dsd process

Direct Store Delivery:Solution Strategy

Glenn IrwinSolution Mgr, SAP Labs, LLC

Vienna, May 15, 2007

Current Customers: SAP xMDSD 2.1

Direct Store Delivery: Solution Strategy

Direct Store Delivery: Process and Tools

© SAP AG 2007, SAPPHIRE / SLOT VI1981 / Glenn Irwin / 3

The Direct Store Delivery Process

Direct store delivery (DSD) is a business process to sell and distribute goods directly to a customer’s store, bypassing the retailer’s warehouses

Manufacturer

Point of sale (POS) and point of consumption (POC)

PlantHome and

office delivery

Retail outlets,kiosks,

and so on

Hotels, restaurants,

canteens,and so on

Vending machines

Direct store delivery

Distribution center


Solution Benefits of an Integrated DSD Solution

Increased efficiency from use of fully integrated mobile devices in an end-to-end DSD process

Fast analysis of key business data from your core processes supports faster, more accurate planning, budgets, and forecasts

Access to important information anytime, anywhere by gathering competitive intelligence at the level of the store, shelf, and customer

Transportation planning and vehicle space optimization streamline delivery routes, drive down fleet costs, and reduce driver time

Route settlement functions minimize discrepancies and invoice changes, thereby eliminating processing and paperwork costs

SAP uniquely delivers an integrated, end-to-end DSD solution


Process Overview in DSD in Enterprise Resource Planning

8. SettlementReview differencesFinal settlementPost goods issueRelease billing blockGenerate differences ordersPost movements for material differences

7. Upload of tour dataUpdated orders and deliveriesReturns and emptiesPayment information

6. Check-inConfirmation of actual products and quantitiesConfirm empties and returnsConfirm cash collection

3. Download of tour dataTourCustomer and product infoOrdersDeliveries

4. Check-outChecking of loadConfirmation and sign-off load

5. Physical deliveryDrop off goodsChange and record quantities and returnsReceive and record emptiesPrint delivery documents and invoiceExecute reload

2. Shipment preparationDelivery creationDispatchingPicking and packingLoadingPrinting of delivery documents

1. Order entryDifferent channels: preseller and order-entry back endInformation: customer data, delivery, product data, and pricing data

Delivery driver and van seller

Preseller


Functionality Overview: Preseller

The scenario variation of DSD order-to-cashintegrates SAP xMDSD for presellers and delivery drivers into your DSD back-end processes

PresellerStart of dayMaintain visit listOrder takingPrint order confirmationVisit remaining customersEnd of day


Functionality Overview: Delivery Driver

The scenario variation of DSD order-to-cashintegrates SAP xMDSD forpresellers and deliverydrivers into your DSD back-end processes

Delivery driverStart of dayMaintain visit listCheck-outChange deliveryDeliver product or return productCollect cashPrint invoice or delivery notePrint payment receiptVisit remaining customersCheck-in


DSD van sales enables selling and deliveringproducts to customers who have not placed anorder in advance

Van sellerStart of dayCheck-outCreate orderDeliver product or returnproductCollect cashPrint invoice or delivery notePrint payment receiptVisit remaining customersCheck-in

Functionality Overview: Van Sales


Where DSD Stands Today: SAP xMDSD 2.1

Pilot customerEmpresas Polar

SAP xMDSD 2.0 customersGeorge Weston Foods, AustraliaAbsopure, Detroit – live on November 1, 2006

SAP xMDSD 2.1Absopure – live in March 2007Coca-Cola Hellenic Bottling Company Dreher [SABMiller] – HungaryGalliker’s DairyHarrington Bottling Company

Value Realization with SAP xMDSD

Alejandro BombaciCIO

SAP DSD & Empresas Polar – April 2007

Agenda

• Empresas Polar

• Operations

• DSD Sales Models @ Empresas Polar

• Value Creation with SAP xMDSD (& CRM / SCM)

• Application Landscape

• Adaptability to changing business needs

• End-to-End business integration

• Summary


Empresas PolarGeographical Presence


SoftSoft DrinksDrinks & & FunctionalFunctional BevBev FoodFood

• Corn Flour, Oat Meal• Infant Cereals• Rice, Pasta, Wheat Flour• Margarine, Mayonnaise, Sauces

• Corn Oil• Cheese Spreads• Marmalades• Canned Tuna and Sardines

• Frozen Seafood• Ice Cream, Desserts• Pet Food, Animal Feed• Soap, Detergents, Fabric Softener

• Soft Drinks• Mineral Water• Sport Drinks• Energy Drinks• Fruit Juices• Tea

JV with Pepsi-Cola

BeerBeer & & MaltMalt

• Beer• Malt beverage• Wine• Champagne• Sangría

• Total RevenuesUS$ 3 Billion *

• 2,3% of Venezuela’s non-petroleum GDP

• 23,000 direct jobs* Fiscal 2005-2006

Empresas PolarBusiness Areas – Products


Agenda

• Empresas Polar

• Operations


• Value Creation with SAP xMDSD / CRM / SCM




• Summary


OperationsSupply Chains in Venezuela

6

43

+300

1,450

1,400

5

85

+350

1,990

1,000

16

56

+550

735

+750

Manuf. Plants

Dist. Centers

SKUs

Sales Routes

HHs

SC ElementsSC Elements FoodFood Soft DrinksSoft DrinksBeer & MaltBeer & Malt


Pre-Sales & Delivery

Van-Sales Telesales- Employees -

Pre-Sales & Delivery

- Employees -

Van-Sales- Franchises -

OperationsSales Operations

Pre-Sales Van-Sales -Employees -

Delivery- 3rd Party -

Sales ModelsSO ElementsSO Elements FoodFood Soft DrinksSoft DrinksBeer & MaltBeer & Malt

155,000

10%

45,000

25%

190,000

15%

Customers

Modern Trade


Agenda

• Empresas Polar

• Operations


• Value Creation with SAP xMDSD / CRM / SCM




• Summary


DSD Sales Models @ Empresas Polar

PresalesVansales

TelesalesVendingMachine

Sales

Special Event Sales

Multiple sales models depending on:

•Business Unit

•Customer Type

•Occasion


DSD Sales Models Presales Cycle

Sales Contact

Delivery Preparation

Delivery and

Settlement

But every model shares the same conceptual phases



Delivery and

Settlement

DSD Sales Models Presales Cycle – Presales Visit

SalesData

Mgnmt

PresalesRouteVisits Preseller

Sync andSettlement

But that is where similarity ends …



SalesData

Mgnmt


Sync andSettlement

Sales Assets Incidents

• Flexible Discount based on Commercial Structure• Cross Selling Discounts• Empties Discount

• Focused Portfolio• Pre/Tele Sales Mix Model

… each business unit has its own realities and needs

and handle different elements within a process



SalesData

Mgnmt


Sync andSettlement

• Store Stock Check• Item Proposal• Customer Profitability• Return Order• Collection (Cash, Check, BT, Tax Credits)

Flexible Discount based on Commercial Structure

Customer Segment Focused Portfolio

• Tiered Risk Credit Check• Adjustable Payment Terms

Remote Sync & Settlement Scenarios





SalesData

Mgnmt


Sync andSettlement

Direct Sales Model Franchise Model




DSD Sales Models Presales Cycle

Sales Contact

DeliveryPreparation

Delivery and

Settlement

Each Business Unit has its own realities and needs…

… in most Phases


Sales Contact


DSD Sales Models Presales Cycle – Delivery and Settlement

ManageDelivery

Deliver Settlement

CheckIN

Check OUT



• Empties Mgmt • Return Process• Reload• Collection (Cash, Check, BT)

ManageDelivery

Deliver Settlement

CheckIN

Check OUT

Some times the processes are sensibly different …



No Checkout Process

• Return Process• Delivery form Multiple Shipping PointsManage

Delivery

Deliver Settlement

CheckIN

Check OUT




Invoice at Delivery

• Empties Mgmt • Return Process• Collection (Cash, Check, BT)Manage

Delivery

Deliver Settlement

CheckIN

Check OUT



PresalesVansales

DSD Sales Models @ Empresas Polar

TelesalesVendingMachine

Sales

Special Event Sales


Agenda

• Empresas Polar

• Operations


• Value realization with SAP xMDSD




• Summary


``|

Corporate SAP Environment

Value Realization with xMDSDApplication Landscape before SAP xMDSD

Beer & MaltBeer & Malt Soft Drinks & Soft Drinks & NonNon--CarbCarb BevBev FoodFood

Franchises

Multiple

Front-EndsM

ultipleB

ack-Ends


``|

Corporate SAP Environment (R/3-ERP + DSD + CRM + …)

Value Realization with xMDSDCurrent Application Landscape (with SAP xMDSD)


Franchises

Front-EndB

ack-End

xMDSD

Toward

Single


``


Corporate SAP Environment (R/3-ERP + DSD + CRM …)

Value Realization with xMDSDApplication Landscape (2009) with SAP xMDSD

xMDSDxMSA Laptop


Empresas PolarGIS

ERP + xMDSD

SCM

Strategic Enterprise Management / Business Intelligence

Enterprise Portal

XIM

I

CRM

Employee Self-Service

CollaborativeTransportation

LOTUS NOTES

MICROSOFT OFFICE

Value Realization with xMDSDApplication Landscape – Single Corporate Solution

xMII


Agenda

• Empresas Polar

• Operations


• Value realization with SAP xMDSD / CRM / SCM




• Summary


xMDSDxMDSD Configurable Sales Service ModelsConfigurable Sales Service ModelsPre-Seller Delivery What is

your model?

+ Other Applications in SAP Landscape+ Other Applications in SAP Landscape• DSD Backend• Visit List

• CRM Telesales • CRM Customer Service• CRM Installed Base Mgmt

Configure and Restructure our Go to Market Strategy

and deploy it for Commercial Execution at will

• Pre Seller• Van Seller• Telesales with CRM• Own Delivery• 3rd Party Dlvy• HH Delivery• Manual Delivery

• Item Proposal• Pricing Structure• Promotion & Discount• Vending• Sales Assets• Control of Empties • …

• Sales Order• Return Order• Credit Check• Delivery• Product Returns• Billing• Collection• Empties

?

?

?

?

?

?

?

?

Value Realization with xMDSDAdaptability to changing business needs


xMDSDxMDSD EnhancementsEnhancementsFront-End

HHBack-End

Sources for EnhancementsSources for Enhancements• SAP Custom Development • In-House developments

• Configuration• User Exits / BADIs• User Programs• Modify Programs• Add. Data Tables• Data Sync. (SyncBOs)• Data Selection Criteria

Value Realization with xMDSDAdaptability to changing business needs

Specific functionality added:

• Product Portfolios (by segment)

• Control Sales Quotas• Collect POS Data• Truck Reload (E)• End of Day Reports

(E)• Suggested order

proposal (E)• Sales History on HH• Material Search (E)

(E) = Enhancement tostandard functionality


Agenda

• Empresas Polar

• Operations






• Summary


Value Realization with xMDSDEnd-to-End Business Integration

SAP xMDSD enabled the Value Chain with seamless End-to-End integration providing it with complete visibility of all business activities and every customer interaction

Support Activities



Support Activities

Structure, Coordinate and Execute Sales Activities for Sales-forces servicing multiple combinations of:

- Costumer Segments- Sales Models- Product Portfolios

Collect information at Customer POS level to improve visibility of market demand and enhance Forecasting / Business Planning

Complex Business Intelligence Analytics, provides seamless insight on:

- Sales Contact Execution- Delivery Performance- Sales Assets utilization



Support Activities

Help ensure availability of returnable empties by enabling their planning and coordination

Quickly and easily adapt Supply and Distribution plans and activities in response to real-time Customer Demand


Agenda

• Empresas Polar

• Operations






• Summary


SummaryWith xMDSD we have achieved:

• Sophisticated customer service offerings

• Larger portfolio being offered on each visit (70-150 SKU)

• Allowed prioritization of product offerings

• 60% more SKUs sold per visit

• Faster cycle times on: Sales Operations, SC Planning & Execution

• 50% less time on the office for salesperson

• 30% faster back-office closing

• 40% faster truck-load assignment and load start

• 3 day reduction in monthly closings


Summary• Higher visibility of customer data & transaction detail for:

• Daily sales operations KPIs, BI

• Portfolio Management Focalized offerings

• More accurate demand estimation DP

• Better supply chain planning (15% stock-out reduction – still growing)

• Simplified IT Support

• Full integration with SAP Business Suite

• NO interfaces

• Device Data Backup & Recovery Saved on damaged devices

• Integrated Device Management facilities Fast software update

• Reduced IT support to sales locations No application servers

• Fast adaptability to new requirements

• Single application Faster turnaround for new requirements


Thanks

dsd process

Documents

delivery routes

delivery drivers

physical delivery

customers store

day sap ag

tools sap ag

sap labs

van sellerpreseller