Direct Store Delivery:
Solution Strategy
Glenn Irwin Solution Mgr, SAP Labs, LLC Vienna, May 15, 2007
Direct Store Delivery: Solution Strategy Direct Store Delivery: Process and Tools Current Customers: SAP xMDSD 2.1
The Direct Store Delivery Process
Vending machines
Direct store delivery
Plant Manufacturer Distribution center Retail outlets, kiosks, and so on Home and office delivery
Hotels, restaurants, canteens, and so on
Point of sale (POS) and point of consumption (POC)
Direct store delivery (DSD) is a business process to sell and distribute goods directly to a customers store, bypassing the retailers warehouses
SAP AG 2007, SAPPHIRE / SLOT VI1981 / Glenn Irwin / 3
Solution Benefits of an Integrated DSD Solution
Increased efficiency from use of fully integrated mobile devices in an end-to-end DSD process Fast analysis of key business data from your core processes supports faster, more accurate planning, budgets, and forecasts Access to important information anytime, anywhere by gathering competitive intelligence at the level of the store, shelf, and customer Transportation planning and vehicle space optimization streamline delivery routes, drive down fleet costs, and reduce driver time Route settlement functions minimize discrepancies and invoice changes, thereby eliminating processing and paperwork costs
SAP uniquely delivers an integrated, end-to-end DSD solution
SAP AG 2007, SAPPHIRE / SLOT VI1981 / Glenn Irwin / 4
Direct Store Delivery: Solution Strategy Direct Store Delivery: Process and Tools Current Customers: SAP xMDSD 2.1
Process Overview in DSD in Enterprise Resource Planning
2. Shipment preparation
Delivery creation Dispatching Picking and packing Loading Printing of delivery documents
1. Order entry
Different channels: preseller and orderentry back end Information: customer data, delivery, product data, and pricing data
3. Download of tour data
Tour Customer and product info Orders Deliveries
Preseller
4. Check-out 8. Settlement
Review differences Final settlement Post goods issue Release billing block Generate differences orders Post movements for material differences
Checking of load Confirmation and sign-off load
5. Physical delivery
7. Upload of tour data
Updated orders and deliveries Returns and empties Payment information
Drop off goods Change and record quantities and returns Receive and record empties Print delivery documents and invoice Execute reload
Delivery driver and van seller 6. Check-in
Confirmation of actual products and quantities Confirm empties and returns Confirm cash collection
SAP AG 2007, SAPPHIRE / SLOT VI1981 / Glenn Irwin / 6
Functionality Overview: Preseller
The scenario variation of DSD order-to-cash integrates SAP xMDSD for presellers and delivery drivers into your DSD back-end processes
Preseller
Start of day Maintain visit list Order taking Print order confirmation Visit remaining customers End of day
SAP AG 2007, SAPPHIRE / SLOT VI1981 / Glenn Irwin / 7
Functionality Overview: Delivery Driver The scenario variation of DSD order-to-cash integrates SAP xMDSD for presellers and delivery drivers into your DSD back-end processes
Delivery driver
Start of day Maintain visit list Check-out Change delivery Deliver product or return product Collect cash Print invoice or delivery note Print payment receipt Visit remaining customers Check-in
SAP AG 2007, SAPPHIRE / SLOT VI1981 / Glenn Irwin / 8
Functionality Overview: Van Sales DSD van sales enables selling and delivering products to customers who have not placed an order in advance
Van seller
Start of day Check-out Create order Deliver product or return product Collect cash Print invoice or delivery note Print payment receipt Visit remaining customers Check-in
SAP AG 2007, SAPPHIRE / SLOT VI1981 / Glenn Irwin / 9
Direct Store Delivery: Solution Strategy Direct Store Delivery: Process and Tools Current Customers: SAP xMDSD 2.1
Where DSD Stands Today: SAP xMDSD 2.1 Pilot customer
Empresas Polar
SAP xMDSD 2.0 customers
George Weston Foods, Australia Absopure, Detroit live on November 1, 2006
SAP xMDSD 2.1
Absopure live in March 2007 Coca-Cola Hellenic Bottling Company Dreher [SABMiller] Hungary Gallikers Dairy Harrington Bottling Company
SAP AG 2007, SAPPHIRE / SLOT VI1981 / Glenn Irwin / 11
Value Realization with SAP xMDSD
Alejandro Bombaci CIO
Agenda
Empresas Polar Operations DSD Sales Models @ Empresas Polar Value Creation with SAP xMDSD (& CRM / SCM)
Application Landscape Adaptability to changing business needs End-to-End business integration
Summary
SAP DSD & Empresas Polar April 2007
Empresas Polar Geographical Presence
SAP DSD & Empresas Polar April 2007
Empresas Polar Business Areas Products
Beer & Malt
Beer Malt beverage Wine Champagne Sangra
Soft Drinks & Functional Bev
Food
Corn Flour, Oat Meal Infant Cereals Rice, Pasta, Wheat Flour Margarine, Mayonnaise,
Soft Drinks Mineral Water Sport Drinks Energy Drinks Fruit Juices Tea
Sauces
Corn Oil Cheese Spreads Marmalades
JV with Pepsi-Cola
Canned Tuna and
Sardines
Frozen Seafood Ice Cream, Desserts Pet Food, Animal Feed Soap, Detergents, Fabric
* Fiscal 2005-2006
SAP DSD & Empresas Polar April 2007
Total Revenues US$ 3 Billion * 2,3% of Venezuelas non-petroleum GDP 23,000 direct jobs
Softener
Agenda
Empresas Polar Operations DSD Sales Models @ Empresas Polar Value Creation with SAP xMDSD / CRM / SCM
Application Landscape Adaptability to changing business needs End-to-End business integration
Summary
SAP DSD & Empresas Polar April 2007
Operations Supply Chains in Venezuela
SC Elements Manuf. Plants Dist. Centers SKUs Sales Routes HHs
Beer & Malt 5 85 +350 1,990 1,000
Food 16 56 +550 735 +750
Soft Drinks 6 43 +300 1,450 1,400
SAP DSD & Empresas Polar April 2007
Operations Sales Operations
SO Elements Sales Models
Beer & Malt
Pre-Sales & Delivery
- Employees -
Food
Pre-Sales Van-Sales
-Employees -
Soft Drinks
Pre-Sales & Delivery Van-Sales Telesales
- Employees -
Van-Sales
- Franchises -
Delivery
- 3rd Party -
Customers Modern Trade
SAP DSD & Empresas Polar April 2007
155,000 10%
45,000 25%
190,000 15%
Agenda
Empresas Polar Operations DSD Sales Models @ Empresas Polar Value Creation with SAP xMDSD / CRM / SCM
Application Landscape Adaptability to changing business needs End-to-End business integration
Summary
SAP DSD & Empresas Polar April 2007
DSD Sales Models @ Empresas Polar
Multiple sales models depending on: Business Unit Customer Type
Vansales Presales
Occasion
Telesales
Vending Machine Sales
Special Event Sales
SAP DSD & Empresas Polar April 2007
DSD Sales Models
Presales Cycle
But every model shares the same conceptual phases
Sales Contact
Delivery and Settlement
Delivery Preparation
SAP DSD & Empresas Polar April 2007
DSD Sales Models
Presales Cycle Presales Visit
But that is where similarity ends
Sales Data Mgnmt Presales Route Preseller Visits Sync and Settlement
Delivery and Settlement
Delivery Preparation
SAP DSD & Empresas Polar April 2007
DSD Sales Models
Presales Cycle Presales Visit
each business unit has its own realities and needs
Sales Data Mgnmt Presales Route Preseller Visits Sync and Settlement
and handle different elements within a process
Focused Portfolio Pre/Tele Sales Mix Model
Sales Assets Incidents
Flexible Discount based on Commercial Structure Cross Selling Discounts Empties Discount
SAP DSD & Empresas Polar April 2007
DSD Sales Models
Presales Cycle Presales Visit
each business unit has its own realities and needs
Sales Data Mgnmt Customer Segment Focused Portfolio Presales Route Preseller Visits Sync and Settlement
and handle different elements within a process
Remote Sync & Settlement Scenarios
Store Stock Check Item Proposal Customer Profitability Return Order Collection (Cash, Check, BT, Tax Credits)
Tiered Risk Credit Check Adjustable Payment Terms Flexible Discount based on Commercial Structure
SAP DSD & Empresas Polar April 2007
DSD Sales Models
Presales Cycle Presales Visit
each business unit has its own realities and needs
Sales Data Mgnmt Presales Route Preseller Visits Sync and Settlement
and handle different elements within a process
Direct Sales Model
Franchise Model
SAP DSD & Empresas Polar April 2007
DSD Sales Models
Presales Cycle
Each Business Unit has its own realities and needs in most Phases
Sales Contact
Delivery and Settlement
Delivery Preparation
SAP DSD & Empresas Polar April 2007
DSD Sales Models
Presales Cycle Delivery and Settlement
Sales Contact Deliver Settlement
Check IN Delivery Preparation Manage Delivery Check OUT
SAP DSD & Empresas Polar April 2007
DSD Sales Models
Presales Cycle Delivery and Settlement
Some times the processes are sensibly different
Deliver Settlement
Check IN Manage Delivery
Empties Mgmt Return Process Reload Collection (Cash, Check, BT) Check OUT
SAP DSD & Empresas Polar April 2007
DSD Sales Models
Presales Cycle Delivery and Settlement
Some times the processes are sensibly different
Deliver Settlement
Check IN Manage Delivery Return Process Delivery form Multiple Shipping Points Check OUT No Checkout Process
SAP DSD & Empresas Polar April 2007
DSD Sales Models
Presales Cycle Delivery and Settlement
Some times the processes are sensibly different
Deliver Settlement Invoice at Delivery Empties Mgmt Return Process Collection (Cash, Check, BT) Check OUT
Check IN Manage Delivery
SAP DSD & Empresas Polar April 2007
DSD Sales Models @ Empresas Polar
Vansales
Presales
Telesales
Vending Machine Sales
Special Event Sales
SAP DSD & Empresas Polar April 2007
Agenda
Empresas Polar Operations DSD Sales Models @ Empresas Polar Value realization with SAP xMDSD
Application Landscape Adaptability to changing business needs End-to-End business integration
Summary
SAP DSD & Empresas Polar April 2007
Agenda
Empresas Polar Operations DSD Sales Models @ Empresas Polar Value realization with SAP xMDSD
Application Landscape Adaptability to changing business needs End-to-End business integration
Summary
SAP DSD & Empresas Polar April 2007
Value Realization with xMDSD
Application Landscape before SAP xMDSD Beer & Malt Soft Drinks & Non-Carb Bev Food
Franchises
Multiple Front-Ends
``|
Multiple Back-Ends
Corporate SAP Environment
SAP DSD & Empresas Polar April 2007
Value Realization with xMDSD
Current Application Landscape (with SAP xMDSD) Beer & Malt Soft Drinks & Non-Carb Bev Food
Franchises
Front-End
xMDSD
Toward Single
``|
Back-End
Corporate SAP Environment (R/3-ERP + DSD + CRM + )
SAP DSD & Empresas Polar April 2007
Value Realization with xMDSD
Application Landscape (2009) with SAP xMDSD Beer & Malt Soft Drinks & Non-Carb Bev Food
xMSA Laptop
xMDSD
``
Corporate SAP Environment (R/3-ERP + DSD + CRM )
SAP DSD & Empresas Polar April 2007
Value Realization with xMDSD
Application Landscape Single Corporate Solution
Strategic Enterprise Management / Business Intelligence
LOTUS NOTES ERP + xMDSD Enterprise Portal MI Employee SelfService Collaborative Transportation MICROSOFT OFFICE xMII SCM Empresas Polar GIS XI
CRM
SAP DSD & Empresas Polar April 2007
Agenda
Empresas Polar Operations DSD Sales Models @ Empresas Polar Value realization with SAP xMDSD / CRM / SCM
Application Landscape Adaptability to changing business needs End-to-End business integration
Summary
SAP DSD & Empresas Polar April 2007
Value Realization with xMDSD
Adaptability to changing business needs
xMDSD Configurable Sales Service Models
Pre-Seller Delivery
Sales Order
What is your model?
? ? ? ? ? ? ? ?
Configure and Restructure our Go to Market Strategy and deploy it for Commercial Execution at will
Pre Seller Van Seller Telesales with CRM Own Delivery 3rd Party Dlvy HH Delivery Manual Delivery Item Proposal Pricing Structure Promotion & Discount Vending Sales Assets Control of Empties
Return Order Credit Check Delivery Product Returns Billing Collection Empties
CRM Telesales
+ Other Applications in SAP Landscape
DSD Backend Visit List CRM Customer Service CRM Installed Base Mgmt
SAP DSD & Empresas Polar April 2007
Value Realization with xMDSD
Adaptability to changing business needs
xMDSD Enhancements
Front-End HH
Configuration User Exits / BADIs User Programs Modify Programs Add. Data Tables Data Sync. (SyncBOs) Data Selection Criteria
Specific functionality added:
Back-End
Product Portfolios
(by segment) Control Sales Quotas Collect POS Data Truck Reload (E) End of Day Reports (E) Suggested order proposal (E) Sales History on HH Material Search (E)
Sources for Enhancements
SAP Custom Development In-House developments
(E) = Enhancement to standard functionality
SAP DSD & Empresas Polar April 2007
Agenda
Empresas Polar Operations DSD Sales Models @ Empresas Polar Value realization with SAP xMDSD
Application Landscape Adaptability to changing business needs End-to-End business integration
Summary
SAP DSD & Empresas Polar April 2007
Value Realization with xMDSD End-to-End Business Integration
SAP xMDSD enabled the Value Chain with seamless End-to-End integration providing it with complete visibility of all business activities and every customer interaction
Support Activities
SAP DSD & Empresas Polar April 2007
Value Realization with xMDSD End-to-End Business Integration
Structure, Coordinate and Execute Sales Activities for Sales-forces servicing multiple combinations of: - Costumer Segments - Sales Models - Product Portfolios
Support Activities
Collect information at Customer POS level to improve visibility of market demand and enhance Forecasting / Business Planning
Complex Business Intelligence Analytics, provides seamless insight on: - Sales Contact Execution - Delivery Performance - Sales Assets utilization
SAP DSD & Empresas Polar April 2007
Value Realization with xMDSD End-to-End Business Integration
Quickly and easily adapt Supply and Distribution plans and activities in response to real-time Customer Demand
Support Activities
Help ensure availability of returnable empties by enabling their planning and coordination
SAP DSD & Empresas Polar April 2007
Agenda
Empresas Polar Operations DSD Sales Models @ Empresas Polar Value realization with SAP xMDSD
Application Landscape Adaptability to changing business needs End-to-End business integration
Summary
SAP DSD & Empresas Polar April 2007
Summary
With xMDSD we have achieved: Sophisticated customer service offerings Larger portfolio being offered on each visit (70-150 SKU) Allowed prioritization of product offerings 60% more SKUs sold per visit Faster cycle times on: Sales Operations, SC Planning & Execution 50% less time on the office for salesperson 30% faster back-office closing 40% faster truck-load assignment and load start 3 day reduction in monthly closings
SAP DSD & Empresas Polar April 2007
Summary
Higher visibility of customer data & transaction detail for: Daily sales operations KPIs, BI Portfolio Management Focalized offerings More accurate demand estimation DP Better supply chain planning (15% stock-out reduction still growing) Simplified IT Support Full integration with SAP Business Suite NO interfaces Device Data Backup & Recovery Saved on damaged devices Integrated Device Management facilities Fast software update Reduced IT support to sales locations No application servers Fast adaptability to new requirements Single application Faster turnaround for new requirements
SAP DSD & Empresas Polar April 2007
Thanks
SAP DSD & Empresas Polar April 2007
