SAPSupply Network Collaboration (SNC)

The Challenges of Today’s Complex Global Supply Networks

PackagingSuppliers Manufacturers

Retailers

OutsourcedManufacturers Distribution

Centers

Customers

Customers

Customers

CustomersRaw Material

Suppliers

Retailers

DistributorsInability tosynchronize supply to demand

Inflated transportation costs Increased inventory & warehousing costs Rising risk throughout the supply network Declining customer service

Complex and dysfunctional logisticsnetwork

Inability to quickly and efficientlyreact to customer requirements

Parts planning, warehousing andfulfillment not aligned

Inaccurate parts inventory

Lack of visibility across theservices supply network

Missed customer request dates Lots not moving correctly through

production Unnecessary supply chain costs

Slow Manufacturing Response

Collaboration with SAP SNC

Share Data and Information

Integrated Value Chains

Reduced Inventory Levels

Collaboration and Visualization Layer for External Partners Safely extends internal processes by exposing enterprise resource

planning data such as purchase orders, forecasts and inventory to enablebusiness partner collaboration

Enabler of New Business Processes Provides visibility into supply, demand, and inventory across tiers and

partners, including responsive replenishment, work order collaborationwith contract manufacturers, and supply network inventory

Multimode Communication Layer for External Partners Reach external business partners of all levels of sophistication via

message-based communication, file sharing, e-mail attachments, andWeb user interface

SAP SNC enables a 360° view of the Supply Network

SNC 7.0SNC 7.0

CustomerCustomer SupplierSupplier

Web Portal

File Transfer

B2B Integration

Excel

B2BServer

Web Portal – The SNC web portal allows suppliers to collaborate in a shared business process bykeying information into the SNC web pages. Tends to be used for low transaction volumes.

File Transfer – File upload and download capabilities allow collaboration by entering data intoExcel (CSV). Spreadsheets are emailed to the supplier, who enters data and emails it back to thecustomer. Alternatively, data can be downloaded and uploaded via the SNC web screens. Thedata is both processed in both SNC and ERP. Suppliers with limited Internet connectivity preferthis option.

B2B Integration – Business-to-Business (B2B) integration with SNC enables collaboration byelectronically exchanging messages via XML or EDI. The data is processed in both SNC andERP, which allows for exception handling and alerting. Best suited for high transaction volumes.

SAP SNC Collaboration Interaction Models

My Company

PO Process

Release Process

SMI Process

Kanban Process

DR (Forecast) Process

Work Order Process

SNI Process

Supplier Collaboration Manufacturing Collaboration

DCM (Reorder) Process

CMP (Subcon PO) Process

Min/Max VMI

Demand Collaboration

Customer Collaboration

Responsive Replenishment

SAP SNC Key Collaboration Capabilities

Supplier Planning CollaborationProcess Overview

MIN/MAX ReplenishmentVMI Process