SAP Solutions Component Guide. Truck and Heavy Equipment Dealers and Manufacturers

Transcription

1 SAP Solutions Component Guide Truck and Heavy Equipment Dealers and Manufacturers 2012

2 Preface Table of Contents This document provides an overview of the license scope for price list items as outlined in the Price List 2011/1 SAP Business Suite, SAP NetWeaver, and SAP Support. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, ianywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ( SAP Group ) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. 4 Truck and Heavy Equipment Dealers and Manufacturers 6 Solution Overview 7 Financials 8 Human Capital Management 9 Marketing 10 Sales Management 12 Product Development 14 Manufacturing 16 Procurement, Materials, and Logistics 20 Service Management 22 Corporate Services SAP STATEMENT OF CONFIDENTIALITY AND EXCEPTIONS The contents of this document shall remain the confidential property of SAP and may not be communicated to any other party without the prior written approval of SAP. This document must not be reproduced in whole or in part. It must not be used other than for evaluation purposes only, except with the prior written consent of SAP and then only on condition that SAP s and any other copyright notices are included in such reproduction. No information as to the contents or subject matter of this proposal or any part shall be given or communicated in any manner whatsoever to any third party without the prior written consent of SAP. The furnishing of this document is subject to contract and shall not be construed as an offer or as constituting a binding agreement on the part of SAP to enter into any relationship. SAP provides this document as guidance only to estimate costs and time-scales of the predicted delivery project. This will be subject to confirmation prior to any contractual or delivery commitment by SAP. SAP warrants that to the best of its knowledge those who prepared this material have taken all reasonable care in preparing it and believe its contents to be true as at the date of this document. SAP cannot however warrant the truth of matters outside of its control and accordingly does not warrant the truth of all statements set out in this document to extent that such statements derive from facts and matters supplied by other persons to SAP. The statements in this document are qualified accordingly.

3 Truck and Heavy Equipment Dealers and Manufacturers This document is intended for use by all levels of management within truck and heavy equipment dealer and manufacturing companies, including business leaders in sales, operations, and service, as well as information technology professionals has so far been a very exciting time for all of us who are involved in the truck and heavy equipment industries. Costreduction and process-improvement projects that were halted or postponed a couple of years ago are now being reinitiated and expanded as the world economy gradually recovers. At the same time, we are seeing increasing levels of activity in construction, farming, mining, drilling, and general manufacturing. Many of these projects involve the replacement of legacy applications, the upgrading of IT infrastructures, and the reengineering and automation of manual processes. Manufacturers and dealers alike are determining that these improvement projects are necessary to attract and retain customers, maximize profitability, enable growth, and bring new, innovative products to market faster. Recognizing and Responding to New Trends Our industry solutions group continues to monitor the industry and stay involved with our truck and heavy equipment customers in order to meet their functional requirements today and to be prepared for the future of the industry. Currently, we are developing strategies to meet customer needs based on our awareness of the following trends: Consolidation, standardization, and simplification Manufacturers continue to consolidate and simplify their global infrastructures by replacing point solutions and home-built legacy applications with integrated components. Management is looking to standardize global operations as appropriate to gain productivity and improve quality and consistency, and at the same time reduce costs. ERP-based dealer management systems Forward-thinking IT management is recognizing the value that full enterprise resource planning (ERP) systems can bring to their organizations beyond typical transaction processing. Demand is increasing for complete business systems with integrated human resource management, quality management, fixed asset management, real estate management, and other common functions. Increasing dealer complexity More dealers are growing by adding new product lines with new brands; expanding into new geographies; and introducing new operations (for example, light manufacturing at dealerships) to their businesses. Processes traditionally done manually are being automated. Many dealers are recognizing that they need a more robust system to enable their growth plans. Employee mobility There may be no better example of an industry that needs its people to use mobile technology. The opportunities for process improvement by using mobile apps in areas such as sales, service, and operations are tremendous. Telematics-based processes While almost every major equipment manufacturer is able to collect machine performance data, manufacturers and dealers alike are realizing that huge amounts of valuable information are hidden within the data. They could use this information to improve machine quality and reliability, proactively pursue new equipment sales opportunities, improve manufacturing processes, and so on. Advancements in data processing technology have reached the point where the massive amount of data involved in telematics can be effectively used to realize these benefits. Common IT platform Many manufacturers are exploring ideas for more easily sharing data and information between themselves and their dealer networks for the mutual benefit of all parties. Examples include parts point-of-sale data and machine service records. Manufacturers are also looking to streamline and reengineer processes that span the manufacturer and the dealer community. The use of a common, standard platform is recognized as an option for enabling these more efficient processes. Focusing on Business Drivers The key business drivers behind many of our customers projects and strategies include: Simplification and standardization Establishing a common, enterprise-wide information infrastructure to reduce costs and provide standard processes for the entire company. Customer-focus Providing customers with the easiest, most valuable buying experience and owning experience with ongoing product support in order to attract new customers and retain existing ones. Process improvement Streamlining processes to improve effectiveness and efficiency. Leveraging new technology Advances in information technology such as in-memory data storage are offering big opportunities for implementing game-changing processes and programs. As an example, manufacturers and dealers alike are moving forward with new ways of leveraging telematics data to reduce customer machine repair costs and to better manage service level agreements with their customers. We all know that the world of information technology continues to change at a feverish pace. And SAP invests millions of dollars every year in bringing new technologies to our customers along with business applications that utilize the new technologies. The intent of this document is to update you on the SAP applications most applicable to truck and heavy equipment customers. Enterprise Foundation components are in almost all cases included in core functionality of the SAP ERP application. Consult your SAP account executive for specific pricing on all components. Components identified as Extension are additional components with separate pricing. And, of course, thirdparty components are provided by qualified SAP technology partners. Once again, specific pricing details can be provided by your SAP account executive. I am pleased to issue this industry solution overview specifically for you, our truck and heavy equipment customers. Chet Harter Truck and Heavy Equipment Industry Solutions Group North America 5

4 Solution Overview Financials The ERP-based solutions for both dealers and manufacturers are based on the same SAP ERP application and the same industry components for enabling processes specific to machine sales, parts management, and service and warranty processing. The following diagrams provide a high-level depiction of both sets of solutions. Further details on the specific components can be found in the line-of-business sections of this document. Solution Overview Dealer/Distributor Other SAP Components (optional examples) Industry Foundation Cross-industry Business Foundation Technology Foundation Solution Overview Manufacturer or Importer Other SAP Components (optional examples) Industry Foundation Cross-industry Business Foundation Mobile Field Service Service Parts Management Forecasting Safety stock planning Replenishment Distribution planning Supplier collaboration Available to promise and more... Product Engineering Transportation Management Service Parts Management Forecasting Safety stock planning Replenishment Distribution planning Supplier collaboration Available to promise and more... Product Engineering Mobile Sales Vehicle Sales Management Contact management Quotes and orders Sales call center Vehicle search and more... Purchasing/ Logistics Financial & Human Capital Management Analytics & Mobile Platform Purchasing/ Logistics Database & Technology Manufacturing Execution Workforce Scheduling Operations Supplier Collaboration Vehicle Sales Management Contact management Quotes and orders Sales call center Channel sales enablement Vehicle search and more... Operations Financial & Human Capital Management Extended Warehousing Aftersales Support Customer service Warranty claims Product support call center Product returns and more.. Sales Target Marketing Aftersales Support Customer service Warranty claims Channel service Product support call center Product returns and more.. Sales Financial Accounting The main objective of financial accounting is to provide overall external accounting functionality as required by various accounting principles (IFRS, U.S. GAAP, local GAAP). Collecting and storing all business events from different business systems in an integrated system helps ensure that account management is complete and synchronized at all times. General ledger Accounts receivable Accounts payable Fixed assets accounting Bank accounting Cash management Cash journal accounting Inventory accounting Tax accounting Accrual accounting Local close (period-end functionality in general ledger and all subledgers) Financial statements Audit information system Tax data retention tool Management Accounting Management accounting provides valuation and recording of financial data as the basis for all cost- and revenue-related reporting. Profit center accounting Cost center and internal order accounting Project accounting Investment management Product cost accounting Customer and product profitability accounting Transfer pricing Financial Analytics Financial analytics helps organizations define financial targets and monitor respective costs, revenue, and other key performance indicators during execution. It enables businesses to create and monitor value flows in a cross-functional, crosscompany, or collaborative environment. A unified look and feel of financials reports simplifies financial reporting and makes user interfaces attractive for end users. Financial and management reporting Profitability analysis Product cost analysis Overhead cost analysis Payment behavior analysis Working capital analysis SAP Treasury and Risk Management The SAP Treasury and Risk Management application is geared toward analyzing and optimizing business processes in the finance area of a company. It offers customers straight-through processing of the principal tasks in a finance department to help ensure optimum liquidity management as well as portfolio and risk management in strict accordance with legal regulations. The software thus facilitates decisions regarding future investments and borrowing, based on current liquidity analysis and risk positions. At the same time, the application takes into account the current conditions in financial markets in order to provide an integrated risk analysis. SAP Treasury and Risk Management offers parallel valuation areas to follow different legal requirements in parallel, for the normal position management as well as for hedge accounting. Also, the Sarbanes-Oxley Act has been incorporated into the application. Transaction management Market risk analysis Credit risk analysis Portfolio analysis Technology Foundation Analytics & Mobile Platform Database & Technology SAP also offers a package for smaller dealers that is built upon the SAP Business One application. This is a small business package for equipment dealers that have less complex requirements, yet it still includes the interfaces required by the manufacturers. For more information on this package, please contact Chet.Harter@sap.com. 7

5 Human Capital Management Marketing Workforce Process Management Through its dynamic workforce process management features, the SAP ERP Human Capital Management (SAP ERP HCM) solution enables you to streamline and integrate essential workforce processes such as employee administration, payroll, time management, and legal reporting. Because it is a single, scalable solution, it lets you deliver better service for lower IT costs (costs that escalate in proportion to the number of systems you are attempting to maintain). SAP ERP HCM enables companies to standardize and consolidate all workforce-related processes and data globally onto one platform while also helping to ensure adherence to local regulations and laws. Employee administration Organizational management Global employment Concurrent employment Benefits management Time and attendance Workforce Deployment SAP ERP HCM serves as an integral contributor to workforce deployment solutions across other solutions of SAP Business Suite software. It allows users to create project teams based on skills and availability, monitor progress on a project, track time, analyze results, and much more. Additionally, users are empowered to eliminate redundant or ineffective projects, increase profitability through the smarter use of resources, and manage the workforce as efficiently as possible. Resource planning Payroll and legal reporting Talent Management Talent management comprises four key human capital management processes: attracting and acquiring talent; paying for performance; educating and developing talent; and identifying and growing future leaders. A strong talent management strategy enables the organization to find the best people and leverage their talent in the right place and at the right time; align employees and teams to corporate goals; maximize the impact of training; and retain and promote top performers. All processes are based on a common understanding of employee, organizational, and competency data. The ultimate goal of a talent management platform and strategy is to outperform competitors by deploying a better workforce. Employee assessment Talent review and calibration Competency management Employee development Employee performance management Compensation management Payroll Processing The payroll processing component, marketed as part of SAP ERP HCM, provides the tool set to do the payroll calculation based on company or union rules and legal requirements. This includes the determination of the gross remuneration and the calculation of company-specific, employee-specific, and legal deductions. Basic pay calculation Time wage type valuation Absence valuation Legal deductions (taxes, social security) Benefits processing Factoring Flexible toolbox to include customer-specific requirements SAP E-Recruiting The SAP E-Recruiting application offers organizations the recruiting management functions needed to locate appropriate talent, including intelligent electronic screening, filtering, sorting, and ranking. SAP E-Recruiting takes talent relationship management beyond organizational borders by creating a talent warehouse that serves as an effective sourcing channel that can help you develop early relationships with your potential workforce inside and outside your organization. Talent warehouse Requisition management Applicant tracking Reporting Candidate portal Workforce Analytics Workforce analytics gives your executives, human resource (HR) professionals, and line managers reporting and analysis options that provide real-time insight into your workforce. They can identify trends at an early stage and make well-informed decisions, enabling you to manage your human capital more effectively, predict human-capital investment demands, and track workforce costs and the ROI associated with HR projects. Workforce planning Workforce cost planning and simulation Workforce process analytics and measurement Talent management analytics and measurement SuccessFactors applications Editor s note: Since SuccessFactors offers cloud-based solutions, deployment can be very quick. Truck and heavy equipment manufacturers can consider using the learning management system as an effective and easy-to-maintain educational portal for internal employees as well as for members of the global dealer network. SuccessFactors, an SAP company, offers a set of cloud-based applications that help companies plan and execute employee programs to manage the workforce, employee performance, alignment of objectives, and employee training. Performance management and goal alignment Compensation management Succession and development planning Recruiting Learning management Workforce planning Employee self-service Integration with human capital management software Marketing SAP Loyalty Program SAP Web Channel Experience Management The marketing component, marketed as part of SAP CRM, enables marketers to execute marketing campaigns across different marketing processes. Segment and list management provides an interactive, intuitive graphical tool for accurate target segmentation. Campaign management allows marketers to plan and execute multichannel marketing campaigns through channels such as phone, mail, , and Web. Lead management automates the lead generation, qualification, and distribution processes, allowing sales agents to directly follow up within an integrated marketing and sales cycle. The SAP Loyalty Program application enables marketers to define loyalty programs and set up rules that automatically award points based on program guidelines. Membership point accounts can be managed by end customers, and points can be redeemed for various awards. The SAP Web Channel Experience Management application allows brand owners to involve channel partners in their marketing activities: collaborative campaign management enables them to more fully engage channel partners in marketing campaigns, and lead management with channel partners allows close integration of channel partners in the creation, distribution, and maintenance of leads. Campaign management Segmentation and list management Loyalty management Lead management Channel marketing (including collaborative campaign management and lead management with channel partners) 9

6 Sales Management Sales Order Management Sales order management supports the complete order-to-cash process, including inquiries, quotations, order generation, order processing, contract management, pricing, and billing. You can manage both low- and high-volume orders, handle credit checks, check product availability, and track orders. Because the software integrates with financial and supply chain operations from manufacturing and distribution to service the sales process can be automated and streamlined. It supports business functions such as make to order, ship to order, engineer to order, batch processing, returns, and consignments. Sales order processing Logistics execution Account processing Inquiry processing Quotation processing Contract processing Billing Returns processing Consignment SAP Sales and Operations Planning The SAP Sales and Operations Planning analytic application enables the creation, maintenance, and monitoring of an enterprise plan that incorporates accurate data from multiple lines of business. This allows improved collaboration across departments to make decisions that support overall business strategy across marketing, finance, and production strategies. Simulation functionality Consensus demand planning Finished goods level planning Rough-cut capacity planning Critical components and materials requirements planning Flexible reporting hierarchies Integration with Microsoft Excel Automated workflow and task management Plan variance analysis SAP Vehicle Management for Automotive The SAP Vehicle Management for Automotive package connects processes across business and functional boundaries from sales and distribution to dealer vehicle ordering to enable efficient operations and help ensure transparency. SAP Vehicle Management for Automotive supports an end-to-end collaborative order-to-delivery process and provides a single, centralized way to procure, manage, sell, and track vehicles and equipment in push (make-to-stock) and pull (make-to-order) strategies. Sales planning and forecasting Accounts and contact management Sales activity management Territory management Opportunity management Sales methodology Pipeline performance management Quotation management Sales analytics Channel sales (including account and contact management with channel partners, activity management with channel partners, and opportunity management with channel partners) E-commerce Interaction center sales Vehicle sales and distribution, including dealer portal (VMS portal only) Professional Service Delivery EDITOR S NOTE: This package is suited to companies such as dealers that provide project-oriented installations of machinery such as power generation systems. Professional service delivery provides a comprehensive set of features for selling, planning, delivering, and billing projectbased services. Projects can be created, structured, and staffed with the appropriate resources and delivered and billed according to contractual agreements. Changes in project timelines, scope, and staffing are tracked in the integrated project controlling. Project planning and scoping Resource and time management Quotation processing Sales order processing Project execution Time and attendance Managing employee time and attendance Travel expense management Project accounting Resource-related billing Resource-related intercompany billing Billing Interaction Center EDITOR S NOTE: The interaction center is included in SAP Vehicle Management for Automotive. The interaction center component, marketed as part of SAP Customer Relationship Management (SAP CRM) helps organizations run their contact center operations, serving as a strategic delivery channel for marketing, sales, and service efforts. It provides interaction center agents with tools to handle inbound or outbound transactions, including features such as alerts, interactive scripts, knowledge search, rule-based navigation and routing, integration with external communication management software, and access to back-end ERP transactions. The software also provides interaction center managers with access to tools for business rule modeling, interactive script configuration, and interaction center analytics. Interaction center marketing Interaction center sales Interaction center service SAP Business Communications Management The multichannel agent option license is for SAP Business Communications Management software users (agents and/or supervisors) that work in a contact center environment and are handling incoming contacts through multiple communication channels (voice, , and chat), or handling outbound campaign calls, or using supervisor tools to supervise contact center agents, or doing all of these. Communication channels: voice calls, , chat, Web forms, and faxes and SMSs converted as s Inbound and outbound contact center agent and supervisor tools Personal telephony Call recording Administration tools SAP Price and Margin Management by Vendavo (Third-party) The SAP Price and Margin Management by Vendavo rapid-deployment solution for pricing profitability analysis combines pricing science, best practices, and enterprise-class software to drive improvements in average prices at every stage of the pricing process, enabling better pricing decisions and more money on every deal. Customer segmentation Optimized price setting Price administration Deal negotiation Analytics 11

7 Product Development Product Development Product development covers the entire lifecycle of product-related master data, such as product structures, routings, and documents, from invention to phase-out, providing functions to manage and deliver the wide range of product information and help ensure immediate access to up-to-date data. The solution facilitates effective collaboration both within and beyond the organization and streamlines processes from the early development phase through to production. Detailed analysis of the planning and implementation data in a company, which is involved in the development and implementation of new products, means that alternative planned and actual figures for product development can be compared and the results used to make fundamental decisions and develop product strategies. Product development Development collaboration Product Data Management Project Management Project management enables the project manager to work closely with team members and management on any kind of project, such as enterprise IT projects, service projects, research and development, manufacturing, or plant maintenance projects. The project manager can set up the project structure and network based on templates. The comprehensive project management solution enables him or her to manage schedules, resources, assigned documents and materials, costs, and budgets. Team members are notified when they need to fulfill their project-related tasks according to the overall network. They report on progress, and the actual dates and costs are immediately updated so that management can monitor the project at any time. The result is efficient project management that provides significant value potential. Project planning Project execution Project accounting SAP Collaborative Product Development The SAP Collaborative Product Development application is a solution to enhance the engineering processes. Engineering partners can be tightly integrated into the product development phase with direct access to engineering data. A contextbased authorization protects the company s intellectual property. Navigating through product information allows you to understand dependencies. Analytic functions provided by a side panel accelerate the decision-making processes. Business context viewer Direct collaboration New collaboration architecture Access collaboration context, securing intellectual property Engineering change record SAP Product Structure Synchronization The SAP Product Structure Synchronization application supports the transformation (complex restructuring) of bills of materials or recipes, memorizing all changes of the transformation to provide guidance for continuous updates of these transitions. It gives the two worlds of development and manufacturing the highest flexibility for their product description while keeping them in sync. Definition of functions and ingredients versus assembly sequence More flexibility for development and manufacturing Synchronization of development with manufacturing and of manufacturing with development Structured management support over multiple locations Support for the change process of product structures across organizational units Product data management functions manage and deliver a wide range of product-related objects, such as documents, product structures, and recipes. The integration with change and configuration management helps ensure immediate access to up-to-date data. Product structure management Recipe management Specification management Change and configuration management Document management SAP Portfolio and Project Management The SAP Portfolio and Project Management application gives high-level visibility over the entire project portfolio, portfolio analytics, and resources. Portfolio management involves five basic areas: strategic planning; resource and schedule planning; cost management and control; information transparency; and improved management oversight. This allows the alignment of portfolios with corporate objectives, including portfolios of projects, programs, and services within R & D, professional services, capital investment projects, and IT. Portfolio and bucket hierarchy management Decision flow management Financial and capacity planning Resource management Portfolio monitoring Reporting cockpit 13

8 Manufacturing Production Planning Production planning automates the entire production planning process for any industry. The application supports multiple strategies for production planning and execution and can help you optimally plan, schedule, and sequence production on the factory floor to deliver your orders as promised. It can help you forecast production more accurately, improve efficiency and capacity utilization, increase order fill rates and product quality, and reduce operating costs. It supports a variety of techniques for material requirements planning and the creation of production orders and planned orders for businesses that use discrete, repetitive, or process strategies. Production planning Capacity planning Manufacturing Operations Manufacturing operations helps effectively manage production processes and deploy resources to the shop floor. You can capture current production information from your manufacturing and costing processes and document, monitor, and dispatch inventory during the entire production lifecycle. Such support can improve manufacturing visibility and productivity, avoid costs such as cleanout or changeover, lower working capital, and accelerate response to changes in supply and demand. By capturing actual production information from the shop floor, it provides control over your production and costing processes. There is strong support for a variety of manufacturing protocols, including make-to-order production, repetitive flow manufacturing, shop-floor manufacturing, lean manufacturing (including kanban and direct production methods), integrated product and process engineering, process manufacturing, outsourced manufacturing, and batch management. Integration with subcontracting processes allows comprehensive integration of contract manufacturers into your flow of production. Manufacturing execution Manufacturing coordination and collaboration Quality Management Quality management is the comprehensive solution that supports the company throughout the product lifecycle and along the supply chain. It offers a wide range of functions and collaborative services, which are fully integrated, for assuring and managing the quality of products and assets. It also focuses on prevention and continuous process improvement through collaboration and sustained quality control. Quality engineering Quality assurance/control Quality improvement Audit management Operational Analytics Operational analytics facilitates the compilation of detailed operations reports and supports informed operational decision making giving management and employees the information they need to increase insight into business processes. In addition, sales planning can allow organizations to generate a complete picture of the entire supply chain, including the impact of sales on operations. Sales planning Procurement analytics Inventory and warehouse management analytics Manufacturing analytics Transportation analytics Sales analytics Customer service analytics Program and project management analytics Quality management analytics Asset analytics and performance optimization SAP Sequenced Manufacturing for Automotive The SAP Sequenced Manufacturing for Automotive package contains different solution variants that describe the manufacturing processes in a make-to-order scenario and that are typically used with highly configurable products and complex data structures in a high-volume environment (such as vehicles or engines). These variants contain processes like integrated product and process engineering, production planning, model mix planning and sequencing, rapid requirements planning, production confirmation, vehicle completion and delivery, manufacturing execution, and work-in-process management. Restrictions might apply for truck, bus, or commercial vehicle manufacturing scenarios and might need to be validated in detail. Production planning Detailed scheduling Scheduling optimization Capable to promise Interactive simulation capabilities Alert management Analytics and reporting tools Supervision and control Production order management Order confirmation Event management within the scenario scope Model-mix planning and sequencing Rapid planning matrix Vehicle sales and service (limited to SAP Vehicle Manager master data individual object) SAP Manufacturing Integration and Intelligence (SAP MII) The SAP Manufacturing Integration and Intelligence (SAP MII) application provides an environment for creating composite applications within the manufacturing plant, specifically enabling multi-data-source analytics and transactions, manufacturing intelligence, and plant-to-enterprise integration. SAP MII drives plant-to-enterprise synchronization by linking ERP business processes to plant manufacturing processes and operations giving production workers and plant management the ability to connect enterprise business processes to the shop floor. SAP MII enables applications that drive manufacturing excellence through performance management and continuous improvement initiatives supported by unique features in SAP MII. SAP MII has been designed to handle the unique requirements of plant applications, such as high volumes of time series data, multiple data stores, highly variable processes, hardware limitations, user interface simplification, and unique manufacturing graphical metaphors such as statistical process control (SPC). Enablement of delivery of manufacturing applications for performance management and improvement Integration with SAP Business Suite software as well as with other ERP solutions Ability to extend and simplify SAP software-supported business processes to shop-floor workers in context to their roles Connectivity to plant systems and data services connectors to the shop floor Event detection and alerting for plant-floor data events Business logic services advanced data aggregation, transformation, and integration tools Visualization services for role-based content creation Manufacturing analytics including SPC and statistical quality control (SQC) Fully integrated development environment for content management and deployment SAP Manufacturing Execution The SAP Manufacturing Execution application, core option, represents a complete comprehensive manufacturing operations platform, with integrated design, execution, quality control, and compliance features that address critical manufacturing challenges while setting new achievement standards for manufacturers. SAP Manufacturing Execution delivers a comprehensive, integrated manufacturing operations solution a single manufacturing environment that help manufacturers better plan, define, control, execute, and manage operations. These solutions reduce costs while improving traceability, minimizing product defect occurrences, shortening product lifecycles, and improving customer responsiveness. Traceability and genealogy Nonconformance management Change management Labor tracking Production transfer Return and repair Real-time SPC and historical SQC Machine integration Shop-floor integration in the SAP ERP application 15

9 Procurement, Materials, and Logistics Procurement Procurement covers the complete procurement process for both goods and services: requisitioning, purchase request processing, purchase order processing, receiving, invoice management, and financial settlement. Requisitioning Purchase request processing Purchase order processing Receiving Financial settlement Inventory and Warehouse Management Processes in the area of inventory management address the recording and tracking of materials on a quantity and value basis. This includes planning, entry, and documentation of stock movements, such as goods receipts, goods issues, physical stock transfers, and transfer postings as well as the performance of physical inventory (stocktaking). Warehousing and storage Physical inventory Inbound and Outbound Logistics Inbound and outbound logistics facilitates the movement of your incoming and outgoing physical goods, including logistics that involve multiple manufacturers and customers. You can monitor the receipt of goods, track external demand, and handle advanced shipping notifications. There is also support for outbound processes, such as posting goods issues, monitoring delivery and distribution activities, and documenting your proofs of delivery. Inbound processing Outbound processing Product classification Duty calculation Customs communication service Trade document service Trade preference processing Transportation Management Transportation management helps you deliver products on time and within budget by managing the complete transportation process. It can help optimize plans for all key transportation phases including the creation, execution, consolidation, and monitoring of shipments. For consolidating deliveries and orders into shipments, there are flexible options for rule-based automation, for manual consolidation, and for collaborative order combination using the Internet. Transportation execution Freight costing Operational Analytics Operational analytics facilitates the compilation of detailed operations reports and supports informed operational decision making giving management and employees the information they need to increase insight into business processes. In addition, sales planning can allow organizations to generate a complete picture of the entire supply chain, including the impact of sales on operations. Sales planning Procurement analytics Inventory and warehouse management analytics Manufacturing analytics Transportation analytics Sales analytics Customer service analytics Program and project management analytics Quality management analytics Asset analytics and performance optimization SAP Extended Sourcing for Industrial Machinery & Components The SAP Extended Sourcing for Industrial Machinery & Components package enables advanced sourcing and supplier qualification, end-user bid solicitation, contract management, project management, and extended analysis and reporting. Its features support complex supplier qualification and evaluation processes, including a broad library of predefined project and RFx event templates, auction tools, complex question types, multicurrency bidding, tiered pricing, total cost modeling, robust automated and team-based proposal scoring, constraint-based bid optimization, and the ability to award to selected suppliers. Features from the SAP Contract Lifecycle Management application are included within the SAP Extended Sourcing for Industrial Machinery & Components package and provide the ability to create and manage procurement contracts through an extensive template library, a sophisticated clause library, integration with Microsoft Word, and advanced workflow review and approval. The project management features provide centralized project workspaces, including task and team management, collaboration tools, and reporting views into all sourcing activities based on role and system authorizations. Integration with operational procurement and contracts in the materials management functionality in the SAP ERP application is enabled via a standard integration, including master data synchronization and closedloop process support. Extended spend analysis Advanced supplier qualification Advanced request for proposal End-user bid solicitation Sophisticated auctions Bid optimization SAP Contract Lifecycle Management for procurement contracts Project management User workbench, dashboards, and reporting Standard integration with the materials management functionality in SAP ERP SAP Extended Procurement for Industrial Machinery & Components The SAP Extended Procurement for Industrial Machinery & Components package enables supplier relationship management capabilities, including basic spend reporting and analysis, centralized sourcing, centralized contract management, and supplier enablement. Its functionality covers both materials and services. All features can be used in single- and multi-backend deployment. Spend reporting and analysis features cover standard analytics, including purchasing-group and supplier-level data. The centralized sourcing features support supplier qualification and evaluation as well as requests for proposal, supplier bidding, and reverse auctions that enable exchange of product specifications as well as the ability to award to a selected supplier. The software also covers centralized operational contracts, which can be used for direct decentralized call-offs out of connected SAP ERP application systems as well as for distribution to multiple back ends. Contract monitoring for centralized contracts is also a part. The supplier enablement features enable a company to interact and collaborate with its suppliers to automate the entire procure-to-pay process. Standard spend reporting and analysis Standard supplier qualification Centralized RFx and auctions Centralized contract management Supplier collaboration and enablement SAP Contract Lifecycle Management The SAP Contract Lifecycle Management (SAP CLM) application enables proactive management of all aspects of the life of a contract, from strategy and creation to negotiations and finalization and from contract visibility to internal and external compliance and performance management. SAP CLM supports the contract management process and also enables contract execution and compliance with operational contracts in the underlying materials management system using packaged integration. Legal contract creation Contract repository Contract compliance management Contract process and project management User-defined objects and forms Contract performance management Third-party and supplier data management (including supplier score carding) User workbench, dashboards, and reporting 17

10 Procurement, Materials, and Logistics (cont d) SAP Supply Network Collaboration The SAP Supply Network Collaboration application contains collaborative functionalities grouped into comprehensive business processes: a purchase order process; supplier-managed inventory process; kanban process; and delivery control monitor and release process. These features enable a customer to more efficiently streamline, communicate, and operate its supply chain processes with its suppliers. It includes advanced shipping notification, reporting, and supplier key performance indicator features as well. Business benefits include reduced inventory levels at both supplier and customer sides, reduced freight costs due to more efficient operation of the business processes, and reduced administration around supplier communication. Purchase order process Release process Supplier-managed inventory process Dynamic replenishment process Delivery control monitor process Kanban process Event management within the scenario scope SAP Commodity Procurement The SAP Commodity Procurement application enables the effective management of the end-to-end process of buying commodities. This includes risk management for accurately identifying and measuring commodity price and currency exposure and taking the appropriate steps to mitigate these risks. Capture of commodity procurement contracts with price definitions based on market quotas like index-based commodity pricing Streamlined invoicing process with automated provisional, differential, and final verification including simulation of expected invoices Complete audit support Real-time view of physical commodity positions Streamlined treasury processes Compliance with newest accounting regulations SAP Demand and Supply Planning for Industrial Machinery & Components The SAP Demand and Supply Planning for Industrial Machinery & Components package enables demand-driven synchronization of supply to demand. Demand plans are created, including statistical forecasting, promotions, product lifecycles, and allocation planning. Finite supply planning is carried out following different business rules, to optimize the use of capacities and reduce inventory while securing customer service and order promising. Component or finished goods availability may be taken into account on the product-characteristic level. Statistical, causal, and composite forecasting, including lifecycle planning Promotion planning Collaborative demand planning Advanced safety stock planning Heuristic-based supply network planning and capacity leveling Supply network optimization Multilevel supply and demand matching (capable to match) Subcontracting Distribution planning Transport load building Available to promise Flexible planning Material requirements planning Alert management SAP Extended Warehouse Management The SAP Extended Warehouse Management application offers flexible, automated support for processing various goods movements and for managing stocks in a warehouse complex. The application supports planned and efficient processing of all logistics processes in the warehouse. SAP Extended Warehouse Management provides the option of mapping an entire warehouse complex in detail in the system, down to the storage-bin level. This not only provides an overview of the total quantity of a product in the warehouse, it also makes it possible to see exactly where a specific product is, at any time, in the warehouse complex. With SAP Extended Warehouse Management, the use of various storage bins and stock movements can be optimized and combined with the storage of stocks from several plants in randomly managed warehouses. Slotting and rearrangement Deconsolidation Yard management Cross-docking Value-added services Kitting Labor management Warehouse cockpit Process- and layout-oriented internal routing Wave management Radio-frequency identification (RFID) Service-oriented architecture (SOA) enablement Graphical warehouse layout Integration with production supply Integration with global trade services Integration with the quality inspection engine Integration with the SAP Environment, Health, and Safety Management (SAP EHS Management) application SAP Service Parts Planning The SAP Service Parts Planning application enables integrated planning capabilities in the service parts supply chain for use by service parts planners. While it considers the specific aspects of the aftermarket and provides extended features for handling the large parts volumes present in an aftermarket supply chain, it also supports a tight integration of the end-to-end planning process with other processes, such as supplier collaboration, procurement, warehousing, and order fulfillment. Strategic supply chain design Parts demand planning Parts inventory planning Parts supply planning Parts distribution planning Parts supplier collaboration Parts monitoring and analytics Global available to promise SAP Transportation Management The SAP Transportation Management application covers international and domestic transportation planning, scheduling, freight costing, revenue calculation, and execution. It covers multimodal transportation and supports transportation management with internal assets as well as carrier assets and carrier selection and tendering. The solution also offers tracking and tracing and proactive event management of shipments and resources. Comprehensive process integration with financials, billing, and payment through SAP ERP offers a key capability based on transportation charge management, which also offers profitability analysis and rating. Transportation planning and optimization Routing guide Carrier selection Collaboration tendering Collaboration carrier capacity allocation Transportation visibility (including event management within the scenario scope and analytics) Global available to promise Ocean carrier booking and visibility Freight agreements, tariffs, and cost calculation Freight payment and invoicing Shipping documents Transportation execution Transportation analytics SAP Enterprise Inventory Optimization by SmartOps (Third-party) The SAP Enterprise Inventory Optimization application by SmartOps works with SAP Business Suite software to help keep inventory levels low while maintaining target delivery service levels by enabling supply chain analysts to sense and respond to supply chain fluctuations. Ability to view and synchronize inventory position across multistage supply chains Planner and analyst productivity tools Integration with the SAP NetWeaver Business Warehouse component and the SAP ERP and SAP Supply Chain Management (SAP SCM) applications 19

11 Service Management SAP Aftersales Support for Automotive The SAP Aftersales Support for Automotive package offers a solution for managing the service process from customer inquiry, claim, and order taking to problem solving and billing or refunding. It improves first-contact resolution by matching the right resources and knowledge with customer needs. SAP Aftersales Support for Automotive drives revenue by delivering relevant product and customer insight, enabling companies to sell new service contracts and other products and services. Service management is multichannel, including Web, field service, and interaction centers. Furthermore, it provides a complete solution for warranty claim management in the automotive industry. Claims from customers and partners, such as dealers, are entered, checked, and evaluated against contractual data and business rules, which may be freely defined. The process may be automated to a large extent to reduce the manual effort. Accepted claims trigger subsequent processes (for example, payment or service operations). Service contract management Customer service and support Return and depot repair Field service management Warranty and claim management Return and depot repair Installation and maintenance Parts logistics and finance Channel service Interaction center service E-service and channel service Warranty Interaction Center EDITOR S NOTE: The interaction center is included in SAP Aftersales Support for Automotive. The interaction center component, marketed as part of SAP CRM, helps organizations run their contact center operations, serving as a strategic delivery channel for marketing, sales, and service efforts. It provides interaction center agents with tools to handle inbound or outbound transactions, including features such as alerts, interactive scripts, knowledge search, rule-based navigation and routing, integration with external communication management software, and access to back-end ERP transactions. The software also provides interaction center managers with access to tools for business rule modeling, interactive script configuration, and interaction center analytics. Interaction center marketing Interaction center sales Interaction center service SAP Multiresource Scheduling Companies need to deliver the right service to the right place at the right time, whether it involves scheduling plant maintenance, customer service, or professional services. The SAP Multiresource Scheduling application enables companies to visualize the service planning status and handle requests for services staffing and tools using an intuitive graphical planning board. Optimization and scheduling of people and tools Integration with geographical information systems Graphical planning board Scheduling on work-center level Planning on team level Powerful Web user interfaces Integration with the SAP ERP Human Capital Management solution and the SAP Customer Relationship Management and SAP ERP applications SAP Multiresource Scheduling with optimizer Companies need to deliver the right service to the right place at the right time, whether it involves scheduling plant maintenance, customer service, or professional services. The SAP Multiresource Scheduling application with optimizer option enables companies to visualize the service planning status and to handle requests for services staffing and tools using an intuitive graphical planning board. The SAP Multiresource Scheduling with optimizer option provides an automated means of scheduling work requests based on customer- indicated criteria. The optimizer can be used to handle large numbers of orders to be scheduled without scheduler intervention and to adapt existing schedules. Optimization and scheduling of people and tools Integration with geographical information systems Graphical planning board Scheduling on work-center level Planning on team level Powerful Web user interfaces Integration with SAP ERP Human Capital Management, SAP Customer Relationship Management, and SAP ERP Set of parameters to define optimization criteria Optimization of initial and existing schedules and emergency work Optimization in the multiresource scheduling planning board and in background mode Easy review and adaptation of optimizer results into the operative plan SAP Workforce Scheduling and Optimization by ClickSoftware (Third-party) The SAP Workforce Scheduling and Optimization application by ClickSoftware helps improve field service forecasting, planning, rostering, and scheduling to increase efficiency, meet servicelevel commitments, and boost profitability. In addition to field service, the solution also supports internal plant maintenance teams by optimizing regular and unplanned service activities with available technicians. Dynamic, real-time scheduling Operational reports, performance monitors, and analytical tools to identify problems and bottlenecks Demand forecast by business line and skill Balancing of demand forecast with the available workforce Planning and optimizing shifts Real-time location of field engineers Mobile connectivity for the workforce to be able to receive and provide information 21

12 Corporate Services Enterprise Asset Management Enterprise asset management is a complete solution for achieving optimal condition of assets with the least amount of costs and the best possible asset performance for those operating a plant. It helps companies better manage capital expenditure, reduce operating costs, improve asset utilization, and collaborate with engineering and maintenance contractors. Investment planning and design Procurement and construction Maintenance and operation Decommission and disposal Asset analytics and performance optimization Project Management Project management enables the project manager to work closely with team members and management on any kind of project, such as enterprise IT projects; service projects; or research and development, manufacturing, or plant maintenance projects. The project manager can set up the project structure and network based upon templates. The comprehensive project management solution enables him or her to manage schedules, resources, assigned documents and materials, costs, and budgets. Team members are notified when they need to fulfill their project related tasks according to the overall network. They report on progress, and the actual dates and costs are immediately updated so that management can monitor the project at any time. The result is efficient project management that provides significant value potential. Project planning Project execution Project accounting Travel Management Travel management helps control the costs associated with business travel. It streamlines all activities related to managing business trips, from submitting travel requests and approvals to planning, online booking, travel expense management, and analytics. You can help ensure your organization s compliance with travel policies and realize substantial savings, both immediate and ongoing. It offers an intuitive user interface as well as tools to simplify and increase the flexibility of the application, all of which help accelerate user adoption. Furthermore, these enhancements ease integration with partner applications through the use of enterprise services. Travel request and pre-trip approval Travel planning online booking travel and expense management Global travel policy compliance Travel and expense analytics SAP Environment, Health, and Safety Management The SAP Environment, Health, and Safety Management (SAP EHS Management) application is a comprehensive and integrated application that helps companies implement EHS strategies on a local and global level. With its range of functionality and capacity to scale globally, SAP EHS Management allows companies to overcome the challenges of disconnected systems, regions, and departments. It empowers executives to address regulatory compliance and enhance their company s corporate reputation. It enables them to reduce costs by taking an integrated approach to operational risk management. SAP EHS Management serves as a foundation for companies to address the needs of their corporate sustainability initiatives and comprises the combined functionalities of SAP EHS Management, environmental compliance; SAP EHS Management, product safety and stewardship; and SAP EHS Management, health and safety (see descriptions below). Provision of basic EHS data, including a substance database; support for specification management, report definition, and phrase management; an EHS quality management interface; and tools such as import and export functions Support for environmental compliance, including air, water, and waste emissions and permit management Support for product safety and stewardship, including management of material safety data sheets and labels; generation, shipping, and management of product safety documents; dangerous goods management; substance volume tracking; and support for bills of material transfer Support for health and safety, including support for managing incidents, hazardous substances, industrial hygiene and safety, and occupational health SAP EHS Management, product safety SAP EHS Management, product safety and stewardship, helps producers and distributors of hazardous and regulated products and goods meet requirements for authoring and distributing outbound material safety data sheets, labels, shipping documents, and other product-related documents. The software supports substance volume tracking and general product safety processes such as the safe storage, handling, and shipping of hazardous materials. Basic EHS data and tools Generation, shipping, and management of material safety data sheets Global label management Product safety document management Substance volume tracking Dangerous goods management Bill of material transfer SAP EHS Management, environmental compliance SAP EHS Management, environmental compliance, helps streamline compliance management across the enterprise with consistent, integrated, and auditable processes. It supports risk reduction of noncompliance through corporate-wide transparency of all leading indicators, automated detection of exceptions, incident handling with corrective actions, and audit trails. Basic EHS data and tools Support for air emissions management Support for water discharge management Support for waste management Support for permit and certificate management SAP EHS Management, health and safety SAP EHS Management, health and safety, helps manage occupational health and safety risks in the workplace. It supports tasks and processes to recognize, assess, and control risk from exposure to chemicals, noise, radiation, biological hazards, and physical hazards in the workplace. It supports the prevention and proper management of incidents and accidents. It provides support for appropriate medical surveillance and related services. Basic EHS data and tools Support for hazardous substance management, including inventory reporting and communication concerning hazards to workers Support for industrial hygiene and safety management Support for incident management Support for occupational health management 23

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