sap pi proposal (use to prepare proposal)
DESCRIPTION
SAP PITRANSCRIPT
SAP™ ERP for the Dairy Industry
Challenges, Strategies, and BenefitsThe Solution
Challenges, Strategies, and BenefitsThe Solution
SAP AG 2006
Farmer Tank Truck
DairyProduction
Retailer
Dairy
Cooperatives Authorities External Laboratories
Raw Material, Packaging, Service Wholesaler
Distr. Centers
Broker
Collect Raw Milk
Sell Raw Material and Ingredients
SupplierAdd. Purchase of Raw Material / Raw Milk
The Dairy Industry Ecosystem
SAP AG 2006
YOUR FOCUS
Increase Shareholder ValueIncrease Revenue and Profit Margins
Operational ExcellenceProduct Leadership
Improve Customer Satisfaction
Dairy Companies Often Havethe Right Focus and the Right Strategies…
Protect and enhance revenue
Improve margins
Drive for lower costs
Get closer to the consumer
Improve time-to-market
Enhance operational efficiency
YOUR FOCUS
Increase Shareholder ValueIncrease Revenue and Profit Margins
Cost LeadershipProduct Leadership
Improve Customer Satisfaction
Business STRATEGY
SAP AG 2006
…But Mostly They Lack the Ability to Execute
A business enabler is required to help the organization refocus on business strategies!
Often employees cannot execute the company’s business strategy because the business platform is …
COMPLICATED TO OPERATE Complex and broken process flows Incomplete or hidden information
DIFFICULT TO CONTROL Lack of visibility Lack of traceability
CHALLENGING TO CHANGE Multiple costly integration points Redundant and inconsistent data
Business Enabler
Business STRATEGY
Ability to EXECUTE
SAP AG 2006
Market Forces and Business Needs
Market Forces Retailer power (Wal-Mart effect) Consumer concerns about food safety;
media attention Increased legislation and regulations
around food safety by FDA and other authorities (e.g., EU Dir. 178/2002, the U.S. Bioterrorism Act of 2002)
Changing consumer demands due to demographics and trends
Shorter product life cycles Extreme price pressure and margin
erosion Restrictive consumer spending pattern Market consolidation (globalization, M&As) Increasing competition Emerging private labels New technologies reshaping the industry
Resulting Key Challenges Develop new products faster
and more effectively Optimize supply chain Increase efficiency in
procurement Optimize manufacturing Ensure food safety and
regulatory compliance Improve sales efficiency
SAP AG 2006
Develop New Products Faster and More Effectively
Benefits Faster development by
creating reusable product specifications
Reduced time-to-market Ensured competitive
advantage
Strategies Enable collaborative
engineering Consolidate product
development data and documents
Reduce development effort and time-to-market
SAP® can help you Integrate all product-related
information Reduce data redundancy and
inconsistency Integrate into manufacturing
process
Challenges Adapt to ever-changing
consumer tastes and requirements
Develop product efficiently Address increased demands
for new products
SAP AG 2006
Optimize Supply Chain
Benefits Improved operations
excellence Lower capital commitment Reduced operating costs Higher customer satisfaction
Strategies Reduce costs Streamline supply chain
processes Improve supply chain control Gain more supply chain
visibility
SAP® can help you Optimize distribution
processes Optimize end-to-end planning Improve asset utilization Fully integrate logistics
management, including transportation and warehouse and inventory management
Shorten order-to-delivery cycles
Challenges Decrease process costs Create operational efficiencies
and supply chain transparency
Manage shelf-life-based picking and distribution
Ensure accurate and timely shipments
Avoid out-of-stocks
SAP AG 2006
Increase Efficiency in Procurement
Benefits Increased demand planning
accuracy Consistent internal and
external procurement reporting
Integrated processes
Strategies Reduce costs Streamline processes Gain more visibility and
transparency Improve relationship with
producers
SAP® can help you Set up integrated and flexible
processes for procurement Streamline raw milk collection
and reception Ensure integrated quality
management Track batches
Challenges Cope with ever-changing
quantity and quality of the raw milk
Manage complex payment conditions
Cope with seasonal fluctuation
Create operational efficiencies and transparency
SAP AG 2006
Optimize Manufacturing
Benefits Improved asset utilization Increased profitability of
produced product mix Consistent cross-stages
monitoring Integrated processes
Strategies Maximize raw material
utilization Increase demand planning
accuracy Streamline processes Gain more visibility and
transparency
SAP® can help you Set up integrated and flexible
processes for manufacturing Monitor raw material
utilization and losses Ensure integrated quality
management Track batches
Challenges Base plans on a non-
standardized raw material Define optimal product mix Create operational efficiencies
and transparency Optimize production
SAP AG 2006
Ensure Food Safety and Regulatory Compliance
Benefits Reduced penalty risk Decreased risk of food-safety
compensation payments Reduced risk of bad
reputation Lower operating costs
Strategies Support mid- and long-term
company success by ensuring regulatory compliance
Set efficient processes in place to enable traceability
Allow targeted product recalls to minimize costs
SAP® can help you Track, monitor, and trace
batches and inventory Streamline procurement,
production, and sales Manage sales returns Enable targeted product
recalls
Challenges Align with governmental
regulations (EU 178/2002, the U.S. Bioterrorism Act of 2002, import/export)
Enable fast, effective product recalls
Track and trace from “cow to consumer”
SAP AG 2006
Improve Sales Efficiency
Benefits Higher sales volume Better account retention Closer customer relationship Optimal sales force operation Higher customer satisfaction
Strategies Obtain first-hand information
about the market Optimize process settlement
in sales Increase customer service
offerings Increase customer
satisfaction
SAP® can help you Plan, track, control, and
optimize sales performance Expand service processes Strengthen collaboration with
partners and key customers Track indirect sales and
customers Ensure correct handling of
rebates
Challenges Protect market share Meet increased service level
expectations of customer Get visibility in the sales
process Manage quality-based price
determination for raw material sales
Challenges, Strategies, and BenefitsThe Solution
SAP AG 2006
Analyze, Plan, and Develop
Procure Manufacture Marketand Sell
Deliver and Service
Busin
ess
Obje
ctiv
es
Define business strategy and goals
Understand company performance and profitability
Realize savings in aggregate purchasing
Improve purchasing efficiency
Ensure tracking and traceability
Improve manufacturing efficiency
Ensure quality management in manufacturing process
Establish closer contact with customer
Enhance control over delivery process
Improve marketing effectiveness
Increase sales effectiveness
Description… Focuses on key business processes that create a baseline for future growth
… Delivers immediate benefits by solving the need for system heterogeneity
… Enables significant business process automation
Key Performance Indicators Order Fulfillment Rate Raw Material Utilization and Losses Warehousing/Distribution Costs
Gross Profit/Total Net Sales Demand Forecast Accuracy Inventory Turns
Complete logistical and financial integration
SAP ERP packaged solution for the dairy industry
SAP AG 2006
Suppliers & Partners
Customers (e.g. Retailers) &
Channel Partners
Analyze, Plan & Develop Procure Manufacture Market & Sell Deliver & Service
Sourcing & Procurement Milk Procurement from Producer
Additional Raw Material Procurement Procure to Stock
Internal Procurement
Product Development
Recipe Management
Sell & Deliver Sales Order Processing
Raw Material Sales Returns
Operational End-to-End Scenarios Traceability & Food Safety
Inventory Management Quality Management
Enterprise Management & Support Financials
Financial Accounting Cash Management Asset Management
Controlling Standard Cost & Profit Center
Accounting Product Cost Planning CO-PA for Consumer Products Cost Object Controlling
SAP ERP packaged solution for the dairy industry
Manufacturing Dairy Production
Planning Dairy Process Control
SAP AG 2006
Suppliers & Partners
Customers (e.g. Retailers) &
Channel Partners
Analyze, Plan & Develop Procure Manufacture Market & Sell Deliver & Service
Sourcing & Procurement Procure to Stock
Internal Procurement
Sell & Deliver Sales Order Processing
Returns
Operational End-to-End Scenarios Traceability & Food Safety
Inventory Management Quality Management
Enterprise Management & Support Financials
Financial Accounting Cash Management Asset Management
Controlling Standard Cost & Profit Center
Accounting Product Cost Planning CO-PA for Consumer Products Cost Object Controlling
Generic Food Scenarios
SAP AG 2006
Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & Procurement Procure to Stock
Third Party
Sourc ing & Procurement Procure to Stock
Third Party
P lan & Manufacture
Production Planning Production
P lan & Manufacture
Production Planning Production
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Procure to Stock
Industry Pain Points Improving purchasing activities efficiency Realizing savings in purchased value Allowing visibility on vendors’ conditions
and services Ensuring tracking and traceability
Supports price comparison of vendors’ offers Provides tools to gain greater spend visibility in procurement Helps to manage quotations, contracts, batch handling and quality
Business Benefits Automate operational tasks Improve vendors’ selection and prices comparison
through quotation handling Formalize agreements by contract management Guarantee quality check through goods receipt
inspections
SolutionProcurement of Stock materials
Procurement – Contracts
Request for quotation
Prices Comparison Purchase
requisition Purchase order
processing Goods receipt Inspect goods Batch number
assignment Stock update Invoice verification
Create contract: Quantity contracts; Value contracts; Delivery schedule
Create purchase requisition
Assign vendor to contract
SAP AG 2006
Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & Procurement Procure to Stock
Third Party
Sourc ing & Procurement Procure to Stock
Third Party
P lan & Manufacture
Production Planning Production
P lan & Manufacture
Production Planning Production
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Internal Procurement
Industry Pain Points Improving internal purchasing activities Ensuring tracking and traceability
Encompasses cross-plant internal procurement of products including creation of all required documents for both with or without delivery
Provide functions to monitor stock in transit
Business Benefits Automate operational tasks Increased visibility of stock and stock transfers
SolutionStock transfer with delivery
Stock transfer without delivery
Create stock transport order
Process delivery Post goods issue
Create stock transport order
Post goods issue
SAP AG 2006
Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & Procurement Procure to Stock
Third Party
Sourc ing & Procurement Procure to Stock
Third Party
P lan & Manufacture
Production Planning Production
P lan & Manufacture
Production Planning Production
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Sales Order Processing
Industry Pain Points Managing variable pricing conditions Long order cycle times Meeting customers’ requests for
improved services Managing sales returns cost effectively
Manage the entire customer order process — variable pricing, delivery, invoicing, and payment.
Includes Electronic Data Interchange (EDI), handling of consignment sales, and foreign trade
Business Benefits Improve sales execution timeline Improve order fulfillment rate Provide the customer with alternative services and
methods for invoicing and payments
Solution
Sales Distribution
Process sales order
Billing Payment
Picking & distribution based on shelf life expiration date
Freight settlement Handling unit mgt.
Inbound/Outbound EDI Processing
Inbound sales order via EDI
Outbound billing document via EDI
SAP AG 2006
Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & Procurement Procure to Stock
Third Party
Sourc ing & Procurement Procure to Stock
Third Party
P lan & Manufacture
Production Planning Production
P lan & Manufacture
Production Planning Production
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Returns
Industry Pain Points Efficient handling & document
complaints. Managing sales returns cost efficiently.
Focuses on the processing of credit memos if no goods are sent back. Includes quality evaluation for returned goods and appropriate stock
movement.
Business Benefits Enable corporate compliance strategy Effective batch-specific returns processing
SolutionReturns and Complains
Returns Processing
Process credit memos
Quality evaluation Goods movement
to blocked or unrestricted stock.
Ship pallets Return pallets
SAP AG 2006
Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & Procurement Procure to Stock
Third Party
Sourc ing & Procurement Procure to Stock
Third Party
P lan & Manufacture
Production Planning Production
P lan & Manufacture
Production Planning Production
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Traceability and Food Safety
Industry Pain Points Complying with food regulations
HACCP (Hazard Analysis & Critical Control Points) EU (Article 18 of Regulation 178) US (the US Bio-terrorism Act 2002)
Addressing growing food-safety concerns from consumers
Business Benefits Professionally managing a possible product
recall Minimize risk of non-compliance with food &
beverage regulations Effective batch-specific returns processing
SolutionQuality
ManagementBatch
Management
Capability to track and trace products at all stages of production, processing, and distribution
Allow fast and efficient recall of a defective product batch
Quality planning Quality inspection Recording of
laboratory analysis Quality reporting Quality
improvement
Batch creation and determination
Batch-where-use lists
Recall batches and create follow-up activities
Manage batch-specific return processing
Manage batches based on shelf life expiration
SAP AG 2006
Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & Procurement Procure to Stock
Third Party
Sourc ing & Procurement Procure to Stock
Third Party
P lan & Manufacture
Production Planning Production
P lan & Manufacture
Production Planning Production
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Inventory Management
Industry Pain Points Maintaining low inventory levels Avoiding out-of-stock situations at retailers Establishing visibility to inventory levels
throughout the entire supply chain
Business Benefits Reduce working capital by keeping
inventory levels low Increase sales by reducing out-of-stock
situations Improve consumer retention due to
product availability
SolutionInventory
Management
Consists of the whole procurement and delivery cycle with warehouse for the storage management, including quality inspection
Return rejected goods to the vendor
Integration with supply chain accounting
Goods receipt Goods issues Managing different
stock categories Inventory valuation
Transportation Management
Plan transports Monitor execution Calculate costs Manage
transportation settlement
Warehouse Management
Storage Management
Quality Management
Quality Inspection Return of goods
SAP AG 2006
Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service Suppliers & Partners Customers, Consumers, Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & Procurement Procure to Stock
Third Party
Sourc ing & Procurement Procure to Stock
Third Party
P lan & Manufacture
Production Planning Production
P lan & Manufacture
Production Planning Production
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Sell & Deliver Sales Order Processing
Direct Store Delivery (DSD) Rebate & Bonus Management
Commissions Indirect Sales
Returns Empties Processing
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Operational End-to-End Scenarios Inventory Management Quality Management
Traceability & Food Safety Cross Company Transactions
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Enterprise Management & Support Financials & Controlling
Excise Duty (Beverage) G65
Financials and Controlling
Industry Pain Points Meeting local legal and fiscal requirements Improving administrative activities efficiency Maintaining focus on most profitable customers
and brands
Business Benefits Implement an ERP solution fully compliant
and continuously updated with local legal and fiscal requirements
Improve efficiency in accounting activities due to a seamless process integration
Enhance company profitability analysis through profit and loss calculation
SolutionFinancials Controlling
Helps to get an insight into all aspects related to accounting and controlling
Provides streamlined functionalities that allows visibility, increases productivity and regain control of their business processes
General Ledger accounting
Accounts payable accounting
Accounts receivable accounting
Bank accounting Closing activities Cash management Assets
management
Standard cost and profit center accounting
Profitability analysis
Product costs planning
Product cost controlling
SAP AG 2006
Suppliers & Partners Customers (e.g. Retailers) & Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Our Specific Solution Offering for the Dairy Industry
Sell & Deliver Sales Order Processing
Returns
Operational End-to-End Scenarios Traceability & Food Safety
Inventory Management Quality Management
Food
Sourcing & Procurement Procure to Stock
Internal Procurement
Enterprise Management & Support Financials
Financial Accounting Cash Management Asset Management
Controlling Standard Cost & Profit Center
Accounting Product Cost Planning CO-PA for Consumer Products Cost Object Controlling
Manufacturing
Milk Procurement from Producer Additional Raw Material Procurement
Product Development
Recipe Management
Dairy Production Planning & Process
Control
Raw Material Sales
Dairy
SAP AG 2006
Product Development with Recipe Management
Industry Pain Points Slow and inefficient product development Changing consumer tastes and
requirements Increasing demand for new products
Business Benefit Reduce development cycle time & costs Ensure company-wide consistent product
information Reduce time-to-market to gain competitive
advantage
SolutionProduct Data Management
Product Lifecycle Management
Suppliers & Partners Customers (e.g. Retailers) & Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & P roc uremen t Milk Procurement from Producer
Addi ti onal Raw Material Procurement Procure to Stock
Produc t Developme nt
Recipe Management Manufac tu ri
ng Dai ry Producti on Planning
Dairy Proce ss Control
Sell & Del i ver Sales Order Processing
Raw M aterial Sales Indi rect Sales
Direct Store Delivery (DSD)
Opera ti onal End -to -End Sc ena ri os Traceability & Food Safety
Inventory Management Quali ty Management
Cro ss Company Transacti ons
Ente rprise Management & Support Financials
Control ling
Managing the fast and efficient product development by structured re-usable product specifications
Seamless integration into the production planning and execution process
Maintain product specifications
Label Management Multilevel recipe
mgt. Define Batch
Management
Document Management
Change Management
Integrate Recipe into production process
Create master recipe
Create process order
SAP AG 2006
Milk Procurement from the Producer
Industry Pain Points Managing the complex payment conditions Coping with seasonal fluctuation and
changing demands Complying with the high quality standards
and traceability requirements
Business Benefits Enable accurate payment both for
producer and transport service provider Provide payment reporting to the producer Streamline raw milk collection & reception
process
SolutionMilk Collection Milk Reception Milk Analysis
Milk Payment Reporting & Analysis
Suppliers & Partners Customers (e.g. Retailers) & Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & P roc uremen t Milk Procurement from Producer
Addi ti onal Raw Material Procurement Procure to Stock
Produc t Developme nt
Recipe Management Manufac tu ri
ng Dai ry Producti on Planning
Dairy Proce ss Control
Sell & Del i ver Sales Order Processing
Raw M aterial Sales Indi rect Sales
Direct Store Delivery (DSD)
Opera ti onal End -to -End Sc ena ri os Traceability & Food Safety
Inventory Management Quali ty Management
Cro ss Company Transacti ons
Ente rprise Management & Support Financials
Control ling
Encompasses the efficient procurement and collection of raw milk Ensure compliance with high quality standards and traceability requirements Calculate payments based on quantity and quality characteristics Monitor procurement and payment process
Maintain standard routes
Provide route list to truck driver
Dairy reception cockpit
Process purchase Order
Automatic creation of inspection lot and batch number
Batch management
Gather results of inspection lots from producer samples
Gather results of inspection lots from tank truck samples
Create usage decision for inspection lots
Calculate payment for producer
Calculate payment for transport service provider
Settle payment Maintain payment
calculation scheme
Monitor raw milk quantity & quality characteristics
Payment reporting
SAP AG 2006
Additional Raw Material Procurement
Industry Pain Points Determining demand for additional
required raw material due to ever-changing quantity and quality of collected raw milk
Managing the vendor payment based on raw material quality characteristics
Business Benefits Increase demand planning accuracy Handle the quality-based payment for the
vendor
SolutionRaw Material
Demand Planning
Raw Material Reception
Raw Material Analysis
Raw Material Payment
Reporting & Analysis
Suppliers & Partners Customers (e.g. Retailers) & Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & P roc uremen t Milk Procurement from Producer
Addi ti onal Raw Material Procurement Procure to Stock
Produc t Developme nt
Recipe Management Manufac tu ri
ng Dai ry Producti on Planning
Dairy Proce ss Control
Sell & Del i ver Sales Order Processing
Raw M aterial Sales Indi rect Sales
Direct Store Delivery (DSD)
Opera ti onal End -to -End Sc ena ri os Traceability & Food Safety
Inventory Management Quali ty Management
Cro ss Company Transacti ons
Ente rprise Management & Support Financials
Control ling
Supports the additional purchase of raw materials from other companies on the determined shortage in the demand planning process
Calculate vendor payment based on the raw material quantity and quality characteristics.
Determine required additional raw materials
Create purchase order
Post goods receipt Automatic creation
of inspection lot and batch number
Batch management
Gather results of inspection lots
Create usage decision for inspection lots
Calculate vendor payment for additional purchased raw material
Settle payment Maintain payment
calculation scheme
Monitor raw material quantity & quality characteristics
Payment reporting
SAP AG 2006
Dairy Production Planning and Process Control
Industry Pain Points Production Planning based on a non-
standardized raw material High cost of the raw material comparing to
the total production costs Defining optimal product mix in order to
maximize utilization & profitablity
Business Benefits Optimize and streamline production process Increase profitability by improved visibility
to raw material utilization and losses Comply with the high quality standards and
traceability requirements
SolutionProduction Planning Process Control Quality
Management
Controlling & Analysis
Suppliers & Partners Customers (e.g. Retailers) & Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & P roc uremen t Milk Procurement from Producer
Addi ti onal Raw Material Procurement Procure to Stock
Produc t Developme nt
Recipe Management Manufac tu ri
ng Dai ry Producti on Planning
Dairy Proce ss Control
Sell & Del i ver Sales Order Processing
Raw M aterial Sales Indi rect Sales
Direct Store Delivery (DSD)
Opera ti onal End -to -End Sc ena ri os Traceability & Food Safety
Inventory Management Quali ty Management
Cro ss Company Transacti ons
Ente rprise Management & Support Financials
Control ling
Manage the multilevel manufacturing processes including seamless batch and quality management
Incorporates the ever-changing quantity and quality of the raw material Provide powerful tools to gain a cross-stages raw material controlling
Demand planning based on historical data
Production planning synchronous to sales
Material resource planning (without shelf-life)
Simulate planning Graphical capacity
planning
Maintain product master data & recipes for multilevel production
Batch management across all stages
Separate raw milk into components
Material valuation Manage shelf-life
expiration date for final products
Create inspection lots for semi-finished and finished goods
Gather results of inspection lots
Create usage decision for inspection lots
Cross-stages raw material controlling
Product costing Batch information
cockpit Production
information system
SAP AG 2006
Raw Material Sales
Industry Pain Points Managing variable pricing conditions
based on quality characteristics
Business Benefits Simplify price determination by using
the integrated batch and quality management system
Improve sales execution timeline
SolutionProduction Sales Distribution
Billing
Suppliers & Partners Customers (e.g. Retailers) & Channel
Partners
Analyze, Plan & Develop
Procure Manufacture Market & Sell Deliver & Service
Sourc ing & P roc uremen t Milk Procurement from Producer
Addi ti onal Raw Material Procurement Procure to Stock
Produc t Developme nt
Recipe Management Manufac tu ri
ng Dai ry Producti on Planning
Dairy Proce ss Control
Sell & Del i ver Sales Order Processing
Raw M aterial Sales Indi rect Sales
Direct Store Delivery (DSD)
Opera ti onal End -to -End Sc ena ri os Traceability & Food Safety
Inventory Management Quali ty Management
Cro ss Company Transacti ons
Ente rprise Management & Support Financials
Control ling
Supports the sales of raw materials between dairies based on the raw material requirements and the available surpluses
Pricing and distribution are based on the raw material quality characteristics
Manage process order
Create inspection lot
Process sales document
Picking based on quality characteristics
Create inspection lot for picked raw material
Usage decision and goods issue
Invoice processing Price determination
based on quality characteristics
SAP AG 2006
Reduce operating costs and increase efficiency
SAP ERP for the Dairy Industry Provides Increased Shareholder Value for Your Business
ShareholderValue
RevenueGrowth
Improve customer satisfaction
Increase sales
Reduce Cost
Reduce Working Capital
Customer service
Distribution
Inventory
Reduce Risk
Finance
Procurement
Production
SAP Scenarios(SAP ERP for the Dairy Industry)
* For further details, please refer to the SAP ERP for the Dairy Industry Brief.
Comply with food regulations
Improve order fulfillment
Improve sales execution timelineImprove customer understanding
Improve order fill rate
Improve efficiencies in accounting activities
Lower raw materials costs
Calculate and monitor production costs seamlessly
Business OpportunitiesBusiness AreasBusiness Objectives
Utilize full track-and-trace capability
Optimize inventory usage
Financials and Controlling
Sales and Customer Order
Manufacturing
Inventory Management
Food Safety
Indirect Sales
Returns
Procure to Stock
Increase efficiency for sales returns
Milk ProcurementImprove transparency in dairy procurement
Improve yield and reduce waste
Product Cost Controlling
Enable detailed profitability analysis
Realtime access to production cost information
Raw Material Sales
Recipe Management