life science global trade implementation case study
TRANSCRIPT
AbbVie Streamlined Its Supply Chain with SAP GTS Globally to Replace Various Trade Legacy Solutions and Exited TSA Within Tight Time ConstraintsJacki Dioguardi – Vice President, Enterprise Applications
Mike Stadler – Director, Global Trade Compliance
Rajesh Malle – Krypt Inc.
SESSION CODE: CP1603
§ Who are we?
§ AbbVie Global Trade Footprint § Project Background, Scope & Schedule § Key Features § Challenges & Key Learnings § Q & A
Agenda
A niche systems integrator in the Supply Chain space providing unique and high-‐value soluJons using SAP technologies like GTS, WM/EWM, TM, GRC, BI and HANA Corporate § Founded in 2008 § Team: 80+ in the US and 25+ in India § Presence throughout U.S. and in India; HQ in Santa Clara, CA Customers § Serve companies in 35 countries, mostly Fortune Global 500 § Over 95% of customers have been repeat customers Financials § Privately held; 100% (YoY) revenue growth in 2013; annualized rate of 260% revenue
growth over past three years Thought Leadership § Authored 6 books and 65+ white papers published by SAP Press § Invited to speak at business, industry, and SAP conferences, and expert round-‐tables § ConJnuous investment in R&D; co-‐innovaJon with SAP on GRC, SCM and AnalyJcs suite
About Krypt Inc.
AbbVie – A Broad and Strong Foundation
Medicines available in 170+ countries
19 R&D and manufacturing facilities
Portfolio of market-leading medicines
Compelling new product pipeline
$19.9 billion in 2014 sales
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How we achieve Performance
TOP-‐T IER PERFORMANCE
Project Objectives
AbbVie was a new company
Key ComplicaAons
Recent SituaAon § We were reliant on a host of Abboh transiJon service agreements (TSAs) for our IT systems and
infrastructure, and we needed to move away from these by the end of 2014 § There were several in process Abboh iniJaJves that will conJnue to impact AbbVie post-‐
separaJon
§ Complex environment – we are uJlizing >50 legacy Enterprise Resource Planning (ERP) systems globally, which is unsustainable
§ CompeJng prioriJes – we are simultaneously undertaking mulJple strategic programs across the organizaJon
§ Difficult road ahead – success rate of large scale transformaJon programs is low, but the typical hurdles are known and can be managed
We have an opportunity to posiAon AbbVie for long-‐term growth and success
A Global Template was Deployed
Leverage our Investment
Enhance Business Flexibility
Reduce Future Deployment Costs / Time
§ Enable major business benefits globally (e.g. Shared Services) § Standardize & harmonize AbbVie business processes § Enable governance to maintain integrity and evolve funcJonality § Reduce maintenance cost by maintaining a single soluJon
§ Drive inter-‐company and business unit collaboraJon § Enable Enterprise-‐wide visibility to data § Provide a common planorm for future opJmizaJon projects § Establish planorm for mergers and acquisiJons
§ Accelerate design, build, test and cutover § Standardize AbbVie Project Management and SAP deployment processes
The FOUNDATION program provides the full solution that is needed to achieve our goals
People & Process § Target OperaAng Model for Finance and OperaJons § Standardized end-‐to-‐end processes § Leveraged in-‐house and outsourced capabiliJes § Balance of global, local and regional resources § Clear governance, roles and accountabiliJes
Technology § Single instance SAP environment § Standard global template § Other common applicaJons and technologies § Common data, tools and capabiliJes § Flexibility for innovaJon and growth
Project Schedule
§ SupporJng 11,000 users in: § 114 countries § 6 manufacturing sites § >12 languages
§ New organizaJonal model roll out BPO, Financial Services and SAP Shared Services
AbbVie Future ERP Landscape (by 2015)
AbbVie ExisAng ERP Landscape (Current)
This Program allowed for the decommissioning of many systems
AbbVie ERP Landscape (Current -‐ 2015)
AbbVie Global ERP BPCS Gold (22)
SAP P31SAP (Atrium)
BPCS / AP41 (8)
iScala (8)
JDESAP R/3 (2)Region System (5)SAP ECC6 (Non-‐Symphony or P30)
Local BPCS / AS400 ERP (7)
AbbVie Global ERP
SAP AES
AbbVie Global Trade Compliance
R&D
Commercial
Manuf.
Corporate Center of Excellence
Global Trade
Compliance
Manuf.
Corporate R&D
Commercial
1. Inconsistent processes / controls 2. Lack of a structured trade strategy or technology
roadmap 3. Trade resources operated in silos 4. Operated mainly in a reacJve mode 5. Limited organizaJonal growth and ability to
leverage talent across sites
1. Centralized and/or funcJonally aligned resources 2. Established a global and regional organizaJonal
structure 3. Implemented a formalized target operaJng model
(TOM) which includes the COE concept 4. Roll out of standard processes and training 5. Centralized experJse to beher idenJfy
opportuniJes
Legacy Trade Environment Current GTC FuncAon
TOM/CO
E Deployment
Inconsistent Approach w/Siloed Resources Aligned FuncAon w/Focused Professionals
AbbVie’s Global Trade Footprints
~43 Impor*ng/Expor*ng Countries
§ TransiJon from legacy non-‐AbbVie systems that supported trade operaJons
§ Deploy a global trade planorm that meets AbbVie’s current and future needs.
§ Access to a single tool that would provide visibility to all AbbVie trade acJvity globally
§ Standardize key processes (e.g. master data) and import/export documentaJon
SAP GTS – Our Goal
Solution Overview
GTS FunctionalityFuncAonality implemented in four disAnct phases:
Phase I Phase II Phase III Phase IV
• Restricted Party Screening
• Embargo Check • Product ClassificaJon
• Import/Export Documents
• Legal Control • U.S. Export Self
Filing • Web-‐Based
Screening Tool
• Netherlands Import/Export Self Filing
• Import Permit & Market AuthorizaJon
• Germany Import/Export Self Filing
2013 2014
FuncAonality Deployed Aug Sep Oct Nov Dec Jan Feb Mar Apr
Compliance
SPL Screening (DPL)
Embargo Screening
Licensing / Legal Control
Adhoc SPL Screening
Export Processing
Export DocumentaJon
Electronic Self Filing
Import Processing
Import DocumentaJon
Electronic Self Filing
Phase 1 Phase 2 Phase 3 Phase 4
Deployment Phase Schedule
§ Number of countries impacted in each phase was dependent on trade acJvity
§ Total of 37 countries on the GTS planorm
Key GTS Features of AbbVie’s Deployment
§ CombinaJon of standard and custom funcJonality to support compliance screening at Customer / Vendor and TransacJon level (manual & ECC shipments)
§ Adhoc restricted party screening in web based tool
Key Features – Compliance Module
Screening Occurs
GTS Screening Process
§ ClassificaJon & Regulatory Data § Export Control ClassificaJon Number § Tariff codes for 53+ Countries § FDA Product Code § OGA /Regulatory Data for US and EU
§ Measures and AddiJonal Codes for EU
§ GTS established as primary source for commodity codes
§ Custom frontend tool to manage OGA / Regulatory Data for US and EU
Key Features - Classification &Trade Data Module
ClassificaAon &Trade Data Module
§ Standard export documentaJon templates for 30+ countries § Pro-‐Forma Invoice § Shipper Leher of InstrucJons § CerJficate of Origin (XML and PDF)
§ EU Specific Documents (EXA/EUA, T1/T2, EUR1 and A.TR)
§ Pre Pro-‐Forma Invoice in GTS for import permits/pre-‐approval
§ Export Customs e-‐Filing § US Export with AES System
§ NL Exports with SAGITTA/AGS System § NL Transits with NCTS § DE Exports with ATLAS § DE Transits with NCTS
Key Features - Export Module
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§ Global broker clearance instruction template § Import Customs
§ Netherlands
§ Local clearance procedures and transit discharge with NCTS
§ Periodic Monthly Declaration & GPA Report with AGS
§ Germany
§ E-filing with ATLAS and transits discharge with NCTS
§ Monthly Duty Statement
Key Features – Import Module
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SAMPLE COMPANY
1234-‐5678-‐9011
AbbVie, Inc. 1 N Waukegan Road North Chicago IL
Sample Product Sample 12345 1,000 1 1 1,000 1,000
§ New funcJon at AbbVie deploying a new technology § HarmonizaJon of master data § Onboarding of twenty new GTC team members § Complex financial flows and impact on GTS § Change management of both internal and external partners
§ IntegraJon of GTC and GTS into the larger ERP project
Challenges in Deployment
§ Many moving parts § IntegraJon of SAP GTS with SAP ECC, SAP SRM and other legacy systems
§ Complex cutover and synchronizaJon with SAP ECC Master data / TransacJon data
§ CustomizaJons to meet business requirements – 41 WRICEF objects
Challenges in Deployment
§ New GTC resource focused primarily on enhancing our GTS planorm and processes while raJonalizing our trade system pornolio
§ IntegraJon of AbbVie’s non-‐commercial shipping system into GTS § Deployment of a comprehensive reporJng tool § Maximize our Investment in GTS by funcJonality expansion:
The Future: Expanding our Technology Footprint
§ US and IE self filing § EU trade programs – Inward Processing Relief (IPR) and Processing under Customs Control (PCC)
§ IntegraJon across People, Process and Technology § Partnership across IT, Business and System Integrator/s § Leveraged accelerators and Krypt’s experience to implement SAP GTS
§ AdopJon of common business process based on best pracJces globally to ensure sustainability and scalability
Learning Points
Thank You and Questions
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THANK YOU FOR PARTICIPATING
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