SAP ERP – Logistics & Operations Overview Rudolf Zens Product Management ERP SAP AG What Is Logistics & Operations? New Functions in mySAP ERP 2004 and SAP ERP 6.0 Enhancement Package Concept and Roadmap Customer Example: eSOA at OSRAM Opto Semiconductors Summary SAP ERP Solution Map – 2005 Edition End-User Service Delivery Analytics Strategic Enterprise Management Financial Analytics Operations Analytics Workforce Analytics Financials Financial Supply Chain Management Financial Accounting Management Accounting Corporate Governance Talent Management Procurement and Logistics Execution Product Development and Manufacturing Workforce Process Management Workforce Deployment Procurement Supplier Collaboration Inventory and Warehouse Management Inbound and Outbound Logistics Transportation Management Production Planning Manufacturing Execution Enterprise Asset Management Product Development Life-Cycle Data Management Sales and Service Sales Order Management Corporate Services Real Estate Management Aftermarket Sales and Professional-Service Global Trade Services Service Delivery Project Portfolio Management Travel Management Environment, Health & Quality Management Safety Scope of Logistics & Operations for SAP ERP © SAP AG 2007 / Logistics and Operations / 3 Incentive and Commission Management SAP NetWeaver Human Capital Management What Is Operations? Logistics Provider Subcontractor Make Source Operations Deliver Design Supplier © SAP AG 2007 / Logistics and Operations / 4 Customer What Is Logistics & Operations? New Functions in mySAP ERP 2004 and SAP ERP 6.0 Enhancement Package Concept and Roadmap Customer Example: eSOA at OSRAM Opto Semiconductors Summary SAP ERP Includes Additional Functionality Streamlines invoicing and payment processes Motivates employees to achieve and designs innovative reward strategies Self-service portal increases flexibility and productivity Ensures adherence to new legal obligations End-User Service Delivery Extensive analytics are intuitively accessible from portal(s) Strategic Enterprise Management Financial Analytics Operations Analytics Workforce Analytics Financials Financial Supply Chain Management Financial Accounting Management Accounting Corporate Governance Procurement and Logistics Execution Talent Management Sales and Service Corporate Services Includes Internet sales to boost revenues Workforce Deployment Supplier Collaboration Inventory and Warehouse Management Inbound and Outbound Logistics Transportation Management Manufacturing Execution Enterprise Asset Management Product Development Life-Cycle Data Management Sales Order Management Aftermarket Sales and Service Professional-Service Delivery Global Trade Services Incentive and Commission Management Real Estate Management Project Portfolio Management Travel Management Procurement Product Development Production Planning and Manufacturing Unique set of valueadded services to improve management of resources and assets Workforce Process Management Uses RFID to connect the physical world to business applications Environment, Health Quality Management and Safety Includes Collaboration Projects (cProjects) suite to develop more reliable products in less time and at lower cost SAP NetWeaver Human Capital Management Supports full procureto-pay process Empowers employees Analytics Aggregates and analyzes information across technology and the organization with SAP NetWeaver Exchange Infrastructure SAP NetWeaver Mobile connects people Models, executes, and monitors processes across technology and the organization Open system architecture enables easier integration The following slides highlight the new and enhanced capabilities . . . © SAP AG 2007 / Logistics and Operations / 6 SAP ERP Solution Map – 2005 Edition End-User Service Delivery Analytics Strategic Enterprise Management Financial Analytics Operations Analytics Workforce Analytics Financials Financial Supply Chain Management Financial Accounting Management Accounting Corporate Governance Procurement and Logistics Execution Product Development and Manufacturing Talent Management Workforce Process Management Workforce Deployment Procurement Supplier Collaboration Inventory and Warehouse Management Inbound and Outbound Logistics Transportation Management Production Planning Manufacturing Execution Enterprise Asset Management Product Development Life-Cycle Data Management Sales and Service Sales Order Management Corporate Services Real Estate Management © SAP AG 2007 / Logistics and Operations / 7 Aftermarket Sales and Professional-Service Global Trade Services Service Delivery Project Portfolio Management Travel Management Incentive and Commission Management Environment, Health & Quality Management Safety SAP NetWeaver Human Capital Management Procurement and Logistics Execution – Overview of Major New and Enhanced Capabilities Procurement Supplier Collaboration Inventory and Warehouse Management Inbound and Outbound Logistics mySAP ERP 2004 SAP ERP 6.0 Procurement Procurement Buyer Role Self-service requisitioning with intuitive user interface (UI); full communication, integration, and catalogs Supplier collaboration Enables closed-loop procurement process All communication is electronic and workflowbased Hosted sales order management capability for suppliers Inbound and outbound logistics Enabled RFID data processing in supply chain scenarios (shipping, receiving, and packing), maintenance, and retailing Comprehensive and integrated portfolio of SAP Auto-ID Infrastructure–enabled applications Receive and process RFID and SAP Auto-ID Infrastructure data streams from readers Write data to RFID tags Automatic RFID-handling EIC Transportation Management React on exceptions and problems immediately Quick access to personalized work lists Analytical Insight Basic functions and general developments SAP SRM will run on the same client as SAP ECC (only supported with ERP 6.0 and SRM 5.0) A new Master Data Synchronization synchronizes common objects: business partner, vendor and product, and material Supported scenarios – Self-service procurement – Supplier collaboration (additional engine pricing) Catalog access in ME21N and ME51N Use of catalogs during creation of purchase requisitions and purchase orders Supplier Collaboration Design Collaboration with Suppliers based on cFolder Improves productivity and collaboration with partners and suppliers during the product design phase. © SAP AG 2007 / Logistics and Operations / 8 Example – Role Buyer Single Point Of Entry Different Areas of Activity Current Workload SAP ERP Makes Users More Productive… Intuitive role based central point of access Relevant Information actively “pushed” to user Guided procedures guide users through common tasks Embedded analytics for better decision making © SAP AG 2007 / Logistics and Operations / 9 Execute Tasks Reports POWL – Single Point of Access to all Work Lists Workload Work List © SAP AG 2007 / Logistics and Operations / 10 Benefits The role Buyer provides the following benefits … … for the end-users: User Productivity: Improved user productivity through an easy-to-use and intuitive user interface Personalization: Quick access to personalized work lists Speed: User can better and faster react on exceptions Analytical Insight: Fast preparation and distribution of purchasing analyses. Analytical information is available where it is needed … for the IT department: Flexibility: User Interface can be adopted to the business processes of the company Acceptance: Better acceptance of end-users TCO: Reduced costs for end-user training Deployment Options: Content or at least part of the content of this portal roles can also be rolled-out for other user groups like Procurement Manager, Project Manager, Replenishment Planner, Dispatcher or Stock Planner © SAP AG 2007 / Logistics and Operations / 11 SAP ERP Solution Map – 2005 Edition End-User Service Delivery Analytics Strategic Enterprise Management Financial Analytics Operations Analytics Workforce Analytics Financials Financial Supply Chain Management Financial Accounting Management Accounting Corporate Governance Procurement and Logistics Execution Product Development and Manufacturing Talent Management Workforce Process Management Workforce Deployment Procurement Supplier Collaboration Inventory and Warehouse Management Inbound and Outbound Logistics Transportation Management Production Planning Manufacturing Execution Enterprise Asset Management Product Development Life-Cycle Data Management Sales and Service Sales Order Management Corporate Services Real Estate Management © SAP AG 2007 / Logistics and Operations / 12 Aftermarket Sales and Professional-Service Global Trade Services Service Delivery Project Portfolio Management Travel Management Incentive and Commission Management Environment, Health & Quality Management Safety SAP NetWeaver Human Capital Management Product Development and Manufacturing – Overview of Major New and Enhanced Capabilities Production Planning Manufacturing Execution Enterprise Asset Management Product Development Life-Cycle Data Management mySAP ERP 2004 SAP ERP 6.0 Manufacturing execution Manufacturing execution Manufacturing intelligence dashboard for plant manager Documentary batch to store the where-used data of materials used for production and trace product information without managing inventory by batches Enterprise asset management Maintenance cost budgeting (MCB) Mobile asset management Product development CAD desktop Development collaboration (cFolders) Life-cycle data management SAP Easy Document Management for managing personal and group document structures and documents DMS connector for knowledge management Product modeling for configurable products (PME) Recipe and trial management © SAP AG 2007 / Logistics and Operations / 13 Manufacturing intelligence dashboard for plant manager and production supervisor Dashboards for the new roles of maintenance technician and quality inspector to promote collaboration on the shop floor Shop-floor Integration Enterprise asset management Role maintenance technician: after-the-event recording for maintenance work that was not planned in advance Flexible work order enables flexible customization of the order layout Mobile asset management Product development CAD desktop – integration in product development Development collaboration (cFolders) Work center development collaboration Life-cycle data management Document management and SAP Easy Document Management DMS connector for knowledge management Product structure management based upon integrated product and process engineering Engineering change management (ECM) Recipe and trial management Product modeling for configurable products (PME) SAP Manufacturing Dashboards The SAP Manufacturing Intelligence Dashboard is a configurable rolebased entry page that delivers: Integrated planning and execution decision support Relevant manufacturing/business content Real-time exception detection and management Analytics and reporting Real-time snapshot of factory and production line operations at a glance Support proactive response to exceptions Execution on production plans – on time and within budget Access to KPI’s needed to continuously improve performance Integration of external systems © SAP AG 2007 / Logistics and Operations / 14 SAP ERP + Enterprise Portal SAP BI & Analytics Key Benefits: Manufacturing Planning Manufacturing Execution Quality Management Maintenance Management Environment, Health & Safety SAP XI + SAP xMII SAP xApp for Manufacturing Integration and Intelligence (xMII) The SAP xApp Manufacturing Integration and Intelligence (xMII) is a packaged composite application that delivers: Manufacturing Intelligence Dashboards SAP BI Other SAP Bus. Solu tions SAP NETWEAVER Manufacturing Intelligence: Real-time analytics engine that aggregates and delivers unified visualization of events, alerts, KPIs and decision support to production personnel thru role-based dashboards SAP Manufacturing SAP xMII Manufacturing Intelligence Manufacturing Integration: A single ISA-95 compliant layer enabling SAP ERP connectivity into real-time plant floor apps. (MES, SFA, legacy apps.) to drive plant-toenterprise business process interoperability Manufacturing Integration MES – Manufacturing Execution Systems, EMI – Enterprise Manufacturing Intelligence, BW – Business Warehouse (from SAP) SFAC – Shop Floor Automation & Control, © SAP AG 2007 / Logistics and Operations / 15 SAP ERP Solution Map – 2005 Edition End-User Service Delivery Analytics Strategic Enterprise Management Financial Analytics Operations Analytics Workforce Analytics Financials Financial Supply Chain Management Financial Accounting Management Accounting Corporate Governance Procurement and Logistics Execution Product Development and Manufacturing Talent Management Workforce Process Management Workforce Deployment Procurement Supplier Collaboration Inventory and Warehouse Management Inbound and Outbound Logistics Transportation Management Production Planning Manufacturing Execution Enterprise Asset Management Product Development Life-Cycle Data Management Sales and Service Sales Order Management Corporate Services Real Estate Management © SAP AG 2007 / Logistics and Operations / 16 Aftermarket Sales and Professional-Service Global Trade Services Service Delivery Project Portfolio Management Travel Management Incentive and Commission Management Environment, Health & Quality Management Safety SAP NetWeaver Human Capital Management Sales and Service – Overview of Major New and Enhanced Capabilities Sales Order Management Aftermarket Sales and Service Professional-Service Global Trade Services Delivery mySAP ERP 2004 SAP ERP 6.0 Sales order management Sales order management Incentive and Commission Management Role: internal sales representative Role: internal sales representative Work center concept and enhanced analytics Personal object work list (POWL) New UI for sales documents New role for sales in mySAP ERP Overview of actual workload Direct execution to corresponding functions Analytics SAP E-Commerce for mySAP ERP Multimedia product catalog Comprehensive order management and fulfillment Real-time availability check Powerful pricing and product configuration Interaction channel for order, delivery, and invoice tracking. Mobile sales for handheld Customer management Sales order management Materials management SAP Incentive and Commission Management Settlement schedules Actual commission Threshold values in settlement run Ending commission contracts Importing business object categories Encapsulated condition technique © SAP AG 2007 / Logistics and Operations / 17 SAP E-Commerce for mySAP ERP Enhancements in quotation and order management; user and shop management (super-user concept) Selling with eBay Enhanced Internet pricing configuration (IPC) The IPC is integrated to allow configuration within mySAP ERP sales documents Professional-service delivery New resource planning application to staff projects Multilevel controlling and cost planning for cProjects Risk assessment for projects Full deployment capability in mySAP ERP 2005 SAP Global Trade Services (SAP GTS) Automated and streamlined management of complex import and export processes SAP Incentive and Commission Management Target agreements Partnerships Valuation by copy services Portfolio assignments and transfer Entitlement and liability transfer Retroactive case processing What Is Logistics & Operations? New Functions in mySAP ERP 2004 and SAP ERP 6.0 Enhancement Package Concept and Roadmap Customer Example: eSOA at OSRAM Opto Semiconductors Summary SAP ERP as Platform for Logistics Processes SAP NetWeaver Extended Warehouse Management (EWM) Supply Chain Event Management (SCEM) Web Channel (E-Commerce) cFolders Self-Service Procurement Supplier Self-Service © SAP AG 2007 / Logistics and Operations / 19 SAP NetWeaver – Master Data Management SAP NetWeaver SAP NetWeaver MDM Master Data Integration Master Data Distribution Master Data Harmonization Ma Ma ster na Da ge t me a nt © SAP AG 2007 / Logistics and Operations / 20 SAP NetWeaver - Business Intelligence SAP NetWeaver BI Business Analytics Data Warehousing Web-based and Formatted Reporting B Int usin ell es ige s nc e Ma Ma ster na Da ge t me a nt © SAP AG 2007 / Logistics and Operations / 21 SAP NetWeaver - Process Integration SAP NetWeaver XI Application-to-Application Integration (A2A) Message brokering, adaptation Business-to-Business Integration (B2B) Message brokering, connectivity Industry standard partner integration Business Task Management (BTM) Automate collaborative tasks and workflows across the enterprise E Inf xch ras an tru ge ctu re B Wa usin reh ess ou se Ma Ma ster na Da ge t me a nt © SAP AG 2007 / Logistics and Operations / 22 SAP NetWeaver SAP NetWeaver The ‘Docking Station’ for SAP xApps SAP xCQM (Cost and Quotation Management) SAP xMII (Manufacturing Integration & Intelligence) SAP xEM (Emissions Management) SAP xPD (Product Definition) SAP xRPM (Resource and Portfolio Management) E Inf xch ras an tru ge ctu re B Wa usin reh ess ou se Ma Ma ster na Da ge t me a nt © SAP AG 2007 / Logistics and Operations / 23 SAP NetWeaver – Composition Framework SAP NetWeaver E Inf xch ras an tru ge ctu re B Wa usin reh ess ou se Z xY Ma Ma ster na Da ge t me a nt © SAP AG 2007 / Logistics and Operations / 24 xR I xM I PM SAP NetWeaver – Enterprise Service Enablement SAP NetWeaver E Inf xch ras an tru ge ctu re B Wa usin reh ess ou se Z xY Ma Ma ster na Da ge t me a nt © SAP AG 2007 / Logistics and Operations / 25 xR I xM I PM SAP NetWeaver User Interface SAP NetWeaver E Inf xch rac an str ge utu re B Wa usin reh ess ou se Z xY Ma Ma ster na Da ge t me a nt © SAP AG 2007 / Logistics and Operations / 26 xR I xM I PM SAP ERP 6.0 – The Go-To Release Quick Facts About SAP ERP 6.0 Enhancement Packages SAP ERP 6.0 SAP NetWeaver Launched in June 2006 Fastest adoption since SAP R/3 4.6C Built on SAP NetWeaver 7.0 Platform upon which SAP will deliver future software innovations Software innovation without disruption via SAP Enhancement Packages Standard Maintenance until March 2013 Customers Adopt Innovation at their Pace Process and User Interface Simplification Industry-Specific Enhancements Enterprise SOA Cross-Industry Enhancements © SAP AG 2007 / Logistics and Operations / 27 ERP Operations Roadmap 1 2 3 4 5 Q4 2006 Q3 2007 Q4 2007* Q3 2008* Q4 2008* Automatic Roles Order-to-Cash Procure-to-Pay Manufacturing Operations Support SAP NetWeaver Customer Fact Sheet Order-to-Cash Procure-to-Pay MES Integration SCM Enablement SRM Enablement Innovation Retail Service Industries Trading Industries Discrete Industries * Intended Enhancements: Subject to Change © SAP AG 2007 / Logistics and Operations / 28 Complete eSOA enablement SIMPLIFICATION ENTERPRISE SOA Innovation FUNCTIONALITY Process Industries INDUSTRIES ERP Simplification Process Simplification Create Quotation x Print & Send for internal Approval Approve Quotation Transaction Simplification Print & Send to Customer Workflow Automation Access Simplification SIMPLIFICATION Role-based Access ENTERPRISE SOA TREX Search Power List Fact Sheet © SAP AG 2007 / Logistics and Operations / 29 FUNCTIONALITY INDUSTRIES ERP Enterprise SOA 2 1 SOA 3 5 4 ENTERPRISE SOA Order to Cash Order to Cash Cancel Order Cancel Order Delete from database Send Notify Notification Suppliers Cancel Rollback Shipment inventory Cancel Adjust Invoicing Planning SIMPLIFICATION ENTERPRISE SOA Manually built Productized services Low reusability Business semantics No governance Unified repository Æ Leads to chaos Æ Ensures integrity © SAP AG 2007 / Logistics and Operations / 30 FUNCTIONALITY INDUSTRIES ERP 6.0 EhP 1 – Simplification SAP Portal Service Map 1 Q4 2006 Automatic Roles SAP Easy Access Menu Customer Fact Sheet MES Integration Retail © SAP AG 2007 / Logistics and Operations / 31 ERP 6.0 EhP 1 – Enterprise SOA Customer Fact Sheet @ enterprise SOA 1 Q4 2006 Automatic Roles Customer Fact Sheet MES Integration Retail © SAP AG 2007 / Logistics and Operations / 32 ERP 6.0 EhP 1 – Functionality 1 Q4 2006 Automatic Roles Customer Fact Sheet MES Integration Retail © SAP AG 2007 / Logistics and Operations / 33 Connect external Manufacturing Execution Systems (MES) through enterprise SOA ERP 6.0 EhP 2 - Simplification 2 Q3 2007 Order-to-Cash SIMPLIFICATION Simplify Order-to-Cash ENTERPRISE SOA FUNCTIONALITY Order-to-Cash Work Centers for Customers SCM Enablement Sales Order Fulfillment Billing / Complaints INDUSTRIES Service Industries © SAP AG 2007 / Logistics and Operations / 34 Roles for Internal Sales Representative, Credit Manager, Cash Manager ERP 6.0 EhP 2 - Enterprise SOA 2 Q3 2007 Order-to-Cash SIMPLIFICATION Planned Enterprise SOA Bundles Order-to-Cash (Basics) ENTERPRISE SOA FUNCTIONALITY INDUSTRIES Order-to-Cash SCM Enablement Service Industries © SAP AG 2007 / Logistics and Operations / 35 Customer Service Execution ERP 6.0 EhP 2 - Functionality 2 Q3 2007 Order-to-Cash SIMPLIFICATION ENTERPRISE SOA Functional Enhancements SCM Integration Enablement of New SCM Functionality through SAP ERP Order-to-Cash Subcontracting in Supply Network Collaboration Lean Maintenance FUNCTIONALITY INDUSTRIES SCM Enablement Service Industries © SAP AG 2007 / Logistics and Operations / 36 ERP 6.0 EhP 3 - Simplification 3 Q4 2007 Procure-to-Pay SIMPLIFICATION ENTERPRISE SOA FUNCTIONALITY INDUSTRIES © SAP AG 2007 / Logistics and Operations / 37 SAP NetWeaver Procure-to-Pay SRM Enablement Trading Industries Simplify Procure-to-Pay Simplification of Purchase Requisition creation and handling Work Centers and Power Lists ERP 6.0 EhP 3 - Enterprise SOA 3 Q4 2007 Planned enterprise SOA Bundles: Procure-to-Pay (Basics) SAP NetWeaver Supplier Collaboration Procure-to-Pay SIMPLIFICATION Service-enabled SRV ENTERPRISE SOA Procure-to-Pay Outsourced Manufacturing Inventory Management FUNCTIONALITY INDUSTRIES © SAP AG 2007 / Logistics and Operations / 38 SRM Enablement Trading Industries Asset Configuration What Is Logistics & Operations? New Functions in mySAP ERP 2004 and SAP ERP 6.0 Enhancement Package Concept and Roadmap Customer Example: eSOA at OSRAM Opto Semiconductors Summary OSRAM Opto Semiconductors OSRAM Opto Semiconductors is a wholly owned subsidiary of OSRAM, one of the world´s two leading lighting manufacturers in the world. It offers its customers solutions based on semiconductor technology for lighting, sensor and visualization applications. The company employs more than 3,500 people worldwide and operates sites in Regensburg (Germany), San Jose (USA) and Penang (Malaysia). We shape the future of light by advancing solutions for illumination, visualization and sensing The Business Challenge Complex systems and the need for instant customer information takes time and money Customer demands for instant online information about order transactions Customer provides fragmentary information about the order Complex systems impede a sufficient overview of the order-to-cash process Improve transparency of the order-tocash process Enable customer service to provide customer with information in a consolidated and efficient manner Provide an ATP check for materials Ö Implement a Customer Service Cockpit to better serve customers by having a complete real time overview about the relevant customer activities Implementation Architecture Service Consumption Process Composition Layer WebDynpro (navigation within a single application) (UI centered and backend processes) Customer Service Cockpit UI Layer Web Dynpro Custom ABAP classes and proxies Local Logic Layer Service Proxies Custom Services CFS Services ERP Service Provisioning ABAP Classes Implementation Phase 1 Selection Screen Material Search Customer Specific Search Document List Phase 2/3 Inquiry, Quote or Order List Document Search Document Flow Stock/Requirements List From Inquiry to Invoice including detailed document information Customer...…Order # Stock Overview Implementation based on the SAP Enterprise Services Bundle Customer Fact Sheet on SAP ERP 2005 Enhancement Package 1 UI: ABAP WebDynPro Implementation Phase 1 (Layout) Summary of Project Experience First contact with Enterprise SOA and Enterprise Services Enterprise Services are easy to find, understand and use Leverage existing investment in SAP ERP and SAP NetWeaver to provide a better solution to support the order-to-cash business process Provide business users from different LOBs access to the same services – ensures coherency and accuracy of information provided to customers Success factors Ramp-up project – Support from SAP Development and SAP Consulting In-house competencies in business process knowledge and IT (SOA, SAP NetWeaver and SAP ERP) What Is Logistics & Operations? New Functions in mySAP ERP 2004 and SAP ERP 6.0 Enhancement Package Concept and Roadmap Customer Example: eSOA at OSRAM Opto Semiconductors Summary Simplify, Optimize, Innovate with SAP ERP Operations Simplify … your Business Processes Optimize … your System Landscape … your End User’s life Innovate ENHANCEMENT PACKAGES SAP ERP 6.0 SAP ERP Operations as Logistics Platform © SAP AG 2007 / Logistics and Operations / 47 … without interruption Further Information SAP ERP Operations sap.com/erp and service.sap.com/erp SAP ERP Solution Browser http://solutionbrowser.erp.sap.fmp media.com SAP Upgrade Info Center service.sap.com/upgrade SAP Upgrade Services service.sap.com/upgradeservices SAP ERP Upgrade service.sap.com/upgrade-erp © SAP AG 2007 / Logistics and Operations / 48 Questions? Rudolf Zens Product Management ERP SAP AG rudolf.zens@sap.com © SAP AG 2007 / Logistics and Operations / 49 THANK YOU FOR YOUR ATTENTION ! © SAP AG 2007 / Logistics and Operations / 50 Copyright © 2007 SAP AG. All Rights Reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. 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