gxs managed services for sap
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Mark Morley, Industry Marketing Director
SAP-B2B Integration: Your Secret Weapon for Business Benefits and ROI
Slide 2© Copyright 2011, GXS
Today’s Agenda
• Introduction
• AMR ERP Integration Research Study
• Introduction to GXS Managed Services
• How GXS Managed Services Helps SAP
Implementations
• Customer Examples
• Conclusion & Questions
+
Slide 3© Copyright 2011, GXS
Introduction
Slide 4© Copyright 2011, GXS
Introduction
• Managing the integration of SAP and
B2B systems is a complex process
• SAP and B2B projects are implemented
across internal and external users
• Integrated SAP and B2B systems can
help introduce significant operational
efficiencies
• SAP B2B integration provides improved
visibility into cross enterprise business
processes
Slide 5© Copyright 2011, GXS
Why Do Companies Have a Requirement to
Integrate Their SAP and B2B Systems?
• Companies integrate SAP and
B2B systems for various
reasons
– Standardize business processes
– Reduce time to integrate
acquisitions
– Provide a consistent customer
experience
– Improve supply chain efficiencies
– Lower operational costs
Slide 6© Copyright 2011, GXS
Today’s SAP Systems Need to Support Global Operations
Global companies must manage a network of manufacturing, sales,
marketing, engineering and finance centers
Manufacturing
Back Office
Sales
Global
HQ
Regional
Marketing &
Finance
Engineering
R&D
Manufacturing
Sales
Sales
Manufacturing
Regional
Marketing &
Finance
Back Office
Manufacturing
Sales
Engineering
R&D
Engineering
R&D
Slide 7© Copyright 2011, GXS
Companies Undertake Many Different Types of SAP Related Projects
Retire Legacy
Mainframes
Rapid Company
Growth
New
InstallationsConsolidations
Upgrades Extensions
Mergers &
Acquisitions
Shared Services
for Back Office
Vendor End-of-
Life Support
Expanded
Feature Set
Supply Chain
Planning
Treasury or Bank
Relationship
Management
Slide 8© Copyright 2011, GXS
SAP Data Originates Outside the EnterpriseBut Is the External Data Quality Conforming to Corporate Standards?
Sales Financials ServiceSupply ChainManufacturing
Forecast
Point of Sale
Sales Order
Inbound Materials
Inventory
Work In Progress
Shipment Status
Proof of Delivery
Product Catalogs
Bank Statements
Remittance Advice
Trade Confirmations
Repair Order
Work Order Status
Warranty Claim
Customers
Distributors
Contract
Manufacturers
Direct
Suppliers
Freight
Forwarders
Ocean
Carriers
Financial
Institutions
Commercial
Insurers
3rd Party
Logistics
Slide 9© Copyright 2011, GXS
AMR Research Study
Slide 10© Copyright 2011, GXS
Third Party Research Institutions Validate
the Value of B2B Outsourcing
Slide 11© Copyright 2011, GXS
Key Findings from ERP/B2B Study
• 48 percent of respondents said they had lost B2B
connectivity
• 34 percent of respondents said B2B integration staff were
supporting ERP related projects
• 34 percent of the data feeding ERP systems is generated
externally
• 29 percent of respondents said that they had to prematurely
terminate B2B testing programs relating to external trading
partners
• 79 percent of respondents have exceptions or problems on
more than one percent of inbound B2B transactions
• 80 percent of respondents plan to move to highly
consolidated ERP environments
Slide 12© Copyright 2011, GXS
The Need for ERP to B2B Integration
• According to AMR Research there
are a number of key drivers for
integrating ERP and B2B systems
– Significant amount of ERP data is
sourced from outside a company
– Poor data quality can compromise the
value on an ERP implementation
– Poor B2B integration limits visibility into
key business processes
– High availability of external B2B
communications is critical
Slide 13© Copyright 2011, GXS
• SAP uses information from
various external sources
• Information can be sourced from
customers, logistics providers
and financial service institutions
• Information derived from different
global standards can be difficult
to manage
• Integrating trading partners to
remote manufacturing plants can
be a complex process
Externally Sourced SAP Data
On average 34% of data
feeding an ERP system
comes from outside the
enterprise
Slide 14© Copyright 2011, GXS
Data Quality Compromises SAP Value
• Externally sourced data is rarely
checked before it enters an SAP
system
• Once the information is within
SAP, it will quickly spread across
the enterprise
• Inaccurate data can affect
downstream business processes
• Inaccurate data leads to incorrect
electronic documents being
created
79% of respondents said
that more than 1% of
transactions needed
reworking
Slide 15© Copyright 2011, GXS
High Availability in B2B Is Critical
• Ensuring that B2B information is
available 24/7 is crucial to the
operation of an SAP environment
• B2B platforms ensure that
externally sourced information
can be used by internal business
applications
• Lack of B2B information could
lead to production line stoppages
• Business critical decisions need
to be made in real time
48% of respondents said
they had lost connectivity
with their B2B system
Slide 16© Copyright 2011, GXS
Program Management
• Integrating SAP and B2B requires
constant monitoring to ensure that
any problems are resolved
efficiently
• Changes made to an SAP system
may need to be incorporated into
the B2B platform as well, or vice
versa
• Must ensure that the SAP/B2B
integration platforms are tested
and deployed correctly
84% of respondents had
experienced delays with
their ERP B2B integration
projects
Slide 17© Copyright 2011, GXS
Introduction to GXS Managed Services
Slide 18© Copyright 2011, GXS
GXS Managed ServicesPeople, Process, and Technology
Slide 19© Copyright 2011, GXS
GXS Managed Services Experience
Areas of Expertise• Infrastructure
• Operations
• Implementation
• Support
• Recognized as Number One Transaction
Outsourcing Vendor
– Over 500 customers utilizing GXS Managed
Services today
• Extensive Transformation Capabilities
– Capacity to develop 10,000 maps annually
– Over 30,000 maps and 200 document types
currently in production
• Areas of Expertise:
– Program management
– Global network infrastructure
– e-Commerce operations management
– 24x7 support, visibility and alerts
Slide 20© Copyright 2011, GXS
GXS Managed Services OverviewPeople, Processes, & Technology for success
Slide 21© Copyright 2011, GXS
SAP Expertise
• Significant Expertise – GXS has
worked with many companies to
integrate their SAP and B2B
systems
• Extensive Experience with SAP
Integration – Financials, Supply
Chain Management, Advanced
Planning and Optimization modules
• Connectivity Options – FTP over
VPN or SAP ALE (certified)
• IDOC Status Messaging –
Provides immediate verification or
error status
SHPMNT03
INVOIC01
PEXR2001
PEXR2002
FINSTA01
DELVRY01
ORDERS01
PROACT01
PRICAT01
TRXSTA01
Example SAP IDOCs Supported
Slide 22© Copyright 2011, GXS
GXS SAP ALE Integration Today
Managed
Services
EnterpriseA
LE
GXS
Application
Integrator
Customer
VPN/Private IPFlat
IDOC
RFC/Socket
GXS Managed Services Environment
SAP Status
Messages
5/6,11/12,16/17
Slide 23© Copyright 2011, GXS
GXS SAP PI Integration Today
GXSCustomer
VPN/Private IP
RFC/SocketPIManaged
Services
EnterpriseA
LE
Application
IntegratorFlat
IDOC
GXS Managed Services Environment
SAP Status
Messages
5/6,11/12,16/17
Slide 24© Copyright 2011, GXS
Applications
Split
Orders
Consolidate
Invoices
Confirm
Required
Fields
Translate
Customer
Data
Confirm
Valid
Data
Split by
Payment
Types
Aggregate
Account
Balances
Units of
Measure
Transform
Carrier
Codes
Out of
Sequence
Documents
Conform to
Business
Rules
Check
within
Tolerances
Confirm
Required
Fields
Confirm
Valid Data
Customers and Distributors
Direct and Indirect Material Suppliers
Lo
gis
tics P
rovid
ers
Fin
an
cia
l In
sti
tuti
on
s
Link
Invoice
to Payment
B2B Helps to Establish an “ERP Firewall”
Slide 25© Copyright 2011, GXS
GXS Data Quality & ComplianceProtecting Mission Critical Transaction Data
IDENTIFY
Rejectable Document
REAL-TIME ERROR
Hold in Exception Queue
WARNING
Pass through and Log
FIX
Correct then Retransmit
1 2
34
Slide 26© Copyright 2011, GXS
How GXS Managed Services
Helps SAP Implementations
Slide 27© Copyright 2011, GXS
How Can GXS Managed Services Help?
• Ensure projects remain on time and under budget with
scalable resourcing and SAP best practices
• Achieve faster ROI from new modules and transaction
types with rapid on-boarding of trading partners
• Less risk of connectivity loss impacting manufacturing
operations with high availability architecture
• Improve data quality for the 1/3 of externally originated
information via ERP firewall
Slide 28© Copyright 2011, GXS
Provide a Highly Available Platform
• GXS Managed Services operates across a highly
available, 99.95%, B2B infrastructure with two data
centers with built in redundancy, disaster recovery
and fail-over capabilities
SAP systems need to be able
to receive information from
external trading partners on a
24/7 basis.
Slide 29© Copyright 2011, GXS
Implementing Document Maps
• GXS Managed Services provides extensive any-to-any
mapping services and can provide support for many
different types of SAP IDOCs
SAP/B2B integration projects
can require numerous
document maps to be created
and maintained on an ongoing
basis.
Slide 30© Copyright 2011, GXS
Connectivity with SAP
• GXS Managed Services can mediate between any
communications standard and provide direct SAP
connectivity via SAP ALE and SAP PI
SAP systems need to be
connected to numerous
trading partners using many
different global connectivity
standards.
Slide 31© Copyright 2011, GXS
Managing Trading Partner Communities
• GXS Managed Services provides a comprehensive
community on-boarding service to allow trading partners
of any size or technical capability to be able to connect to
a B2B platform
SAP/B2B integration projects
require fast on-boarding of
trading partners, anywhere in
the world.
Slide 32© Copyright 2011, GXS
Proactively Monitoring Data Quality
• GXS Managed Services provides proactive monitoring
of all transactions so that if a problem is detected it can
be resolved before the customer or supplier is impacted
All external data needs to be
checked for accuracy and
conformance before entering
an SAP system.
Slide 33© Copyright 2011, GXS
Program Management
• GXS Managed Services offers dedicated program
managers who monitor the progress of the SAP/B2B
projects and address any integration issues as they
arise
The complex nature of
SAP/B2B integration projects
requires skilled resources to
keep these projects on
schedule.
Slide 34© Copyright 2011, GXS
Provide Global Support
• GXS Managed Services offers a 24/7 multi-lingual
support service so that problems can be addressed as
quickly as possible, anywhere in the world
Today’s SAP environments
cover multiple plants located
in many different regions of
the world.
Slide 35© Copyright 2011, GXS
Customer Examples
Slide 36© Copyright 2011, GXS
Automotive Tier 1 Supplier Customer Case Study – GXS Managed Services
Company Overview
This Tier 1 Automotive
supplier is one of the largest
in the industry, they supply all
the major OEMs and have
nearly 3000 trading partners
around the world. After being
divested from their parent
company they had a
requirement to establish their
own B2B environment as
soon as possible.
Business Issues
Solution Deployed
• GXS Managed Services offering included the implementation of over
600 maps and connectivity to 3000 trading partners
• Full integration with SAP to allow publication of IDOCs
• Provision of Program Managers to co-ordinate the expected 150
change requests per quarter
• Required a flexible B2B platform that would allow for growth of 30%
year on year
• Needed to reduce operational costs across their global business due
to being divested
• Needed to fully integrate their B2B platform to a new e-payments
solution and an ERP system which was being deployed globally
• Needed to connect their EMEA plants to their global B2B platform
Slide 37© Copyright 2011, GXS
Clothing Manufacturer Customer Case Study – GXS Managed Services
Company Overview Business Issues
Solution Deployed
• GXS Managed Services helped manage the B2B integration with
SAP ERP across six divisions of their business
• Creation of 280 maps and they also had a requirement to convert a
number of EDI documents into SAP IDOC format
• Implement AS2 connectivity to major customers and manage the
migration of EDI transactions from their incumbent VAN provider
• This company had limited resources to manage the implementation
of a new global SAP environment and at the same time manage their
existing B2B platform
• They were working with a diverse range of leading global retailers
and as a result they wanted to try and improve the integration and
efficiency of their global supply chain
This company is one of the
world’s leading apparel
manufacturers. They design,
source and manufacture a
range of leading clothing
brands.
Their company consists of six
major apparel divisions and
their products are distributed
and sold via a network of over
200 leading retailers around
the world.
Slide 38© Copyright 2011, GXS
Aftermarket Parts Provider Customer Case Study – GXS Managed Services
Company Overview Business Issues
Solution Deployed
• GXS Managed Services implemented to manage 700 suppliers and
GXS Intelligent Web Forms services will help to reduce manual
processes
• Integration with their SAP environment allows them to transmit
purchase orders and other forms of IDOC documents. The IDOC are
then translated to XML for transmission to Chinese shipping agents
• They needed to find a cost effective way to manage their ever
expanding supply chain and product offerings
• They wanted all documents to be transmitted electronically across
their supply chain
This company is a non-
franchised retailer of national
and private label automotive
products. They operate 200
retail stores in Australia and
New Zealand, offering nearly
10,000 products. They have
nearly 700 suppliers and ten
agents in China representing
300 factories.
Slide 39© Copyright 2011, GXS
Conclusions
Slide 40© Copyright 2011, GXS
SAP Integration Requirements GXS Solution Value Business Value to Customer
• Provides extensive ‘any to any’
mapping skills and allows
consolidation/seamless creation of new
maps to suit the integrated SAP/B2B
environment
Document Mapping
• Expertise in wide variety of cross
industry and regional standards
• Network based translation using GXS
award winning translator technology
• Supports the industry’s broadest range
of communications protocols
• B2B environment runs on a highly
available infrastructure
• Trading Partners can be connected
irrespective of their technical capability
• Ensures that B2B transactions can
flow smoothly 24/7
• Provides a number of methods to
interrogate externally sourced data and
check for accuracy against known data
analysis rules and criteria
Data Cleansing
• Ensures that information sourced
from external trading partners is
checked and cleaned before entering
an ERP system
• Multi-lingual 24/7 ‘follow the sun’
helpdesk support
• Proactive event monitoring and tailored
escalation processes
• Provision of a program manager for
the duration of outsourcing project
Global Support /
Program Management
• Users across the extended enterprise
can be supported and monitored much
more easily
• Change requests can be dealt with
more efficiently and SAP & B2B
systems remain synchronized
• Full education, communication and
testing of trading partners
• Local on-boarding in 30 countries with
20 languages
Community Management
• Trading partners, in any region of the
world, can be managed effectively both
during and after the SAP/B2B
integration has taken place
Global Connectivity/
High Availability
GXS Differentiation
Slide 41© Copyright 2011, GXS
For Further Information
www.b2bforsap.com
www.gxs.com/resources/insights/3rd_edition/
Slide 42© Copyright 2011, GXS
Thank You for Your Participation
For More Information
Phones
US: 1-800-334-5669, option 3
EMEA: +44 (0) 1932 776047
ASPAC: +852 2884 6088
Japan: +81-3-5574-7545
GXS web sites
US: www.gxs.com
EMEA: www.gxs.eu
ASPAC: www.gxs.asia.com
Japan: www.gxs.co.jp
Presenter:
Mark Morley, Mark.Morley@gxs.com
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