SAP and the Chemical Industry
SAP Industry Business Unit Chemicals
March 2009
Agenda
1.
2.
3.
4.
5.
SAP & Chemicals
SAP & Associations, User Groups
Industry Value Network
Upcoming Solutions for Chemicals
Customer Successes
The Chemical Ecosystem – High Level View
Oil&Gas
Organic
Materials
Inorganic
Materials
Chemical
Processing
(Conversion)
Basic
Chemical
Manufacturer
Specialty
Chemical
Manufacturer
Distribution
Network
End
Customers
© SAP 2009 / Page 3
Exports
Other
Manufacturers
Mining
Chemicals Extended Ecosystem – A Network
of SAP Clients
Petrochemicals
© SAP 2009 / Page 4
Basic Chemicals
Specialty Chemicals
Chemical Distributors
Chemical End Users
Chemical Industry Drivers & Implications
Macro-Economic
Macro-Economic Environment
Environment
Persistent
Persistentlow
lowgrowth
growth
Heavy
HeavyM&A
M&Aactivity
activity
Demand
Demandand
andpricing
pricingoften
oftencyclical
cyclical
Impacted
Impactedby
byfeedstock
feedstock&&energy
energycosts
costs
Increasing
Increasing Government
Government
Regulations
Regulations
Sarbanes
SarbanesOxley
Oxley
EHS
EHSCompliance
Compliance
FDA
FDA21CFR
21CFRpart
part11
11
Increased
Increasedchemical
chemicaltrade
trade
&&security
regulations
security regulations
Constrained Revenue Growth
Product Portfolio Management
Downward Margin Pressure
Supply Chain and New
Product Efficiency
REACh
REACh(European
(European
registration
registrationand
and
evaluation)
evaluation)
Intense
Intense Chemical
Chemical Competition
Competition && High
High Costs
Costs
SKU
SKUerratic
erraticdemand/small
demand/smallbatches/critical
batches/criticalquality
quality
causes
scheduling
challenges
causes scheduling challenges
Must
Musttightly
tightlycontrol
controlworking
workingand
andfixed
fixedcapital
capital
Customers
Customersmoving
movingproduction
productionto
toAsia
Asia
High
Highdistribution
distributioncosts
costs
© SAP 2009 / Page 5
Increased
Increased Customer
Customer
Power
Power
Pricing
PricingChallenge
Challenge-- value
value
in
use
pricing
vs.
retailer
in use pricing vs. retailer
power
power
Locked
Lockedin
informulas
formulas––
barrier
barrierto
to entry
entry
Increasing
IncreasingR&D
R&Dpressure
pressure
for
new
products
for new products
Customer
Customerservice
service
requests
requestsadd
addto
tocosts
costs
SAP Industry Solutions
Industry Solutions for...
Tailored to the standards, processes, and
challenges of
a specific industry
Based on best business practices
developed with industry leaders
Portfolio of 28 industry solutions
Built on a consistent technology and
application stack
© SAP 2009 / Page 6
Aerospace & Defense
Automotive
Banking
Chemicals
Consumer Products
Defense & Security
Engineering, Construction & Operations
Financial Service Providers
Healthcare
Higher Education & Research
High Tech
Hospitality Services
Industrial Machinery & Components
Insurance
Life Sciences
Logistics Service Providers
Media
Mill Products
Mining
Oil & Gas
Pharmaceuticals
Postal Services
Professional Services
Public Sector
Railway Services
Retail
Telecommunications
Utilities
SAP in the Chemical Industry
35+ years of industry expertise – SAP‘s very first customer was ICI
Over 2,100 chemical customers with over 1,000,000 users
The top 15 global chemical companies run SAP
1,700 chemical midmarket companies run SAP globally
100% of Global Fortune 500 chemical companies run SAP
© SAP 2009 / Page 7
SAP is deeply rooted in the Chemical
Industry
Coverage Chemical requirements
Evolution of SAP Solutions for the Chemical Industry
Definition
of first ERP
for SAP
in Chemicals
ERP as
business
software
ERP as the basis
for new business
applications
Integrated
Business Suite, xApps,
and NetWeaver
Expand Solution
2000s
1990s
1980s
1970s
First SAP
customer is from
the Chemical
industry
© SAP 2009 / Page 8
SAP becomes the
leading ERP
vendor in the
Chemical industry
Launched SAP
Chemicals Solution
and Best Practices for
Chemical companies.
SAP has over 1500
customers in the Chemical
Industry
SAP Chemical Solution
enhancements include:
Transportation Mgmt.
CITA Established
PISUG
CIDX
Emission Management
Recipe Management
Sample Management
SAP‘s Industry Approach: IBU Chemicals
Walldorf
Walldorf
Philadelphia
Philadelphia
Tokyo
Tokyo
India
India
Singapore
Singapore
Development
IBU
Chemicals
ISG
Chemicals
Regional
Field Org.
© SAP 2009 / Page 9
IBU Chemicals has global responsibility
for the SAP Chemical solution
Chemical Solution Map
Suppliers &
Partners
Develop
Plan
Source
Make
Deliver
Sell & Serve
Innovation Management
R & D Management
Product Development
Supplier Collaboration
Strategic Sourcing
Procure to Pay
Supply Chain Planning & Execution
Collaborative Demand & Supply Planning
Logistics & Fulfillment Planning
Warehouse & Inventory Management
Manufacturing
Manufacturing Planning
Manufacturing Execution & Collaboration
Manufacturing Visibility
Enterprise Asset Management
Sales & Marketing
Sales and Operations Planning
Opportunity Management
Inquiry to Contract
Order to Cash
Customer Service & Complaint
Management
Quality Management & Compliance
Quality Management
Environmental, Health & Safety Compliance
REACH Compliance Management
Corporate Compliance
Enterprise Management & Support
© SAP 2009 / Page 10
Customers &
Channels
SAP Best Practices for Chemicals
Scenario Overview
Innovation Management
Internal Order R&D Planning (177)
Internal Order R&D Actual (185)
Transformation of General Recipes
(942)
Supplier Collaboration
Quotation for Procurement (128)
Consumable Purchasing (129)
Procurement of stock materials (130)
Procurement Contract (133)
Return to Vendor (136)
Procurement & Consumption of
consigned inventory (139)
Procurement of batch managed stock
materials (901)
Procurement of WM stock materials
(902)
Procurement of pipeline materials (903)
Procurement of external services (904)
Quality Management in Procurement
(905)
Supply Chain Planning &
Execution
Lean Warehouse Management (124)
Stock Transfer with Delivery (134)
Stock Transfer without Delivery (135)
Physical Inventory / Inventory Count &
Adjustment (137)
SAP ERP Reports for Logistics (222)
Supply & Demand Planning (900)
Tank Trailer Filling (919)
Outbound Logistics (923)
Totes Handling (927)
Vendor Managed Inventory (928)
© SAP 2008 / Page 11
Manufacturing Planning &
Execution
Stock Handling: Rework, Scrap,
Blocked (131)
Repetitive Manufacturing with CoProducts and QM (906)
Bulk Manufacturing (without PI Sheet)
(907)
Bulk Manufacturing with PI Sheet and
OPC for Data Access (908)
Make-to-Stock (Process Industry) with
WM (909)
Make to Order (Process Industry) (910)
Multiple Product Campaign Run incl.
MQC (911)
Active Ingredient Processing (912)
Blending (913)
Repackaging (914)
Relabeling (915)
Storage Tank Management (916)
Subcontracting (external&Internal)
(918)
Quality Management &
Compliance
Engineering Change Management
(934)
EH&S Products Safety (935)
EH&S Dangerous Goods Management
(936)
EH&S Industrial Hygiene & Safety
(937)
EH&S Waste Management (938)
EH&S Business Compliance Services
(939)
REACH: Substance Volume Tracking
(940)
Sales & Marketing
Third party with Shipping Notification
(107)
Credit Management (108)
Sales Order Processing: Sale from
Stock (109)
Free-of-Charge Delivery (110)
Returns and Complaints (111)
Sales Quotation (112)
Prospect Customers Sales Order
Processing (113)
Third Party without Shipping
Notification (114)
Sales of Bought-in Item (115)
Debit Memo Processing (116)
Sales Order Processing with
Customer Down Payment (201)
Closing Operations SD (203)
Credit Memo Processing (204)
Samples Processing (917)
Presales Activities (920)
Sales Order Processing (incl. PoD and
CoA) (921)
Sales Order Processing with WM (922)
Returns and Complaints (incl. Batch
Recall and QM ) (924)
Credit Management (incl. Risk
Categories) (925)
Rebates Handling (926)
Enterprise Management &
Support
General Ledger (156)
Accounts Receivable (157)
Accounts Payable (158)
Period End Closing Financial
Accounting (159)
Cash Management (160)
Cost of Sales Accounting (161)
Asset Accounting (162)
Asset Acquisition for Constructed
Assets (Investment Orders) (164)
Segment Reporting (166)
General Cost Center Planning (175)
Internal Order for Marketing and Other
Overhead Planning (180)
Overhead Cost Accounting - Actual
(184)
Internal Order for Marketing and Other
Overhead Actual (186)
Time-Recording (211)
SAP ERP Reports for Accounting (221)
Period-End Closing Activities (224)
Operational Maintenance (929)
Preventive Maintenance (930)
Investment Management in Plant
Maintenance (932)
Parallel Accounting (leading HGB,
+IFRS) (943)
Agenda
1.
2.
3.
4.
5.
SAP & Chemicals
SAP & Associations, User Groups
Industry Value Network
Upcoming Solutions for Chemicals
Customer Successes
SAP is a trusted Partner of the Chemical
Community
Chemical Industry User Group (CISUG)
(American Chemistry Council)
Verband der Chemischen Industry (VCI)
German Chemical Industry Federation
Adaptive Manufacturing & Manufacturing
Standards Initiative based on ISA 95
Active CIDX member (Chem eStandardsTM)
Chemical Executive Advisory Board (CEAC)
SAPPHIRE and ASUG Tracks
© SAP 2009 / Page 13
American SAP User Group (ASUG) / Chemical
Industry SAP User Group (CISUG)
American SAP User Group
(ASUG)
CISUG Steering Team
Eastman
DuPont
ASUG
Dow Corning
Dow
Nova Chemical
Celanese
Albemarle
Chapters
Specialty
Interest
Groups (SIG)
Influence
Councils
Rohm and Haas
SAP Representation:
Ray Adams, IBU Chem.
Frank Kochendoerfer, IBU Chem.
SIG A
© SAP 2009 / Page 14
SIG B
CISUG
SIG…
VCI (German Chemical Association)
VCI
VCI Steering Team
Information &
Telecommunication
Steering Committee
Secretary
Executive Board
Cybersecurity
Service Level
Agreement
eSolutions
© SAP 2009 / Page 15
BASF
Bayer
Degussa
Henkel
Baiersdorf
Celanese
Roche
Alessachemie
Merck
Wacker Chemie
Lanxess
Solvay
SGL Carbon
Boehringer-Ingelheim
Cognis
Süd Chemie
Dow
Clariant
SAP Representation:
Rainer Möckel (IBU Chemicals)
18 CIO’s
VCI SAP
•Manufacturing
•MDM
•SCM
•Financial-Controlling
•EAM
•CRM
•BIA
•eSOA
•EH&S (REACH)
•QM/LIMS
Networks
SAP for Chemicals – Landing Page
© SAP 2009 / Page 16
BPX Community for the Chemical Industry
© SAP 2009 / Page 17
Agenda
1.
2.
3.
4.
5.
SAP & Chemicals
SAP & Associations, User Groups
Industry Value Network
Upcoming Solutions for Chemicals
Customer Successes
Industry Value Networks –
SAP’s Unique Industry Ecosystem Initiative
Technology Vendors
Supporting Technology
SAP
IVN Lead & Enabler
Customers
Innovation Needs &
Solution Validation
ISVs
System Integrators
Complementary Solutions
Industry Services & Solutions
INDUSTRY ecosystems bringing together leading customers, partners & SAP
Creating VALUE by focusing on priority industry needs & opportunities
With strong NETWORK collaboration, combined expertise, resources & solutions
© SAP 2009 / Page 19
The IVN for Chemicals
Strong industry-leading players coming together to drive value &
industry growth
Chemical customer groups
(CISUG, CEAC, VCI…)
Innovation Leaders
Industry Customer Needs
IVN lead & Enabler
Industry Services & Solutions
Complementary Solutions
© SAP 2009 / Page 20
IVN Partners for Chemicals - 1/3
Partner
Solution / Activity
Status
SAP Price and Margin Management by Vendavo (SAP PMM)
Set pricing strategy and objectives
Set optimal prices and policies for all segments
Administer and communicate price lists and books
Negotiate prices and terms for direct and channel business
Execute order to cash accurately
SAP Solutions for Compliance
SAP REACH [SAP Product]
SAP Environmental Compliance (formerly Emissions Management) including
Enterprise Energy Management [SAP Product]
Compliance for Products [SAP Product]
Services:
–
–
–
Reseller
EH&S Content
Phrase Translation
Document Creation
SAP Visual Information for Production by NRX (SAP VIP)
Solves the “usability” issue by employing role-based, simplified functionality
Unifies critical functions and information into one workspace
Integration of 3rd party information through SAP MII to provide a holistic
maintenance solution
Asset Center
VIP =
Reseller
VIP
Asset Hub
Asset
Center
targeted for
EBSA
Combined source of data for improved asset visibility
Standardized processes and asset master data
= degree of completion of Reseller, Endorsed Business Solution agreement or PBNW certification
© SAP 2009 / Page 21
IVN Partners for Chemicals - 2/3
Partner
Solution / Activity
Status
Manufacturing Process Optimization (MPO)
Advanced process control (APC) technology that controls and optimizes the operational
production process using predictive performance metrics
Advanced decision making comparing future scenarios of production, economic and other data,
integration with SAP ERP financial data, leveraging SAP xMII
PBNW,
available,
targeted for
EBSA
Reliability Centered Maintenance & Optimization (RCMO)
Provides the framework to define maintenance strategies based upon RCM and Failure Modes
and Effects Analysis (FMEA) principles
Integrates the recommendations from an RCM analysis into SAP maintenance plans in SAP
ERP (PM)
Certified xApp
PBNW,
available,
targeted for
EBSA
Enterprise Inventory Optimization (EIO)
Multi-echelon inventory optimization (SmartOps MIPO)
Advanced demand and supply profiling leverages SAP BW/BI and mySAP SCM
Total supply chain view and operational synchronization
Certified xApp
PBNW,
available,
targeted for
EBSA
Manufacturing Workbench (MW)
Advanced planning and scheduling Add-On solution for SAP R/3 (SAP ERP) and SAP SCM.
Individualized configuration for improved visualization, usability and data integration
Real-Time Finance (RTF)
Real-time accounting on a process unit, area, and plant basis of the entire manufacturing floor
Graphical feedback of financial and strategic performance in the correct operational context
= degree of completion of Reseller, Endorsed Business Solution agreement or PBNW certification
© SAP 2009 / Page 22
IVN Partners for Chemicals - 3/3
Partner
Solution / Activity / Status
Status
Intellectual Property Manager (IPM)
Docking Management - Guides legal business process for securing Intellectual Property rights &
associated litigation
IP Portfolio management - R&D and Marketing workspace for valuating IP & managing data and
documentation.
Modeling and Analytics - Executive reporting to monitor efficacy of IP strategy
PBNW,
development in
progress
Inventory Reconciliation, Real-Time Performance Management
Data Reconciliation for inventory and energy balances
Real-time Reports of inventory, energy balances and unit balances
Facility Monitor
Joint solution
under
discussion
LIMS Connect (LC)
Enterprise wide view of data from different LIMS
Comparison of laboratory analysis from different labs using different LIMS
Built on SAP MII
Available as
xApp built on
xMII
Rapid Sigma
Continuous improvement
Based on the DMAIC methodology – Define, Measure, Analyze, Improve, Control
Roles and project based
Built on SAP MII
xMES
Manufacturing Execution engine including Plant Floor UI’s
Leverages existing SAP Functionality & Infrastructure (MII)
SOA architected, small footprint and “Out of the Box” configuration, xApp certified
= degree of completion of Reseller, Endorsed Business Solution agreement or PBNW certification
© SAP 2009 / Page 23
Agenda
1.
2.
3.
4.
5.
SAP & Chemicals
SAP & Associations, User Groups
Industry Value Network
Upcoming Solutions for Chemicals
Customer Successes
Importance of the Chemical Industry for SAP
Service Industries
Discrete Industries
20%
23%
Consumer Industries
Process Industries
17%
*
24%
Financial Services
6%
Public Services
10%
* incl. Life Sciences, as % of total revenue
© SAP 2009 / Page 25
Chemical Roadmap
Current Plan Going Forward
Enable efficient, innovative, and sustainable
Business Networks
Future Themes
2008
Transportation
Compliance
Enhanced Supply and
Chain Planning
MES Composition
Capabilities
Resource and Project
Management Integration
Product Compliance
Planned
Extended
Transportation Mgmt.
Transportation
Excellence
Extended Demand and
Supply Collaboration
MES Content
Enhancements
Integrated Business
Planning
Closed-Loop Manufacturing
Planning & Execution
Open Innovation
Framework
Advanced Product and
Portfolio Management
Corporate Sustainability
Extended Environmental
Compliance
Note: subject to change
Agenda
1.
2.
3.
4.
5.
SAP & Chemicals
SAP & Associations, User Groups
Industry Value Network
Upcoming Solutions for Chemicals
Customer Successes
Select SAP Chemical Industry Customers
Total: 2,100
SAP Has Broad Experience in the Midmarket
© SAP 2009 / Page 28
Success Stories – Rohm and Haas (CRM)
© SAP 2009 / Page 29
Success Stories – Mosaic (RCM)
© SAP 2009 / Page 30
Success Stories – AZ Electronic Materials
(Best Practices)
© SAP 2009 / Page 31
Success Stories – AZ Electronic Materials
(Best Practices)
© SAP 2009 / Page 32
Success Stories – FutureFuel (Best Practices)
© SAP 2009 / Page 33
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