Microsoft Re-invents Its Manufacturing Supply Chain by Co-Innovating with SAP Ariba and Intrigo

Transcription

1 Webinar Series Insights Talk Microsoft Re-invents Its Manufacturing Supply Chain by Co-Innovating with SAP Ariba and Intrigo Ali Khaki, Principal PM Manager: Supply Chain Engineering Keith Baranowski, Global Vice President and General Manager, Direct Spend Solutions, SAP Kanth Krishnan, Chief Customer Officer, Intrigo Systems

2 Introduction: Speakers Ariba solutions for Direct Spend (Keith Baranowski) Intrigo s Ariba Expertise (Kanth Krishnan) The Microsoft story (Ali Khaki) Q&A 2017 Intrigo Systems, Inc. 2

3 Speakers Ali Khaki Principal PM Manager: Supply Chain Engineering (Order Management, Fulfillment and Logistics) Microsoft Ali has a rich background creating and deploying technology solutions in companies such as Microsoft and Expedia for 15+ years. This includes services such as the MSN & Bing Search and as well as working on Data warehouse and BI solutions. He has a deep passion for technology and using data driven solutions to improve the customer experience. More recently has been involved with the hardware supply chain working with Suppliers, CM s and DTV s on engineering solutions to deliver devices such as Surface, Xbox and HoloLens direct to end Consumers, Retailers and Enterprises. Keith Baranowski Global Vice President and General Manager, Direct Spend Solutions SAP 200+ successful Keith Baranowski is the Global implementations Vice President and General Manager of SAP Ariba s Direct globally Spend Solutions. His responsibilities include building Ariba s innovation growth strategy and helping his 250+ highly experienced clients digitize product development, sourcing and resources supply chain collaboration business processes. worldwide Keith has been with SAP for 12 years and held a number of leadership roles that focused on SAP s Supply Chain, Product Lifecycle Management, Manufacturing and Operations solutions. Kanth Krishnan Chief Customer Officer Intrigo Systems Kanth has been a supply-chain practitioner as well as a consultant. He has even served as a trusted advisor to several companies, small and large. Kanth comes with a rich background of 20+ years' experience and has an enviable track record in designing, deploying and sustaining technology solutions. He was a respected member of SAP's first ever Global APO Competency Center to support the early adoption of APO. Value engineering, value case realization and creating sustenance models are his forte Intrigo Systems, Inc. 3

4 SAP Ariba Solutions for Direct Spend Decades of Supply Chain Intellectual Property focused on end-to-end, industry-specific business processes Industry-Leading Cloud Procurement Platform and Network, Supplier Onboarding Services Customer and partner ecosystem provides deep industry expertise and requirements

5 SAP Ariba Solutions for Direct Spend Source & Contract Plan Buy & Make Invoice & Pay Design Source Contract Forecast Commit Request Order Make Receive Manage Pay Ariba Network and Integration Framework SAP Ariba Strategic Sourcing Suite SAP Ariba Supply Chain Collaboration Supplier, BOM and costing model that links Engineering\R&D, Sourcing\Procurement and Supply Chain In-house or multi-tier\outsourced manufacturing with forecasting, quality, inventory and invoicing collaboration

6 Transforming Businesses to Digital Enterprises Intrigo makes it simple, streamlined and scalable Enterprise solutions are complex, critical and costly 2017 Intrigo Systems, Inc. 6

7 Black Belts in Digital Supply Chain Solutions MANUFACTURE ADVISORY PROCURE INTEGRATION PLAN IBP 250+ highly experienced resources worldwide Strategic and deep seated partnerships with global leaders 200+ successful implementations globally Thought leaders in advisory, implementation and managed services SUPPORT DIGITAL Fortune 1000 clients across geographies Custom in-house softwares for seamless business processes PRODUCTS 2017 Intrigo Systems, Inc. 7

8 The Intrigo Advantage Accelerating Time to Value Line with Differentiated Services Deep supply chain manageme nt & industry expertise Track record of delivering value & successful projects Extended SAP partnership End to end Process orchestration & user centric design Harmonization across various cloud applications Methodology for rapid deployments and change enablement Tools & accelerators Solution extensions 2017 Intrigo Systems, Inc. 8

9 Supply Chain Customer Showcase: Microsoft One Device Supply Chain

10 Mission Worldview Strategy Ambitions

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12 Modern supply chain platform to enable the scale and complexity of Microsoft s hardware businesses Supplier Portal (Ariba) Channel Portal Universal Store

13 As-is process for supply collaboration Spreadsheet is sent via MICROSOFT Supportability is typically conducted by meetings and s MICROSOFT/CM Disadvantages Forecast Prioritization Supportability Prioritization is primarily conducted by phone MICROSOFT/CM

14 What and why is happening WHAT WHY Microsoft is shifting from a forecast and allocation driven model to demand driven fulfillment (pull) model to provide guaranteed availability of the right product to the right place before the customer s tolerance time. This will apply to all SKUs that Microsoft sells from each location Inventory reduction Capitalize on capturing upside potential to make more of the products that are selling Better balance of Microsoft s demand and supply Provide customers with a more reliable order confirmation date and improve the overall customer experience

15 To-be process for supply collaboration MS Planner performs planning in Simulation enviroment MICROSOFT Planning in Simulation Environment CM systems to ingest forecast CM reviews and commits to Forecast CM MS transmits forecast to Vendor MICROSOFT/CM CM to Commit to Forecast Review plan Variances CM reviews and commits to Forecast MICROSOFT/CM Benefits Better traceability with automated waterfall reporting Discussion focused around exceptions High automated process Scalable to multi-tier Better visibility of consignments parts to CM as same process is being leveraged Color coding to denote priority

16 SAP solution and benefits overview Sourcing Manager Supply Planner Production Planner Customer Services Representative Source Plan Make Deliver Ariba Supplier Information and Performance Management SAP IBP Sales & Operations Planning Ariba Collaborative Sourcing Ariba Contract Management SAP IBP Supply & Response Ariba Collaborative Supply Chain SAP IBP Supply Chain Control Tower Improve launch of new products: update systems to enable rapid onboarding for new products Integrate, automate & connected planning, scheduling and order management reduce touches Harmonize reporting environment, train users, implement dashboards Build in supply chain flexibility shift from forecast and allocation driven model (push) to demand driven fulfillment (pull)

17 ARIBA Collaborative processes supported by Ariba 6d TMC Copy Advance Shipment Notification to FMV 4c 6e Collaborative Supply Chain ODM (Contract Manufacturer) Microsoft 1a: Manufacturing Visibility Inventory 1b: Manufacturing Visibility Purchase Order 1c: Manufacturing Visibility: Manufacturing Order Receive FG Forecast Send Forecast Commit Receive Subcontract Purchase Order Send Copy PO to FMV Send PO confirmation Load Plan from FMV Production Order (Status) with PO reference Receive Delivery for Customer Information Create ASN Component Purchase Order Copy (4d) Advance Shipment Notification Copy (6f) 1 Manufacturing visibility: Production Order Goods Receipt 2a Forecast Collaboration: Forecast Visibility (Finished Goods) 3a Forecast Collaboration: Forecast Commit (Finished Goods) 4a Subcontract Purchase Order (Create/Change/Cancel) 5a Subcontract Purchase Order Confirmation 5c Production Order Status with PO reference 6a Outbound Delivery Order 7 Advance Shipment Notification 10a 1. Receive and Create Production, PO & Inventory(Consigned). 2. Update Inventory in ECC to Vendor consigned stock 3. Net Requirements Plan (Both FG &Consigned parts) 4. Receive Forecast Response (Generate Constrained Plan) APO/IBP** 1. Create/Change PO (Standard/Subcon) 2. Receive PO Confirmation 3. Capture Manufacturing Order status on PO 4. Send SD Outbound Delivery reflecting the PO(BTS vs BTO) A 5. Inbound Delivery (Real Time) Shipment arrived at Port(FMV) Shipment Received at DTV(FMV) 6. Inventory movement update message (Movement 344) 7. Goods Receipt (101/107/109) ARIBA 2b Forecast Collaboration: Forecast Visibility (Components) 3b Forecast Collaboration: Forecast Commit (Components) 4b Component Purchase Order 4d Component Purchase Order Copy 5b Standard Purchase Order Confirmation 6b Advance Shipment Notification 8 Component Supplier (Tier2/3) Receive Consigned Material Forecast Send Forecast Commit Receive Standard PO Send PO confirmation Send drop ship ASN copy to Tier (n-1) / Copy to MSFT Shipment Milestone Status Notification (Track & Trace) 9* Inventory Movement 10b Goods Receipt Notification Receive Copy PO for Tier(n-1) Supplier & FMV Inventory Movement at Batch number. Copy PO to FMV 6c Copy Advance Shipment Notification to FMV 6f Advance Shipment Notification Copy Goods Receipt to MSFT from Tier (N-1) Supplier APO-Planning ECC-Execution Future Process Advance Shipment Notification Copy 4e Logistics Live TBD Out of Scope TMC Component Purchase Order Copy (4d)

18 Ariba T2/T3 Supplier Orchestration Microsoft ECC Native Outbound Transactions cxml 2b. Receive Consigned Material Forecast 3b. Send Forecast Commit 4b. Receive Standard PO Tier 2/3 Suppliers (via Ariba Portal or B2B) APO Native Intbound Transactions cxml Ariba Network 5b. Send PO confirmation 6b. Send ASN 4d. Copy of PO 10b. Goods Receipt 6f. Copy of ASN Tier n-1 Supplier / CM

19 Implementation timeline Ariba Collaborative Supply Chain One Device Supply Chain (1DSC) Timeline SEPT OCT NOV DEC JAN FEB MAR APR MAY Nov Release 11/15 Dec Release 12/11 Feb Release 2/12 March Release 3/18 April Release 4/15 May Release 5/13 Nov Release Workshops Nov Release Workshops Feb Release Workshops May Release Workshops May Release Workshops SP9 12/11 AN Jan Release AN Feb Release SP10 3/12 AN April Release AN May Release February Release Manufacturing Planning Visibility via new standard message Sub Con PO, Sub Con OC, Sub Con Cancel Order Component PO, Component OC, Component Cancel Order Advance Shipment Notification Component Goods Receipt Forecast Forecast Commit PO Confirmation Exception Process via ABAP Report Native Integration to ECC Manufacturing Execution Visibility via Component Consumption Request CSC 3.0 2/20 AN Gateway Release 2/5 Sprint 1: 02/15 02/22 Sprint 2: 02/26 03/11 AN Gateway Release 3/4 Sprint 3: 03/11-03/25 Sprint 4: 03/28-04/04 Forecast 2.0 4/14 AN Gateway Release 4/8 CSC 4.0 5/12 Contract Manufacturer Testing Component Supplier Testing AN Gateway Release 5/13

20 Status: Ariba Supplier Collaboration: Status: Ariba Network is the backbone for Xbox and Surface line of products supply chain As of 3/17/17: 46 enabled suppliers out of which 35 transacting suppliers transmitting 118K+ of purchase orders worth $3.5Bil+ Microsoft Planning Team quote: Today we successfully received automated (via Ariba) supportability from the supplier which took ~5 mins to approve, updated PREQS and create PO s (vs. 1-2 hours leveraging the previous process) Risks and Insights: Highlights of key prioritized Ariba Collaborative Supply Chain requirements by Microsoft and SAP Ariba teams: Functional (forecast application improvements, planner dashboards, IBP Integration) Scalability (50K+ orders/hour) Reliability and monitoring: (reprocessing of stuck orders, monitoring API) Principles: Design Partnership - Microsoft and SAP Ariba teams working as one Tight coordination and alignment of product and infrastructure deliverables aligned with business outcomes Product teams directly interacting with each other with maximum transparency Scorecard: Efficiency and Speed Gains: Supplier Supportability process improvement: 90%+ (1-2hrs to ~5min) Planner s Efficiency improvement: 95%+ (order follow-ups/expediting reduced from 1-2 days to 1-2 hours) Supplier On-Boarding time improvement: 75% (onboarding time reduced from 3-4 months to 3-4 weeks)

21 Co-Innovation Partnership Close collaboration and rapid product and process innovation

22 Roadmap and Future Opportunities at Microsoft Ariba Supply Chain Collaboration * FUTURE PLANS: Subject to change Scalability/Reliability/Monitoring: Q1/2017* Q2/Q3 2017* (subject to planning and joint prioritization) Resending of Copy Documents from AN Scalability - Enhanced AN infrastructure to handle higher Document throughput Large Document Support in AN Enhanced information in error notifications (for Failed on Arrival Error Types) Product Innovation - Forecast and Order Application Improvements: Planner Code Filters in Order Conformation Download Screen Program Code Filters in Forecast Screen Scalability/Reliability/Monitoring: Scalability - Enhanced AN infrastructure to handle higher document throughput High Season 2017 Integration Build Plan Integration with IBP Standardized Solution Manager Integration Product Innovation - Forecast and Order Application Improvements: Build Plan Report Dashboard Improvements Order Confirmation Approval Future* (subject to proposals) Technology Partnership Azure Bot Service Chatbot Office 365 service adoption in Ariba s application and architecture Product Innovation Transportation and Logistics collaboration Customer Collaboration Quality Collaboration Excel-based planning views Integration S/4 HANA Scenarios Supply Risk scenarios Incubation Blockchain scenarios Provenance scenarios - product counterfeit prevention Internet of Things integration with Asset Networks or Manufacturing shop floor systems Spot logistics services integration with online logistics service provider networks

23 Learn more about Ariba SCC Latest product insights In-depth product demos Hear from a real customer Develop a clear understanding of how Ariba SCC can help you Develop a high level model of the benefits and value drivers Palo Alto Date: TBA Newtown Square Date: TBA Sponsored by Reserve your spot now! 2017 Intrigo Systems, Inc. 23

24 2017 Intrigo Systems, Inc. 24