!Newman 2011 Fall Focus Sustainable Supply Chain V Fx

[ Use SAP Tools and Green Purchasing

to Create a Sustainable Supply Chain

William Newman, CMC, MBA, SA

Managing Principal – Newport Consulting Group

Twitter @william_newman

#ASUGFOCUS

Real Experience. Real Advantage.

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Agenda

Introductions

Learning Points

Sustainability Executive Advisory Council

SAP’s Sustainability Solution Map

One Example: Embedded Procurement Processes

Another Example: Sustainable Business Networks

Planned Demonstration

Key Take-away’s and Resources

Q&A


[ About the Speaker

William D. Newman, CMC, MBA, SA

ASUG Recognized Influencer

EPM, GRC, Sustainability

Member, SAP Sustainability Executive

Advisory Council

Certified Management Consultant (since 1995)

Over 25 years in industry,15 years working

with SAP customers and management

Public Speaker (ASUG, Insider, TEDx, others)

SAP Press Author (Understanding SAP BOBJ EPM)

Numerous articles on program oversight, stakeholder

engagement

Twitter (william_newman)

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[ About the Firm

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Newport Consulting Group is an independent

consulting firm founded in 2005 and managed by

several leading directors from DMR Consulting

Group and strategy firm Booz & Company

Our clients enjoy working with our experienced

professionals who deliver large firm capabilities

with a boutique firm culture

We function as top-end, high-touch advisors

to our F500, Inc 5000 and GT25 clients

We help SAP partners RUN BETTER

www.newportconsgroup.com

http://www.newportconsgroup.com/


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If you learn nothing else …


[ Emerging Sustainable Frameworks

The University of

Oregon

Sustainability

Leadership

Program is

tracking over 50

emerging

standards,

guidelines and

frameworks in the

area of

sustainability.

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What is SAP Doing?

Exemplar Enabler


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[ What is the Sustainability Executive

Advisory Council?

Mission

The SAP Sustainability Executive Council brings together leading

global executives and sustainability practitioners to learn and share

best practices for utilizing SAP technology in order to realize the

vision of sustainability.

Objectives/Outcomes

• Share best practices in a global community focused by industry &

region

• Enable customer input for solution development

• Help customers design their own roadmap to sustainability


[ Benefits of the Sustainability Executive

Advisory Council

Membership Benefits

• Share best practices in a thought leadership community focused

on using IT to solve sustainability problems become your

industry’s thought leader

• Engage with fellow executives, academics, analysts and

consultants from similar and different industries Direct access to

SAP top executives and industry influencers

• Participate in Wharton Executive Education Course for

Sustainability Execs

• Become a SAP sustainability reference and industry leader

• Design your own roadmap to solve your organization’s

sustainability challenges

• VIP special treatment at SAP programs, conferences & events


[ Sustainability EAC Member Structure

Strategic

Direction

&

Priorities

Global Portfolio

Executive Council

■ Sustainability Reporting

& Analytics

■ Energy and

Environmental Resource

Management

■ Operational Risk

Management

■ Sustainable Supply

Chain & Products

Line of Business Working Groups

Line of Business Community Building

■ Broad community of SAP customers with

technology / solution focus by local country

■ Alignment with SAP User Groups (e.g. ASUG)

and Industry Councils

■ SAP’s Leading customer Executives in

North America, Latin America, EMEA &

APJ Regions

Chief Sustainability Officer

or Senior Executive ■ Most senior business leaders

■ SAP’s most recognized customers

■ Thought leadership

■ Measurable impact

Participation via SAP User

Group

Engagement and Communities;

Special Interest Groups;

Industry Councils

Line of Business

Executives

■ VP Council around select topics

■ ~25 executives per topic area

■ SAP’s most recognized customers

■ Measurable impact


[ EAC Key Issue Map (extract)

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Topic Hypothesis / Questions Impact

Energy Management Successful businesses in the future will use onsite, renewable energy management in their

manufacturing processes, maximizing energy efficiency while tracking emissions reductions. How

can these concepts be integrated into the enterprise today for future deployment?

• How can we identify specific energy saving strategies with immediate benefits?

• How can we create hedges against rising costs and leverage smart energy usage for

competitive advantage?

• Discuss government tax incentives and utility rebate programs

Decision on SAP

prioritization for

solution coverage

Water What are the challenges of managing water scarcity and costs? What is the global perspective on

best practices and business strategy with regard to water management in the enterprise?

Discussions will explore specific opportunities for innovation related to development of new

management tools, policy formation and business opportunities.

Decision on SAP

prioritization for

solution coverage

Risk Management How do you manage energy and weather based disaster scenarios [e.g. Fukishima]? What are the

contingencies for on-boarding new energy sources, changes in disaster-related supplier disruptions

[e.g. the Toyota example]? What can you do to mitigate disclosure areas and binding statements

made in executive reporting? How will you manage FASB proposals for consolidated financial and

sustainable reporting?

Understanding

market tolerance for

risk management

solutions

Sustainable Supply

Chain

How do you structure a sustainable supply chain program? How do you onboard suppliers

effectively? What communication guidelines should you use? How do you structure IT systems to

support? What are best practices for managing SSC programs?

Decision on SAP

prioritization for

solution coverage

Sustainable

Procurement

How do you define sustainable procurement in your organization? What are some of the TBL

approaches to “balanced procurement” versus “low-cost” practices? How do you transition to

TBL based procurement? How do you communicate and track supplier compliance? Green

impacts?

How can companies embed sustainability into their procurement processes across their

organization? What are the challenges and barriers procurement officers face? What is the

potential for whole-life costing to drive sustainable procurement processes?

Determine any

missing areas of

coverage for SAP


[ SAP’s Sustainability Map

Source: www.sap.com/solutions/executiveview/sustainability/sustainability-map/index.epx

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[ Best Practices in “Green Procurement”

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[ One Example: Sustainable Procurement

Functions

The roadmap for sustainable procurement will

contain elements of business practices in SAP SRM-

based applications, as opposed to unique solutions

that will address sustainability

Tie-in to performance management and reporting

(e.g., SAP BusinessObjects Sustainability

Performance Management)

Frameworks for online sourcing and supply chain

compliance assessments

Address both on-premises and OnDemand

solutions

Availability is tiered through CY 2011 with

subsequent evolutions to include more standards

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Source: SAP Sustainability Executive Advisory Council, 2011.


[ Target Milestones for Sustainable

Procurement Functions

Note: Mock-ups

provided are for

conceptual

discussion only

• SAP ERP

Establish master data for

vendor, purchasing process

• SAP SRM

Enable sustainable

purchasing

Enterprise-level Supplier

Information Management (SIM)

Network-level supplier

information collection and

assessment

• Ability to conduct life cycle and

total cost of ownership

assessment 16


[ Another Example –

Mobile SRM Applications

SAP Supplier Search - look-up for field, mobile use via SRM

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Source: SAP, 2011


[ Rendering for iPhone / iPad

Source: SAP, 2011

Different renderings for

different app environments

based on similar process /

look-up flows. Reduces look-

up times, clerical work, any

paper output, increases

response efficiency and

employee flexibility.


[ Working with Multiple Suppliers

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Reporting

Database Manufacturer

Supplier A

Supplier B Local

Solution

Internet

Internet Internet

Plant / Shop

Floor PLM / PDM

Material

Planning SAP ERP

Source: Newman, William. Increase Supplier Compliance with Sustainable Business Networks, GRC Expert, July 18, 2011


[ Concept of a Sustainable Business Network

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Source: Newman, William. Increase Supplier Compliance with Sustainable Business Networks, GRC Expert, July 18, 2011


[ Benefits of a Sustainable Business Network

What is a Sustainable Business

Network?

A Sustainable Business Network

consists of supply chains that provide

financial, environmental and social

value. It thus

1. returns profit, or at least does not

run unprofitable,

2. enhances the lives of people

involved in it, or at least does not

create disadvantages for them,

3. enhances environmental health,

or at least does not harm the

environment

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Source: SAP Research


[ Building a Community Network

A sustainable supplier management capability as part of the

network on-demand model will help generate community

action

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Another Example:

Project “Glasshouse”

Addressing the need for Sustainable Business Networks

SAP Research believes that only sustainable supply chains can

succeed in the long run.

Sustainable supply chains have a competitive advantage that can

only be enabled and sustained through collaboration between

the partners of the network and transparency towards

customers and investors.

The intended approach

SAP Research will provide customers with an understanding

of their supply chain, its sustainability performance, and

alerts on sustainability risks within the supply chain



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Early Imagery – Platform Look and Feel



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Planned Demonstration – SAP Research

Demonstration by

Dr. Alexander Dreiling, SAP Research


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Wrap-up / More References

Source: SAP


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Wrap-up / Initiatives and Programs

Source: SAP


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Key Learnings

Sustainable purchasing can have many forms and uses

Simple supplier look-up and coordination

Deep embedded use of master data management

Broad business network compliance and reporting

Determine what is needed by your organization

Focus on what “collection of 50” guidelines apply

Align to the strategy of your organization, not just compliance

Look for support groups, case studies, active customers

SAP Sustainability EAC excellent community forum for discussion

Leverage existing on-premises and on-demand models

Look for rapid, 1-year (or less) payback


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References

Increase Supplier Compliance with Sustainable Business

Networks , GRC Expert (July 18, 2011)

Sneak Peek: Sustainable Procurement as an Embedded Process

in Supplier Management Activities , GRC Expert (December 1,

2010)

Comply with the EPA’s MRR Standard with SAP Carbon

Impact OnDemand, GRC Expert (January 7, 2011)

Best practices for managing sustainable supply chains,

searchManufacturingERP.com (July 14, 2011)

Mastering the IT demands of a sustainable supply chain,

searchManufacturingERP.com (July 7, 2011)

http://www.grcexpertonline.com/article.cfm?id=5991








http://searchmanufacturingerp.techtarget.com/news/2240037770/Best-practices-for-managing-sustainable-supply-chains

http://searchmanufacturingerp.techtarget.com/news/2240037770/Best-practices-for-managing-sustainable-supply-chains

http://searchmanufacturingerp.techtarget.com/news/2240037609/Mastering-the-IT-demands-of-a-sustainable-supply-chain

http://searchmanufacturingerp.techtarget.com/news/2240037609/Mastering-the-IT-demands-of-a-sustainable-supply-chain


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Your turn!


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[

] Thank you for participating.

SESSION CODE: #ASUGFOCUS

November 16, 2011 / 330PM (Avila A)

Please remember to complete and return your

evaluation form following this session.

For ongoing education on this area of focus, visit the Year-Round

Community page at www.asug.com/yrc

!Newman 2011 Fall Focus Sustainable Supply Chain V Fx

Documents

sustainable

increase supplier

sustainable

sustainable

sustainable

risk management

supply chain

performance