SAP S/4HANA for Supply Chain

Value Drivers and Solution EnablersReduce Revenue Loss Due To Stock-outs

Real-time alerts based on current stock requirements with integrateddecision support. Significantly improved ATP via fast mass productavailability checks for sales, planned and production-orders (all items ofan order at once, releasing large production orders). Enhance on-timedelivery performance by integrating pick, pack, and ship processes.

Reduce Days in Inventory

Increase inventory turnover by making informed decisions based onaccurate demand and supply data. Simplified data model resulting inincreased throughput, flexible analytics at the most granular level andaccuracy based on primary data.

Reduce Inventory Carrying Cost

Leverage mobile inventory management and warehouse applications viaSAP Fiori apps

Reduce Inventory Obsolescence

Get the ability to automate warehouse operations with RFID and sensorswith IoT framework for integration to manage just-in-time availability, unithandling, serial numbers, electronic data interchange, and proof ofdelivery.

Enhance Supply Chain Planning Productivity

Enable personalized views for Planners with relevant analytics

Reduce Total Logistics Cost

Leverage new planning algorithms - leveraging predictive analytics (e.g.demand sensing) algorithm in combination with optimization. Increaseprocess flexibility through optimized logistics processes.

Inventory & BasicWarehouseManagement

! Goods issue

! Goods receipt

! Basic warehousemanagement

! Basic shipping

ProductionPlanning

! Materialsrequirementsplanning

! Basic orderpromising andavailable topromise

SAP S/4HANA FOR SUPPLY CHAIN

Saving money for a large European retailer

" Large Europeanretailer

" Over 100 years old,over 1400 storeswith 9 millioncustomers daily

" S/4HANAimplemented byNTT/Itelligence

" Real-time data onprevious day’s sales,not 2-3 days later

" Immediateadjustments:pricing, supplierorders (volume)

We want to be thenumber one retailerbased on customersatisfaction,financialperformance andemployeesatisfaction.

Customer

# #1 nation-wide grocery retailer

# International retailing

# Franchises (e.g., Starbucks)

# Online stores

20% of $150MThe goal to save in the firstyear of S/4HANAoperations.

∠ Real-time data on previous day’s sales, not 2-3days later

∠ Immediate adjustments: pricing, supplier orders(volume)

SAP S/4HANA FOR SUPPLY CHAIN

Allowing Indeks Bilgisayar retain its leadership in theTurkish IT wholesale distribution

Detailed Story (SAP Jam)

" $1B Turnover

" 500 Employees

" 200+ Suppliers

" 8000+ Partner Ecosystem

" #1 Turkish wholesaledistributor of computer andrelated products

For many years, every transactionwent into the in-house developedsystem. It was very tailored but nomatch for SAP. So for us, agility andfast response was key to select SAP.

Tayfun YİĞİT, CIO

SAP S/4HANA FOR SUPPLY CHAIN

S/4HANA as the entire value chain platform for a shoemanufacturer

Largemanufacturerand distributorof premiumshoes

Current platformisn't very efficient.We need somethingdifferent – withfewercustomizations.

Customer CIO

" €1.2bnturnover

" 5 factoriesglobally

" 1,300 shops

" 19,000employees

# Design

# Tannery

# Leather

# Production

# Sales &Distribution

"With the migration to S/4HANA, weplan to achieve efficiency and newabilities: reduce redundancies especiallyin the store operations such as returns

We are ready to adjust our businessprocesses and need higher visibility inthe production yield, customer profiles,our entire value chain"

SAP S/4HANA FOR SUPPLY CHAIN

Ensuring full transparency for CEITEC

" Centro Nacionalde Tecnologia isthe first Braziliansemiconductorcompany

" Created recently by the Ministry ofTechnology, CEITEC is $80m in revenuewith 300 staff

" Clients include HP (the largest), as well asgovernmental agencies such as theFederal Police, the Ministry ofTransportation, and specially the Ministryof Agriculture

" Detailed story

Before, nobodycould have visibilityinto contracts. Nowwe know exactlyhow much andwhen to pay.

Ireneo AlfaroDemanarig, CIO

SAP S/4HANA FOR SUPPLY CHAIN

Ensure timely drug delivery to patients for BoryungPharmaceutical

" HeadquartersSeoul, South Korea

" IndustryLife sciences

" Products andServicesPharmaceuticals

" Employees1,082

" RevenueUS$332 million(2015)

" Web Sitewww.boryung.co.kr

" PartnerGlobal Service &Supportorganization

SAP S/4HANA Financehelped Boryung drivebusiness processharmonization whileimproving ouroperational efficiency.We are now able to tapinto a variety ofanalytical informationpreviously unavailableto us.

Jae Hyun Ahn, COO,Boryung

Pharmaceutical Co. Ltd.

Objectives∠ Support global expansion with a coherent business process and streamlined

system landscape

∠ Establish infrastructure for real-time business management and analytics

∠ Simplify IT architecture to lower cost and boost efficiency of IT operations

∠ Gain an accurate, full view of cash and reliable liquidity forecasts

Why SAP∠ High visibility and control of business information in real time with the SAP®

S/4HANA Finance solution

∠ Differentiated implementation methodology to realize time to value with lowertotal cost of ownership

∠ Intuitive design with the simple, personalized SAP Fiori® user experience tomeet the expectation of today's business users

Resolution∠ Simplified financial business processes and IT architecture for real-time

business operations and analytics

∠ Improved business operation, cash management, and analytics accuracy byadopting the SAP Integrated Business

∠ Planning application for finance

∠ Minimized deployment risk, eased change management, and increased processvisibility using a system based on the "best model company" and SAPApplication

17%Higher on-time

deliveryperformance

15%Fewer days inraw material

inventory

4.5%Higher

operatingmargin forin-house

manufacturinggoods

75%Less time

required forclosing period