realize your strategic sourcing vision through an ... · realize your strategic sourcing vision...
TRANSCRIPT
Realize Your Strategic Sourcing
Vision Through an Ecosystem
ApproachMay 6, 2015 Session ID BN20372
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Speakers:
• Darrell Riekena
Chief Information Officer, National DCP,
• Jerry Hoberman
Principal, Deloitte Services LLP
Moderator:Keertan Rai
Director – Solutions Marketing, SAP
Agenda
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Who We Are
Our Fresh Start
The Rewards to Change
Implementation: Speed to Value
Delivering Results and Insights
Who we areNational DCP
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Global Sourcing and Distribution entity for
Dunkin’ Donuts and Baskin Robins
$2 billion supply chain management cooperative
5th largest purchasing and distribution co-op in the QSR industry
Purchases more than 100 million pounds of coffee
112 million pounds of sugar
24 million gallons of milk
Purchases roughly 5,000 food, beverage, and packaging & equipment SKUs
Drivers log 28 million miles
Delivering approximately 73 million cases of products
to more than 8,100 Dunkin’ Donuts locations
Added 11 new international markets
Exports to customers in 51 countries
Our Fresh Start Delivering the Perfect Order starts with Sourcing
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At a G
lance
Goal: Plan and implement an enterprise-wide solution to develop and align business processes with a new technology infrastructure, spurred by the merger of five regional food and beverage supply companies into a national cooperative.
Strategy: Implemented a technology footprint
consisting of SAP Business Suite on SAP HANA, including Ariba solutions, and Warehouse and Transportation Management solutions. All in the cloud.
Outcome: Consolidated business processes, improved visibility into inventory management and other supply chain metrics, and automated customer support.
Our Fresh Start Project FreshStart
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Why Project FreshStart:
1. Modernization of Technology
2. Integrating different systems from four regions
3. Supports growth / business needs
4. ROI is based on efficiencies and cost reductions
Ecosystem approach…
• New Website / Ordering Portal
• New NDCP “corporate” systems
• New Sourcing/Procurement system
• New Warehouse & Transportation Management Systems
• New Voice Picking system
• New Customer Relationship Management system
• New datacenter / cloud technology
Our Fresh Start Technology as a Strategic Enabler
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ERP SAP Business Suite on SAP
HANA
Finance
Inventory
Management
HumanResources
Procurement
AdvancedPlanning
Order
Management
POMiddlewareMember
Portal
CRM
Cloud
SAP HANA
In MemoryComputing
Cloud
$$
Warehouse
ManagementTransportation
Management
Voice Pick
Manhattan Integration Framework
IndustryPrint ™ and ValueMap™
The Rewards of ChangeTechnology used to Accelerate Growth
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Speed to Value:
Industry & Implementation Experience
Business Led for Value
Technology Expertise for Results
IndustryPrint ™ and ValueMap™
The Rewards of ChangeTechnology enables Business Process Change
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Technology-driven Benefits
Benefit Category Benefit Drivers
ERP-driven
• Improve item-level demand forecasting to reduce inventory and spoilage
• Process automation & data visibility to improve Shared Services
• Reduce indirect spend via improved controls & workflow
WMS/TMS-driven
• Improve warehouse productivity through better controls, ERP synchronization,
and workforce productivity measures
• Improve outbound transportation productivity through dynamic routing
• Reduce inbound transportation costs through increased fleet backhaul
utilization and dynamic routing
Shared
Services
Productivity
Inventory
Reduction
Indirect
Spend
Reduction
Warehouse
Productivity
Transportation
Productivity
Business Impacts
Implementation: Speed to ValueFirst steps to Realizing Benefits
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90Days
Contracts
&
Sourcing
11Months
PO Processing
&
Invoice Automation
Ariba Solutions Standalone Ariba Solutions to SAP Integration
We chose to focus on Direct Suppliers first, to accelerate benefits
Implementation: Speed to ValueAriba solutions are fully integrated into the SAP software value chain
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SAP ECC to Ariba solutions New Purchase order Change Purchase order Cancel Purchase order
Ariba solutions to SAP ECC Order Confirmation Ship Notice (ASN)
Specifications
Order Confirmation Header confirmation for the entire PO allowed Line level confirmation for individual line items Reject entire PO at header level or reject at
individual line items allowed
Ship Notice (ASN) One ASN allowed per line item, Multiple ASN’s for
the same line item not allowed Back orders not allowed Revision or edits of ASN’s not allowed
Purchase Order Types Standard PO Drop-Ship PO Return PO
Delivering ResultsSourcing, Contract Management, Procure-to-Pay
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Sourcing
• Quick and easy way of identifying suppliers
• Automated negotiation process
• Overall cost competitiveness
Contract Management
• Reduction in time & expense via e-Signature facility
• Management of full contract life cycle
• Standardized and controlled contract development
• Contract compliance via timely renewals and amendments
Procure-to-Pay
• Tracking and tracing of purchase orders electronically
• Real-time supply chain visibility through order confirmations and ASN’s
• Reduction in invoicing errors
• Accelerated sales cycle
Delivering InsightsSimple, Sustainable, Results-focused
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• Exploit the simplicity of processes and architecture of Ariba solutions
• Choose early-adopter suppliers to pilot
• Define a sustainable supplier on-boarding program with Ariba solutions
• Imbed Ariba solutions into integrated processes and business procedures
supported by SAP software
• Measure results; reward accomplishments
• Cultivate lessons learned; proactively pursue continuous improvement
Contact Us
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Jerry Hoberman
Principal
Deloitte Services LLP200 Berkeley StreetBoston, MA 02116USA
Tel: +1 617 437 [email protected]
Darrell Riekena
Chief Information Officer
National DCP, LLP3805 Crestwood ParkwayDuluth, GA 30096USA
Tel: +1 770 369 [email protected]
Keertan Rai
Director – Solutions Marketing
SAP India Private Limited 8A, RMZ EcoworldSarjapur Outer Ring RoadBangalore, India 560103
Tel: +91 98861 28425 [email protected]
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