CASE STUDY: How SCA Hygiene Leveraged SAP NetWeaver for Global Consolidation

CASE STUDY:

How SCA Hygiene Leveraged

SAP NetWeaver for Global Consolidation

Ken TsaiDirector, SOA Middleware, SAP

Mark Ritter

IT Services, SCA Hygiene Products

Stefan Hilpp

Managing Consultant, SEEBURGER

2010

© SAP AG 2009. All rights reserved. / Page 2

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functionality mentioned in this presentation. This presentation and SAP's strategy

and possible future developments are subject to change and may be changed by

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warranty of any kind, either express or implied, including but not limited to, the

implied warranties of merchantability, fitness for a particular purpose, or non-

infringement. SAP assumes no responsibility for errors or omissions in this

document and shall have no liability for damages of any kind that may result from

the use of these materials, except if such damages were caused by SAP

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SAP’s process orchestration technologies

portfolio

SAP NetWeaver

Process Integration

to perform application-

to-application (A2A)

and business-to-

business (B2B)

integration

SAP NetWeaver

Business Process

Management to create

and adapt business

processes

SAP Event Insights to

monitor and trigger

process action based

on real-time events


Key trends impacting the business process

orchestration technologies

Increased influence of business

in infrastructure purchasing

decisions, “instantly

consumable”

Trend towards end-to-end

business processes

Near real-time, actionable

insights

Focus on TCO and life-cycle

management

“XYZ” Project

Number of technology components

7 5 3

Dept. 1 Dept. 2 Company B

Number of transaction systems

2 3 6

Wow, this

is really

complex

Costs


SAP Business Process Orchestration

Portfolio and Vision

Business Insight

Process ManagementEvent Integration and

Processing SAP NetWeaver

BRMPre-packaged

process and event

templates

NetWeaver PI

Event Insight

SAP

BusinessObjects

Business

Intelligence

Enterprise

Services

Repository &

Registry

SAP NetWeaver

BPM

Operational BI

Orchestrated End-to-End Process

SAP’s Business Process Orchestration portfolio will reflect the synergistic use of

traditionally separate solutions to link insight and action, and drive relevance to business

users

Closed loop from

insight to action

New

SAP NetWeaver Process Integration


Is this the way to do integration?


Deploy a Process Integration Solution

that Quickly Delivers Business Value

Choose an integration solution that is

part of a business process platform that

can evolve with business requirements

Take advantage of pre-defined

business content to implement best

practices for all business processes

Use ONE process integration

middleware that can meet your A2A,

B2B, EDI, SOA, and SAP integration

needs

Build on a flexible architecture to

ensure that integration projects are on

time, on budget, meet business

requirements, and adapt for future

needs


SAP

NetWeaver

Process

Integration

Custom Web

Applications Applications Legacy

Application

Business

PartnersPartner

Applications


Combining Multiple Integration Technologies into 1 Process Solution

EDI exchange and B2B Integration

EAI, ESB, SOA for system to system integration

Application server-based integration for custom web applications

B2B EDI

EAI &

AdaptorsSAP

Adaptors

App

Server

Service Bus

SOA


SAP NetWeaver Process Integration (NW PI)

Customer Adoption – Use Cases – References

Customer Adoption

2.4 NEW customers / average working day*

Majority (80%) for SAP-2-nonSAP Integration

Customer References

300+ Active Customer References

28 Industries

Usage Scenarios

In-house application integration (A2A)

Electronic Business Partner integration (B2B)

Enterprise/Web Services Provisioning (ESB)

User Group Survey (DSAG, ASUG, SDN)

89% use it for business-critical processes

75% automate processes with BPEL

70% implement high availability

69% use it alongside another infrastructure

45% plan migration from another infrastructure

*Latest Numbers:

-Total Licensed Customers: 3,500+

- Productive Customers: 2,000+


SAP NetWeaver Process Integration 7.3

Planned Timeline*

** Ramp ups are in general scheduled for 6 months –

might be closed earlier depending on fulfillment of KPIs.

*Future dates are subject to change.

2009 2010

SAP NetWeaver CE 7.3,

SAP NetWeaver PI 7.3, …

SAP NetWeaver CE 7.2

EHP 1 for SAP NetWeaver CE 7.1

Unrestricted shipment since 05 / 2009

Ramp up started in Q4 / 2009**

Start of ramp up scheduled for 2nd half of 2010**

EHP 1 for SAP NetWeaver PI 7.1

Unrestricted shipment since 07 / 2009

This presentation and SAP's strategy and possible future developments are subject to change and

may be changed by SAP at any time for any reason without notice. This document is provided

without a warranty of any kind, either express or implied, including but not limited to, the implied

warranties of merchantability, fitness for a particular purpose, or non-infringement.

Repository and Governance

Improved design governance

Unified event provisioning and

subscription

ESB

Single stack ESB capabilities via AAE

Eclipse-based design time for service

provisioning

Increased productivity & richer

connectivity on AAE

Adoption of standards (SOAP 1.2, WS

Policy 1.2, WS Trust 1.3, …)

Support of joint shop floor integration and

A2A/SOA use cases

Unified Lifecycle Management

Central monitoring via SAP Solution

Manager (PI Workcenter)

Improved upgrade and fault tolerance

SAP NetWeaver BPM &

SAP NetWeaver BRM


Leverage Industry Best Practices And Define

Your Own

Create own

practices

with SAP

NetWeaver BPM

Leverage best

practices with

SOA-enabled SAP

Business Suite

SAP NetWeaver BPM(delivered with SAP NetWeaver CE)

SAP NetWeaver

3rd party

SOA-enabled

SAP Business Suite

Enhancement

Packages


SAP NetWeaver Business Process

Management

Direct path from

business view to

process execution

Model, deploy and execute

rule-based composite

business processes

Business-friendly graphical

modeler based on business

process modeling notation

(BPMN)

Combine human interaction

and system integration in

one model

SAP Event Insights


Key Technologies

Event

Federation

Complex Business

Event Pattern

Database

Web Service

SAP Application

SAP BI

Event Processing

Network

Complex Event

Processing

(CEP)

CEP EngineReal-time or

Historical Data

Streams

Events, Trends,

Risks, Alerts,

Exceptions, etc.

SAP EDBI Nodes forming a Business

Network

Events Heterogeneous Data

Sources

Parallel Processing

Minimize Bandwidth

Maximize Scalability & Extensibility

Ensure Availability

Infer and Identify Complex

Patterns & Conditions

Track Operational KPIs

Statistics:

• 50,000 Event Correlations / sec

• 300,000 Event Filterings / sec

Unified Event Semantics

Intelligent Routing

Data Mapping &Transforms


KraftMixing Center

DistributionCenter

Retailer ADistribution Center

Supplier

DSDDistributionCenter

Retail Store A

Retail Store B

Mfg Plant

Federated Event Execution

BW

SAP EDBI

SAP EDBI

SAP EDBI

SAP EDBI

SAP EDBI

SAP EDBI

SAP EDBI Custom

DB

Event Pattern

Heterogenous

Data Sources

CEP Grid:

Network Across

Locations and

Companies

Federate

Event

Queries

Detect Raw

Events

Gather Raw

Events

Distribute

SAP EDBI

Servers

CASE STUDY: How SCA Hygiene Leveraged SAP NetWeaver for Global Consolidation

May 25, 2010

19

Global Consolidation of B2B at

SCA HyGiene

SAP NetWeaver Present & Future

About SCA

Background – Reasons for B2B consolidation

Project Phases

Challenges

Successes

Future Outlook for B2B at SCA

Key Learning Points

SEEBURGER Adapter Library Updates

End / Questions

SCAA global consumer goods and paper company

SCA Personal Care Europe21

Packaging Transport and

consumer packaging

Industrial packaging

Containerboard

25%

37%

Personal Care

Tissue

Incontinence care

Baby diapers and

skincare

Feminine care

Toilet paper, kitchen rolls,

facial tissue and napkins

AFH (Away-From-Home)

hygiene concepts

23%Forest Publication papers

Solid-wood

products

Pulp and timber

15%

Total sales 2009: 10.5 billion EUR

SCA – a global consumer goods and paper company


Millions of people use our products,

every day

Our 50,000 employees worldwide are

committed to developing and

improving our customers‟ and

consumers‟ everyday lives

We operate our business in over 100

countries, with sustainable principles

Essentials for everyday life


Leading brands and businesses

World number one

for incontinence care

with a 26% global

market share

Leading regional

positions around

the world in baby

diapers and

feminine care

World‟s third

largest

supplier of

AFH tissue

Europe‟s largest

supplier of

consumer tissue

Europe‟s

largest forest

owner

One of Europe‟s

leading full-service

suppliers of

packaging solutions


Almost all of SCA‟s products mainly contain renewable raw materials

Continued shift from coal and oil to biofuel and natural gas

SCA plants three trees for every one harvested

SCA‟s forests absorb as

much carbon dioxide as

emitted by the Group‟s

production facilities

“SCA is one of the world‟s largest suppliers of FSC certified products “

Ranked among top 100 most

sustainable companies.

Ranked 2nd greenest

company in the world.

Ranked among world‟s most

ethical companies.

Sustainability matters

“


Our environmental goal

SCA will reduce its carbon dioxide emissions by 20%

by the year 2020, with 2005 as a reference year

26

Legacy B2B/EDI Infrastructure Diagram

* SCA mailbox facilitates

data exchange between internal SCA

Systems (Amtrix to SOP, Excel to SOP etc.)

Also used by Packaging and Forest Products

•Other platforms used :

• Harbinger USA ,

• EDIWIN (Spain)

• INFLUE (France)

• Legacy B07 ( UK)

Sending / Receiving via VAN (GEIS, IBM, X400), Internet (AS2), email, FTP

Trading Partners

AMTrixXI

WinElke

SAPOracle

SOPSCA Mailbox

Excel

Orders

Web-

Orders

CHEP

Pallets

SCA Mailbox

Other

BizTalk

27

Legacy B2B/EDI Environment

AmTrix (Axway) / IBM Mainframe main engine for EMEA & North America (PC). AmTrix with Oracle & IBM components (DB2/CICS/Cobol) , in-house developed system

WinElke (SEEBURGER) for selected German EDI messaging

EDIWIN used in Spain

Harbinger (Inovis) in North America (AFH/CT)

28

Background : Legacy B2B/EDI environment

Legacy software : AMTrix in conjunction with IBM Mainframe/Oracle, SCA Mailbox. SEEBURGER in Germany (Invoicing). Not in a position to satisfy all customer/business requests. Installed in 1994.

EDI interfacing with SCA application systems such as SAP, SOP, DUOLINE, PAM, SMS and Extranet Web applications.

Main messages used : Most messaging related to Orders, Ordrsp, Desadv, Invoice, Recadv, Invrpt, Slsrpt, Iftmin, Remadv.

Total connections : Approximately 300 EDI Partners

Communication : VANS (GXS(IIE), X400, FTP, OFTP, AS2 (various solutions).

29

Background existing B2B/EDI

Supported by : IT employees, external consultants, Regional IT & Customer Support.

Skill-set : Main legacy platform required knowledge of AmTrix, IBM mainframe (DB2/JCL/Cobol), Oracle. Other local solution required software specific consultants and internal support.

XML in production : Various solutions including XI or external service provider to convert XML to EDIFACT.

30

Background existing B2B/EDISummary

Competence required on several applications / systems

Large and complex infrastructure

Many points of failure to monitor and track

Disparate platforms and fragmented business processes

Complex change management

31

Why Consolidating B2B/EDI ? Ability to satisfy all demands from business and be a leader in Ecommerce

trends

Reduce the number of systems and interfaces to make processes more uniform

Reduce the TCO of SCA Hygiene„s B2B/EDI environment and, at the same time, increase the service level

Quicker turnaround time for trouble-shooting, maintenance, enhancements and new development.

Central „end-to-end“ monitoring of internal and external processes

Increase B2B/EDI connectivity with trading partners

Reduce the number of manual processes

ALL OF THE ABOVE ARE ALIGNED WITH THE OVERALL IT STRATEGY OF “COORDINATED DEVELOPMENT / HARMONIZATION OF SYSTEM PLATFORMS” AND “AVOIDING DUPLICATION OF EFFORTS AND COSTS”.

32

Consolidation Project Phases

Define Scope

Evaluation of Products

Pilot as “Proof of Concept”

Rollout

Post-mortem

* “PRIME” project management approach used (Phases, Tollgates, Common Project Language etc.)

33


Define Scope

Project Charter – “Improve on the current EDI environment by replacing the existing legacy platforms with new software to better position SCA Hygiene for handling all types of EDI formats. In addition, evaluate all facets of the EDI lifecycle, from development to implementation and production support, with the aim of making the overall process more efficient.”

SCA Hygiene Europe + PC business North America

Focus on putting the process in the application as well asImproved monitoring and support capabilities

34


Evaluation of Products

PI compared against non-SAP software and PI and the SEEBURGER EDI adapter software selected because:

It was a very big advantage in terms of cost and effort, that we already had PI in-house (and an exist group with knowledge and experience supporting it).

SAP-centric Integrated solution.

SEEBURGER certified by SAP, and its adapters are sold by SAP worldwide.

SEEBURGER solutions are 100% compatible with the entire SAP product portfolio

Large pool of IT professionals available to support XI & SEEBURGER EDI processes

Good feedback from Gartner analysts and companies already using PI.

SCA IT Team did a comparison study and we saw no advantages in using another integration product at SCA. In addition, we did not want to create a second integration platform.

35


Pilot as “Proof of Concept”

The pilot should define, configure and test the new EDI platform to ensure SCA Hygiene is positioned to meet the criteria defined in the project charter *.

“Improve on the current EDI environment by replacing the existing legacy platforms with new software to better position SCA Hygiene for handling all types of EDI formats. In addition, evaluate all facets of the EDI lifecycle, from development to implementation and production support, with the aim of making the overall process more efficient.”

36

Pilot Execution Plan Decision and approval to start development

Basic Installation and configuration + Implementation of pilot partner scenarios

SEEBURGER EDI Adapter / MT Testing/ Monitoring configuration

Go-live & Pre-study for rollout projects

37

Rollout Plan

Sub-projects by Region : Nordic, Central (DE-AT-CH), South (ES-IT-PT) etc.Each region has its own special requirements and Regional IS personnel to support.

Same standards used for all regions - Naming conventions, mapping functions etc.

The rollout team consisted of internal and external developers, local IT, SAP specialists (for ABAP user-exit programming for example). PI support from the Infrastructure Team as required.

Challenge was to keep the momentum going on the migration while supporting existing EDI production environment and new development such as new partner connections, supporting other projects (R3 migration, P&G acquisition, SAP upgrade)

No "Big-Bang“, but a partner by partner migration.Less Risk / Higher quality , but longer to complete migration.

38

Message Tracker Search

39

Challenges

Difficult for some to give up legacy platforms (strong central support from senior mgmt key to push the project)

Other project activity where the B2B team as well as regional support was also involved, took away time and resources

Waiting on external customers. For example if a communication switch was required waiting for weeks or months on partner.Testing externally was avoided. We had the results from the legacy systems to compare against.

SAP and SEEBURGER upgrades during the project required regression testing and support for installation and production monitoring.

http://www.google.de/imgres?imgurl=http://ccl.northwestern.edu/netlogo/models/models/Sample%2520Models/Games/Frogger.png&imgrefurl=http://ccl.northwestern.edu/netlogo/models/Frogger&h=340&w=340&sz=7&tbnid=GWD8GkEqol0HDM:&tbnh=119&tbnw=119&prev=/images%3Fq%3Dfrogger&hl=de&usg=__iAsT7Q5hLLNxiYTeXniJ1U0UGEE=&ei=ST_hStjvENCN_AaLioiLAg&sa=X&oi=image_result&resnum=6&ct=image&ved=0CBYQ9QEwBQ

40

Migration was completed without any major incidents. Incidents encountered were handled quickly by the team.

Flexibility - Other project activity was successfully completed (even unexpected work, such as new business acquisition and subsequent IT integration).

Good cooperation within the B2B team (internals and externals) as well as local IT and customer support.

M&S personnel from the legacy systems contributed to the development of the new platform and resumed their production control roles in the new environment.

Reduced overall FTE in the B2B team. This helped to justify (along with the other aforementioned benefits) the cost for the consolidation project

Documentation was greatly improved. Partner documentation.

Success List Summary

41

Key Learning Points

Pilot followed by migration Opportunities for improvement to the process were discovered early on

Moving the Global Location Number determination process to SAP Reduces redundancies and allows customer service to have real-time

changes in the customer master with minimal map or table updates

Communication Sitting together with RIS and customer service representatives throughout

Europe is always beneficial. Periodic EDI reviews held with different countries

42

Benefits & Conclusions

By moving SCA Hygiene‟s legacy B2B/EDI systems to an SAP XI with SEEBURGER‟s embedded B2B/EDI solution SCA Hygiene can:

Satisfy all business demands from one platform

Have simplified & more efficient operations

Have Higher Business Process Visibility

Be well-positioned for future market demands

By consolidating SCA can meet the goals of reduced TCO and at the same time increase

the quality of service

43

Future possibilities for B2B at SCA

Global Harmonization:

Australasia, Americas,

Europe

Target EDI with

suppliers

New technical

solutions

SAP’s Strategic B2B & EDI Partner

SEEBURGER‟s solutions are certified

28 certified adapters

OEM-partnership for SAP GTS & Global Customs Integration

44

45

SEEBURGER SAP NetWeaver PI Offering

Conversion – Transformation Agent (BIC)

Communication

Components

Add-On’s

Message Tracking an Operational Dashboard for PI Trading Partner Management

B2B Gateway for PI Manage even the most challenging B2B integration scenarios with

SEEBURGER‟s BIS

The 3 C’s of the Adapter Framework

SAP NetWeaver Process Integration Single integrated product for comprehensive business SOA

Integrated process development for total business context and complete visibility

High performance and secure end-to-end transactions

Pre-integrated repository and registry for centralized service provisioning and governance

SOA Management

Service Bus

Enterprise Services

Repository & Registry

Services Registry

Administration

Configuration

Monitoring

Optimization

Security

Pre-packaged Integration Content

BAM

Business

Task

Management

Process

Orchestration

Software

Lifecycle

Security User

Management

Scalability,

High

Availability

Archiving

Connectivity (3rd Party Applications, Technologies, Middleware, B2B…etc)

Reliable

Message &

Queuing

Trans-

formation

Dynamic

Routing /

Mediation

Protocol

Switching

SEEBURGER adapter solutions on SAP NetWeaver

47


SAP NetWeaver PI Integration

Engine

SEEBURGER Business Content

XML-EDI <-> XML-IDOC Mappings

SAP NetWeaver PI Repository and Directory

support of acknowledgement processing (997, CONTRL, APERACK), mass data handling and configuration, …

SAP NetWeaver PI + SAP Solution Manager - Monitoring and Alerting

Integrated within SAP NetWeaver XI\PI monitoring and CCMS

SAP Adapter

for

Backend

Integration

SA

P N

W P

I A

da

pte

r F

ram

ew

ork

EDI components

protocols

OFTP,

AS2,

VAN FTP,

P7/X.400,

...

module

library

compress/

decompress,

split/analyze,

encryption, ..

syntax

conversion

EDI <->

XML-EDI

converter

SEEBURGER Industry Adapters for SAP NetWeaver PI are

industry specific business packages

Key Benefits:SEEBURGER & SAP NetWeaver

Reduce costs for licensing, support, monitoring, hardware, software,

etc.

Utilize same skill set for all integration requirements

Need of consolidated integration approach in growing landscapes

Replace isolated integration systems

Improve business transparency

Improve business agility

Use SAP NetWeaver PI as a central Enterprise Service BUS (ESB)

integration platform for all internal or external integration needs

Leverage pre-configured solutions that are based on open standards and provide

business processes, mappings, etc.

Establish SAP NetWeaver PI as SOA middleware providing ONE platform for central

design, configuration, monitoring, alerting

Message Tracking

Customizable Operational & Payload search on B2B daily activity

49

SAP PI –Partner Management (Envelope Management)

Centralized Trading Partner Management for PI

Support of all common EDI standards

Store detailed contact information by Trading Partners

Manage SAP envelope information

50

Questions & Answers

Mark RitterIT ServicesSCA Hygiene Productswww.sca.com

Stefan HilppManaging [email protected]

Ken TsaiDirector, SAP NetWeaver [email protected]

http://www.sca.com/

mailto:[email protected]

mailto:[email protected]

For More Information

For more roadmap and product related information, check out:

http://www.sap.com/platform/netweaver/components/pi/index.epx

http://www.sap.com/platform/netweaver/components/pi/index.epx


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© Copyright 2009 SAP AG

All Rights Reserved

CASE STUDY: How SCA Hygiene Leveraged SAP NetWeaver for Global Consolidation

Technology

key learning

legacy b2bedi

existing legacy

current edi

consolidation

position sca

sap netweaver

sap event