SAP Performance Benchmarking

8/30/2012

Company: ABC Corporation

SAP Performance Benchmarking Enterprise Health Check - Manufacturing

© 2012 SAP AG. All rights reserved. 2 Confidential

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without prior notice.

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Company and other companies with respect to certain key performance indicators and drivers.

These materials may be based upon information provided by the subject Company, information provided by other companies and assumptions that are

subject to change. These materials present illustrations of potential performance and cost savings, and do not guaranty future results, performance or

cost savings. The materials are provided solely for internal review and use by the subject Company. SAP makes no representation or warranties of any

kind with respect to these materials, and SAP shall not be liable for errors or omissions with respect to these materials.


Agenda

Study Background

Metrics Comparison and Best Practice Adoption

Study Background


Strategic service by SAP Value

Engineering, launched end of 2004 as a

forum to exchange metrics and best

practices

Program covers 30+ processes, with more

than 10,000 participants who leverage the

program to:

– Build a business case for change

– Compare performance to leading companies,

industry peers, and between regions/divisions

– Assess value realization, year-over year

– Prove success

EHC - MAN

SAP Performance Benchmarking: Designed to Get

Actionable Results


Profile Data - Company and Peer Set

Peer Group Size* Average number of organizations represented in each metric 134

Peer Group Coverage* Percent of metrics for which benchmarks can be calculated 100%

Company Information

Industry Consumer Products

Sub-Industry Consumer Durables and Home

Appliances (CD&HA)

Annual Revenue 1000000000

Regions/ Divisions

Included North America

Comparative Scope – Selected Peer Group

Industry Industry X

Sub Industry All

Revenue All

Region All

Participant Name ABC XYZ

Title Manager

Currency U.S.Dollar

Entire Company or

Division Entire Company/Division

Customized Filter

Question/KPI N/A

Question/KPI N/A

Question/KPI N/A

EHC - MAN

*We do not publish sample sizes as part of the survey validation process so you may receive a value of “0” for Peer Group Size and Peer Group

Coverage. Once validation is completed against the overall database, please request a custom peer group for a more accurate comparison.


Overall Database Profile

By Revenue By Industry

602 Number of Companies in EHC-M Overall Database :

Note: Several miscellaneous industries have been grouped under “Other”

37.1% 37.4%

11.1%14.4%

<1$B >=1$B, <5$B >=5$B, <10$B >=10$B

By COGS

Note: Totals may not add up to 100% due to responses not provided

EHC - MAN

Metrics Comparison and

Best Practice Adoption


Finance Metrics

Metric Company Value Peer Group

Average Top 25%

Overdue Accounts Receivable (in %) 15.0 9.4 3.0

Finance FTEs per 100 Million Revenue 8.70 9.61 4.13

Finance Cost As A % of Revenue 1.68 0.79 0.37

Audit Cost As A % of Revenue 0.07 0.05 0.02

Days To Close Annual Books (in days) 19.0 12.5 6.0

Days Sale Outstanding (in days) 56.2 43.6 28.0

Performance Results –Metrics

First Quartile Between Average and First Quartile Below Average Outlier Ranking:

EHC - MAN


Order To Cash Metrics


Average Top 25%

Orders Cancelled (% of orders backordered) 2.0 1.5 0.5

% Lost Orders (% of revenue) 0.300 1.308 0.500

Order to Ship Cycle Time (in days) 4.0 3.1 1.0

Ship to Invoice Cycle Time (in days) 0.5 1.2 1.0

Days Chargeback Outstanding (in days) 5.0 30.1 10.0



EHC - MAN


Supply Chain Planning Metrics


Average Top 25%

On-Time Delivery Performance (in %) 97.0 93.6 98.0

Order Fill Rate (in %) 98.0 94.6 98.2

Forecast Accuracy (in %) 93.0 79.1 90.0

Revenue Loss Due To Stock-outs (in %) 0.020 0.612 0.108

Inventory Accuracy (in %) 95.0 97.4 99.6

Order Pick Accuracy (in %) 100.0 98.7 99.8

Days in Inventory 19.9 57.9 29.5

Inventory Carrying Cost (% of revenue) 0.4 1.4 0.7

Order Fulfillment Lead Time – MTS (in days) 1.0 5.4 2.0

Order Fulfillment Lead Time – MTO (in days) 15.0 32.9 8.0

Transportation Spend (% of revenue) 0.6 3.5 1.8

Expedited Transportation Spend (% of revenue) 0.060 0.080 0.012



EHC - MAN


Procurement Metrics


Average Top 25%

Average Annual Savings-Direct (in %) 3.0 3.3 5.0

Average Annual Savings-Indirect (in %) 5.0 3.7 6.8

Average Annual Savings-Services (in %) 5.0 2.7 5.0

Spend Managed Strategically-Direct (in %) 90.0 89.0 100.0

Spend Managed Strategically-Indirect (in %) 40.0 52.6 80.0

Spend Managed Strategically-Services (in %) 50.0 53.2 85.0

Maverick Spend-Direct (in %) 3.0 3.0 1.0

Maverick Spend-Indirect (in %) 3.0 6.8 0.0

Maverick Spend-Services (in %) 3.0 5.6 0.0

Spend Under Contract-Direct (in %) 70.0 78.2 98.0

Spend Under Contract-Indirect (in %) 50.0 46.1 80.0

Spend Under Contract-Services (in %) 80.0 51.5 82.0

Procurement FTEs per 100 Million Spend 28.97 6.80 3.93

Procurement Cost as a % of Revenue 0.71 0.21 0.06



EHC - MAN


Manufacturing Metrics


Average Top 25%

Production Plan Adherence (in %) 87.0 87.7 95.0

Return On Assets (in %) 8.0 13.3 21.0

Manufacturing Cycle Time (in days) 24.0 7.9 2.0

Capacity Utilization (in %) 85.0 76.3 86.0

Cost of Unplanned Overtime as a % of Mfg Cost 1.06 0.24 0.04

Asset Availability as a % of Uptime 85.0 87.5 95.0

Operating Equipment Effectiveness (in %) 65.0 73.7 85.0

Manufacturing Cost as a % of Revenue 19.4 59.6 40.9



EHC - MAN


Human Capital Management Metrics


Average Top 25%

Employee Turnover (in %) 13.0 9.2 4.0

Employees per HR FTE 99 107 140

HR Cost per Employee 2445 1152 440

Cost per Hire 2333 2320 660

HR Cost as a % of Revenue 0.92 0.34 0.12

Time to Hire (in days) 50 39 22



EHC - MAN


Information Technology Metrics


Average Top 25%

IT – % of Unplanned Downtime 0.0 0.9 0.3

IT Spend as % of Revenue 1.8 1.1 0.5

IT Support FTEs per 100 Active Users 1.3 3.0 1.3

IT Cost per Active User 8150.0 6762.7 3803.9



EHC - MAN


Best Practices Summary

2.2

3.03.2

2.72.4

1.2

2.4

4.4 4.3

4.8

4.3 4.3

3.9

4.6

0

1

2

3

4

5

6

Finance Order To Cash Supply Chain

Management

Procurement Manufacturing Human Capital

Management

Information

Technology

TOP 25% Average Company Coverage Company Importance

Company Best Practice Importance Compared to Coverage Contrasted Against Peer Responses

1 = No Coverage 5 = Full Coverage

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Finance Best Practices

2.5

1.71.4

4.0

5.0

3.3

4.4

5.0

0

1

2

3

4

5

6

Finance Strategy And Leadership Compliance And Risk Management G/L And Financial Closing Accounts Receivable




EHC - MAN


Finance Strategy And Leadership

0

1

2

3

4

5

6

1 2

TOP 25% Average

Company Coverage Company Importance

Best Practice Ranking 1 Finance leadership spends more than two-thirds of its time with

executive management on key risk and decision support activities

2

Finance leadership has access to a financial cockpit and/ or dashboard

that provides a timely view into pre-defined set of key metrics (such as

sales information on a daily basis)

Best Practice Listing


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Compliance And Risk Management

0

1

2

3

4

5

6

1 2 3

TOP 25% Average


Best Practice Ranking 1 Compliance issues and status reports are regularly scheduled and are

automatically created for and sent to management, auditors and IT

2

All processes are well-documented and meet financial compliance

requirements - example, Sarbanes Oxley (SOX) Section 404

requirements, BilMoG, 8th EU Directive, JSOX, Clause 49 for India

3 Risk management system supports automated reporting and alerting to

facilitate risk management



EHC - MAN


G/L And Financial Closing

0

1

2

3

4

5

6

1 2 3 4 5

TOP 25% Average


Best Practice Ranking 1 The current General Ledger (G/L) Accounting system can handle

multiple accounting standards (e.g. US GAAP, IFRS)

2 Historical data can be easily accessed to facilitate year-to-year

comparisons

3

The financial system can support internal as well as external accounting

requirements (e.g. statutory, segment, regulatory and management

views)

4 A global chart of accounts is used across the entire company and local

accounts are required to be mapped to the global chart of accounts

5 The G/L and downstream financial systems are integrated in such a way

that account data is up-to-date and synchronized at all times



EHC - MAN


Accounts Receivable

0

1

2

3

4

5

6

1 2 3

TOP 25% Average


Best Practice Ranking 1 A/R system can handle multi-currency payments and is integrated with

credit, billing and collection applications to ensure full payment

2

A/R system is fully integrated to the billing system so that the

appropriate open item is immediately generated and at the same point in

time as the customer bill

3 A/R system automatically matches payments with A/R balances through

electronic interfaces to banks and customers



EHC - MAN


Order To Cash Best Practices

1.7

3.83.5

4.3

4.0

5.0

0

1

2

3

4

5

6

Customer Billing, Credit And Collections Order Management, Fulfillment And Delivery Chargeback And Rebate Processing




EHC - MAN


Customer Billing, Credit And Collections

0

1

2

3

4

5

6

1 2 3

TOP 25% Average


Best Practice Ranking 1 Customers are billed electronically and can view their account/ payment

status

2

Days Sales Outstanding (DSO) reports by product line and region are

automatically generated for management to identify trends and

performance

3 Disputes can be settled online; Dispute management system is

integrated into the collections system



EHC - MAN


Order Management, Fulfillment And Delivery

0

1

2

3

4

5

6

1 2 3 4

TOP 25% Average


Best Practice Ranking 1 Capability exists for customers and business partners to place orders

without manual intervention

2 Access to real-time up-to-date order, delivery and billing information is

available via the web to customers and business partners

3

Access to real-time up-to-date order, delivery and billing information is

available to order fulfilment, delivery and shipping staff to ensure

seamless business process flow

4 Ability to automatically optimize orders, shipments and deliveries exists

to minimize logistics/ transportation costs



EHC - MAN


Chargeback And Rebate Processing

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 Chargeback and rebate claims can be submitted via electronic channels

2

Analytical capabilities exist to analyze large amounts of chargeback data

to answer questions such as agreement effectiveness, adherence to

quantity commitments etc.



EHC - MAN


Supply Chain Planning Best Practices

4.0

3.5

3.0

2.5

4.0

2.8

5.0 5.0 5.0

4.5

5.0

4.5

0

1

2

3

4

5

6

Demand Planning And

Forecasting

Inventory Planning Production Planning And

Detailed Scheduling

Transportation Planning

And Vehicle Scheduling

Sales Order Promising Warehouse Management




EHC - MAN


Demand Planning And Forecasting

0

1

2

3

4

5

6

1 2 3

TOP 25% Average


Best Practice Ranking 1 Forecasts are dynamic and updated frequently

2 Forecasting is performed for all combinations of SKUs and inventory

locations

3 Forecasting system incorporates demand history and automatic

adjustments for bad data and past promotions/ events



EHC - MAN


Inventory Planning

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 Safety stock can be recalculated multiple times as and when needed

2 Safety stock planning is performed for different combinations of SKUs

and inventory locations



EHC - MAN


Production Planning And Detailed Scheduling

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 (MPS/ MRP) Concurrent material and capacity constraint plan is

generated multiple times in a day

2 Detailed scheduling can be performed multiple times in a day



EHC - MAN


Transportation Planning And Vehicle Scheduling

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 Transportation planning process can be performed on a timely basis

with considerations of other supply chain constraints in the network

2 All processes and systems are integrated with key carriers, freight

forwarders, 3PL's, etc



EHC - MAN


Sales Order Promising

0

1

2

3

4

5

6

1

TOP 25% Average


Best Practice Ranking 1

When product is in limited quantity, able to prioritize customers, commit

an allocation quantity and then honor that commitment as product

becomes available



EHC - MAN


Warehouse Management

0

1

2

3

4

5

6

1 2 3 4 5 6

TOP 25% Average


Best Practice Ranking 1 'Cross Docking' is enabled to accelerate the flow of goods and avoid

unnecessary storage of goods in the warehouse

2 The system directs and optimizes stock put-away based on real-time

information about the status of bin utilization

3 Organization has real time enterprise wide visibility to inventory

4 Warehousing analytics is used to directly improve productivity and gross

margins

5 Orders are consolidated at an item level into waves for picking

6 Warehouse process is optimized based on ship times



EHC - MAN


Procurement Best Practices

2.32.5 2.5

1.0

4.0

3.0

4.34.5

4.0 4.0

5.0

4.0

0

1

2

3

4

5

6

Category Mgmt. &

Supplier Performance

Mgmt.

Compliance Contract Management Order Processing Material Receipt Financial Settlement




EHC - MAN


Category Mgmt. & Supplier Performance Mgmt.

0

1

2

3

4

5

6

1 2 3

TOP 25% Average


Best Practice Ranking 1 Organization conducts regular spend reviews to identify new areas of

contract opportunity

2 System has ability to aggregate purchases across all business units for

accurate global analysis of supplier spend data

3 Suppliers' performances are measured on a regular basis to review if

they are meeting contract terms and to gain leverage in negotiation



EHC - MAN


Compliance

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 Contract compliance is directed, or even mandated, by system controls

2

System provides various analyses and reports to monitor purchasing

and provides an analysis of compliance-related purchasing activities and

processes



EHC - MAN


Contract Management

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 Organization has a single, centralized repository of supplier contracts

2

Organization has ability to monitor supplier compliance with contract

terms; and performs regular reviews of contracts to insure terms and

conditions are being met



EHC - MAN


Order Processing

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 System processes POs automatically (no intervention necessary) and

submits them electronically to suppliers

2 Buyers have online access to PO status



EHC - MAN


Material Receipt

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 Receiving system is highly integrated with other systems such as

purchasing and inventory systems

2 'Evaluated receipt settlement' is utilized to take advantage of early

payment discount



EHC - MAN


Financial Settlement

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 Tools to support electronic invoicing, online supplier invoice inquiries

and dispute resolution are in place and used frequently

2

The AP system automatically alerts and does not accept receipt of

goods when it finds differences between invoice, order and receipt

(within defined tolerances)



EHC - MAN


Manufacturing Best Practices

2.5 2.52.7

2.0

4.5

4.0 4.0

4.7

0

1

2

3

4

5

6

Production Planning and Scheduling Manufacturing Execution Lean Manufacturing/ Efficiency Plant Maintenance




EHC - MAN


Production Planning and Scheduling

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 Individual plans and production schedules are pegged to actual sales

order

2

Customer delivery dates are integrated with material availability and

real-time manufacturing conditions to generate schedules that optimize

machine and labor capacity



EHC - MAN


Manufacturing Execution

0

1

2

3

4

5

6

1 2

TOP 25% Average



Equipment/ machinery and tools are allocated to operations correctly

and their status and usage is tracked in real-time to ensure that planned

production targets are met

2 Actual production costs and variances are automatically documented

and these variances against plan and budget are monitored in real-time



EHC - MAN


Lean Manufacturing/ Efficiency

0

1

2

3

4

5

6

1 2 3

TOP 25% Average



Flow manufacturing functions for line design, line balancing, demand

management, mixed-model planning, lean execution, and kanban

management are automated via system

2 Control of processes is managed by monitoring throughput as opposed

to managing variance reports

3 IT systems support the design, measure, analysis, improvement, and

control (DMAIC) cycle and resource and portfolio management



EHC - MAN


Plant Maintenance

0

1

2

3

4

5

6

1 2 3

TOP 25% Average


Best Practice Ranking 1 A majority of maintenance work orders are generated from the

preventive and predictive maintenance inspections

2 Maintenance planning takes into account skill required, material

required, tools required, and specific job instructions

3 Maintenance costs are clearly and accurately tracked for all assets



EHC - MAN


Human Capital Management Best Practices

1.0 1.0

2.0

1.0

4.0

3.5 3.5

4.3

0

1

2

3

4

5

6

Recruitment And Staffing Benefits Administration Payroll Administration Time And Attendance




EHC - MAN


Recruitment And Staffing

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 External and internal applicants are able to place themselves in a talent

pipeline according to their own interests or goals

2

Hiring managers have comprehensive recruiting self-service, incl. the

ability to submit job requirement profiles; use of approval workflows;

view of candidate short lists and data



EHC - MAN


Benefits Administration

0

1

2

3

4

5

6

1 2

TOP 25% Average



Benefits system enables employees to enroll online, to modify details of

the benefits plan and to update information regarding dependents and

beneficiaries, including tests for eligibility

2 Benefits system enables employees to check current enrollment in

benefits plans, and print confirmation statements and forms online



EHC - MAN


Payroll Administration

0

1

2

3

4

5

6

1 2

TOP 25% Average



Payroll system supports legal regulations for a large number of

countries, ensuring compliance with regulatory requirements for

reporting purposes

2 Payroll system supports multiple currencies, multiple languages,

collective agreements, and reporting



EHC - MAN


Time And Attendance

0

1

2

3

4

5

6

1 2 3

TOP 25% Average


Best Practice Ranking 1 Web enabled time administrator tool is in place

2

Time and attendance system has automated analysis and reporting

capabilities to analyze KPIs such as lost time, productivity, cost of

absence, overtime or illness

3 Online and offline time entry is available



EHC - MAN


Information Technology Best Practices

2.52.3

5.0

4.3

0

1

2

3

4

5

6

IT Strategy And Business Alignment Solutions/IT Portfolio Management




EHC - MAN


IT Strategy And Business Alignment

0

1

2

3

4

5

6

1 2

TOP 25% Average


Best Practice Ranking 1 The Company's IT performance management is linked with the business

outcomes

2 The company has established common, simple and streamlined IT and

business process standards across the organization



EHC - MAN


Solutions/IT Portfolio Management

0

1

2

3

4

5

6

1 2 3

TOP 25% Average


Best Practice Ranking 1 The company has and enforces a no-modification strategy for vendor

applications

2 The company has a master data strategy to drive common definitions

and standards

3 The company has a strategy in place for a single solution/ platform

landscape consolidation



EHC - MAN


Recommended Improvement Strategies

Strategies to focus: below average performance for

supporting best practices, KPIs Between average and top 25% performance for

supporting best practices and KPIs

Top 25% performance for supporting best practices

and KPIs

Drive efficient and

effective HR organization

Develop a high performing organization HR Cost as a % of Revenue

Align workforce with business needs

Streamline, automate and integrate HR processes

Drive profitable and

customer centric sales

organization

Transform Order to Cash in a fully automated and integrated end to end

process Days Sale Outstanding (in days)

Extend customer fulfillment offerings

Reduce Revenue and Margin Leakage

Drive responsive, lean and

integrated manufacturing

networks

Integrate and align manufacturing support operations (EAM & Quality) Operating Equipment Effectiveness

(in %)

Leverage lean principles to improve operational efficiencies

Improvement Strategies Sub Strategies Impacted KPI’s

EHC - MAN







and KPIs

Drive responsive, lean and

integrated manufacturing

networks

Integrate and align manufacturing processes across the network

Improve purchasing

effectiveness and

efficiency

Drive best price (e.g. e-auctions, global sourcing, new suppliers) Average Annual Savings-Overall (in

%)

Consolidate buying categories and optimize supplier base

Increase purchasing control on spend categories

Strengthen spend controls and measure/enforce compliance

Streamline and automate sourcing and procurement processes

Improve responsiveness,

agility and integration of

supply chain operations

Integrate and align upstream and downstream planning processes Days in Inventory

Reduce Variability in Execution


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and KPIs

Improve responsiveness,

agility and integration of

supply chain operations

Implement a Collaborative Demand Planning Process

Implement agile supply chain operations

Ensure supply, distribution and production plans are consistent in short-term

Transform Finance into

high performing, compliant

and efficient organization

Drive enterprise performance Finance Cost As A % of Revenue

Optimize cash leverage

Drive compliance & risk management

Streamline, automate & integrate core finance processes

Transform IT into business

partner and innovator

Streamline & automate operational processes IT Spend as % of Revenue


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and KPIs

Transform IT into business

partner and innovator

Partner with business to optimize performance


EHC - MAN


Benchmarking Results and Value Potential

KPI Benchmark Performance Potential Benefit (in millions)

Finance Cost As A % of Revenue

Days Sale Outstanding (in days)

Days in Inventory

Top25%

Average Annual Savings-Overall (in %)

Better than Average

Operating Equipment Effectiveness (in %)

Driving Business Value

Benefit of Closing Gap to Top 25% Benefit of Closing Gap to Average

1.10 0.79 0.37

1.68

60.0 43.6 28.0

56.2

80.5 57.9 29.5

19.9

1.0 3.2 5.0

3.4

85.0

65.0

65.0 73.7

Performance of Primary KPIs and Potential Benefits (in millions of selected currency)

8.86

13.08

34.4

77.3

5.2

EHC - MAN


Benchmarking Results and Value Potential

KPI Benchmark Performance Potential Benefit (in millions)

HR Cost as a % of Revenue

IT Spend as % of Revenue

Benefit of Closing Gap to Top 25% Benefit of Closing Gap to Average

0.53 0.34 0.12

0.92

1.6 1.1 0.5

1.8

Performance of Primary KPIs and Potential Benefits (in millions of selected currency)

5.79

7.99

7.5

13.6

EHC - MAN


EHC Adoption Maturity Model

No Adoption Low Adoption Intermediate Adoption High Adoption Full Adoption

Majority of the organization has

well defined and executed finance

strategy. Most functions cross-site

integration enabled by common

systems. Risk is managed

centrally with few exceptions.

Finance strategy is not defined.

Functions like AR, AP, GL

Costing, etc. are not integrated or

interfaced. Systems/ tools are

stand alone. Planning is done

annually. There is no formal risk

management process.

Finance strategy is focused on

efficiencies, functions interfaced

but require manual edits with

limited integration. Planning is

done quarterly, and risk

management is location based

Finance strategy is location

specific. Functions integrated

within locations but nor across

sites. Monthly planning process

across locations. Risk is

managed locally and not

standardize across locations.

Finance and Cash Management

Organization has well defined

and executed finance strategy.

All functions are integrated and

there is also cross-site

integration enabled by common

systems. Risk is managed

centrally.

There is no formal supply

chain planning. Financial

annual plan/ budget is used

as the only planning tool.

Local sales forecasts are used

as annual plan and are broken

down to product family and

regional levels. Detail supply

chain plans are developed in

some location but not reconcile

with the annual plan.

Supply Chain Planning

Global S&OP process is

implemented which incorporates all

functions and partners and drives

supply, manufacturing and logistics

plans. Local plans are derived form

the S&OP and adjusted for local

demand and supply

Majority of the organization

implemented global S&OP

process which incorporates all

functions, partners and drives

supply chain plans. Local plans

are derived form the S&OP and

adjusted for local demand and

supply

Some local sales forecasts are

used as input to a local sales and

operations plan, then broken

down to local executable plans

and reconciled up to the running

monthly, quarterly and annual

plans.

Some location procurement is

integrated with manufacturing and

distribution. Performance measured

based on balanced score card .

Close collaboration with few

selected suppliers through web-

based applications

Procurement function is

inward focused and driven by

local, short horizon priorities.

There is no formal supply

strategy and suppliers

evaluation.

Suppliers evaluation on-time

deliveries and cost is limited to

few locations. No strategic

management of key categories

and no initiative to improvement

savings in spend.

Integrated with manufacturing and

distribution for many locations.

Performance measured through

balanced scorecard. Close collaboration

with majority of suppliers through two-

way web-based applications

Procurement is closely integrated with

manufacturing and distribution. Their

performance is measured based on

balanced score card. Close

collaboration with majority of

suppliers through two-way web-based

applications

Procurement

Organization does not operate

manufacturing plants as a

networks. Production planning

and execution is plant specific

and cannot be re-planned

easily. Plant maintenance is

reactionary.

Organization does not operate

manufacturing plants as a

networks. Local weekly

production plans which can be

re-planned overnight. Have few

maintenance schedules.

Organizations' plants operate as a

network. Production planning is

sensitive to network situations and

are flexible to be re-planned as

needed. Plants use preventive and

predictive maintenance schedules.

Majority of plants operate as a

network. Production planning is

agile to network situations and are

flexible to re-planning. Plants use

preventive and predictive


Manufacturing Network/ Operations

Adoption of best practices varies at each stage of maturity

Manually (spreadsheets) are

used without advanced

systems. Data collection is

manual and entered into MRP/

Inventory systems next day.

There is no integration of

systems.

Some plants use MRP weekly

report for scheduling. There is no

integration between functions.

Manufacturing schedules, Order

Management and Inventory

systems are updated in batch.

There are some plants with

integrated MRP, Inventory and

Sale and Distribution systems.

There is no integration with plant

maintenance.

Organization's all manufacturing

processes can automatically collect

production count, quality and

machine operation data, re-plan if

needed and communicate with the

rest of enterprise systems

In Majority of plants, for manufacturing

processes, capability exist to

automatically collect production count,

quality and machine operation data,

re-plan if needed and communicate

with the rest of enterprise systems.

IT

EHC - MAN

Few plants operated and are

planned as a network. Network

specific production plans and are

flexible to be re-planned overnight.

Some plants have preventive


Human Resources

Common HCM Platform for core

HR transactional processes and

some talent management

processes and analytics talent

and analytics. ESS fully adopted,

MSS partly

Many systems in place for

managing HR processes. No

usage of benchmarking

Common HCM platform for

personnel data, additional

applications for talent &

analytics. Employee self-service

(ESS) partly used

Common HCM Platform for core

HR transactional processes,

additional applications for talent

and analytics processes. ESS &

MSS partly adopted

All human resources processes

on a single, integrated HCM

system which leverages

common master data

framework. ESS and MSS fully

adopted

Date post:	18-Dec-2021
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SAP Performance Benchmarking

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