sap event management use cases

copyright © 2014 Q Data USA, Inc. All rights reserved.a member of The Business Maturity Group

a member of The Business Maturity Group

SAP Event ManagementSAP EM Use Cases

Q Data USA, Inc.

Your SAP Innovation & Support Company

http://www.qdatausa.com


What is SAP Event Management? SAP’s implementation of “Supply Chain Event Management”

A SAP standard tool to:

• Track & Trace / monitor the status of processes

• measure compliance with processplans - Automatically uncover & report exceptions

• give visibility of your processes, assets and performance to all involved

monitor

adjust

analyze

notify

SAP EM


Business drivers for SAP EM

Risk mitigation• Increased regulations

Track and Trace with authentication• Real-time exception notification – Proactive notification &

resolution Lack of Process Visibility

• Increase customer satisfaction• Reduce costs

Minimize uncertainties• Reduce time to action• Transparency across dispersed supply chain

Desire for continuous process improvement• Analytics / KPI• Partner performance


Visibility

Process

Customers

Suppliers

Internal Ops

Management

Each relevant business process is represented in SAP EM as an Event Handler (EH) – A Trackable Object• Includes attributes

Tracking IDs Parameters

• Planned milestones and measurements “The Plan”

Actual events posted against the EH• Measurements• Attachments (digital signature)• Changes to the plan• “The actual”

A little more detail

“The Plan”

“The Actual”

Exception


SAP EM vs. BPM

• BPM is more aligned with ccBPM and SAP Business Workflow• SAP Business Workflow Automation of

business processes within 1 SAP systems• ccBPM Automation of business processes

spanning several SAP systems• BPM Automation of business processes

spanning several disparate systems• SAP EM monitors any business process

• Tight integration to extract events from SAP systems

• Tight integration with SAP NW BW for analytics• Provides Web Services to add or query data• Provides configurable Web UI for Status

Reporting / Visibility


SAP EM and TM TM Challenges

• How can I increase transparency and reduce risk?• How can I reduce my supply chain operational costs?• Can I respond quickly to unexpected supply chain events and ensure

customer SLA is maintained?• Are we compliant with regulations and compliance policies?

Order Management• Receive and create transportation

requirements Freight Planning & Tendering

• Load, mode, schedule, route• Select carrier

Freight execution / monitoring• Documents, transport• Track & Manage

Freight Settlement• Charges, Pay, Invoice

Integrated SAP EM Freight execution tracking

• Freight units, orders, bookings• Events: Loading POD• Pre-defined shipper, carrier, consignee views

Event Notification• WebUI, Mobile, RFID• Rules-based follow on activities• Alert triggering – Email, SMS, Fax, B2B• Overdue event monitoring• Analytics SAP BW

Integrated Exception status in SAP TM cockpit


SAP TM – Ocean Carrier Booking

Book capacity on a ship for sea transportation• use SAP EM to track the individual

process steps• Available exclusively for Transportation

Management in Extended Warehouse Management (EWM).

Tracks the following events• Container loaded on vessel, Departure of

vessel, Arrival of vessel, Container unloaded from vessel

• Release booking order or shipping instruction, changes to booking order or shipping instruction

Visibility• View booking requests and shipments by

status• Track transportation events

Container level Communication with external

partner• Track receipts, confirmations, rejects

from partners• Track unexpected events

Change to booking order Change to shipping instructions


SAP EM and SNC

SNC Challenges• How well are my suppliers

performing? Delivery PO management All suppliers are not

equal…• Automation• Low performance

• Are we collaborating with our suppliers? Exception messaging

Integration with SAP EM• Exception management

Alert framework• Direct to supplier

• Performance management On time delivery

• Visibility Processes Responsive Replenishment PO Process


SAP Object Event Repository (SAP OER)

SAP OER is designed to become a global database for Serialized Product Ids.Any Factories, or Distribution Centres (own or from outsourcing partners , e.g. DHL) will be scanning and reporting Product IDs to SAP OER.

SAP OER


SAP EM and GTS

Business Drivers• New regulations, increased complexity and

heightened scrutiny by government• Lack of visibility into international trade

activities Cost

• Duty exposure, 3rd party filing and expedition costs

Time • Cycle time, custom clearance, late

deliveries Risk

• Security filings, customs valuation, customs audits and permit requirements

• “Where is my shipment?”• “Why are my goods stuck in customs?”• “When will my goods be released?”• “What is the customs status of my shipment?”• “Which pending customs declarations need my

attention?”

Integration• Visibility

Customs operations• Exception management

Early warnings allow for mitigating international trade activities performing outside the plan

Benefits Cost

• Reduced duty exposure, reduced filing costs, elimination of buffer stock

Time • Faster custom clearance

Risk• Automated compliance,

demonstrable reasonable care


SAP EM and GTS 10.0

2 New features• Integrated status display within the customs declaration

Visibility to customs events• End-to-End supply chain visibility for international shipments

Including export / import events

Documents tightly integrated with SAP EM• Customs documents, Customs Shipments, Presentation Documents,

Inbound Customs Delivery Documents, Pre-Declarations, Customs Declaration


Customer Implementation: Order to Cash Process

• The Challenge• Keep sales selling and out of order fulfillment• Improve back office execution

• Part of an end-to-end process

• Needed factors for success: • Require and manage minimal rep involvement in

order management • Provide relevant, timely information regarding the

status of the client orders for the purpose of managing client expectations

Keep the sales reps out of the back office processing - They need to sell and not chase deliveries or POs… - They need a solution to give them the up to date status of the order whenever needed.


The Solution - OTC Template

Q Data OTC Design Template• Design template covering all

aspects of the OTC process Events Parameters Status profile IDs Alerts Reporting

• Increases the pace of design• Quickly ramp up to show POC• Leverage existing code

Application Object TypeAOT Relevance: /saptrx/zra*BO Extractor: /saptrx/xbo*Tracking ID Extractor: /saptrx/xti*Control Param Extractor: /saptrx/xcp*Info Param Extractor: /saptrx/xip*Expected Event Extractor: /saptrx/xet*Query ID Extractor: /saptrx/xqi*


Sales Order Process

SAP EM Config

Sales Order

Delivery

Billing Doc

Status ProfileOrder Process

- Order Created- Cancelled

- Order Ready- Order Ready Late

SO_CREATE

SO_CANCEL

DEL_CREATEStatus ProfileDelivery Status

- Delivery Created- Cancelled- Shipped

DEL_PGI

Status ProfileBilling Status

- Invoice Created- Cancelled

INV_CREATE

DEL_CANCEL

Expected Events

Unexpected Events

SO_READY

Overdue Check

SO_DELBLK_ON

SO_DELBLK_OFF

INV_CANCEL

INV_BILLBLOCK_ON

INV_BILLBLOCK_OFF

SO_COMPLETE

SO_INCOMPLETE

SO_CRBLOCK_ON

SO_CRBLOCK_OFF

Delivery Block

Billing Block

Credit Block

PGI

Incomplete

Status ProfileCompletion Status

- Order Complete- Order Incomplete

Status ProfileBlocked Status

- No blocks- Delivery block

- CR block- Delivery & CR block

Status ProfileDelivery Status

- No Delivery- Delivery Created

- Delivery Created Late- Delivery Shipped

- Delivery Shipped Late

Status ProfileBilling Status

- No Invoice- Invoice Created

- Cancelled

Stage 1: Order Process

Stage 2: Delivery Process

Stage 3: Billing Process

/saptrx/sd_salesordsave_document

/saptrx/le_shippingSave_and_publish_document

/saptrx/sd_invoiceInvoice_document_add

Event Type - SO_INCOMPLETE


Event Type - SO_CANCEL

Event Type – SO_CREATEEvent Relevance: /saptrx/xre*Event Extractor: /saptrx/xet*

Event Type - SO_DELBLK_OFF

Event Type – SO_CREATEEvent Relevance: /saptrx/xre*Event Extractor: /saptrx/xet*

Event Type – SO_BILLBLOCK_OFFEvent Relevance: /saptrx/xre*Event Extractor: /saptrx/xet*

Event Type – SO_BILLBLOCK_ONEvent Relevance: /saptrx/xre*Event Extractor: /saptrx/xet*

Event Type - SO_CRBLK_OFF

Event Type - DEL_CANCEL

Event Type – DEL_CREATEEvent Relevance: /saptrx/xre*Event Extractor: /saptrx/xet*

Event Type – DEL_PGIEvent Relevance: /saptrx/xre*Event Extractor: /saptrx/xet*

Event Type - INV_CANCEL

Event Type – INV_CREATEEvent Relevance: /saptrx/xre*Event Extractor: /saptrx/xet*

Event HandlerStatus ProfileExpected Event ProfileParameter MappingBW ProfileAuthorization ProfileExtension TableRule Set

Event MessageExecute rule actions - Update status - Update Exp. Events - Update par. changes

EH Condition

Rule Condition

Overdue MonitorCheck overdue events - Update status - Send alerts - Overdue Rule Set

Reporting- BI Extraction- BI reports

A

Event Type – SO_DELBLK_ONEvent Relevance: /saptrx/xre*Event Extractor: /saptrx/xet*

Event Type – SO_CRBLK_ONEvent Relevance: /saptrx/xre*Event Extractor: /saptrx/xet*

A 1

2

4

5

1

3

2

SLA – Order to Ready – Time taken to get an order to a point where it can be fulfilled (2hrs)

SLA – Order Ready to Delivery create – Time taken to create the delivery once it is ready to be delivered (Material Available Date – VBEP-MBDAT)SLA – Delivery Create to Delivery PGI - Time taken from Delivery Create to Post Goods Issue (Warehouse processing time)

5SLA – Order to Cash – Time taken to get an order through to Billing

3 4+ = Warehouse Time

4SLA – Delivery PGI to Invoice Create – Time taken from Post Goods Issue to Invoice Create (9PM on the day of PGI)

4


The Solution

WIMO – Where Is My Order• Single, simplified company

interface to status orders throughout the order lifecycle

• Inform AE of each order status change

• Monitor service level achievement – Back office

Enablers• SAP Event Management• Business Information

Warehouse

Stages of an order through WIMO• Stage 1 – Created• Stage 2 – Internal Review• Stage 3 – Being Processed• Stage 4 – Shipment

Confirmed• Stage 5 – Invoiced• Stage 6 – POD• Stage 7 – Send to BW and

Archive


Solution Demo

Order Create – Check CR block, user status, incompleteness

Order Complete

Begin Fulfillment – Delivery created

Complete Fulfillment – Delivery shipped (PGI)

Ready for billing – Billing Block removed

Customer billed – Invoice created

Proof of Delivery received

Extract to SAP NetWeaver BW


Custom SAP EM Report

RFC to SCM to retrieve event handlers in a time period Overall Status of the EH: Shipped, Red, Green, Rescheduled


Analytics - SAP EM BI Report

• R/G/Y status adapted from SCM data (accounts for time delay)

• Right click drilldown to item detail, alternative dashboards


Customer Implementation: Procurement Process

• The Challenge• Track changes to Purchase Orders• Track PO acknowledgements, Goods Receipts

and Invoice Receipts with changes• React immediately to changes outside tolerances

• Track untimely or non-receipt of process events• Have the visibility to non-compliance of the process

by supplier

• Track supplier EDI success / failure• Understand how the procurement process is

performing• Have the ability to set KPIs for the procurement

process

We want to be able to track PO’s and any subsequent discrepancies caused by suppliers changing the PO requirements, and immediately react to these in order to keep our PO plan on track…


The SolutionEnhanced the standard Procurement Visibility

ProcessExpected events

• PO created PO transmitted PO mapped to 850 OK PO 850 received at vendor

• PO acknowledged PO created + 2days

• PO goods receipt (GR) Based on PO schedule

• PO invoice receipt (IR) PO GR date + 7days

Unexpected events• PO delivery date or quantity change

Based on tolerance• PO acknowledged, GR, or IR amount,

quantity, or date change Based on tolerance


Visibility and Status Management

SAP EM Web UI


Exception Management

Alert Framework Integration

Overdue Monitor Report


Performance Monitoring KPIs

Process cycle count Deviations as a % of

total count• PO Acknowledgements

received with changes• PO GR not matching PO• PO IR not matching PO

Average cycle duration• Total cycle• PO create PO

Acknowledged• PO GR PO Invoice Receipt

% on time vs. early vs. late• PO acknowledged• PO goods receipt• PO invoice receipt• Invoice received


Supplier Prompt Payment

Business Request• Allow me the ability to pay my vendors within the terms period so

that I can claim the discount, even when I have yet to receive the goods…

Business Requirement• Ensure that the goods have been shipped by the supplier• Limit our liability

Advantages• Increased PO payments made within terms period

Increased discount Improved CR rating

• More traditional transportation modes leveraged Cheaper modes of transport can be favored as they won’t affect

payment


Supplier Prompt Payment

Payments for Logistics Invoice based off a match between:• Logistics Invoice matching the PO• Advanced Ship Notice received from the Supplier (EDI)• Carrier notification of receipt of goods from the Supplier (EDI)

Enablers• SAP Event Management

Releases invoice for payment based on events received• Supplier

EDI enabled ASN• Carrier

EDI enabled status notifications

Benefits• > 50% improvement in prompt payment

+- 15% of supplier invoices are paid outside terms


Process Flow

Purchase Order (Any system)

Order productSet TermsSet Discount

Supplier ships Product

Transfer goods to carrierSend ASN

Carrier pickup

Carrier takes possession of productSend tracking status

Invoice

Send InvoiceMatch POMatch ASN with Carrier statusRelease


Components


Customer Implementation (POC) : Production Order Process

• The challenge• Where Is My Plane…

• A plane was in one of several hangers • The building of a plane was managed through

production orders• 1 BOM = 1 Plane

A startup airplane manufacturer had no way to show executives where a specific plane was in the production order process


The solution

• Implemented the standard Production Order Malfunction visibility process• Took 1 day to enable and demonstrate the

capabilityCO01 – Create Production Order

CO15 – Confirm Production Order

SAP EM Web UI - Delivered


Visibility from within the SAP Production Order

• Transaction: CO03

SAP ECC – Imbedded Status


In conclusion - What value is derived from EM?

Exception management + Status management + Performance monitoring + Visibility

Process ImprovementReal Value!!!


Next Steps

Implementation Methodology and Change Management

Governance and Data Management

Ongoing Training and Education

Best Practices and Organizational Alignment

Assessment:• High Level Process,

Org. Analysis• GAP Analysis• Risk / ROI

assessment• Roadmap• Resource, timing

and effort analysis