Powering the Digital Supply Chain of One SAP SE or an SAP affiliate company. All rights reserved.

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1 Powering the Digital Supply Chain of One

2 Powering the Digital Supply Chain of One In today s digital economy, customers want both products and services delivered quickly and tailored to their unique specifications. Companies leading the way in the digital economy offer highly personalized products and services according to unique customer specifications. With digital supply chains that are fast, nimble, and intelligent, they can acquire this ability to serve segments of one profitably. Keeping up with the digital economy means fundamentally reimagining business processes across the supply chain with: Customer centricity: Plan and deliver for the segment of one by capturing and driving nimble and responsive supply chain processes based on actual demand. Predictive business practices: Design, make, and maintain smarter products and assets by creating a digital twin of your business. Track and capture real-time information to predict issues, opportunities, and changes in supply and demand. Total visibility: Analyze and manage the supply chain of one by enabling real-time visibility to every role across the extended supply chain. The goal is to see everything from the movement of goods in production or transit to demand signals and relevant data from sentiment analysis, point-of-sale systems, and other critical sources. With innovative technologies providing a road map for the future, companies are beginning to see the full potential of a digital supply chain. To make this a reality, knowing when and how to use these technologies is key. For example, the Internet of Things generates a huge volume of data from smart assets and products. Predictive analytics and machine learning process this information to make it smarter. And by leveraging artificial intelligence, businesses can use this data to automate processes, while leveraging blockchain to help ensure traceable and secure. 2 / 10

3 Digital Business Planning TRANSFORM YOUR SUPPLY CHAIN INTO A NETWORK FOR DEMAND-DRIVEN BUSINESS PLANNING Deliver supply chain performance by monitoring, measuring, and responding in real time to supply chain alerts and metrics, based on real-time IoT sensor data connected to core business processes. With SAP demand-driven business planning solutions can help develop short-, mid-, and long-term views of expected demand across all channels to reduce out-of-stocks. Plus, machine learning can be used to improve demand forecasts. By achieving the right balance between available inventory and contracted service levels across the entire supply chain, you can optimize supply and fulfillment plans in the face of demand changes and supply disruptions. DEMAND MANAGEMENT AND INSIGHTS Feed operational planning, increase productivity, and enhance customer satisfaction. Use a single source of real-time, high-fidelity, and granular demand signals to respond to customer needs quickly and match supply with demand more closely. SAP demand management software integrates internal and external demand data across sales and supply functions, giving your business a foundation for rational demand plans, trade promotion activities, and other means of demand shaping. Also, supply chain, sales, and marketing professionals are empowered with insightful, actionable analytics throughout their demand network. Demand planning Multilevel replenishment Promotion planning and optimization Connected goods Demand sensing Sensing and response to demand insights 3 / 10

4 SALES, INVENTORY, AND OPERATIONS PLANNING Anticipate, adjust, and evolve your operations to mitigate risks and seize opportunities. Unite processes for sales, inventory, and operations to support collaborative decision-making across the enterprise. With SAP solutions, you can balance demand and supply profitably and optimize product availability. In turn, inventory and working capital are significantly reduced, service levels are optimized, and profitability and customer service are improved. Demand review Demand, supply, and finance alignment Inventory optimization Management review and analysis Product review Service-level determination Supply review Service parts planning RESPONSE AND SUPPLY PLANNING Improve the agility of your global supply network with optimized response and supply planning. Meet delivery commitments on time and every time with streamlined response orchestration. SAP solutions improve visibility into inventory, capacity, and product orders with real-time integration of data such as order planning, scheduling, promising, and fulfillment. This approach helps optimize inventory management and production planning, so you can quickly and accurately respond to new demands. More importantly, collaboration with your suppliers, customers, and outsourced manufacturers is greatly enhanced across demand, supply, and inventory processes. Manufacturing supply network planning Replenishment and deployment planning Response planning and allocation management Advanced order to promise Constraint-based production planning Production scheduling Collaborative planning Demand and supply collaboration Sensing and responding to supply insights Supply chain collaboration 4 / 10

5 Digital Logistics and Order Fulfillment IMPROVE THE SPEED, EFFICIENCY, AND SUSTAINABILITY OF YOUR LOGISTICS AND FULFILLMENT PROCESSES Deliver perfect orders consistently and reliably, while optimizing costs. Today s global supply chains are reliant on a diverse network of suppliers, logistics companies, third-party manufacturers, partners, and sellers. Meanwhile, individual customer demands include a range of options that can only be fulfilled with faster delivery; more accurate, up-to-date inventories; lead times; and procurement timing. With advances in digital technology, you can change every aspect of your logistics from the warehouse and distribution center operations. SAP Leonardo capabilities for digital logistics increase utilization and reduce costs through real-time fleet management focused on adding more orders to vehicles with available capacity. Integrated analytics allow managers to base scheduling and planning on real-time information on throughput and utilization. Plus, optimized collaboration between shippers, third parties, and carriers further increase visibility across the network. WAREHOUSE MANAGEMENT Improve planning and optimization of warehouse operations. Empower warehouse and logistics managers to automate traditional warehouse and distribution operations including inbound processes, outbound processes, storage, and inventory management and distribution. Additional warehousing features enabled by SAP solutions support the management of resources and assets, on-demand and planned cross-docking, workforce management (such as task interleaving for each worker), and the management of warehouse space and equipment. By automating processes to control warehouse operations fully, companies can improve asset utilization, increase throughput, and help ensure on-time and accurate order fulfillment. Basic warehouse management Dock appointment scheduling Extended warehouse management Goods issue Goods receipt Mobile inventory management 5 / 10

6 TRANSPORTATION MANAGEMENT Reduce costs and improve services with streamlined transportation management processes. Improve customer satisfaction by supporting the complete transportation management lifecycle for both domestic and international freight. Your supply chain and logistics functions can manage transportation requirements by planning, optimizing, tendering, and settling freight; booking carriers; managing forwarding orders; and complying with international trade and hazardous goods requirements. Basic shipping Carrier booking Freight and forwarding order settlement Freight planning and optimization Freight tendering Strategic freight management Transportation execution and monitoring Transportation requirements management Transportation resource planning LOGISTICS NETWORKS Maximize your logistics strategy and comply with regulations through networked solutions. Manage, control, and predict logistics costs to optimize customer service levels and track inventory end to end with enhanced supply chain logistics. By increasing your visibility across yard logistics operations, you can streamline the flow of goods in real time. The SAP Leonardo IoT Bridge digital innovation system helps increase on-time deliveries through faster issue resolution, lower operating costs, and reduced excess inventory. Track and trace Global track and trace Yard logistics Vehicle insights Advanced available to promise Advanced track and trace for pharmaceuticals 6 / 10

7 Digital Manufacturing and Operations BECOME MORE RESPONSIVE TO CUSTOMERS WITH REAL-TIME VISIBILITY Achieve better transparency in manufacturing operations by optimizing manufacturing processes and collaborating with global networks while lowering total manufacturing costs. The demand for individualized products and fast delivery is straining the manufacturing process and requires a more automated and digitally streamlined intelligent factory. SAP Leonardo, when combined with SAP digital manufacturing solutions, provides the advanced technologies and applications you need to transform manufacturing operations digitally and meet highly variable market requirements. With SAP Leonardo IoT capabilities, you can increase visibility into the health of the equipment and machinery on the shop floor to maximize production, eliminate downtime, and accelerate time to market. MANUFACTURING OPERATIONS Maximize enterprise-wide visibility across supply, production, inventory, and demand. Integrate and embed business-wide intelligence into manufacturing processes with a single source of real-time information. With manufacturing solutions integrated with core processes across the digital supply chain, you can control productrelated aspects of the manufacturing cycle from planning to the shop floor. Manufacturing throughput and first-pass yields also increase as work in progress becomes more predictable and shorter. Automated data collection allow the building and maintenance of as-built records to support exception handling and address nonconformance with predefined quality and compliance controls. Constraint-based production planning Production scheduling Production execution Production warehouse Quality management and compliance 7 / 10

8 MANUFACTURING EXECUTION Connect, monitor, and tightly control manufacturing processes and operations. Integrate business and manufacturing systems to drive lean, highquality production on the shop floor. SAP manufacturing execution and industrial IoT solutions help optimize manufacturing processes and provide real-time visibility and transparency across multiple plants, vendors, and machine types. You can then tie this information to order processing, quality management, and operational performance; connect supply chain networks to manufacturing processes and operations; and lower total manufacturing costs with scalable, flexible, cost-effective deployment options. Enterprise performance management Lean manufacturing Machine manufacturing analytics Shop-floor control MANUFACTURING NETWORKS Connect supply chain solutions across a global manufacturing network to address customer needs. Identify and resolve any issues across the extended supply chain to increase fulfillment of delivery commitments, manage shifts in existing and new product introductions, and share process improvement ideas across your enterprise. By tapping into real-time operational insights generated by emerging technologies such as 3D printing, the IoT, and machine learning, you can establish a collaborative network with business-to-business connectivity for proficient supply chain collaboration. This level of visibility empowers decision makers to explore production capacity, scale production, and fulfill market demand with greater speed and cost-effectiveness. Digital manufacturing insights Direct manufacturing Product genealogy Demand and supply collaboration Supply chain collaboration 8 / 10

9 Digital Assets REDEFINE ASSET MANAGEMENT FOR AN INCREASINGLY DIGITAL WORLD Strengthen your asset management practices by harnessing the massive volume of real-time data generated by your connected products and equipment. With asset management applications powered by SAP Leonardo, you can take advantage of the infinite opportunities of the digital economy by transforming business models, business processes, and the day-to-day work performed by managers and maintenance professionals. For example, you can bring together information from operational and business systems, as well as use the IoT for scalable transparency without neglecting existing information sources. You can also predict and simulate asset system behavior to avoid unplanned downtime and disruptive consequences and discover patterns of failure and preserve operational integrity. More importantly, your ecosystem of OEMs; engineering, procurement, and construction companies (EPCs); service providers; and operators can share asset information, access one version of the truth, and collaborate on a cloud-based business network with integrated processes. ASSET MANAGEMENT Manage the entire lifecycle of physical assets efficiently and sustainably. Reduce operating costs, tighten the management of capital expenditures, improve operational safety, and enhance asset utilization. SAP solutions help streamline asset management and enable operational excellence with access to accurate, real-time information about your enterprise. You can predict potential operational problems before they occur and empower your workforce with the information it needs to run operational processes smoothly. Asset strategy and performance Asset information governance Maintenance planning and scheduling Maintenance execution Mobile asset management Asset prediction and optimization Asset network and collaboration 9 / 10

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