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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Digitizing the Extended Supply ChainFatih Kayadelen / Elif Kuralay
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2
World’s largest taxi company owns no taxi’s
Largest accommodation provider owns no real estate
Largest phone company owns no infrastructure
World’s most valuable retailer owns no inventory
World’s largest movie house owns no cinemas
Largest music company owns no musicWorlds biggest book distributor owns no books
The Digital Disruption is Happening
Digital Economy
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3
Customers & Markets
Suppliers & Logistics
Products & Assets
People & ResourcesResource Scarcity
Sustainability
Individualized ProductsIndustry 4.0
Design
Produce Plan
Resp
ond
DeliverOperate
Digital Transformation in Extended Supply Chain
Customer CentricityOmni-Channel
Sharing Economy
Business NetworkBusiness Networks
Integrated Business Planning
Product Safety & Stewardship
Asset Intelligence Network
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5
Customer Centricity
45% of enterprises are building direct-to-customer fulfillment capabilitiesSource: SCM World’s 2014 Chief Supply Chain Officer survey
Demand SensingSame-day Delivery
Omni-Channels
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Individualized Products
80% of companies said that digital operations are critical of every organizations manufacturing competitivenessSource: Digital Manufacturing & Design Innovation Institute
Digitized Inventory
Lot-Size of 1Configured Products
Industry 4.0
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Sharing Economy
Response Network
Strategic Sourcing
Logistics Network
Product Compliance
Asset Network
Manufacturing Networks
Project Network
50% of networked companies are more likely than their peers to have increased sales, higher profit margins, and be market leadersSource: McKinsey
Manufacturing AssetsLogistics
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8
Resource Scarcity
64% of companies say that priority access to scarce raw materials/capacity and collaborative cost reduction with suppliers are extremely relevant to their competitive advantageSource: SCM World’s 2014 Chief Supply Chain Officer survey
Talent AcquisitionTalent acquisition and development has become twice as hard since 2011
Risk ManagementJoint risk mitigation with suppliers drives ability to leverage supply chain disruptions
Environmental ResponsibilitySteady rise of cost savings as justification for investments in Environmental Responsibility
© 2016 SAP AG. All rights reserved. 13Internal
Supply Chain Control Tower integrates performance data from multiple systems
Supply Chain Control TowerIntegrated Business Planning
ERP
ERPERP
APO APO
APO
EM
SNC
3rd Party
3rd Party
3rd Party
Lo cal DC
C en tr al DCE urop e
Lo cal DC
Pla nt
Plan t
P la nt
Su pp l ie r
C en tral DCAm erica s
Ce nt ra l D CAsia P acific
Su pp lier
Su pp lier
Su pp l ie r
Su pp l ie rSu pp l ie r
Re tai le r
Distrib uter
C us to mer
Cu sto me r
C us to me r
C us to me r
TM
Integrated Business Planning
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Integrated Business Planning
Real-time Dashboards and KPI Analytics
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Real-time Dashboards and KPI Analytics
Integrated Business Planning
Familiar Microsoft Excel enabled Planning Tables
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Integrated Business Planning
Real-time Dashboards and KPI Analytics Familiar Microsoft Excel enabled Planning Tables
Exception Mgmt. with Interactive Analysis, Simulation & Recommendation
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Integrated Business Planning
Real-time Dashboards and KPI Analytics Familiar Microsoft Excel enabled Planning Tables
Exception Mgmt. with Interactive Analysis, Simulation & Recommendation
Social Collaboration for Consensus Planning & Problem Solving
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18
Connected Logistics & Order Fulfillment
ConnectedWarehouse
Management Warehouse Automation Material Flow Automation Hands-free Operations
ConnectedTransportationManagement
Adaptive Planning Real-Time Tracking Smart Load Builder
ConnectedTrack & Trace
In-transit Geo Tracking Condition Monitoring Lifecycle Tracking
ConnectedLogistics Network
Logistics Hub Network Transparency Communication
SAP ExtendedWarehouseManagement • Mobile devices
• RFID scanners• Voice recognition • Augmented reality• Pagers and phones• Label printers• Scales
Connected devices Connected automation• Conveyors• Lifts• Robots• Picking systems• Manufacturing execution
systems
Connected Warehouse ManagementComprehensive, built-in process automation and validation
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20
Real-time freightand truck visibility• Transportation demand • Fleet usage / availability• Execution status• Nearby resources with
actual truck positions and planned route
Real-time adaptive planning• Drag-&-drop-based
replanning• Load optimization (3D)
SAPTransportationManagement
Connected Transportation ManagementReal-time transportation planning
Real-time drivercommunication• Tour update• Event reporting
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20
Track & TraceSAP Event Management (EM)
SAP Object Event Repository (OER)SAP TM Notifier (Mobile App.)
SAP Auto-ID Infrastructure
Process tracking• Orders, deliveries, units,
parcels • Vehicles, containers…o End-to-end event trackingo Exception reporting and
handling
Condition monitoring• Secured transportation
(seals / locks)• Cold chain (temperature)o In-transit monitoringo Life-cycle tracking and analysis
Connected Track & Trace Auto-ID automation, real-time tracking, monitoring, exception handling and analysis
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 21
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 22
Connected Logistics NetworkOptimize the complete ecosystem, not only the silos
SAP Networked Logistics Hub
Hub / site movement control • Truck / traffic monitoring
- Via telematics, geofences, traffic data,…• Direct carrier and driver communication
- Tours, incidents and notifications (traffic, parking…)- Via mobile devices
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 22
23© 2016 SAP AG or an SAP affiliate company. All rights reserved.
Hamburg Port Authority Steering course for the connected port of the future
Prepared for 2x increase in cargo handling
5 minutes driving saved per truck and tour
Connected Logistics NetworkOptimize the complete ecosystem, not only the silos
Hub / site movement control • Truck / traffic monitoring
- Via telematics, geofences, traffic data,…• Direct carrier and driver communication
- Tours, incidents and notifications (traffic, parking…)- Via mobile devices
25© 2016 SAP AG or an SAP affiliate company. All rights reserved.
Nanjing – Urban Taxi & City Traffic Management
26© 2016 SAP AG or an SAP affiliate company. All rights reserved.
40,000 Mobile Devices Supported
Poste Italiane - ‘Electronic Postman’ to equip employees with secured mobile technologies and traceability
15%Improvement in first attempt
mail delivery
24x7Track Every Container
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28
Powe
red
by S
AP
HANA
MRP on HANA
Connected Logistics
public cloud
SAP MII
on-premise
SAP FIORI
SAP Manufacturing Execution Suite
Manual Data Entry Automatic Data Entry (Machine Connectivity)
Shop
Flo
or
SAP Connected ManufacturingCloud / On-Premise / Shop Floor
LIMSMES SCADA / HMIPlant DataCollection
Wireless Integration
EnvironmentalBuilding Management
Plant HistorianPlant DB
DCSPLC
Cloud fully integrated with on premise investmentsprivate cloud
Predictive Maintenance
Sensors
SAP ME
As-built
29© 2016 SAP AG or an SAP affiliate company. All rights reserved.
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Digitizing the Extended Supply ChainFatih KayadelenElif Kuralay
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