011 2012 2013 2014 2015 2016 2017 2018
6 Months
Site 1
Global Template
Site 10
Site 9
Site 8
Site 6
Site 11A
Site 11B
Site 12
6 Months
12 Months
6 Months
12 Months
Site 7
12 Months
6 Months
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40 Copyright 2010 Fujitsu America, Inc.
Business Case
ECC 6.0 CWM
Implementation
41 Copyright 2010 Fujitsu America, Inc.41
ECC 6.0 CWM Business Case
Ineffective tools and processes for tracking inventory across their lifecycle
Trailing profit expectations of new parent company
Unresponsive support infrastructure for existing SAP applications
Upgrade SAP environment to latest release level (ECC 6.0) to support new inventory functionality
Implementation of catch weight functionality to track dual units of measure through inventory lifecycle
Migration of SAP support from existing environment to Fujitsu 24x7 SAP hosting facility
Incorporation of desktop and help desk support within overall SLA-based maintenance contract
Base-lining of existing support levels from which to establish productivity metrics
Exceeded profitability commitments of parent company; ranking in the Top Tier of all operating groups
Significantly improved inventory to profit ratio as compared to other sister companies
Reusable SAP support processes, that can be leveraged throughout sister companies
A well defined, integrated and SLA based global support process for IT outsourcing.
This business case represents a company that is well known and respected for providing premium-quality
meat products to families across the United States. The company is part of a larger parent company with a
strong presence across retail, deli and food service channels with approximately 3,000 employees spread
across 13 states.
Client Business Drivers
Fujitsu Solution
Client Outcomes
Industry: Food
42 Copyright 2010 Fujitsu America, Inc.
Project Team
CustomerCustomer Customer
Customer
Customer Customer
Customer
Customer
Customer
43 Copyright 2010 Fujitsu America, Inc.
ECC 6.0 CWM Timeline
43
44 Copyright 2010 Fujitsu America, Inc.
ECC 6.0 CWM Application Scope
CWM Financials (AP, AR, New GL, COPA, Asset management, P&L, corner stone corp. reporting, Taxware)
CWM Order to Cash (SD)
CWM Order to Pay
CWM Production Costing and Planning
CWM MRO and light PM
CWM Manufacturing
BPC for Decision Support and Logility reporting
CWM BI 7.0 for reporting
Warehouse Management
Integration with Logility for demand, supply and production planning
Integration with BelTek for Direct Sales delivery (Hand Held devices)
Integration with Blacksmith for trade promotion process
Integration with Nistevo Transportation Planning
Integration with AmeriCold Warehousing and Logistics
Integration with Infinium Payroll system
Integration with TaxWare
Red Wood Scheduler
Productivity Pack
Solution Manager
FileNet44
45 Copyright 2010 Fujitsu America, Inc.
Project Scope
© SAP 2007 / Page 45
Customer
46 Copyright 2010 Fujitsu America, Inc.
Project Scope
© SAP 2007 / Page 46
DSD Application
47 Copyright 2010 Fujitsu America, Inc.
Final State
ERP6.0 CWM EhP 5.0
Advanced Planning and Optimization (APO)
Intranet
HCM
Enterprise Data Warehouse (EDW) BPC Consolidated Reporting
ERP6.0 CWM
GLO BAL ATP
Market Pricing
BI BI BI BI BI
BPC BPC BPC BPC BPC
System Network Planning
PP / DS TP / VS
ERP6.0 CWM ERP6.0 CWM ERP6.0 CWM ERP6.0 CWM
Sales Rep Portal
Kill / Cut PortalBI Portal Reporting
Kill / Cut Portal
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48 Copyright 2010 Fujitsu America, Inc.
Operational End-to-End ScenariosTraceability & Food Safety; Quality Management
Old methods of product tracking are costly:
• Fragmented systems, limited visibility/traceability, lack of real time
information supported by query capability lead to an error prone and
time consuming effort. The result is high cost, high risk and the
potential to seriously damage consumer trust and your brand value.
49 Copyright 2010 Fujitsu America, Inc.
Operational End-to-End ScenariosTraceability & Food Safety; Quality Management
Solution: Full visibility & built-in compliance
• Integrated traceability and compliance guarantees product integrity and
allows fast and accurate response to any issues throughout the value
chain.
50 Copyright 2010 Fujitsu America, Inc.
Operational End-to-End ScenariosTraceability & Food Safety; Quality Management
Traceability – Process Overview
51 Copyright 2010 Fujitsu America, Inc.
Operational End-to-End ScenariosTraceability & Food Safety; Quality Management
Serialization Process Overview – Creating the Links
52 Copyright 2010 Fujitsu America, Inc.
Operational End-to-End ScenariosTraceability & Food Safety; Quality Management
Product Tracking & Tracing –”End to End Process”
53 Copyright 2010 Fujitsu America, Inc.
Operational End-to-End ScenariosTraceability & Food Safety; Quality Management
Result: Total Supply Chain Management & Monitoring Capability
Return to Presentation