Sapphire Online 2009 OR0402

7/30/2019 Sapphire Online 2009 OR0402

http://slidepdf.com/reader/full/sapphire-online-2009-or0402 1/27

SEE YOUR WAY CLEARStrategies for Success in the New Reality

SAP Solutions for Trading Industries

Sheep to Shopper Retail, Wholesale, and Travel & Logistics Services

Verlin Youd

SVP Global Trade Sector



©SAP AG 2009. All rights reserved / SAPPHIRE / OR0402 /

Agenda

1. Connecting with your Customer 2. Solutions That Link Sheep to Shopper

3. Partner Innovation

4. Maximizing Your Investment

5. A Quick and Modular Approach




Challengingeconomy

Challengingeconomy

Sustainableoperations

Sustainableoperations

Increasedrisk

Increasedrisk

Globalization

Globalization Intensifiedcompetition

Intensifiedcompetition

Shoppers arespending less;you mustincrease loyalty

You cannotaffordoperationalinefficiency

Shoppers arespending less;you mustincrease loyalty

You cannotaffordoperationalinefficiency

Green productsand services

Increasedefficiency

Socialresponsibility

Green productsand services

Increasedefficiency

Socialresponsibility

Complianceimperative:Sarbanes-OxleyAct and RFID

Lack of capital

Market volatility –

price wars

Complianceimperative:Sarbanes-OxleyAct and RFID

Lack of capital

Market volatility –

price wars

Global sourcingstrategies

Proliferation of special pricing

Supplierconsolidation

Global sourcingstrategies

Proliferation of special pricing

Supplierconsolidation

Leverageinformedworkers tocreate value

Differentiate forsurvival

Leverageinformedworkers tocreate value

Differentiate forsurvival

Key Trends Are Driving Changes

Now, more than ever, connecting with the

customer is essential to your business




In today’s economy, the customer

must be the center of any initiative. To connect with the customer, youmust have a clear enterprise that willprovide improved performance

through insight, drive efficiency tooptimize operations, and create newbusiness value with flexibility.

Trading Industries Vision

How to Connect with Your Customer

customer

clear enterprise

insight efficiency

flexibility


http://slidepdf.com/reader/full/sapphire-online-2009-or0402 5/27©SAP AG 2009. All rights reserved / SAPPHIRE / OR0402 /

Agenda

1. Connecting with Your Customer2. Solutions That Link Sheep to Shopper






Solutions That Link Sheep to Shopper

So what does it mean to have a

clear enterprise?

Sheep

ShopShopper



Solutions That Connect with the

Customer

Insight

Provide real-time visibility with SAP BusinessObjects business intelligence solutions

Optimize price based on an understanding shopper demand and allow use of pricingas a strategic lever in meeting goals

Leverage customer analytics to understand your shoppers better and align youroffering with their expectations and desires

Efficiency

Endure that you provide the service your shoppers expect, as efficiently as possible,

with the SAP Workforce Management application Reduce risk by leveraging loss prevention to evaluate each POS transaction for

accuracy and integrity

Reduce costly out -of-stock instances while removing inventory from the supplychain with the SAP Forecasting and Replenishment application

Flexibility

Store loyalty allows you to offer creative, compelling programs for your shoppers

The SAP Promotion Management application gives you control to target promotionaloffers by region, store, or channel

SAP BusinessObjects enterprise performance management (EPM) solutions give

you the ability to adjust quickly to changing market conditions

Retail




Customer

Insight

Increase working capital with the SAP Paybacks and Chargebacksapplication by Vistex

Reduce the cost of goods sold and buy smarter with an integrated sourcing

and procurement solution

Efficiency

Improve operating efficiencies with warehouse management functionalityfrom SAP

Streamline accounting, financial close, customer service, and HR processeswith SAP ERP

Be easier to do business with – automate order-to-cash process and enableall sales channels for your customers

Flexibility

Adapt to changing business conditions with the SAP Price and MarginManagement application by Vendavo

Sense and respond to changes with SAP Supply Chain Management

WholesaleDistribution




Customer

Insight

Gain real-time visibility across entire supply chain with the SAP EventManagement application

Gain a 360-degree view of the customer with the SAP Customer Relationship

Management (SAP CRM) application

Efficiency

Business process platform to connect all suppliers, vendors, and serviceproviders to share common data for operations and analytics

Global trade services that promote seamless cross-boarder movements

Centralized financial and operational management for diverse operations

Flexibility

Supply chain and event management solutions respond to transportation issuesbefore they become customer complaints

Transportation and warehousing solutions react to supply chains that changerapidly while keeping logistics costs as low as possible

Travel &

LogisticsServices



SAP Business Suite 7 ApplicationsIncrease Efficiency and Reduce Risk

Process excellence

Introduction of value scenarios

Consolidated industry capabilities

Reduced cost

Switch framework

Modular approach

Capture opportunities Leverage current investments

Increased visibility and agility

1

2

3



Leveraging the clear enterprise from SAP

Reduced labor associated with store ordering by 95% Reduced out-of-stock by 75%

Automated store replenishment increased from 60% to 81% Stock reduced from 34 days of coverage to 10-14 days

Improved in-stock rates from 89% to 98% (99% for key items)Improved store replenishment cycle time from 35 days to 8 days

Increase in parts availability to 98% 60% less in delivery discrepancies

Enhanced flexibility to respond quickly to changing customer needs

Improved integration with customer SAP software enabling real-time process tracking

Improved on-time deliveries by 17% to its current 97% Improved customer service while reducing customer support costs

Retail

Increased chargeback claims 114% after switching from legacy to SAP solution ROI for SAP Chargeback Management was significantly less than 6 months!

Achieved paperless warehouse environment; increased whse space availability by 14%

Expected ROI was 36 months. Achieved it in less than 18 months!

Wholesale

Travel and Logistics

Leveraged WM, ERP and Chargeback Management solutions to drive competitive advantage

Now successfully managing +$150MM annually in charge backs



Agenda

1.Connecting with Your Customer

2. Solutions That Link Sheep to Shopper






Connecting with the Customer Through

Partner Innovation

RetailTravel & Logist ics

Services

Wholesale

Distribution



Effective Retail Price Optimization

SAP and Best-in-Class Price Management and Optimization

SAP merchandise lifecycle pricing software can help you in yourefforts to connect your value to what your shoppers are willing tospend while increasing your competitive position and your customerloyalty. Has your organization thought about:

Whether you are priced competitively in your various regions and zones?How to increase sales and margins with your current store traffic?If you have a high level of pricing compliance on the store shelves?

Deloitte: The Value of Experience

Deloitte has a demonstrated track record of price strategy,merchandise lifecycle pricing, and price execution relatedexperience that can help your organization better understand thevalue of a world-class pricing capability. Our pricing transformationrelated experience spans multiple industries. We can help you in

your efforts to drive value and uncover key insight that can beleveraged by your company. Learn more about:

Assessing the value of the SAP Merchandising Lifecycle Pricing solution.Rapid deployment of pricing initiatives to generate quick wins while framing up

your long-term solution.Potential benefit benchmarks from multiple industries and spanning different

phases of the pricing lifecycle.

Key Benefits:

Increase gross margins andincrease sales

Compete more effectively whileimproving your price image and

customer loyaltyIncrease gross margin dollar

benefit from 1% to 8%Increase sales up to 3%

“Retailers adopting comprehensivelifecycle pricing strategies that includepromotional planning, revenueoptimization, and advertising executionachieve gross margin improvementsbetween 4% and 16%.”

Source: AMR Research, June 2008




Vendor Cost Recovery Solution From SAP and

Vistex - Faster, Cheaper, Better

SAP Paybacks and Chargebacks by Vistex

Offers an end-to-end chargeback solution

Identifies every cost-recovery opportunity andrebate claims that are due to distributors

Connects chargeback process with order-to-cash and finance processes to eliminatecostly errors, disputes and delays

Increases worker productivity and overall

financial performance and profitability

D a y s C h a r g e b a c k O u t s ta n d i ng

3 0

3

0

5

1 0

1 5

2 0

2 5

3 0

3 5

Av e r age

1st Qu ar t i le

27

Source: NAED2008 2008

D a y s

“The chargeback process for us determines whether or not we are profitable. We do, on

an average, US $168 million a year in chargebacks.”Paul Fipps, vice president, business services

The Charmer Sunbelt Group, May 2008




Optimizing MRO Planning and Execution

iMRO from HCL-Axon

Key Benefits:

Improved asset utilization; reduced down-timefor maintenance

Faster maintenance turn-times Process automation resulting in greater data

accuracy and data input Full regulatory compliance Reducing inventory levels Improved cost visibility for more accurate

pricing Ability to bid for higher margin fleet and PBH

contracts

Faster quotes, more accurate and faster billing

“The consensus (SUGAIR) remains

supportive of the initiative as it has been

from the start" (SUGAIR chairman Alun

Pryer (British Airways))

– Collaboration bringing together 25 years indeveloping and delivering SAP MaintenanceRepair and Overhaul (MRO) solution

– Improves productivity and usability for aviation

and aerospace maintenance

– Reduces implementation time, cost and risk to

customers

ff C &




Efficient Retail Cash Management & Accurate

Liabilities

The SAP and Open Text Invoice Management Solution

Business Benefits

Increase productivity and revenue by minimizing manual processes through integrationand automation

Improve cash management and shorten closing cycles by streamlining the payment

processBecome a dependable business partner to your suppliers with shortened invoice-to-

pay cycles and accurate, timely information Take control of your business through an accurate picture of today’s invoice

processing that can support your decisions for tomorrow’s opportunities

Key Features

AP process integration – single, unified view of the process company-wide, frompurchase through payment

Controlled financial processes – Classify, route, and sort invoices automatically;systematically detect invoice exceptions and duplications; and get the rightinvoice to the right person at the right time

Internal and external reporting – Automate reporting to support everything from

corporate financial requirements to trade regulations to continuous improvementprograms

Compliance – Support your rigorous process to help ensure compliance based onintegrated, consolidated information and enhanced reporting features

Key Benefits:

Increase cash availability throughimproved Accounts Payableprocesses

Shorten financial close cycles100% improvement for daily

invoice processing

20%+ improvements in clean POpassing

“ The challenge of executing retail isbehind the scenes. Invoice paymenterrors result in lost incentives, doublepayments or late payments

Exceptions typically require multipledesks and days to resolve. Including arock solid audit trail requires complexbusiness processes/changemanagement/and systems to achievethe appropriate level of audit

capabilities.”Source: AMR Research, April, 2009

A d

http://www.opentext.com/2/email-signature-logo-global-event




Agenda

1. Connecting with Your Customer





SAP S i Off i




On time, on budget,

and on value

Best-run business

SAP Services Offerings

T V l E i i P t H l Y




Two Value Engineering Programs to Help You

Become a Best-Run Business

Benchmarking

Strategic service by the value engineering group atSAP

Launched at the end of 2004 jointly with America’s

SAP Users’Group (ASUG), as a forum toexchange metrics and best practices

Provides a context for how your company isoperating relative to its peers and like-sizedcompanies

One of the largest benchmarking programs in theindustry

Covers 26 processes

More than 3,500 participants

Over 1,500 companies

Increasingly global participant base

Survey participation is free of charge

Participants receive customized andconfidential benchmarking comparison againstindustry peers

Value academy

Our vision is to make every customer a best-runbusiness. With the increased importance of deliver-ing and measuring tangible benefits, we decidedthat it is the right time to open our value platform toour strategic customers

Companies can adopt the value DNA through thevalue academy ,which covers the following areas:

Industry best practices

Benchmarking Business cases

Case studies and whitepapers

The 2.5-day course is structured along the value lifecycle and consists of hands-on training on value

life-cycle platform and tools Course participation is free in 2009, with value

academies offered throughout the country

Please contact your local value engineering representative

for additional information on these programs

Agenda




Agenda

1. Connecting with Your Customer





Package Approach at SAP




Package Approach at SAPDrive Modularity Without Giving Up Your Strategy

M o d u l a r i t y

Completeness of solution

Quick, modularapproach drives value

Standard, best in class

integration tools Ability to upgrade on

your schedule Integrated to legacy

and new innovation

Lengthyimplementationcycle

Huge change

management effort Proprietary

integration tools New upgrades =

new implementation

Expensive No long-term viability or

direction Difficulty synchronizing

integration betweenupgraded versions

Each must integrate tolegacy applications

Implement in Small Steps




Implement in Small StepsPackages Combine Products, Services, and Partners

Modular Implement key functionality step-by-step

Immediate return on investment

Gain the benefits in 9–12 months

Quick deployment

Implementation in months not years

Packages Align with and Integrate Back into Your




Packages Align with and Integrate Back into Your

Business Processes

Price optimization

A comprehensive understanding of shopper demand and strategic goals leadto optimized prices

SAP Price Optimization application

IBM Business Partner

SAP Services offerings

Price optimization

A comprehensive understanding of shopper demand and strategic goals leadto optimized prices

SAP Price Optimization application

IBM Business Partner


Retail comp storeplanningCombine easy-to-use features with retailplanning best-practice methodologies toenable more efficient and precisecomparable store sales planning

SAP BusinessObjects Planning and

Consolidation applicationSAP Merchandise and Assortment

Planning application


Retail comp storeplanningCombine easy-to-use features with retailplanning best-practice methodologies toenable more efficient and precisecomparable store sales planning

SAP BusinessObjects Planning and

Consolidation applicationSAP Merchandise and Assortment

Planning application


Service-orientedarchitecture (SOA) –

promotion content

integration

Using SOA, the promotion planningsolution can integrate with many content

management solutions and leverageassets to build promotions

Service-orientedarchitecture (SOA) –

promotion content

integration

Using SOA, the promotion planningsolution can integrate with many contentmanagement solutions and leverageassets to build promotions

Why SAP?




Why SAP?

The global market leader with a suite of comprehensive solutions that provide aclear enterprise

Industry specific solutions built aroundcustomer insight

Continuous solution enhancementsbased on customer needs

Over 10,000 trading industry companiesrely upon SAP software to run business

critical processes with efficiency andenjoy 24x7 support around the world

Innovation without disruption, leveraging

a platform that provides flexibility

customer

clear enterprise

insight

flexibility

efficiency



Thank you!

Sapphire Online 2009 OR0402

Documents

Transcript of Sapphire Online 2009 OR0402