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7/27/2019 Raghu SAPPHIRE Presentation - 2010
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7/27/2019 Raghu SAPPHIRE Presentation - 2010
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Company Confidential
Introduction and Key Business Drivers for CTB
7/27/2019 Raghu SAPPHIRE Presentation - 2010
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7/27/2019 Raghu SAPPHIRE Presentation - 2010
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Company Confidential
Need to ramp up / down to match changing market demand
4
Extended Supply Chains
Implications
Longer lead times
Coordinate across
continents Supplier networks may
not be able to ramp up
instantaneously to
changing Demand
Pin point exact root
cause for fulfillment
issues not easy
Fluctuating Demand
Implications
Difficult to see to what extent
Customer Demand can be
fulfilled No easy tool to simulate
supply plans in an
outsourced manufacturing
scenario
Not sure of which critical
component need urgent
attention
Extending supply chains aimed at reducing costs and to penetrate new markets has resulted in complex
Supply Networks and reduced agility to match demand swings
7/27/2019 Raghu SAPPHIRE Presentation - 2010
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Company Confidential
S&OP Capabilities - High-Tech Industry Concerns
5
Significant gaps in determining trade-offs in Supply chain and Implications of
a constrained supply plan
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Company Confidential
Performance Metrics Sample High Tech Company
Gap to Average
Gap to Q1
Potential Benefits:
Value of Closing the Gap to Peer Group P1
Performance Results Key Metrics
Key Observations
Company could do better demand supply match , material availability management . This would reduce out of stock situations and improve CFR
On the efficiency front, automating key processes through supplier collaboration may help optimize the FTE allocation and reduce procurement function cost
Effectiveness
Efficiency
(n= 20) (n= 87)
Efficiency: FTE Saving per billion of total spend
(in millions)
First QuartileBetween Average and First QuartileBelow Average OutlierRanking:
Note: Color commentary based on the Peer Group P1 benchmarks unless benchmarks are not available for Peer P1* Indicates benchmarks not available due to inadequate number of data points for given KPI
Type Metric Company
Peer Group P1 Peer Group P2
Avg. Q1 Avg. Q1
% Customer Fulfillment Rate Direct 88.0 90.8 96.1 88.2 93.4
% of Spend Managed
Strategically
Direct 70.0 76.2 98.3 68.5 92.9
Indirect 25.0 32.4 60.0 48.9 77.9
Services 80.0 42.6 78.6 48.0 82.8
% of Maverick Spend
Direct 5.0 4.9 1.1 8.6 1.5
Indirect 10.0 12.9 1.6 15.5 2.9
Services 10.0 9.9 3.6 13.4 2.8
% Spend Sourced via e-
Auctions
Direct 15.0 14.5 56.7 6.3 25.4
Indirect 5.0 6.0 16.7 8.3 33.7
Services 50.0 * * 6.9 28.3
FTEs per Billion of Total Spend (Overall) 208.3 147.7 62.1 113.9 34.5
% of Time Spent on Transactional Activities 40.0 52.6 34.1 54.7 30.3Efficie
ncy
Effectiveness
Effectiveness: CFR Revenue Impact (% increase)
14.6
6.1
8.1
2.8
Source -SAP
Value Engineering
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Company Confidential
Solution Features
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Company Confidential
Brand owner
Ramping up Demand seen in the next few months,
Can I build to fulfill Demand ?
A dashboard on Customer demand fulfillment possibilities
Clear to Build Dashboard Know your Fulfillment Capability
Components Supplied to
Manufacturers for Finished
Goods
Assembly sites in
an outsourced
location
Need feedback on ability to scale up to
Demand
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Company Confidential
Clear to Build Dashboard To what extent can I fulfill
Dashboard to provide visibility of
demand versus committed supply
across entire supply network with
quickMRP simulation facility
Quick information on impact of
demand variation on supply capability
of CMs/ Suppliers
Leverage SAP APO CTM engine for
material constrained planning and
availability check (MRP Simulation)
Leverage SAP SNC for component
stock availability at CM / Supplier
location
Detailed visibility of constrained
components represented
geographically
Available in xCelsius and WebDynpro
formats
Know your capability to fulfill
demand in the future
7/27/2019 Raghu SAPPHIRE Presentation - 2010
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Company Confidential
Product Architecture
ECC
GUI
Clear to Build Solution
Stock
SNC
Supply Network Inventory
Leverages SAPs Supplier Network Collaboration solution
to view component inventory at CM location
Integration to SAP APO for running SNP
simulations
APO
Advanced Planning andOptimization
BOM Demand
CTM Engine
Receipts
7/27/2019 Raghu SAPPHIRE Presentation - 2010
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Company Confidential
Understand Current Demand Supply Match
Double click location product to
simulate demand change in nextscreen
Review and Forecast
and Can- Build data
Enter Selections
and select Go
7/27/2019 Raghu SAPPHIRE Presentation - 2010
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Company Confidential
Simulate Quick MRP with revised Demand Data
1. Modify Demand
2. Confirm and simulate
quick CTM results
Output
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Company Confidential
Key Benefits of the CTB Solution
Capability Benefits
Manage ability to fulfill
Demand
Measure ability to fulfill demand of different Finished
Goods
Simulate Demand SwingsSimulate the ability to fulfill Demand for Finished Goods
in the future with different ramp up scenarios.
Minimize future SC glitchesView potential glitches in the SC Demand ramp up
capability.
Reduce lost opportunitiesand stock out penalties
Reduce possible penalties due to stock outs.
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Company Confidential
Deployment Road Map
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Company Confidential
4 Step Approach for Solution Deployment
Step 1
Step 2
Step 3
Step 4
Expert Virtual Roundtable : Initial conference with customer tounderstand Network visibility and available to promise needs, current
landscape and challenges
Complementary Value Assessment Workshop: Consulting offer toassess a) Inventory process and Functions (b) Potential Immediate cost savings
opportunities (c) Solution options (d) Cost benefit analysis
Proof of Concept : Configure Clear to Build Dashboard Solution in Patnissand box system using customer data & scenarios. Review & Signoff of
detailed deployment road map
Value Based Implementation: Key features include fixed price DeploymentContract, SCM solution and Integrated Capable to Build