As manufacturers become more reliant on their direct materials suppliers, manufacturing and supply chain processes become more iterative and aligned with suppliers. Join this session to hear a leading manufacturer in a highly dynamic industry discuss how to incorporate supplier collaboration in manufacturing plans.

1. PUBLIC
March 2017
SMART Modular and Intrigo Systems
Collaboration with Direct Materials Suppliers
for Instant Supply Chain Visibility

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
SAP Ariba (SAP)
 Leah Knight
SMART Modular
 Anil Kumar, Business System Analyst, Supply Chain
Intrigo Systems
 Subu Govindaswamy, Director, Extended Supply Chain
Agenda

3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Digital economy is driving a transformation
Contract
manufacturers
Subassembly
suppliers
Large
enterprise
OEM or
retailer
Component
suppliers
Raw material
suppliers
Distribution
centers
Logistics
providers
Trading partners
Geographies
Technologies
M o r e

4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
More collaboration with trading partners is needed
Source: No Business is an Island, The Economist Intelligence Unit, 2014
32%13%15% 39%
Minimal,
transactional
collaboration
Informal
collaboration;
few suppliers
Maximized collaborationSome formal
collaboration;
some suppliers
How would you characterize your supplier collaboration efforts?

5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
The time is ripe for digital innovation
“More than 60% of CEOs expect 15–
50% of their earnings growth in the
next 5 years to come from
technology-enabled business
innovations.”
– McKinsey study, 2013
of manufacturing insight survey respondents
said direct material procurement networks
are a high priority
– IDC Manufacturing Insights
73% Early engagement of sourcing opportunities
New (or improved) technology
Larger and/or more talented staff
Better communication plan
Better team execution
66%
53%
53%
48%
44%
Source: CPO Rising – The Agility Agenda by Ardent Partners.

6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
We are making
significant investments in
streamlining direct materials
source-to-settle processes
SAP Ariba solutions offered for direct materials/supply chains

7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Supply chain collaboration is a key element
Manufacturing and retail
collaborative processes
 Enables collaboration with
direct materials trading
partners
 Complements and extends
back-end systems
 Provides instant visibility into
availability of supply
Buyer Supplier/contract
manufacturer
Purchase
order/subcontract PO
Schedule agreement
release
Goods receipt notice
Self-billing/ERS
invoice
Component ship
notice
Consignment
inventory status
Payment
Forecast/demand
Quality notification
request
Quality notification
confirm
Component receipt
notice
PO confirmation
Component
consumption notice
Advance ship notice
Invoice
Forecast commit
Manufacturing visibility
**
Quality notification
Quality notification
update
** B2B only, UI/upload planned in upcoming
releases

8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
SAP Ariba (SAP)
 Leah Knight
SMART Modular
 Anil Kumar, Business System Analyst, Supply Chain
Intrigo Systems
 Subu Govindaswamy, Director, Extended Supply Chain
Agenda

9. SMART Modular is a global
leader in specialty memory
solutions. SMART Modular
delivers solutions to a broad
customer base, including OEMs
that compete in the computing,
networking, communications,
storage, mobile and industrial
markets.
Introduction to SMART Modular

10. Create a competitive advantage through
purchasing, manufacturing and distributing
products and services which provide superior
value to our customers.
SMART’s Supply Chain Vision

11. • SMART is looking for its Procure to Pay
process be seamlessly collaborative
• SMART’s anticipated supply chain value is to
get any extended supply chain information
on-time or before
Business Case and Anticipated Value

12. SCOPE: Solution should be able to meet our basic
requirements:
• All PO types (standard, consigned, sub-contract)
• PO approvals (with workflow)
• PO collaboration (with suppliers)
• PO change management
• Forecast collaboration
• Reporting (Inventory, POs, OTD Etc.)
• EDI connection points
• Integration with SAP MRP / Planning
• Working portal platform for Buyers
Solution Scope

13. System Capabilities & Expectations
• MRP results from SAP software to flow into portal
• Buyers should be able to select relevant PRs and convert to POs
• If required, Buyers should also be able to create PRs manually
and convert to POs
• All POs to be routed for Approvals based on the $ amount matrix
• Workflow should be flexible and configurable
• POs should be created in SAP only after PRs are approved
(for efficiency & control)
• Audit log of all PO approvals / changes
• Buyers should be able to raise a change request
• Suppliers should also be able to raise a change request
• Ability to exchange text-based messages
• Mobile approvals a must
• Should link to an EDI System

14. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
SAP Ariba (SAP)
 Leah Knight
SMART Modular
 Anil Kumar, Business System Analyst, Supply Chain
Intrigo Systems
 Subu Govindaswamy, Director, Extended Supply Chain
Agenda

15. • Headquartered in Fremont, CA with locations in San
Diego (CA), Houston (TX), Atlanta (GA), Walldorf
(Germany), Chennai and Bengaluru (India)
• 200+ employees worldwide
• 100+ combined successful SAP implementations
globally
• SAP Ariba partner – Co-Innovation and development
Partner, SAP Lighthouse – Reseller, Supplier
Integration Services Provider
• Supply Chain Advisory and Implementation Services
• SAP Ariba Solution Accelerators – Planner and Sellers
Edge
• Industries: High-tech, Fashion, Consumer Products,
Manufacturing, Chemicals, Pharma, and Automotive
Introduction to Intrigo
We are Global!

16. • Forecast Collaboration
• Preq. Collaboration – Internal
• PO Collaboration - External
• Manual Processes – Work Flow Automation
• System Integration - Internal
• Integration – External (B2B & Other)
• Accuracy & Compliance
• Data Driven Dynamic Decision Making
• Cash Flow – Discount Management
Typical Supply Chain Challenges

17. Key Processes and Systems
SAP ERP
SAP
S/4HANA
11. Send Purchase requisitions as Forecast to the Vendors
12. Send commit back to Forecast
13. Receive Planned requisitions based on Commit
Suppliers
Manufacturers
Logistics
Providers
6. Accept/Reject Confirmations (Workbench)
7. ASN to PO
8. Goods receipt of the FG
9. Send invoice
10. Receive and Pay invoice – ERP
IBP
Demand/
Supply
PO Collaboration
Forecast
Collaboration
Collaboration
Workbench
1. Planning Run
2. Preq. to ERP
3. Convert Preq. to PO (Workbench)
4. Send PO to SAP Ariba solution (Auto)
5. Confirmations to PO

18. • S/4HANA or SAP ERP
Integration with Planner Edge
and SAP Ariba Supply Chain
Collaboration
• Enabling Procure to Pay
Processes
• Planner Edge:
 Dashboard
 PR Change/Approval
 PO Create/Approval
 PO Confirmation Accept/Reject
Key Processes and Systems – Smart Modular Technologies
SAP ARIBA
BUYERS
ERP
SYSTEMS
SAP ARIBA
SUPPLIERS
Planner
Edge –
Buyer
Work
Bench
Ariba Network

19. High Tech Manufacturing – Fortune 50 Company
• Forecast Collaboration
• Preq. - PO - Confirmation Collaboration
• ASN and Invoice Processes
Pharmaceutical – Fortune 100 Company
• Forecast Collaboration
• PO Collaboration
• Quality Compliance – COA
• Quality Notifications - Batch Number - Unique
Number Tracking - Enabling Traceability
Best Practices for Supply Chain Management

20. 20PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
SMART Modular’s collaboration with direct materials suppliers
for supply chain visibility (SID 42911)
OR
Ariba Network: Driving Direct Material Sourcing and Supplier
Collaboration, Merck blue ribbon session (SID 42884)
SAP Ariba Supply Chain Collaboration (SID 43836)
OR
Direct Materials Sourcing Innovations: Roadmap and Deep Dive
(SID 44035)
Which session to join next? Don’t miss these sessions on direct/supply chain!
11:30am BASF: Transforming Strategic Supplier Management
(SID 43096)
OR
Extending Ariba Network for Digital Manufacturing collaboration (
Industrial 3D Printing and Ariba Network (SID 42921)
TIME TUESDAY MARCH 21 WEDNESDAY MARCH 22
12:00 noon Source All Materials/Services in a Multilevel BOM (SID
43816)
Digitize Your Supply Chain (SID 43939)
Ariba Network: Supply Chain Today, Vision 2017 and Beyond
(SID 42926)
Ariba Network: Innovation Deep Dive (SID 42927)
1:00pm
2:00pm
3:15pm Merck’s Supply Chain Collaboration with Contract
Manufacturers and Direct Suppliers (SID 42908)
4:30pm
5:00pm Manage Your Supply Chain by Exception (SID 43817)
Sourcing Multiple Spend Categories on One Platform:
Devon Energy and Grupo Herdez (SID 42912)
Supply chain use case
Supply chain roadmap
Supply chain use case
Oil & Gas
Consumer goods industriesDirect sourcing roadmap
Tuesday Wednesday

21. Thank you.
Contact information:
Anil Kumar, Anil.Kumar@smartm.com
Subu Govindaswamy subu@intrigosys.com
Leah Knight, leah.knight@sap.com

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