Learn how companies are seeking to transform their supply chains in the new digital networked economy. This session will include a discussion about the major pillars for transformation that can act as a concrete framework for initiatives to realize new digital opportunities and business value. You will be introduced to SAP’s extended supply chain portfolio and learn how this can be used for collaborative business planning across the network to integrate supply chain with sourcing and purchasing, and to orchestrate internal and external operations across short-, medium- and long-term time horizons. SAP customer use cases and examples from various industries will be used.

1. Digital Supply Chain Transformation in the
Networked Economy
Patrick Crampton-Thomas, Vice President, SAP Supply Chain Solution Management / March 16, 2016
Public

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World’s largest taxi company
owns no taxis
Largest accommodation provider
owns no real estate
Largest phone company
owns no infrastructure
World’s most valuable retailer
owns no inventory
World’s largest movie house
owns no cinemas
Largest music company
owns no music
World’s biggest book distributor
owns no books
The Digital Disruption
Is Happening
Digital economy

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Design
Respond
Sharing Economy
Business Network
End-to-End
Visibility
Resource Scarcity
Sustainability
Individualized Products
Industry 4.0
Customer Centricity
Omni-Channel
Customers &
Markets
Suppliers &
Logistics
Products &
Assets
People &
Resources
Digital transformation in extended supply chain

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45%
of enterprises are building
direct-to-customer fulfillment
capabilities
Source: SCM World’s 2014 Chief Supply Chain Officer
survey
Demand Sensing
Same-day Delivery
Omni-Channels
Click
Customer centricity

5. Here we give ‘End to End
exec demo’

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80%
of companies said that digital
operations are critical of every
organizations manufacturing
competitiveness
Source: Digital Manufacturing & Design Innovation
Institute
Digitized Inventory
Lot-Size of 1
Configured Products
Industry 4.0
Individualized products

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Response
Network
Strategic
Sourcing
Logistics
Network
Product
Compliance
Asset
Network
Manufacturing
Networks
Project
Network
50%
of networked companies are
more likely than their peers to
have increased sales, higher
profit margins, and be market
leaders
Source: McKinsey
Manufacturing AssetsLogistics
Sharing economy

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64%
of companies say that priority
access to scarce raw
materials/capacity and
collaborative cost reduction
with suppliers are extremely
relevant to their competitive
advantage
Source: SCM World’s 2014 Chief Supply Chain Officer
survey
Talent Acquisition
Talent acquisition and development has
become twice as hard since 2011
Risk Management
Joint risk mitigation with suppliers drives
ability to leverage supply chain disruptions
Environmental Responsibility
Steady rise of cost savings as justification for
investments in Environmental Responsibility
Resource scarcity

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Customers &
Markets
Suppliers &
Logistics
Products &
Assets
People &
Resources
Resource Scarcity
Sustainability
Individualized Products
Industry 4.0
Design
Respond
Customer Centricity
Omni-Channel
Sharing Economy
Business Network
Business
Networks
Integrated Business
Planning
Product Safety &
Stewardship
Asset Intelligence
Network
The digital extended supply chain

10. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Public
Internet of Things
SAP Fiori on any device
Business Network
SAP S/4 HANA
Extended
Supply Chain
Plan
Respond Deliver
Design
Produce
Operate
Cloud
On-premise
Connectors
Simplify the increased complexity with SAP

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Response Networks
Lack of Visibility
and Orchestration
Long Latency Across
Organisations
Competition from
“New Networks”
Threats from
competitors and
business models
Trends and challenges in response networks

12. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Public
How to enable the responsive demand network - Key enablers in the
response network
Response Network
Enable fast end-to-end view of
planning, execution, and
network data
‘Channel master’ control tower
to orchestrate the network and
manage problems
Easily onboard suppliers &
customers to enable
innovative collaboration
Improved Efficiency
Via real-time automated supply
collaboration
Inventory Reduction
Via customer collaboration by
providing materials at optimal time
20%
50%
* Source: SAP ASUG
Benchmarking Survey
Key Enablers

13. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Public
Supply chain orchestration with SAP Integrated Business
Planning and Ariba Network
Channel Master
Orchestration
Supplier
Connectivity
 Channel master leverages business network connectivity and
collaboration with Supply Chain trading partners to combat
demand volatility, supply shortages and high inventory and
fulfilment costs.
 Combines network, planning, and execution inputs into a
single view
 Leverage Advanced Planning, Analytics and
What-if Simulation capabilities
SAP IBP and
Control Tower
 Enable suppliers to easily engage in joint supply chain and
inventory initiatives with many channel masters
 Efficient onboarding of Suppliers
 Collaborating on order and time series data
 Advanced Network Intelligence
End-to-End Network
Visibility and
efficiently
on-boarding and
collaborating with
Partners
Drive revenue by
orchestrating across
organization
boundaries and
aligning physical
and digital networks

14. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public
Response networks: supply chain collaboration for channel
masters and network partners
Suppliers
Contract Mfg
Channel, Distributors,
Customers
SAP Integrated
Business Planning
Ariba Collaborative
Supply Chain
ERP
WMS
TMS
Orchestration
Simulation
IBP Control Tower
Planning
Supply
Demand
Inventory
Integrated with Digital Core

15. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Public
Customers &
Markets
Suppliers &
Logistics
Products &
Assets
People &
Resources
Design
Respond
Manufacturing &
Asset Network
80%
of companies said that digital
operations are critical of every
organizations manufacturing
competitiveness
Source: Digital Manufacturing & Design Innovation Institute
Integrated
Business Planning
Individualized Products
Industry 4.0
The digital framework for extended supply chain
Resource Scarcity
Sustainability
Product Safety &
Stewardship64%
of companies say that priority access
to scarce raw materials/capacity and
collaborative cost reduction with
suppliers are extremely relevant to
their competitive advantage
Source: SCM World’s 2014 Chief Supply Chain Officer survey
Integrated Business
Planning
Sharing Economy
Business Network
Connected
Logistics
50%
of networked companies are more
likely than their peers to have
increased sales, higher profit
margins, and be market leaders
Source: McKinsey
Business
Networks
Omni Channel
O2C for B2B/ B2C
45%
of enterprises are building direct-
to-customer fulfillment
capabilities
Source: SCM World’s 2014 Chief Supply Chain Officer
survey
Integrated
Business Planning
Customer Centricity
Demand Sensing & Omni-Channel

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THANK YOU

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