SAP PLM

for SCM driven CPG

Industries
3/03/07

By
Chandu Kamisetty
Contact: chandu.sap999@gmail.com

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Contents
„ CPG Industry - Key Business Drivers
„ Key SCM-PLM Initiatives
„ What is PLM?
„ CRM-PLM-SCM in Manufacturing
Environment
„ SAP PLM-SCM Possibilities for Fast Moving
CPG
C G industries
dust es
„ PLM SCM Leverage points
„ Detailed capabilities
„ Thank You! 2
CPG Industry –Key
Key Business Drivers
„ Fast p
paced industry
y
„ Time to market
„ Supply chain management
„ Maintain Market share with new products
„ Leadership through innovation – R & D, Market
research and consumer insight
„ Culture of continuous product and process innovation
„ customer & supplier intimacy; operational excellence;
and product leadership
„ Low cost, highly efficient & flexible operations
„ Stream line day to day operations
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CPG Industry –Key
Key Business Drivers
„ Market p
penetration with high
g qquality
ypproducts,, p
price
point strategy.
„ Master data / Product information management
„ Effective change management
„ Risk Management and FDCA, FDA, etc regulatory
and safety compliances.
compliances
„ Product availability whenever, wherever, however.
„ Consumer communication,, Globalization and out
sourcing
„ Focus on People, Process, information, Brands,
P d t
Products.
„ Digitalized product information 4
Key SCM-PLM
SCM PLM initiatives
„ Develop
p efficient NPDI p
process.
„ Develop internal and external collaboration
„ Leverage Supply chain by integration with product
life cycle
„ Recipe Management - continuous and integrated
process
„ PLM for Life cycle data and process management
„ Standardization of Internal and External Master Data
„ Cost reduction
„ Increase business / product visibility to Technical /
Purchasing / Supply Chain / Marketing.
„ Reduce and Optimize Processes gaps 5
What is PLM?
„ Set of solutions that facilitate more efficient product
collaboration between functions within the enterprise: Sales,
Marketing, Engineering, Purchasing, Supply chain,
Manufacturing, Planning, Forecasting, Service, Customer
S
Support t andd external
t l to
t the
th enterprise
t i with
ith the
th companies'
i '
suppliers and customers.
„ Streamlines all the activities and data involved with a product
th
throughout
h t it's
it' entire
ti lifecycle,
lif l including
i l di product
d t concept,t design,
d i
sourcing, Supply chain, manufacturing, transportation, storage,
promotion, sales, support, maintenance, retirement, and even
recycling There is a significant amount of data associated with
recycling.
the product, the programs and projects, and the people and
functional areas involved in this set of complex processes.
„ PLM - is an essential tool for coping with the challenges of more
demanding global competition and ever-shortening product and
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component lifecycles.
PLM-SCM-CRM in
Manufacturing Environment

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SRM-PLM
SRM PLM Integration (1)

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NPDI (PLM)–SCM
(PLM) SCM Integration (2)

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PLM-SCM
PLM SCM Integration (3)

10
Product development PLM
PLM-SCM
SCM (4)

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Master data PLM – SCM (4)

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 SAP PLM-SCM Possibilitiesfor
Consumer Packages Goods
„ Product Definition / Innovation NPDI (xPD) P

„ Project Collaboration (cProject & cFolders Suite)

„ Portfolio and Project management (xRPM)

„ Document Management System (DMS)

„ Recipe Management (RM)

„ Engineering Change Management (ECM,

ECR/ECO))
„ FDA / FDCA, GMP, EHS (Compliance Mgmt)

„ Master Data Management (MDM)

„ SAP Workflow ( process flow for above components) 13

PLM SCM Leverage points (1)
„ Project and resource Mgmt: Clear definition of project phases and
milestones, tasks, deliverables, roles, and responsibilities makes
coordination of all development, supply chain, marketing, sales, and
production activities more effective.
„ xPD:
PD A known
k product
d t structure
t t h l identify
helps id tif the
th best
b t locations
l ti f in-
for i
house production or suitable suppliers. Make or buy decisions are
supported and demand planning and supply network planning
p
simplified.
„ Strategic Sourcing: By bringing R&D, product, and sourcing closely
together, product costs are optimized at the early design stage. The
strategic sourcing process is accelerated using cFolders and SAP
Bidding Engine
„ Prototyping and Production Ramp-Up: Process prototyping is
used in parallel to product development to ensure technical feasibility
andd optimize
ti i th production
the d ti process. Integration
I t ti enables
bl th mostt
the
effective ramp-up of a recipe for production of higher volumes.
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PLM SCM Leverage points (2)
„ Master Data Management: MDM is designed to create a single
enterprise thesaurus. Supply chain synchronization, new product
introduction, multi-channel sales and support, trade reconciliation, risk
management, and compliance are just some of the drivers that are
compelling companies to be more strategic about managing their
information assets.
„ Workflow: Deploying Workflow makes sure the process gaps are
removed and manual errors are minimized.
„ Lot more…

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Detailed capabilities (1)
„ Idea / Concept development and NPDI.
„ Idea / concept management
„ Product development
„ Development Collaboration
„ Classification
„ Life Cycle Data Management
„ Document Management
„ ECM (ECR/ECO) management
„ Product Structure Management
„ Specification Management
„ Change and Configuration management 16
 Detailed capabilities (2)
„ Recipe Management „ cProject Suite
„ Formula / Specification
„ Product, ingredient and
allergen labeling
„ Regulatory compliance
„ NPDI
„ Multilevel recipe and
specification
management
„ APQP / Phase gate approach
„ Development collaboration
„ S
Supply
l NNetwork
t kCCollaboration
ll b ti
„ Strategic sourcing
„ Outsourced Manufacturing
„ Purchase order Collaboration
„ Invoice Processing
„ Account and Payment
information
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Detailed capabilities (3)
„ Project / Portfolio Management
„ Project Planning
„ Project Execution
„ Project Accounting
„ Resource and Time management
„ P t Typing
Proto T i and dRRamp up
„ Development Collaboration
„ Workflow
„ Related Document / change Management

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Detailed capabilities (4)
„ Master Data Management (MDM)
„ Labeling
„ Shopping cart
„ Product Catalogue / Web publishing
„ Manage
g Product master gglobally
y
„ Global Data Synchronization (GDS)
„ 30% error rate between manufacturer and retailer content
„ M lti l systems
Multiple t andd iinterfaces
t f
„ Conflicting product definitions
„ Proprietary SKUs numbers VS Standard EAN/UPC Numbers
(GTINs)
„ Enables rapid product updates
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„ Minimizes Incorrect / returned shipments
Detailed capabilities (5)
„ Process integration
„ Document management
„ Bill of materials / Ingredients
„ Sourcing
„ Status triggered
gg workflows
„ Collaborative and Competitive scenarios
„ Workforce Deployment
p y
„ Project Resource Planning
„ Port folio management
g
„ Staffing and assignments 20

„ Scheduling
Detailed capabilities (6)
„ EHS Compliance
„ FDA / FDCA, ISA
„ Other regulations and safety standards
„ Quality Management
„ Quality Engineering
„ Quality improvement
„ Quality Assurance
„ Audit Management
„ Accounting
„ Project accounting
„ Product cost accounting 21
„ References:
„ www.sap.com
„ www.sdn.sap.com

Thank you

Chandu.Kamisetty
contact: chandu.sap999@gmail.com

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