sap ibp project @ merck healthcare · pdf filejean-luc hospital, antonio lopez april 2017...
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Jean-Luc Hospital, Antonio LopezApril 2017
Success Story
SAP IBP PROJECT @
MERCK HEALTHCARE
2
Who we are?
Jean-LucHospital
Antonio Lopez
Merck KGaA Biopharma
Director, Center of Excellence Demand Management & IBP
Supply Network Organization
Accenture
Senior Manager, Supply Chain and Operations
Management Consulting
3
1. Merck Introduction
2. IBP Story
3. Project Overview
4. Why SAP-IBP is being a success?
Agenda
4
Set up in Darmstadt, Germany, in 1668 by Friedrich Jacob Merck, it is the world’s oldest pharmaceutical and chemical company. Today, the Merck family remains the majority owner of the company.
Over the course of 350 years Merck has become a truly global company. Our 50,000 people span 66 countries and are united by their passion for new ideas, the possibilities of technology, and the potential to make a difference in the world.
Merck is known internationally. In the USand Canada the company operates as EMD Serono in health-care, EMD Millipore in life science and EMD Performance Materials.
.. a world of possibility.
A world where exploration and discovery are celebrated. Our meticulous and research-driven businesses deliver diverse, high quality products that enrich lives and enable us to share business success with our customers.
WELCOME TO
HEALTHCARE, LIFE SCIENCE & PERFORMANCE
MATERIALS
66countries
50,000 employees
€2.0 bninvested in
R&D in 2016
€15.0 bnsales in 2016
1668founded
What Merck does?
Life SciencePerformance
MaterialsHealthcare
A wide range of specialty chemicals, such as liquid crystals for displays, effect pigments for coatings and cosmetics, or high-tech materials for the electronics industry.
Innovative tools and laboratory supplies for the life science industry that make research and biotechproduction easier, faster and more successful.
Prescription medicines to treat, for example, cancer, multiple sclerosis and infertility, over-the-counter pharmaceuticals for everyday health protection or to provide fast relief of colds and pain, as well as innovations in the areas of allergies and biosimilars.
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1. Merck Introduction
2. IBP Story
3. Project Overview
4. Why SAP-IBP is being a success?
Agenda
8
IBP JourneyMerck started the IBP implementation in the APAC region. The process still suffered from a disconnection between Financial and Operations.
FACTS
1ISSUE ASSESSMENT
A pilot of the S&OP process had been already implemented on the APAC region.
Sales & Operations Planning was disconnected from Financial Planning. Lack of visibility about assumptions and gaps
Stakeholders objectives were not aligned (financial vs commercial vs supply chain)
No concept in place with regard to the technical integration, reporting needs and decision making support tools
Assessment of IBP implementation status in order to define degree of IBP maturity
Identify remaining gaps between commercial, financial, and operational planning and define high level ideas
Prepare value proposition for Finance, Commercial and Supply Chain on global level
2 3
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IBP JourneyThe S&OP process was transformed into IBP by increasing the financial alignment. SAP-IBP was the tool selected to facilitate this process
TRANSFORMATION EVOLUTION GLOBAL ROLL-OUT
Design of an IBP concept encompassing a global governance structure, financial alignment approach and planning calendar
Defining and implementing the IBP business requirements in the existing IT systems and developing supporting IBP assumptions and decision tools
Developing a global training concept encompassing training modules for different functions, local, regional and global stakeholders
A Proof of concept has been carried out in order to bring their IT tools to the latest Digital Technology.
The decision was to implement a SaaS standard tool based on the latest in-memory computing technology from SAP HANA.
The new tool facilitated the adoption of the new process by bringing a new platform to be used by the Supply Chain, Commercial and Finance.
Improved IBP model is being implemented in a set of Pilot countries (BE, NL, LU).
Global Rollout will be carried out in two waves.
Budget Plan for FY18 will be supported by the new platform SAP-IBP
4 5 6
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IBP JourneyHow does the Journey look like?
2016 2017 2018 2019
Before 2016:
DP: JDA
SNP: JDA
Scheduling: Legacy tool
ERP: fragmented landscape with multiple local applications
Maturity Assessment
As SAP IBP was a brand-new tool, a maturity assessment was performed on the IBP Modules to determine whether to implement SAP APO or IBP
Based on PoC outcomes, the customer decided to progress with the implementation of SAP IBP Demand Planning, Control Tower and Collaboration (JAM)
(Supply Plan on hold)
Global Roll-Out
During 2017, the Pilot solution will be integrated with the entire ERP landscape and rolled-out globally
In compliance with corporate IT Strategy, SAP was identified as the “TO-BE” strategic tool for planning
PoC Demand & Supply Balancing
Proof of Concept for the implementation of a Supply & Response and Multi-Echelon Inventory Optimization tool
Demand & Supply Balancing Implementation
Implementation of the Supply and Response and Inventory Modules may be planned for 2018 with Rollout in 2019
Approach
It was decided to progress with “PoC” for the various modules, starting with Standard Configuration
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1. Merck Introduction
2. IBP Story
3. Project Overview
4. Why SAP-IBP is being a success?
Agenda
12
Project OverviewImplementation project was performed following Agile methodology
Sprint Planning Meeting
Sprint Review
Spri
nt
Retr
ospective
Sprin
t Executio
n
Agile Process: every 3 weeks
Quick-Start Approach
6-Month Pilot duration
18 Months Global Rollout plan
Merck and Accenture Team
1+1 Project Manager
2+1 Functional Consultants
2+1 Technical Consultants
2 Data Services Consultants
SaaS / Rapid Evolution
SaaS (software as a service) approach –quarterly system upgrades from SAP with new and improved functionalities
User Engagement
User contact with the new tool from Day-1
Weekly feedback
Agile Methodology
Interactive and incremental approach that increases the opportunity for feedback during the development process
Key Benefits
• Decrease in rework and wasted efforts
• Reduced risk of delayed timelines
• Higher-quality end product
• Increased business adoption and satisfaction
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High Level Project TimelineTwo step approach allowed for a rapid implementation of the process using their existing technologies. The IBP implementation was fully adopted with the implementation of the latest Digital Technology SAP-IBP
IBP Process
Definition and Rollout
IBP Technology
Implementation3 Months6 Months
4 Months
Apr16 Jul16
May17 Jul17Nov16May16
PoC + Build Pilot Deployment Rollouts
6 Months
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Project OverviewGlobal Rollout for Healthcare is planned in two different waves
Pilot DeploymentBE/NL/LUX
[3 countries]
Wave 1 BP Europe / ITC CEE / CH-CEEMEA
[34+ countries]
July 12 th Aug 4 th
3 weeks btw the 2 Go Live
Wave 2 LATAM / NA/ APAC / CH-Asia / CH-ASE
[ 28 countries]
May 19th
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1. Merck Introduction
2. IBP Story
3. Project Overview
4. Why SAP-IBP is being a success?
Agenda
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Why SAP-IBP is being a Success?
Bild durch Klicken auf Symbol hinzufügen
SAP-IBP makes planning more simple
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Why SAP-IBP is being a Success?
Well defined IBP process
1
Early User Involvement
Lovable User Interface
2 3
4One platform
for Supply Chain / Commercials / Controllers
QUESTIONS
AND ANSWERS
THANK
YOU!
