Intelligent Demand Driven Supply Chain withSAP IBP, Ariba & AzureChris Sakchalathorn, Senior PM Manager, MicrosoftDhaval Desai, Principal Solution Architect, SAPSrinivas Nemalipuri, Software Engineer, MicrosoftSession ID # 82629May 7 – 9, 2019
About the SpeakersChris SakchalathornSenior PM Manager, MicrosoftSrinivas NemalipuriSoftware Engineer, MicrosoftHead of Supply Chain PlanningEngineering group at Microsoftresponsible for E2E solution design &deploymentResponsible for the support of all supplychain planning application at Microsoftincluding IBP, Ariba, ECC, APO, MDG,Solution Manager
About the SpeakersDhaval DesaiDhaval DesaiPrincipal Solution ArchitectDigital Supply Chain PlanningSAP DBS – Center of ExpertiseSAP America Inc.Newtown SquareEmail: dhaval.desai@sap.comPrincipal Solution Architect, SAPLeading successful Supply Chain transformations as a systems & solutionarchitect covering IBP, S/4 HANA, IoT, Block Chain, ML and supply chain thoughtleader at SAP MaxAttention customersAuthor of the book ‘Setting Up and Running Order-Based Planning with SAP IBP’Watch out for: E2E automated testing of all SAP IBP applications [Q3 2019]
Key Outcomes/Objectives1. How to transition from connected (APO, legacy)to predictive, intelligent and empowered (IBP,Ariba, Azure) supply chain2. Reference Architecture for Intelligent & DemandDriven Supply Chain3. Partnership with SAP
Agenda Intelligent Supply Chain Transformation (Why)Reference Architecture (How)Capabilities (What)Partnership with SAP
Microsoft Devices Supply Chain PortfolioCustom ControllersSurface HubXbox FamilyHololensSurface ProSurface BookSurfaceStudioSurface Laptop6
Microsoft Devices Supply Chain TodayTransformation,Technology &AnalyticsMarket Opportunity &New Product IntroductionCustomerRepairs &Self-ServiceCareStrategicSourcingChannel Sales &OperationsPlanningOrder Mgmt,& LogisticsSafety,Compliance& SustainabilityManufacturing 200M 42,000 8B 390Units Manufactured & ShippedActive ConfigurationsAnnual SpendSuppliers(includes component suppliers)1.3M33Ship To Locations1.7M Mfg & Distribution Operations2.0M Annual Retail and CommercialSales OrdersAnnual SAP Deliveries1221Countries ServedDevices Centralized Data Lake
Growing needs for an Intelligent Demand Driven Supply ChainPressuresImpactsOpportunities More devices, each with 1-2 year lifeIncreasing COGSLarger channel & promotional footprintIncreasing customer service expectations Stock outs - low % of confirmed ordersExcess Inventory - High E&OManual Forecasting - Low AccuracyOutdated Architecture - manualsubjective & siloed supply chain Build to Order Mass CustomizationOur ResponseImplement intelligentforecasting andreplenishment to achievescaleConnected Supply Chain todrive customer experience,efficiency and visibilityAdopt advancedtechniques to establishagile processes
Planning Method Changes During Product LifecycleLaunchSustainedEOL
Hybrid Approach: Machine Learning Human CollaborationMS Sales DataPricing DataAzure PlatformData Representation WorkSAP IBPFeature EngineeringModel DevelopmentProduct Age, Seasonality,PromosML/Time Series ModelsForecast Results in IBPSAP IBPForecasts at DC LevelFinal Forecast Base Forecast (ML Models) Adjustments (e.g. Promos)Manufacturing
Benefits Achieved in the initial cyclesForecastAccuracyCycle TimeExcess &ObsolescenceManualAdjustments 10%-87%-65%-50%
Intelligent Planning with SAP IBP, Ariba and AzureDistCenterviaAzureAribavia APIRetailerviaAzureIBP viaAPISAP viaBODSData available tousers via PowerBIData availability inorder of curationRawGoldSupply Chain Azure DataWarehouseCookingAzureDataLakeCatalog createdand publishedData published toCubes for analytics
Connected Supply ChainCustomerOrdersPowerBI &VisualizationsSAP IBPConnected Supply ChainDrives customer experience bymitigating the risks due to executiondisruptions/changesPowerBI &Visualizations
Benefits AchievedAutomation 70%Cycle TimeOn TimePlanningCustomerExperience-80% 75%-20%
Microsoft’s journey to Supply Chain TransformationCare PlanningAllocationPlanning forOrderManagementAdoptedsince Mar2017Subsidiarylevel DemandPlanning inIBPAdoptedsince May2018SupplyPlanning inIBP – Build &Ship modelAdoptedsinceSep-2018Account LevelPlanning (forkeyCustomers)Adoptedsince Oct2018Care )Adoptionfrom Mar2019Adoptionfrom Mar2019S&OPScenarioPlanningExtendControl TowerCapabilities(DriverlessSupply Chain)
Azure Platform Enables Digital Supply Chain FoundationSupply Chain Partner SystemsSupplier ERPBOM ManagementMicrosoft Corporate SystemsShop Floor Control SystemPoint of SalesFulfillment And LogisticsEventHubsEnterpriseServicesCareSupply Chain ServicesData & Advanced Analytics PlatformDevice nsAzure APIManagementMicroservicesAzure DataFactoryAzure DataLakeHD InsightSupply Chain CloudonIntegratedSupply ChainBusinessCollaborationPlanningAzurePlan Source Deliver Trade CareAzure ApplicationInsightsPower BI
SAP & Microsoft Partnership – Path to SuccessStrengtheningECC-IBPintegration storyProgrammaticpermissionsmanagement inIBPSystem & ProcessMonitoringAlert OverviewMicrosoft influenceddevelopment ofenterprise ready,secure and robustintegration modelEnabled easyintegration ofpermission filtersfrom externalsystems via APICo-innovated on anative connectionbetween Solman andIBP to monitor endto-end processes in ascalable mannerMSFT deeplyinvolved in featurerequirements, userstudies andworkshopsIBP AribaIntegrationStrong partnershipbetween Microsoft& SAP MaxAttentionCo-innovated SupplyChain collaborationwith SAP IBP andSAP AribaEarly involvement inCo-Design,Architecture & BuildDeep functional &technical expertise &thought leadership
Collaboration with SAP powered by MaxAttentionMaxAttentionTeam Functional and technical expertise in a hybrid environmentFacilitation with multiple SAP product teamsECC,APO,MDG,Solution Manager onAzureIntegratedBusiness PlanningJoin solutiondesignCo-Innovationandalignment Innovative solution that bridges gaps in the standardproduct and effectively meets Microsoft’s requirements Solution design aligned with IBP product managementand roadmap
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Leading successful Supply Chain transformations as a systems & solution architect covering IBP, S/4 HANA, IoT, Block Chain, ML and supply chain thought leader at SAP MaxAttention customers Author of the book ‘Setting Up and Running Order-Based Planning with SAP IBP’ Watch out for: E2
Table 1.1 Demand Management (source: taken from Philip Kotler, Marketing Management, 11th edn, 2003, p. 6) Category of demand Marketing task 1 Negative demand Encourage demand 2 No demand Create demand 3 Latent demand Develop demand 4 Falling demand Revitalize demand 5 Irregular demand Synchronize demand 6 Full demand Maintain demand
Supply chain management 1.1.2.1. Supply chain processes: the integrated supply chain point of view To describe supply chains from a process point of view, we refer to the supply chain operations reference (SCOR) model. SCOR is a cross-industry standard for supply chain management and has been developed and endorsed by the supply-chain council .
companies. In this case, supply chain management mainly focuses on cooperation between the supply chain actors. 1.1.2. Supply chain management 1.1.2.1. Supply chain processes: the integrated supply chain point of view To describe supply chains from a process point of view, we refer to the supply chain operations reference (SCOR) model.
Accenture reports how a microchip company created a more resilient and sustainable supply chain to respond in almost real-time to disruptions. Read more. Keywords: sustainable supply chain, supply chain resilience, advanced supply chain, maturity assessment, proactive risk management, supply chain digital twin, supply chain stress test Created Date
Qlik for supply chain: forecasting and planning 6 Qlik for supply chain: sourcing and supplier performance 8 Qlik for supply chain: production insights 10 Qlik for supply chain: warehousing and distribution 12 Qlik for supply chain: transportation, storage and logistics 14 Qlik for supply chain: fleet management 16
DEMAND FORECASTING IN A S UPPLY CHAIN Learning Objectives . After reading this chapter, you will be able to: 1. Understand the role of forecasting for both an enterprise and a supply chain. 2. Identify the components of a demand forecast. 3. Forecast demand in a supply chain given historical demand data using time-series methodologies. 4.
The Define Supply Chain Planning Configuration task list is part of the Supply Chain Planning offering. If you have navigated to the Setup: Supply Chain Planning page from the Supply Chain Planning offering in the Setup and Maintenance work area, the Supply Chain Planning Configuration function
rounding supply chain vs. supply chain competition, the Integrated Supply Chain Management (ISCM) Program at the Massachusetts Institute of Technology (MIT) conducted a Delphi study with more than 30 supply chain experts from industry, academia, and consulting. The study found that the gr