Sapphire Presentation for Review_CPG_Food.PPTX

0 Copyright 2010 Fujitsu America, Inc.

Fujitsu Capabilities' & Solutions


Introductions

John V. Counts Sr.Vice President Enterprise Solutions

SAP years: 18 years

Manufacturing: 22 years

Certification: B.S. Industrial Engineering, MBA

Logistics, SAP Certified, Six Sigma (Black Belt),

APICS Certification, CPIM / CSCP.

Expertise: Consumer Products Food & Beverage,

Automotive, Life Science, High Tech, Industrial

Machine & Component , Mill Products and

Catchweight, Lean Manufacturing & Wholesale

Distribution.

Key Clients: Ford, Lenovo, Tyson Foods, Smithfield

Foods, Pilgrim’s Pride, Dean Foods, Perdue Farms,

Coca Cola, Pepsi Cola, Brown Forman, Southern

Wine, John Deere, Caterpillar, WR Grace, Gilbarco-

Veeder Root, Volvo, Owens Corning, Novus, DHL,

Bosch, Hearthside Foods etc.

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”-Aristotle


Agenda

Fujitsu Project Approach

High Level Presentation of Selected Solutions


Agenda




1. Analyze and plan Cost and profitability analysis

Comprehensive sales planning

and monitoring

2. Procure Inventory/stock visibility

Compare vendor quotations

5. Deliver and

service Complete support for

product returns

Complaint management and

track and trace capability

3. Manufacturing Support for multistage

manufacturing processes

Integrated costing and quality

management

4. Market and sell Capable to promise/

available to promise

Product allocation

Third-party sales drop-ship

Fujitsu’s Core Ability to Integrate Systems

Creates Tangible Value in All Key Areas


Macroscope®Program Methodology with ASAP Extension

• PROVEN

• PRACTICAL

• INTEGRATED

• SCALABLE

• CUSTOMIZABLE

• SUPPORTED

Processes What do we do? Who does it?

When? In what sequence?

Tailoring guidelines

Roles Clear roles and responsibilities

Team dynamics

Role perspectives on process

Deliverables What work products are required?

Suggested content

Which techniques can help me?

Techniques How do I do this?

How to capture the results?

What notation should I use?

Accelerators Deliverable Assistant

Templates and examples

Checklists and Worksheets

Annotation and support material

Other productivity tools

Learning Resources Role-based Training

Case Studies

Examples

Printable Guides

5


ASAP Integrated with Macroscope

Leveraging the strength of our experience and successful approaches


Rapid Implementation Design

Design is an on-going activity

Design in Lean IT is not static – it is incremental and responds

to learning

Do the simplest thing that can possibly work at

each point: Passes all known tests

Contains no duplication

Communicates intent clearly

Is a small as possible – fewest classes, methods, lines of code

No speculative development (YAGNI) Always develop things when you actually need them, never when you

just foresee that you might need them

Simple designs reduce friction and surface area

7


Globalization vs. LocalizationUsing the Fujitsu Global ASAP methodology, global enterprises can streamline multisite implementations through the

development and subsequent rollout of a global template. By conducting an analysis of your business processes and

requirements, you are able to define which are common to all sites and which are sites-specific. The global template

includes those processes common to all sites. Use of this template enables quick, repeatable multisite

implementations. Local requirements such as site-specific processes and local statutory requirements are then

incorporated into your global template at the appropriate local level during rollout.

Local

Elements15-20%

Global

Elements80-85%

Documen-

tation

Structures

and settings

GlobalConfiguration Org structure

Master data

documents

Language& Currency

Statutory Regulations

Global and inte-

grated processes

Other

STANDARD DATA

STANDARD PROCESS

STANDARD METRICS

STANDARD PERFORMANCE

Fujitsu’s

Global

Template


Agenda




3rd Party Warehouse

Feedlots

Retailers

Consumers

Co-Packers

Distributors

Industry Customers

Service/Maintenance

Transport

Authorities

CPGManufacturers

Farmers, Feed Suppliers, etc.

Suppliers

SAP CWM-based Solution:

More Efficiency, Customer Satisfaction & Profitability

Accurate calc. of weight: Freight costs Reloading/Unloading

Accurate Prod. Planning: Yield Overstock Efficiencies

Relevant Unit/Quantity-based planning: Overstock Sell-off need

Inventory visibility in Parallel Quantities: Out-of-stock situations Re-measuring

Actual weight-based Invoicing & Payments: Efficiency

Prod. Costing on dedicated valuation unit: Accounting impact on

manufacturing Control & profitability info Correction of books

Actual weight-based billing: Customer disputes = lower costs Customer satisfaction Give-away = more profitability

Communication of shipped goods in parallel quantities incl. packing: Customer Satisfaction Re-weighing effort Efficiencies

Pre-configured Solutions


Innovative Solutions for Clients - Samples

Poultry: Fujitsu was chosen by a major poultry company to migrate to SAP ECC

6.0 and implement Financials and Business Intelligence. Customer is the

number-one brand of premium chicken in the Eastern U.S., entered into their

SAP Upgrade’s realization phase in June 2010. The project presented both the

challenge and opportunity to build a sophisticated SAP O2C-based solution for

upgrading SAP 4.6C (IS-Oil) to SAP ERP 6.0 with EhP 4 (Catch Weight

Management).

Wholesale Distribution Solution: Fujitsu developed an automated chargeback management system for a Major Wholesale Distributor leveraging the Vistexproduct. Fujitsu team also developed a unique Online Order Guide. This innovative solution has provided immediate ROI by streamlining order entry and chargeback management. Chargeback cycle reduced from 30–90 days to 14–21 days, and eliminating loss from manual recovery of chargebacks

Catch Weight Management (CWM) solution: Fujitsu partnered with SAP and deployed the first successful CWM solution for a major food group allowing them to manage their inventory and financials in multiple units of measure. Fujitsu also partnered with SAP for the first successful deployment of OutlookSoft (now BPC) significantly improving the company’s ability to obtain accurate, timely and detailed financial statements.


Identify, Quantify & Reduce Catch Weight Loss

Accurately identify and quantify catch weight loss at various points in the supply chain where it was not previously possible.

Implement technologies and processes designed to reduce catch weight loss.

Enable more accurate reporting and accounting of catch weight value throughout the supply chain, helping to increase revenue realization

Reduce product time-to-market, enhancing your competitive advantage and revenue potential.

The special challenges in food processing operations and their supply chains have often forced companies to accept

a high degree of product loss along with accounting inaccuracies as product moves to market. Fujitsu offers deep

business expertise in delivering Enterprise Resource Planning (ERP)-platform solutions such as Catch Weight

Management. Fujitsu helps you identify and assess opportunities in your internal operations and processes, as well

as your broader supply chain where our tailored solution will drive new standards for performance.

For food companies

Manufacturing: Consumer Products Foods Solution Template Catch Weight Management

Improve Operational Performance

Improve revenue realization through increased reporting and accounting accuracy of catch weight value throughout the supply chain.

Reduce the effort required for repeated weighing operations by linking actual weights to handling units.

Improve the visibility of costs and reduce the total cost of ownership (TCO).

Improve the visibility of margins with new flexibility in the management of inventory prices.

Increase channel partner and customer satisfaction through more accurate billing of actual weight shipped.

• With CWM, the fullfilment of purchase orders can be recorded and controlled more accurate for catch-weight materials: Goods receipt is posted in 2 units of measure (UoM) in parallel, the logistics unit of measure (e.g. pieces) and the valuation unit of measure (e.g. kg). If the pricebase of the purchase order-item is defined using the valuation UoM, verification of the receipt invoice is performed against the real catch-weight quantity, which is more precise than without CWM, where only planned conversion factors are available

Procure to Pay

• With CWM, the fullfilment of customer orders can be recorded and controlled more accurate for catch-weight materials: Goods issue is posted in 2 units of measure (UoM) in parallel, the logistics UoM (e.g. pieces) and the valuation UoM (e.g. kg). If the pricebase of the sales order-item is defined using the valuation UoM, creation of the sales invoice is performed based on the real catch-weight quantity, which is more precise than without CWM, where only planned conversion factors are available.

Order to Cash

• With CWM, the goods issues and goods receipts related to PP- or PP-PI orders can be recorded and controlled more accurate for catch-weight materials: all movements are posted in 2 units of measure (UoM) in parallel, the logistics UoM (e.g. pieces) and the valuation UoM (e.g. kg).Manufacturing

Inbound & Outbound Logistics

Inventory Accounting

With CWM, all material movements for catch-weight materials are posted in 2 units of measure (UoM) in parallel, thelogistics UoM (e.g. pieces) and the valuation UoM (e.g. kg). Accordingly, Inbound and outbound delivery for catch-weight materials are also recorded in both UoMs. If handling unit management is in place, also postings related tohandling unit-items are performed in both UoMs.

In warehouse managment, transfer orders are used to report quantities in both UoMs in order to enable inventorymanagement to update inventory in both UoMs.

Inventory Accounting for CWM supports valuation of goods movements and material inventory based on parallel unitsof measures as used with Catch Weight Management scenarios. For each CW relevant material either the logisticsunit of measure (e.g. pieces) or a parallel unit of measure (e.g. kg) can be chosen as base for the valuation. Materialmovements can be valuated online with either moving average price or standard price. In addition balance sheetvaluation functionality allows the calculation of periodic prices based on different procedures like FIFO or marketprice. All prices are held in the flexible price manager which supports daily or periodical prices and introduction ofadditional prices types required for additional purposes. Besides material inventory also work in process is valuatedimmediately with the costs incurred for the production or process order. Remaining variances after goods receipt canbe settled periodically as also remaining variances from procurement processes can be cleared periodically.

Business Processes

ECC 6.0 CWM Business Case


Fujitsu Preconfigured Solutions

Procure to Pay

Live Stock Procurement

Catch Weight Management

Production Planning

Production Execution

Production

Sales Order Processing

Indirect Sales

Direct Store Delivery

Empties Management

Rebate and Bonus

Management

Sales Returns

Meat Sales Processing

Traceability & Food Safety;

Quality Management

Inventory Management

Excise Duty

Contribution Margin Planning

Financials and Controlling


Industry Challenges Improving efficiency of purchasing activities Realizing savings in purchased value Allowing visibility into vendors’ conditions and

services Ensuring tracking and traceability Ensuring quality of all materials and

components used in manufacturing

Business Benefits Automate operational tasks Improve vendors’ selection and price

comparison through quotation handling Formalize agreements by introducing contract

management and relating it to quotations Introduce batch management for tracking and

traceability of components Guarantee quality check through goods receipt

inspections

Efficient purchasing is a top task for food & beverage companies today. SAP ERP supports price comparison of

vendors’ offers, incorporating flexible pricing processes for the actual value of the raw ingredients delivered. Provided

are tools to gain greater spend visibility in procurement, to automate operational tasks, and to help manage

quotations, contracts, batch handling, and quality.

For food & beverage companies

Solution

Procurement

Request for

quotation, for

Proposal

Price

Comparison

Purchase

requisition,

Purchase order

Warehouse

Management

Quality

Inspection

Batch

Management

Vendor

Evaluation

Returns

Subcontracting

Contracts

Contract

Management:

Vendor,

quantity, value

and validity

period

Monitoring

contracts

Invoice

verification

Rebates

Sourcing and ProcurementProcure To Pay

Third-Party

Procurement

Info records

Scheduling

agreements

Delivery

Schedule

Management of

vendor

consigned stock

Invoice receipt

from

Consignment

Withdrawel

Outgoing

payment


Industry Challenges Highly volatile prices in purchasing livestock

Extreme margin dependence based on efficiency in procurement

Unknown quality levels in meat

Less transparency in payment process

Different, complex, and individual procurement processes

Risk of purchasing infected meat

Business Benefits Improved transparency in meat procurement

Increased procurement processing efficiency

Raised quality standards by integrated quality management

Reduced operating costs and increased efficiency by efficient procurement processes

Enhanced communication with farmers/ suppliers

This is a focused solution for livestock procurement. The SAP® ERP packaged solution for the meat industry featuresa powerful livestock procurement function that you can use to purchase efficiently, process the goods receipt, andsettle. It includes efficient procurement of livestock, compliance with high-quality standards and traceabilityrequirements at all process stages, calculation of payments based on quantity and quality characteristics, monitoringof the procurement and payment processes, and release of reports to the supplier.For meat companies.

Meat Purchasing

Set up contracts

with supplier (e.g.,

conditions,

quantity, time

frame)

Set up quality

criteria for

valuation

Enter market prices

Purchase live

animals

Trade meat

Manage order

Sourcing and Procurement

Livestock Procurement

Solution

Creation of lot

number with direct

reference to PO

and supplier

Sampling

management in

goods receipt

Capturing weight

and quality criteria

Monitoring of

supplier

relationship status

Livestock settlement

calculation based on

quantity and quality

criteria

Evaluated Receipt

Settlement (ERS) –

automatic invoice

creation

Report with overview

of delivered livestock

and its quality

SettlementGoods Receipt


Industry Challenges Reducing time-to-market in CD&HA

manufacturing Ensuring quality checks over the entire

manufacturing process Improving manufacturing efficiency

Business Benefits Create and modify bill of materials easily

and quickly Identify quality-noncompliant lots by

defining product inspection lots and related usage rules

Calculate and monitor production costs

SAP ERP gives the flexibility to manage multistep manufacturing processes. It incorporates in-process and post-

process quality management. The solution also includes cost-object controlling, such as preliminary costing,

simultaneous costing, and period end closing.


Production

Planning

Sales and Operation Planning

Transferring data to Demand Management

Planned independent requirements

Long-term planning

MRP run

Generation of planned orders

Planning table

Capacity planning

Conversion of planned orders into

production orders

Manufacturing: Consumer Products Foods Solution Template Production Planning

Solution


Industry Challenges Reducing time-to-market in CP

manufacturing Ensuring quality checks over the entire

manufacturing process Improving manufacturing efficiency

Business Benefits Create and modify bill of materials easily

and quickly Identify quality-noncompliant lots by

defining product inspection lots and related usage rules

Calculate and monitor production costs




For food & beverage companies,

Manufacturing: Consumer Products Foods Solution TemplateProduction Execution

Production

Execution

Production order creation

Bill of material management

Make-to-Stock Production – Process Industry

Make–to–Stock Production – Discrete Industry

Repetitive Manufacturing

Make-to-Order Production w/o Variant Configuration

Rework processes

Quality management

Batch Management

Product costing

Inventory update

GMP compliance

Lean manufacturing

Kanban

Heijunka (Production Leveling)

Solution


Industry Challenges Increasing competitive pressure from retailing/growth

of private labels

Short-term notice of customer demand

Variable demand due to seasonality

Difficult management of production planning and

execution due to high product complexity

Transparency in yield and cost on a timely base

Multistage complex production environment

Traceability throughout production

Business Benefits Improve transparency in dairy production

React flexibly to fluctuating demand

Realize higher demand accuracy

Reduce operating costs and increase efficiency by

efficient production processes

Calculate and monitor production costs seamlessly




For meat companies.

Slaughtering

Manufacturing: Consumer Products Foods Solution Template Production

Segmentation

SolutionSecondary

Processing

Secondary

processing

schedule

Sample

management

Post-process

quality

management

Packaging raw

and processed

meat

Capturing data for

traceability

Production order

costing

Label printing with

weight, batch,

date, etc.

Segmentation

schedule

In-process and

post- process

quality

management

Material up- and

downgrading

Shop-floor data

acquisition

through user-

friendly interface

Capturing data

for traceability

Segmentation

costing

Segmentation

statistics

Slaughtering

schedule

Recording grade

and weight of

slaughtered

livestock

Capturing data for

traceability

Slaughter costing

Source of origin


Industry Challenges Managing variable pricing conditions by different

customer/product combinations Shortening order cycle times Meeting customers’ requests for improved services

(such as order fulfillment, invoicing, and payments methods)

Business Benefits Define standard and ad hoc price lists easily and

quickly Improve the sales execution timeline by implementing

a seamless process and the timely availability of key information

Improve order fulfillment through stock availability checks

Provide the customer with alternative services and methods for invoicing and payments

SAP ERP can effectively manage the entire customer order process – variable pricing, delivery, invoicing, and

payment. You can focus on shortening order cycle times, make on-time and in-full deliveries, and provide customers

with optimal payment methods.


Extended Sales

Order

Processing

Sales order

creation

Third-party

sales order

Delivery

creation

Picking

Goods issues

posting

Down payment

Billing creation

Billing

documents

display

Availability

checks and

batch

determination

Customer

Consignment

Processing

Consignment

fill-up

Consignment

issue

Consignment

pickup

Manufacturing: Consumer Products Foods Solution Template Sales Order Processing

SolutionEDI

Inbound sales

order via EDI

Outbound

billing

document via

EDI


Industry Challenges Obtaining usable and relevant data about

customers through third-party wholesalers Allocating promotional spend efficiently Securing correct rebate processing across

a complex supply chain

Business Benefits Understand better those customers that are

serviced by a third-party wholesaler due to improved data quality and availability

Allocate promotional spend more efficiently by collecting and analyzing valuable customer information

Process rebates and commissions correctly due to improved data quality and availability

Obtaining customer information through a third-party wholesaler can be a challenge for many food companies. The

SAP™ ERP packaged solution enables food companies to gain a more complete understanding of their business

performance by allowing them to track their sell-through in different channels and to specific accounts.


Indirect Sales Data

Management

Maintain information

about wholesalers’

customers

Create template for

data requirements

Create requests for

sales reports

Receive indirect

sales data (volume,

quantity, and value)

from wholesalers

Confirm and

validate received

data for rebates

calculation

Analyze indirect

sales data

Perform periodic

partial settlement

Rebate Agreements

Define rebate

agreements

Track rebate

obligations for

both direct and

indirect sales

Take contractual

agreements into

consideration

Set up reserves

based on

planned sales

Settle indirect

agreements

Manufacturing: Consumer Products Foods Solution Template Indirect Sales

Solution


Industry Challenges Succeeding in the face of intense

competition between brands Establishing direct contact with customers,

such as retailers, restaurants, and pubs Improving operational efficiencies in a

complex system

Business Benefits Improve customer service through better

service levels and multiple points of access Increase revenue by improving order fill

rate and reducing shrinkage Reduce operating costs and increase

efficiency by reducing administrative functions

Lower working capital by reducing inventory carrying costs

Visit Control and

Scheduling

Picking, Packing,

and Loading

Manufacturing: Consumer Products Foods Solution Template Direct Store Delivery

Solution

Group customers

in visit plans

Assign visit

calendar and

routes

Schedule

deliveries

Optimize

shipments daily

Create visit list

Calculate

workload

estimates

Complete goods

issue process

Check-in/check-out

Balance materials

and payments

Perform settlement

process incl. post

goods issue

receipts

Credit or debit

customer and

driver accounts

Route

Accounting

Direct Store Delivery (DSD) is a business process that is used to distribute goods directly to the customer. It makes

materials quickly available to stores and customers (for example, food, drink, flowers, nnewspapers'). DSD ooptimizes

process settlement in sales and in distribution as well as logistics costs by using efficient visit planning .



Industry Challenges Tracking empties assets

Obtaining holistic view of empties across

entire supply chain

Revaluating of empties on customer side

This process paints a detailed picture of your entire empties situation after the manufacturing process, showing you

the location and status of your crates, kegs, or pallets, and helping you optimize your return logistics. It also lets you

quickly access each customer’s empties account as well as print delivery notes or invoices that record the empties

involved in a delivery.


Empties

Management

Manufacturing: Consumer Products Foods Solution Template Empties Management

Solution

Empties bill of materials (BoMs)

Including of empties into credit

control

BOM explosion in sales

processes

Managing empties at customer

locations

Empties on deposit

(charge and credit for

deposits)

Empties accounts (track

running empties balance)

Business Benefits

Decrease costs by controlling high value

empties assets

Increase control by managing empties at

customers side


Industry Challenges Organizing numerous parties

(e.g. wholesalers, retailers)

Maintaining potentially complex

rebate/bonus structures

Enabling a multitude of transactions

Paying of bonus as separate invoice is a risk due

to Russian legislation

Business Benefits Drive increased volume through effective bonus

programs

Increase efficiencies by automatically managing

the entire rebate process for both direct and

indirect rebates

Increase rebate accuracy and customer

satisfaction by collaborative agreement to indirect

sales volumes

Control rebate costs through tight management of

the entire process

Rebate and bonus agreements, including coupon agreements, are critical to enhancing relationships between

beverage manufacturers, wholesalers, and customers. With the SAP® Beverage application, you have the tools you

need to easily and accurately manage large, complex partner constellations with any number of bonus arrangements

for direct or indirect sales.


Rebates and Bonus

Agreements

Coupon

Management

Manufacturing: Consumer Products Foods Solution Template Rebate & Bonus Management

Solution

Create internal order

Maintain planned

costs (incl. accruals)

Procure, distribute

and redeem coupons

Carry out coupon

settlement with

retailer or clearing

house

Compare actual

/planned costs

Run profitability

analyses

Define rebate agreements

Track rebate obligations for

both direct and indirect

sales

Transfer calculated sum

into SD as a discount for

future period and track

payment

Calculate the exact scales

(interval scales) periodically

Make multiple rebate

payments to various rebate

recipients

Set up accruals based on

planned sales

Use pendulum list for

indirect sales volume

update

Settle direct and indirect

agreements


Industry Challenges Obtaining usable and relevant data about

customers through third-party wholesalers Allocating promotional spend efficiently Securing correct rebate processing across

a complex supply chain

Business Benefits Understand better those customers that are

serviced by a third-party wholesaler due to improved data quality and availability

Allocate promotional spend more efficiently by collecting and analyzing valuable customer information

Process rebates and commissions correctly due to improved data quality and availability

Obtaining customer information through a third-party wholesaler can be a challenge for many beverage companies.

The SAP™ ERP packaged solution enables beverage companies to gain a more complete understanding of their

business performance by allowing them to track their sell-through in different channels and to specific accounts.


Indirect Sales Data

Management

Maintain information

about wholesalers’

customers

Create template for

data requirements

Create requests for

sales reports

Receive indirect

sales data (volume,

quantity, and value)

from wholesalers

Confirm and

validate received

data for rebates

calculation

Analyze indirect

sales data

Perform periodic

partial settlement

Rebate

Agreements

Define rebate

agreements

Track rebate

obligations for

both direct and

indirect sales

Take contractual

agreements into

consideration

Set up reserves

based on

planned sales

Settle indirect

agreements

Selling and DeliverySales Returns

SolutionRebate

Agreements

processing of credit

memos in case of

complaints

returned goods go

through a quality

evaluation

Centralized

processing of

subsequent

inventory and billing

activities based on

multiple analysis

results

Generation of

settlement

documents in

background

processing


Industry Challenges Perishable products, spoilage in warehouse

Order management with customer-specific criteria

Monitoring stocks in warehouse

Traceability through delivery to the customer

Unplanned inventory due to short-term production schedule

Monitoring weight losses

Business Benefits Improved sales order processing and distribution of meat

Reduced effort in delivery creation and packaging by

automatic batch determination

Detailed overview and tracking of batch information with

batch recall capability

Increased service level for customer

Integration of real-time financials and costing reports

Weight loss capture from production to customer

The sales and distribution cycle encompasses sales order processing, delivery, billing, and payment. The picking and

delivery process has been specifically designed to address shelf-life management of meat products. Customer

requests such as minimum remaining shelf-life are processed within order management and during the picking

process. Additionally, overstocked meat can be easily sold using a push approach.


Selling and DeliveryMeat Sales Processing

Solution

Sales order processing

Push-sales management

Product substitution

Handling unit

classification (to record

weight)

Customer-specific batch

determination

Shelf-life management in

finished goods

warehouse

Prevent shipping of

suspect batches

Transportation planning

with capacity checking

and batch split

Batch recall

Rebate agreements

and monitoring

Sales order creation

Delivery creation

Picking and packing

Goods issues posting

Integrated

transportation costs

(with minimum freight)

Billing creation


Operational End-to-End ScenariosTraceability & Food Safety; Quality Management

Industry Challenges Being fully compliant with food regulations, such as EU

(Article 18 of Regulation 178/2002), U.S. (The

Bioterrorism Act of 2002), HACCP (Hazard Analysis and

Critical Control Points)

Addressing growing food-safety concerns from

consumers

Business Benefits Minimize risk of losing customer trust by professionally

managing a possible recall of a defective batch Minimize risk of noncompliance with food regulations Enable effective batch-specific returns processing Monitor materials planning, sales and distribution,

procurement and production

Solution

Food safety requirements are becoming more stringent across the food industry, which means that food companies

must have track-and-trace capability for all products, as well as the ability to recall a defective batch. The SAP™ ERP

solution allows companies to meet the industry requirements for food safety and traceability and to reduce

operational risk significantly.


Quality

Management

Batch

Management

Handling Unit

Management

Plan for quality

Inspect for

quality

Record

laboratory

analyses

Create reports

on quality

Improve quality

Monitor

procurement,

production,

distribution

processes

Manage automatic

batch creation,

determination,

status, and batch-

where-used-list

Track defects

Recall batches

and create follow-

up activities

Manage batch

specific return

processing

Manage batches

based on shelf-life

expiration and

other usability

differences

Manage

production

processes with

HUM

Handle Serial

Shipping

Container Code

(SSCC) numbers

Integration with

quality

management and

batch

management

Supply Chain Traceability & Monitoring Process


Transportation

Management

Plan transports

Monitor

execution

Calculate costs

Manage

transportation

settlement

Industry Challenges Maintaining low inventory levels Avoiding out-of-stock situations at

retailer Establishing visibility to inventory levels

throughout the entire supply chain

Business Benefits Reduce working capital by keeping

inventory levels low Increase sales by reducing out-of-stock

situations Improve consumer retention due to

product availability

Managing inventory levels efficiently, that is, maintaining low inventory levels while avoiding out-of-stock situations,

is a high priority for food companies. The SAP™ ERP packaged solution enables food companies to optimize both

inventory levels and storage space based on inventory planning and turnover. At the same time, quality checks can be

performed in combination with warehouse management and transportation management.


Inventory

Management

Achieve full

integration with

accounting

Receive and

issue goods

Manage

different stock

categories

(available,

blocked, in QA)

Valuate

inventory

Warehouse

Management

Manage goods

receipt, storage,

goods issue

Manage and

inspect for

quality

Manage return

of goods

Pick goods

Manage

materials in

batches

Operational End-to-End ScenariosInventory Management

Solution


Industry Challenges Meeting local legal and fiscal requirements

(chapter 22 of the Tax code of the Russian Federation)

Processing of several tasks in on-line mode

Preparation for obligatory EGAIS implementation in near future

Business Benefits Integrated solution

Full support of Russian legislation

On-line transfer of accounting data

When alcoholic material is purchased, moved, or sold, the accompanying processes become tax-relevant with respect

to the excise duty. The SAP™ ERP packaged solution includes the excise-duty processing that provides monitoring

and reporting functions on excise-duty-relevant material movements in the vendor-manufacturer-customer

relationship.


Goods

Movements

Reporting /

Financials

All Movements of

tax relevant

materials between

tax warehouses

are reported:

- Goods Receipt

- Goods Issue

- intercompany

- Subcontracting

- Returns

- Scrapping

Used for trading

goods and

materials from

production

Definition of

excise payers

Definition of

taxation periods

Terms of

payment

Creation of Tax

report/declaration

Initiating payment

Operational End-to-End ScenariosExcise Duty

Solution


Industry Challenges Evaluate the profitability of markets, channels,

products and customer segments

Layer on cost-of-goods-sold (COGS) from prduct cost accounting to construct a contribution margin model

Multi-dimensional profitability reporting

Business Benefits Integration to sales, financials, controlling and

production

Use of automatic functionality for planning

Data can be planned in spreadsheet

Avoid bottlenecks, over- and under-absorption

in production.

Material requirements planning as a basis

for purchasing contracts

This scenario provides CO-PA enhancement for the consumer products and wholesale industries. The focus here is to

provide planning on contribution margins and sales figures. Furthermore the revenue and the costs are planned on

product and customer levels. The scenario is integrated in the complete planning cycle. The costs are received from

CO-PC and cost center planning and the planned quantities are transferred to SOP.


Contributin Margin

Planning

Revenue Planning

Material Cost

estimation transfer

Transfer planned

overhead costs to

CO-PA

Execute CO-PA

Report about

Contribution

Margins

Additional master

data

(characteristics

and value fields

Calculation of

contribution

margins based on

standard costing

and actual costing

Enterprise Management & Support


Solution

Revenue Planning

Revenue planning

on basis of

historical data

Cost calculation

Transfer to SOP

Quarterly plan

Sales quantity

planning on the

basis of actual

data

Transfer to SOP

Create sales plan

Sales quantities

transfer to SOP.

Rough cut capacity

planning

to check against

bottleneck

resources

Feed data into

Long term planning

Generation of

production plan

MRP run in

simulated mode

Calculate the total

utilization of the

manufacturing

work centers

Sales &

Operations

Planning

Quarterly Plan/

Revenue Plan


Industry Challenges Meeting local legal and fiscal requirements

Improving efficiency of administrative activities

Maintaining focus on most profitable customers and brands

Business Benefits Implement an ERP solution fully compliant

and continuously updated with local legal and

fiscal requirements

Improve efficiency in accounting activities due

to a seamless process integration across the

business which eliminates double checks and

redundancies

Enhance company profitability analysis

through profit and loss calculation by

customer and brand

All food companies need to manage financial requirements and enterprise profitability. The SAP® ERP packaged

solution for the meat industry helps to gain insight into all aspects related to accounting and controlling and provides

streamlined functionalities that allow visibility, increase productivity, and help meat companies regain control of their

business processes.

Financials

Enterprise Management & Support


Solution

Standard cost and profit center

accounting

Profitability analysis

Product costs planning

Product cost controlling

Controlling

General ledger

accounting

Accounts

payable

accounting

Accounts

receivable

accounting

Bank

accounting

Closing

activities

Cash

management

Assets

management


Questions and Answers

Copyright (C) 2009 Fujitsu America31


Fujitsu Preconfigured Solutions

Procure to Pay

Live Stock Procurement

Catch Weight Management

Production Planning

Production Execution

Production

Sales Order Processing

Indirect Sales

Direct Store Delivery

Empties Management

Rebate and Bonus

Management

Sales Returns

Meat Sales Processing

Traceability & Food Safety;

Quality Management

Inventory Management

Excise Duty




Thank You!


Appendices


What is it?

Documented global business requirements

Business scenarios representing global best

practices

A configured system enabling common

business processes

Support for multiple business models and

solution requirements (e.g. manufacturing,

final assembly and service)

Master Data Strategy & Definition

Enterprise Data Warehouse Strategy

Test Cases

Implementation Kit - guidelines, training

materials & project standards

Once completed, individual business operations

may implement the needed solution elements

with minor configuration changes to support

local VAT, legal and other business-justified

extensions.

Global or Deployment Template Definition

Why?Enable quick, repeatable, and cost-efficient project

implementations

Define common and potentially shareable core

business processes

Allow transfer of leading practices across all lines of

business

Deliver flexible business solutions that utilize

integrated applications, common technology, and

standardized data

Eliminate investment in redundant system

development, interfaces, and support

The establishment of a standard set of global

processes to serve all business components

Establishment of a Master Data Set for all facilities

leveraging single instance capability if desired

Incorporation of regional differences to the Global

Template (currency, language, statutory

requirements)

Enables manufacturing cross-region flexibility with

focus on supply chain improvements

Common processes enable reduced new product

introduction timeframes

Enables global visibility to inventory, cost,

profitability

More rapid ROI


Drive for quick, repeatable project implementations Project methodology Compliance check Documentation of standards

Define common core business processes Efficient centralized definition and pre-configuration of global / harmonized elements Setup of multiple templates in parallel

Allow transfer of leading practices across all lines of business Re-use of customizing on local components Version management Comparison and adjustment of template versions

Deliver flexible business solutions that utilize integrated applications, common technology and standardized data

Minimize investment in redundant systems development, interfaces, and support

Global / Pre-Configured Template, “What Do I Get”.

Approach is to standardize at least 80%-85% of processes across organization and make that the

global template. Gaps (15%-20%) will be addressed in local templates. First implementation

would be global template plus at least one local deployment


Business ObjectivesHow Do You Fit with the Global / Pre-Configured Template

Business

Objectives include:End State

View:

Business

Transformation and

Standardization

Develop template to bridge the

gap Current state and End

state

Move to single global template and supporting platform, increasing agility and transparency across all business units

Standardize and improve globally and locally to meet business objectives

End-to-end factory solution supporting mixed modes of manufacturing

Robust product configuration capabilities

Global view of spend, inventory, capacity, and profitability

Enhanced support of and interaction with customers and suppliers

Increased user productivity via enhanced functionality, analytics, workflow, and alerting

Single solution with common global processes


Platform Consolidation End State View

Global Template

Single Corporate SAP Business Suite Instance

Centralized IT support function

An ERP architecture provides the flexibility to centralize functions, standardize business process,

leverage scale and reduce cost of ownership

Single SAP instance consistent business processes and enabling global real time

analytics


Example of a Global / Plant Roll-out Roadmap

Roadmap reflects the plan, dependencies and ERP high level estimate of duration and benefit

Deployment Site

Global Template Design

Deployment 1

Deployment 2

Deployment 3

Deployment 4

Site 2

By sequential implementation and factoring in ease of implementation, readiness, SAP Global

Template, risks, and a close governance , we would achieve global roll-out within 4 years

Site 3

Site 4

Site 5

2011 2012 2013 2014 2015 2016 2017 2018

6 Months

Site 1

Global Template

Site 10

Site 9

Site 8

Site 6

Site 11A

Site 11B

Site 12

6 Months

12 Months

6 Months

12 Months

Site 7

12 Months

6 Months

Return to Presentation


Business Case

ECC 6.0 CWM

Implementation

41 Copyright 2010 Fujitsu America, Inc.41

ECC 6.0 CWM Business Case

Ineffective tools and processes for tracking inventory across their lifecycle

Trailing profit expectations of new parent company

Unresponsive support infrastructure for existing SAP applications

Upgrade SAP environment to latest release level (ECC 6.0) to support new inventory functionality

Implementation of catch weight functionality to track dual units of measure through inventory lifecycle

Migration of SAP support from existing environment to Fujitsu 24x7 SAP hosting facility

Incorporation of desktop and help desk support within overall SLA-based maintenance contract

Base-lining of existing support levels from which to establish productivity metrics

Exceeded profitability commitments of parent company; ranking in the Top Tier of all operating groups

Significantly improved inventory to profit ratio as compared to other sister companies

Reusable SAP support processes, that can be leveraged throughout sister companies

A well defined, integrated and SLA based global support process for IT outsourcing.

This business case represents a company that is well known and respected for providing premium-quality

meat products to families across the United States. The company is part of a larger parent company with a

strong presence across retail, deli and food service channels with approximately 3,000 employees spread

across 13 states.

Client Business Drivers

Fujitsu Solution

Client Outcomes

Industry: Food


Project Team

CustomerCustomer Customer

Customer

Customer Customer

Customer

Customer

Customer


ECC 6.0 CWM Timeline

43


ECC 6.0 CWM Application Scope

CWM Financials (AP, AR, New GL, COPA, Asset management, P&L, corner stone corp. reporting, Taxware)

CWM Order to Cash (SD)

CWM Order to Pay

CWM Production Costing and Planning

CWM MRO and light PM

CWM Manufacturing

BPC for Decision Support and Logility reporting

CWM BI 7.0 for reporting

Warehouse Management

Integration with Logility for demand, supply and production planning

Integration with BelTek for Direct Sales delivery (Hand Held devices)

Integration with Blacksmith for trade promotion process

Integration with Nistevo Transportation Planning

Integration with AmeriCold Warehousing and Logistics

Integration with Infinium Payroll system

Integration with TaxWare

Red Wood Scheduler

Productivity Pack

Solution Manager

FileNet44


Project Scope

© SAP 2007 / Page 45

Customer


Project Scope

© SAP 2007 / Page 46

DSD Application


Final State

ERP6.0 CWM EhP 5.0

Advanced Planning and Optimization (APO)

Intranet

HCM

Enterprise Data Warehouse (EDW) BPC Consolidated Reporting

ERP6.0 CWM

GLO BAL ATP

Market Pricing

BI BI BI BI BI

BPC BPC BPC BPC BPC

System Network Planning

PP / DS TP / VS

ERP6.0 CWM ERP6.0 CWM ERP6.0 CWM ERP6.0 CWM

Sales Rep Portal

Kill / Cut PortalBI Portal Reporting

Kill / Cut Portal




Old methods of product tracking are costly:

• Fragmented systems, limited visibility/traceability, lack of real time

information supported by query capability lead to an error prone and

time consuming effort. The result is high cost, high risk and the

potential to seriously damage consumer trust and your brand value.



Solution: Full visibility & built-in compliance

• Integrated traceability and compliance guarantees product integrity and

allows fast and accurate response to any issues throughout the value

chain.



Traceability – Process Overview



Serialization Process Overview – Creating the Links



Product Tracking & Tracing –”End to End Process”



Result: Total Supply Chain Management & Monitoring Capability


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