Terms of Reference Global Blueprint and Business Process ...€¦ · process with consideration of (1) industry best practices, (2) accumulated experience of business process owners,

All Rights Reserved. Shera PLC www.SHERA.com

Global Blueprint and

Business Process Transformation

Terms of Reference

TOR-IT-GBS-2018-07

22th May 2018

TOR

Contents

22/05/2018 2

01

02

03

04

05

06

Background Project background, objectives, and key expectations

Scope of Work Business areas & processes, requirements & pain-points

Project Deliverables Key deliverables, role & responsibilities, timeline, workplace

Bidder Qualification Qualification for suitable vendor to deliver project scopes

Bidding Instruction Instruction to submit proposal, proposed payment milestones

Attachments Historical event, solution landscape, IT application landscape

Background

22/05/2018 3

End-consumer Home Owner

Contractor Architecture

Designer Customer

TT/MPP, MT, PS Shera

Personalized Digital Communication and

Convenient to Purchase

Digital Community of Certified Contractor and

Convenient to Get Service

Digital Community of Architecture and

Influence to Buyer

Digital Collaboration from Information Sharing to Sales Out Integration

Digital Enterprise from Inside to Outside, both

locally and globally

• Inspired by Shera everywhere in digital landscape (web site, social media, digital marketing, influencer)

• Highly convenient and innovative experience to buy and get Shera products installed

• Established community of Shera certified contractor database

• Easily accessible by home owner anywhere conveniently (by geo-location, any device, from e-commerce channel, from digital database)

• Established community of designers who inspired to use Shera products in their works

• Promote regular communication with Shera

• Engaged and provide positive influence in digital media

• Promote higher level of collaboration between Shera and customers

• Promote sales out via traditional and digital channels (B2C2B collaboration)

• Established sharing of information digitally and create new insight

• Faster time to market using cloud technology

• Business decision base on both internal and external information

• Digitalize documents

• Automate and streamline processes

• Work effectively from anywhere, any device

OUTCOMES

As part of company strategic program on digital transformation, SHERA has a mission to incorporate digital technology to transform all aspects of the business to create higher business competitiveness, increased revenue, and higher operation efficiency. To achieve digital transformation program, SHERA developed 5 key transformation areas on End-consumer, Contractor, Architecture/Designer, Customers, and SHERA per summarized illustration below.

Background

22/05/2018 4

To complete SHERA digital transformation program, 21 projects are identified around these 5 stakeholders with consideration of digital, mobile, cloud, and big data technology in mind. These projects can be summarized per table below.

Key Stakeholders Digital

Transformation Theme

Projects

Glo

bal

Web

Sit

e

and

Co

mm

un

itie

s

Pro

ject

E-C

om

me

rce

(B2

B2

C)

Pro

ject

Inte

rnal

Dig

ital

Solu

tio

ns

(x2

pro

ject

s)

Glo

bal

Blu

epri

nt

and

SA

P

S/4

HA

NA

Pro

ject

Bu

sin

ess

Solu

tio

ns

(x6

pro

ject

s)

Bu

sin

ess

An

alyt

ics

(x2

pro

ject

s)

Tech

no

logy

,

Secu

rity

,

Co

mp

lian

ce

(x6

pro

ject

s)

End-Consumer Personalized Digital Communication

and Convenient to Purchase

Contractor Digital Community of Certified

Contractor and Convenient to Get

Service

Architect / Designer Digital Community of Architecture

and Influence to Buyer

Customer

(TT, MT, PS)

Digital Collaboration from

Information Sharing to Sales Out

Integration

SHERA Digital Enterprise from Inside to

Outside, both locally and globally

This Project Scope

Objectives

22/05/2018 5

Below are key objectives of Global Blueprint and Business Process Transformation project

Establish Global Blueprint and End-to-End Business Process Transformation

To perform through as-is business process review with all business process owners and establish to-be global business process with consideration of (1) industry best practices, (2) accumulated experience of business process owners, (3) digital transformation opportunity (e.g. Blockchain, AI, IoT, B2B2C, Marketplace), and (4) business growth strategy in global market (MNC structure, data & reporting, processes, segregation of duty, authorization & control).

Establish Change Impact Management and Technology Mapping with New Business Blueprint

Based on to-be business processes, to established change impact management approach and technology mapping which required to be implemented to enable defined business process transformation. While majority of business processes shall be fulfilled by SAP S/4HANA Enterprise Management, other technology and solutions can be recommended to ensure maximize business competitiveness and overall optimized TCO.

Establish Measurable Business Benefits for Business Process Transformation

Based on changes in business processes and associated technology, to establish measurable business benefits for each business process transformation (e.g. revenue increment by xx%, cost reduction by xx%, operation efficiency improvement by xx%), as well as details on how each KPI can be measured and calculated.

Proposed Approach

22/05/2018 6

Below are proposed high level approach for project execution, bidder may propose different approach per their proprietary methodology.

Deliverables • Business Blueprint • To-Be Business Process Flow • Authorization Matrix • Position Documents on Key Impacts • Change Impacts Report • Technology Recommendation Report • Measurable Business Benefits Summary

Internal • TOR document • As-is business process • Company policies • Standard operating procedures (SOP) • Training materials • Audit reports • Other supporting documents External • Digital technology trend

(Blockchain, Big Data, AI, IoT) • Latest industry best practices • Competitors trends

Outputs Inputs

• Executive Interview • Key Process Owners Interview • Brain Storm Workshops

Scope | Business Process Areas

22/05/2018 7

E2E Processes in scope Process Owner

1.1 Idea to Launch – Product Lifecycle Management R&D and Innovation

2.1 Plan to Execute - Sales & Operation Planning (S&OP) Sales (A1, A2, A3, A4), Supply Chain Management

2.2 Plan to Execute – Brand Planning & Management (BPM) Marketing & Corporate Communication

2.3 Plan to Execute – Customer Planning & Management (CPM) Sales (A1, A2, A3, A4)

2.4 Plan to Execute – Supply Chain Supply Chain Management

2.5 Plan to Execute – Manufacturing Industrial Operation, Maintenance, RDI

3.1 Order to Cash - Master Data Customer Service + Sales

3.2 Order to Cash - Order Processing Customer Service + Sales

3.3 Order to Cash - Claim, Return, Refusal Customer Service + Sales

3.4 Order to Cash - Call Center Customer Service

4.1 Source to Pay - Master Data & Sourcing Purchasing

4.2 Source to Pay - Requirement Processing Purchasing

4.3 Source to Pay - Goods/Service Receive Purchasing

4.4 Source to Pay – Supplier Evaluation Purchasing

5.1 Hire to Retire Human Resources

6.1 Record to Report - F&C Accounting Financial & Controlling

6.2 Record to Report - F&C Asset Financial & Controlling

6.3 Record to Report - F&C Cost Center Financial & Controlling

6.4 Record to Report - F&C Budgeting Financial & Controlling

6.5 Record to Report – Treasury & Financial Operations Financial & Controlling

6.6 Record to Report - Business Analytics Information Technology

The following business process areas (inconclusive list) are under global blueprint scope and are responsible by respective business functions as followings:

Idea to Launch

Scope | Business Processes

22/05/2018 8

Process ID E2E Processes

I2L-101 Research & Development Management

I2L-102 Innovation Management

Plan to Execute - Sales & Operation Planning


P2E-SOP-101 Sales & Operation Planning (S&OP)

P2E-SOP-201 Sales Operation - Route Planning

P2E-SOP-202 Sales Operation - Visit Execution

Plan to Execute - Brand Planning & Management (BPM)


P2E-BPM-101 Opportunity Management

P2E-BPM-102 Campaign Management

P2E-BPM-103 Marketing Activity Planning

P2E-BPM-104 Marketing Activity Execution

P2E-BPM-105 Marketing Activity Pre & Post-Evaluation

Plan to Execute - Customer Planning & Management (CPM)


P2E-CPM-103 Trade Activity Planning

P2E-CPM-104 Trade Activity Execution

P2E-CPM-105 Trade Activity Pre & Post-Evaluation

Plan to Execute - Supply Chain


P2E-SCM-201 Demand Planning

P2E-SCM-202 Inventory Management & Warehouse Management

P2E-SCM-203 Logistics & Transportation Management

Plan to Execute – Manufacturing


P2E-PP-101 Manufacturing Engineering and Process Planning

P2E-PP-102 Manufacturing Planning

P2E-PP-103 Manufacturing Execution

P2E-PP-104 Outsourced Manufacturing

P2E-QM-101 Quality Management

P2E-PM-101 Regular Maintenance

P2E-PM-102 Breakdown Maintenance

P2E-PM-103 Internal Equipment's Refurbishment

The following business processes (inconclusive list) are under global blueprint scope and are responsible by respective business functions as followings:


22/05/2018 9

Order to Cash - Order Processing


O2C-201 Domestic Sales Process Wholesales

O2C-202 Domestic Sales Process Wholesales - Order via Internet-Credit (CNF)

O2C-203 Domestic Sales Process Wholesales - Order via Internet-Cash (CNF)

O2C-204 Domestic Sales Process Wholesales - Order via Fax-Credit (CNF)

O2C-205 Domestic Sales Process Wholesales - Order via Fax-Cash (CNF)

O2C-206 Domestic Sales Process Telesales

O2C-207 Internet Sales

O2C-208 Sales Operation - Convert Sales Order

O2C-209 Internet Sales via B2C Channel

O2C-210 Export Sales Process

O2C-211 Credit Check Process – Domestic

O2C-212 ATP Check

Order to Cash - Call Center


O2C-401 Call Center Management

Order to Cash - Master Data


O2C-101 Domestic Customer Master Data

O2C-102 Export Customer Master Data

O2C-103 Normal Price Process

O2C-104 Discount Process

O2C-105 Normal Discount Process

O2C-106 Special Discount Process

O2C-107 Premium Discount Process

O2C-108 Maintain / Change Credit Limit

Order to Cash - Claim, Return, Refusal


O2C-301 Claim & Compliant Process

O2C-302 Quality Process - Quality Claim

O2C-303 Quality Process - Damaged Claim

O2C-304 Quality Process - Damaged from Transportation

O2C-305 Credit/Debit Memo Request to fix Price

O2C-306 Domestic Customer - Rebate Management



22/05/2018 10

Source to Pay - Requirement Processing


S2P-202 Process Purchase Requisition – Asset

S2P-203 Process Purchase Order – Asset

S2P-204 Process Purchase Requisition

S2P-205 Process Purchase Order

S2P-206 Process Purchase Requisition - Internal Order

S2P-207 Process Purchase Order - Internal Order

S2P-208 Process Purchase Requisition – Service

S2P-209 Process Purchase Order - Service

Source to Pay - Master Data & Sourcing


S2P-101 Process Material Master Maintenance

S2P-102 Vendor Sourcing

Source to Pay - Goods/Service Receive


S2P-301 Process Goods Receipt reference PO

S2P-302 Process Goods Receipt Entry Sheet (PO Service)

S2P-303 Process Return to Vendor

Source to Pay – Supplier Evaluation


S2P-401 Supplier Evaluation

Hire to Retire


H2R-101 Personnel Administration (PA)

H2R-201 Personnel Development (PD)

H2R-301 Organization Management (OM)

H2R-401 Time Management (TM) / Travel Management

H2R-501 Payroll (PY)

H2R-601 Training and Event Management (TEM)

H2R-701 Recruitment (RM)

H2R-801 Talent and Performance Management

H2R-901 Employee Central / Employee Self-Service



22/05/2018 11

Record to Report - F&C Asset


R2R-AA-101 Asset Master Maintenance

R2R-AA-201 Transfer Asset within company

R2R-AA-202 Retirement (Sale)

R2R-AA-301 Depreciation Run

R2R-AA-302 Fiscal Year Change

R2R-AA-303 Year End Closing - Year End

Record to Report - F&C Cost Center


R2R-CCA-101 Cost Center Master Maintenance

R2R-CCA-201 Planning Cost Center Expense

R2R-CCA-301 Period End Closing

Record to Report - F&C Budgeting


R2R-IO-101 Budget Planning and Management

R2R-IO-101 Internal Order Master Data Maintenance

R2R-IO-301 Month-End Closing Internal Order

Record to Report - F&C Accounting


R2R-GL-101 General Ledger Master Data Maintenance

R2R-GL-201 GL Account Posting

R2R-GL-202 Bank Reconciliation

R2R-GL-203 Accrued Expenses Entry

R2R-GL-204 Exchange Rate Revaluation

R2R-GL-301 Period End Closing & Consolidation

R2R-GL-302 Enterprise Performance Management

Record to Report – Treasury & Financial Operations


R2R-AP-101 Invoice and Payables Management

R2R-AR-101 Receivables Management

R2R-TR-101 Cash and Liquidity Management

Record to Report - Business Analytics


R2R-BI101 Business Analytics for Sales

R2R-BI102 Business Analytics for SCM and CSR

R2R-BI103 Business Analytics for Procurement

R2R-BI104 Business Analytics for Finance

R2R-BI105 Business Analytics for Industrial Operation

R2R-BI106 Customer and Consumer Analytics


Scope | Business Requirements and Pain Points

22/05/2018 12

Financial & Controlling Controlling - Profitability Analysis (CO-PA) • Managerial accounting has the requirement to segregate operating

performance between factory operation vs. commercial (sales & marketing) operation. Thus, business process and system need to be designed to allow internal analysis. If manufacturing cost increase, commercial performance is currently impacted. Under expected design, if manufacturing cost increase, commercial performance must remain un-impacted by using internal transfer price as baseline for commercial performance.

• Currently, each business functions (accounting, sales, international business, etc.) are using sale reports from different sources (e.g. CO-PA, FI-GL, LIS, SIS, etc.) resulting in some discrepancies in each report. Through review is required to understand business needs and to standardize sales reports across business functions.

• Expect to have profit and loss statement by customer and product level, to analyze which customer or product generates higher/lower return. Currently, there are certain SG&A expense (from PO process) and rebate allowance/expense that are posted without customer details, resulting in incomplete profit and loss statement at customer level in CO-PA.

• Sales organization structure (e.g. division, sales office, and sales group) should be revisited to reflect current business operation.

Controlling – Cost Center Accounting (CO-CCA) • There are many manual cost allocation during month-end process (e.g. for

international business area). Overall cost center cost allocation cycle and process should be revised and improved to reduce manual effort and shorten period-end closing process.

Controlling – Product Costing (CO-PC) • There is current difficulty to properly incorporate new manufacturing design

/ process into system while getting accurate product costing operation. Overall product costing process should be revisited and ensure proper sustainability is in place (i.e. there is a clear procedure on how to setup new production components such as work center, routing, cost center, while getting correct product costing result).

• There are many product costing reports to be provided to reduce manual effort being done by users. Self-service tool could be provided to allow costing user to perform self-analysis.

Shared Services • Shared service organization/model is to be properly established to

ensure FTE (Full-time-equivalent) cost of staff in shared service organization is allocated back to receiving entity appropriately on monthly or regular basis.

• System should be prepared to support share service operation model. • Share service staff authorization design to perform transaction of other

countries.

Financial & Controlling

The following are business requirements and pain points from interview with each business process owners that should be taken into further discussion


22/05/2018 13

Financial & Controlling (Con’d) International Business • Currently, selling to affiliated company is being treated as normal export to

3rd party vendor (order to cash process) & import from 3rd party vendor (purchase to pay process). A proper stock transport order (STO) should be implemented with transfer pricing management.

• Transfer pricing between manufacturing company and oversea selling company must be implemented.

• Sales report for export sales has limitation due to CO-PA (KE30) is showing sales based on goods issue and billing date, while export sales is actually must be counted based on Bill of Lading (B/L) date. Business process or reports need to be adjusted to correctly reflect export sales in CO-PA report.

Period-end Closing • Currently, oversea entity financial statements are consolidated with

Thailand financial statement in Excel. Overall period-end closing process should be reviewed and complete most activities in the system.

• Affiliated sales should be designed and ensure consolidated financial statement can be generated properly.

Audit Requirements • To ensure stock valuation and stock ageing are appropriately managed with

accurate supporting reports. Legal Requirements • To ensure full compliance with new Thailand regulation on E-Tax Invoice &

E-Receipt.




22/05/2018 14


Financial & Controlling (Con’d) Treasury - Cash Management • Need to have proper process and system control to make sure realized,

unrealized, revaluation of monetary items (e.g. cash on hand, loan, open AR, open AR) in Thailand and oversea markets are correctly performed per internal control policy

• Interest rate calculation (intercompany, bank) is being performed in Excel and should be incorporated into SAP

• There is currently double work between bank transaction and SAP transaction (e.g. bank transfer). Expect a more automated or bank communication is in place (e.g. using SWIFT).

• Optional requirements: FX exposure report, cash flow forecast Treasury - Financial Operations

Credit Management • Expect improvement in how bank guarantee is managed on credit

management area. System to alert when bank guarantee is about to expire. • Letter of Credit (L/C) process should be revisited • Credit exposure design should be revisited to ensure only quality credit

block is triggered in order-to-cash process. For example, all advanced sales orders from customer are counted as part of credit exposure, resulting in high volume of credit blocked sales orders which are always released anyway. Credit horizon or other mechanics should be considered.

Accounts Receivable • Process for customer payment should be revisited to simplify and automates

this process between Financial Operations (IR) and Customer Service (CSR). • Credit note / debit note is currently support only price diff adjustment.

Other adjustment (e.g. supply chain or trade promotion) is not supported in current system.

• CN/DN should be able to process collectively, current system only allow one-on-one processing.

Accounts Payable • Process should ensure bank communication (e.g. text file) are encrypted and

secured to prevent file manipulation by unauthorized person. • Paper form (e.g. cash advance request form) should be digitized and

incorporated into SAP system. • Expect improvement in corporate credit card management process.

Currently, user needs to manually download from bank website by each card number individually.



22/05/2018 15

R&D and Innovation Project System (PS) related • R&D and Innovation projects should be managed in the system and provide

visibility to all related stakeholder to monitor project progress and expenses. • When budget consumption is too high than project progress, there should be

warning and/or alert to related stakeholders.

Procurement (MM-PO) related • Result from vendor evaluation should automatically trigger vendor master

block (blacklist). • Blocked vendor unblock should be performed only by authorized person.

Production Planning (PP) related • Bill of Material (BOM) lifecycle in current design has several constraints that

could be improved. For example, naming convention of BOM is insufficient to support long term operation, resulting in regular necessity to delete old BOMs.

• Old BOMs data are currently mixing with active BOMs, resulting in difficulties in the operations. Thus, needs to delete old BOMs to clean up data and keep only BOMs within the last 3 years.

Product Lifecycle Management • New product development process should be formalized and embed into the

business • Data confidentiality management should be embed into the operation

Industrial Operation, Maintenance (AS) Stock Reservation • Currently, stock reservation for plant maintenance and production execution

share common rule (i.e. allow actual consumption become higher than reservation). Overall reservation from different processes should be reviewed and setup with different rules.

Production Analytics • There are many requirements to extract data from SAP ERP to perform

report (e.g. for Total Productive Maintenance (TPM)). Thus, expecting all necessary data to be made available for self-analytics.

Internet of Things (IoT) • Currently, there are sensors that monitor production motors and send

information via Bluetooth signal to mobile devices (15 meter ranges). And the result is saved into Excel file. Expecting automatic integration of sensors to trigger alert and create PM order in SAP.

R&D and Innovation

Industrial Operation & Maintenance



22/05/2018 16

Industrial Operation, Maintenance (AR) Maintenance, Repair, and Overhaul (MRO) • Currently, refurbishment process is partially performed in SAP and manual

control externally. To validate if SAP MRO can fulfill and fit to business requirement.

• Example of control is taking photo of spare part before and after sending to vendor for repair/overhaul.

Material Requirements Planning (MRP) • Raw material purchasing is currently plan in Excel by production planning

team using historical data. The process should be reviewed to see how much SAP MRP should be implemented.

• MRP tool should be useful in the production process that has high fluctuation (e.g. seasonal products). Recommended process area could be painting color manufacturing area.

• Concern point is to avoid the situation where MRP generate unnecessary high inventory level.

Production Execution • Currently, process orders are completed manually at the end of shift (i.e.

production result is logged outside SAP first during the shift, and someone manually input product result again in SAP at the end of each shift). This current practice made it difficult to use backflush.

• Expect improvement in real-time data input in production line into SAP using new technology. For example, • Usage of tag and scanner in production line • Barcode scanner link to production order • PLC / SCADA interface

• There is a requirement to take picture to capture ex-factory condition of products before transportation to other locations or customers. This will be used to support during claim/dispute situation.

• Product traceability (as part of ISO) is currently performed manually using information from different processes. Expecting simpler approach to get information.




22/05/2018 17

Industrial Operation, Maintenance (AR) (Con’d) Quality Management • Current QM is designed with very high details and demanding high effort to

input data. Resulting in users change to input inspection result in Excel instead of SAP. In addition, there were some changes in lot size (larger); resulting in some functionalities become less useful.

• Expecting the review to re-define proper level of information to input that make it more practical to input data (e.g. sampling certain percentage instead of 100%).

• Expecting analytics can be really performed on inspection result data. As well as providing access to sales team to check inspection result conveniently (e.g. on mobile device) when visiting customer (using lot number as inquiry key).

• Usage of iPad/tablet device in QA process could be done in outgoing product sampling or production process audit. Currently, QA person take pictures of production process and input inspection result into computer in the form and e-mail to related stakeholder.

Outsource Manufacturing • There is no active outsource operation. But oversea manufacturing has

potential to use this process. It should be made available to support future business needs.

Plant Maintenance • Current PM is designed with too many preventive plan (i.e. all machines),

resulting in too much work orders. Expecting a review to put more appropriate level of preventive plan.

Production Analytics • Dashboard in production area can cover following contents

• Production yield • Productivity output • Cost

• Waste




22/05/2018 18

Sales & Marketing (Domestic A1) Trade & Campaign Management • End-to-end trade & campaign planning and management should be

formalized and embed into sales & marketing processes. • Pre/Post-evaluation process and tool should be implemented. • Overall rebate process should be reviewed. • Standard Rebate Management (SAP ECC6.0) or Condition Contract (SAP

S4/HANA) should be considered as a tool to replace existing customized ABAP rebate program.

Stock Availability • MRP tool should be improved (especially during seasonal period) to minimize

stock shortage issue that result in sales opportunity lose.

Sales Order Processing • Due to sales order can be captured by different channels (manual entry, B2B

solution, SFA solution, etc.), overall process should be reviewed and ensure clear process is defined between sales and customer service (CSR).

Sales Empowerment • Expect field sales team to have access to more information conveniently

(e.g. on mobile device) • Customer credit status • Customer order status • Quality inspection status (in case of product claim on specific batch/lot) • Other customer related information

Sales & Marketing (International Business A2-A4) Price Management • Export sell price structure should be reviewed and allow more details to be

captured into SAP (comparing to current design to put only final net price into sales order).

• Ex-work price (varies by country) approval should be performed within SAP and system should control to ensure final selling price could not be set below approved price.

Marketing Activity • While SAP CRM is not in current application landscape, should consider using

SAP Project System (PS) or other functionality to capture marketing activity, budget approval, and provide plan vs. actual monitoring report.

• Export forms are currently prepared manually. Should review to replace with SAP forms.

Business Analytics • Sales information should be able to query and perform self-service analytics

by sales team (e.g. list of customer store by size)

Marketing Sales



22/05/2018 19

Human Resources Human Resource Management (HRM) • HR operations in investment countries should be defined from business

process and reflect into system (e.g. payroll process in overseas country, expatriate management, reflection of solid line / dotted line in organization structure).

• Time recording process currently contains too many manual steps by HR personal before final data can be input into SAP.

• HR operations contain many paper works and should be managed digitally (e.g. leave request) while ensuring ability to use digital information as evidence legally.

Human Resource Development (HRD) • Expect improvements in career planning. For example, when an employee

salary falls near the upper limit of current position salary range, system should trigger alert to HR and line managers (and/or upper level) to plan mitigation action.

• Expect system to support in employee engagement survey and respondents analytics.

Human Resources (HR) and Financial Accounting (FI) related • Current welfare / reimbursement process does not provide sufficient control

and monitoring between HR and FI, resulting in manual control and risk of abusement.

• For example, overtime (OT) is mostly reimbursed after event and the approval is made subjectively based on authorized person without any system control. This could lead to too frequent OT approval to specific person due to personal relationship or other reasons.

• Control and monitoring should be in place to prevent and rectify the problem. Nonetheless, the control should be done as automated as possible.

Learning and Training Management • System should help to ensure all employees have all legal or mandatory

training as required by laws, stock exchange policy, etc. (e.g. corporate governance). Keep track of training progress for relevant employee and provide progress report.

Business Analytics for HR • Analytics tool could be deployed to analyze overtime (OT) (e.g. planned vs.

unplanned, root cause of OT in specific period and location) • Analytics tool could be deployed to analyze employee turnover (e.g. age,

service year, position, demographic; gen X, Y, ME) • Analytics tool could be deployed for career planning (e.g. remaining service

years until retirement, succession planning)

Human Resources



22/05/2018 20

Supply Chain Management & Customer Service Credit Management and Accounts Receivable • For credit management in sales order, there are some expected

improvement as following: • Advance sales orders from customer are currently consume available

credit. System should not take these sales orders value into credit calculation (e.g. by applying credit horizon concept). Currently, these advance orders are one of the main causes that generate high number of credit blocked sales orders and credit manager need to manually release them.

• Cash sales order currently needs to be approved twice at sales order and delivery order. The process and system should be reviewed and adjust to simplify operations.

• For customer AR collection and payment application • Treasury team is recording fund payment to company bank account in

SAP, and customer service need to record customer payment and clear open AR manually. Expecting process to be reviewed and AR to be paid and auto-cleared automatically.

• Check on hand is currently not increasing customer available credit until a check is settled completely. Expecting process to be reviewed and faster credit availability for customer.

Sales Order Processing • Customer service team is currently managing customer product allocation

(quota) manually in Excel and manually updates sales order in SAP. Expecting overall process review and use system to reduce manual effort in this area.

• Expecting payment terms review to resolve some irregular payment terms usage in modern trade (MT) and project sales (PS) customers.

• Expecting improvement in overall ATP to allow customer service team to suggest accurate planned delivery date within system. Currently, customer service team needs to check production plan manually to calculate and propose planned delivery date to customers.

• For sales order from B2B (SHERA direct), there are some expected improvements as following: • Duplicate orders which need to be manually cancelled by customer

service team • Manual update sales order to link with sales contract to trigger specific

discount condition (i.e. customer do not properly select contracts from B2B solution but insisting customer service representative to make sure discount relating to contract is applied)

• Expecting sales order processing screen to provide more insights relating to customer (e.g. customer master, AR information, credit information, historical transactions). Currently, customer services need to open multiple screens to check customer related information.

Customer Service

Supply Chain Management



22/05/2018 21

Supply Chain Management & Customer Service (Con’d) Sales & Operation Planning • Current demand and supply planning is performed in Forecast Pro

application (at SKU level). • Result of Forecast Pro should be interfaced into SAP to trigger production

process (e.g. as planned order)

Claim Process • Claim is currently input into Sage CRM system to manage necessary

collaboration. Once customer claim is concluded and credit note (CN) is to be issued, user needs to manually create in SAP. Expecting interface from Sage CRM to SAP to be implemented.

Rebate Management • Current rebate process is very flexible and mostly settled after event (i.e.

after invoice). Some annual rebate takes 45 days to close. Current customized rebate functionality and overall process should be reviewed and explore to use standard SAP functionality (i.e. SAP condition contract).

Customer Service Analytics • There are currently some customized reports to provide KPI and operation

improvement reports in customer service areas. Expecting analytics tool to support in analyzing back ordering, customer rejection, etc.

• Supply Chain Management Analytics • Current reports in SAP Business Objects 4.0 are mostly focus on operational

level. Existing BO reports should be reviewed and upgraded. • Inventory report should provide following information

• Stock Shortage • Production Planning • Transportation • Stock Aging / Slow Move

• Demand and supply planning should have following reports • Monitoring of information that interfaced from Forecast Pro application

• Out of stock (OOS) by storage location (due to international business has more specific stock control than domestics business)

Customer Service

Supply Chain Management



22/05/2018 22

Purchasing Sourcing and Purchasing Operation • Current process in SAP starts from purchase requisition. Expect

improvement to incorporate sourcing operation into SAP (e.g. inquiry, RFQ, quotation, comparison & selection, convert to PO).

• Contract should be managed in the system and alert should be triggered to review/renew expiring contract.

• Procurement process should be revisited per vendor classification • For preferred supplier list or contracted vendor, procurement process

should be simplified (e.g. automatic approval) to avoid unnecessary administration effort.

• For non-regular vendor, procurement process should be properly controlled while minimizing unnecessary approval.

• Procurement approval flow should be improved • Paper work should be minimized and use system workflow • PR/PO approval should be possible via desktop and mobile devices

• Overall release strategy and authorization design should be revisited • Ensure compliance with latest approved business policy and

authorization table • Ensure proper level of approval are required (i.e. decrease number of

total approval from all approvers)

Supplier Evaluation • Survey should be incorporated as part of normal procurement operation (e.g.

during goods receipt / service entry sheet) to collect input on vendor performance. • Goods receipt – collect vendor responsiveness • Service entry sheet – collect service quality

• Evaluation report should be available to analyze vendor on different criteria • Order fulfillment • Price survey, price status • Responsiveness • Quality & Collaboration

• Expect to use SAP S4HANA Supplier Evaluation tool to fulfill this requirement • Vendor should be automatically blocked from future transaction if it fails

certain criteria • Blocked vendor should be unblocked only by authorized person

Purchasing


Technology Mapping • Business Process should be mapped with related technology that can

enabling business process improvement. • While SAP S/4HANA will be primary enabler for ERP area, other technology

should be considered as well (e.g. business planning area, trade & marketing campaign/promotion, digital marketing, customer engagement, etc.).

• Refer to attachment “SHERA IT Application Landscape” for more information Role & Authorization • Role & authorization shall be redesigned with comprehensive matrix based

on new business processes. It should at least contain following aspects: • Master data | transaction | historical | report • Create/modify | display-only • Normal | high-sensitive • Internal staff | 3rd party outsource staff • Segregation of Duty (SoD)

Data, Report, and Analytics • Data and information structure should be redesigned to support e-

commerce (B2B, B2C) and global entities structure. For example, sales and performance analytics by enterprise wide, country level, product category level, customer level, etc.

• Data governance process should be redesigned to ensure clear role & responsibility between global and local entities (e.g. a finished product is manufactured in TH and sold by various countries)

• Data retention policy under each area should be clearly documented and can be referred to determine data migration approach from SAP ECC 6.0 to SAP S/4HANA 1709.


22/05/2018 23

Information Technology Paperless, Digital Workplace • All business process should revisit the need to use paper in their operation

and eliminate / replace with digital workflow as much as possible. For example • Approval should be done digitally instead of paperwork • Documents should be scanned and referred in the system

(e.g. in AR/AR process) instead of keeping very large pile of paper Business Blueprint • Business Blueprint, Business Process Design/Flow, and Authorization Matrix

are key essential deliverables of this project • To-be business process should be driven by business strategy and best

practice, not by software functionalities. At the same time, it should incorporate digital technology (e.g. AI, IoT, Business Analytics, etc.) into consideration.

• Business process must ensure audit points from external and internal audits are considered during design phase. For example, critical process monitoring & control, segregation of duty, etc.

• The design should ensure MNC concept is embed into every business processes (e.g. inter-company activity, share services model, transfer pricing, global/local demand/supply planning, global/local trade & marketing planning and management).

• Eliminate/reduce paperwork in business process (e.g. approval process) and digitize them as much as possible. Existing business policies can be challenged if needed.

Information Technology


Project Deliverables | Responsibility and Key Deliverables

22/05/2018 24

To drive project achievement, service provider must have clear responsibility and liability to manage and control projects. These are responsibility and list of necessary deliverables are as follow:

Responsibilities List of Deliverables

Study all current business process, policies, standard operating procedures, training

materials, audit reports, and other existing support documents to understand current

business processes and area for improvements

Lead and facilitate interview and workshop with executives and key process owners to

understand in-depth business strategy and requirement on where the corporate is aiming

for in the future

Design comprehensive and integrated to-be business process that coheres with the industry

standard; while generating a uniform code for the company where all units and function of

company will be able to use both in Thailand and all investment countries accordingly

Business Blueprint

To-Be Business Process Flow

Design role and authorization matrix based on best practice of the industry, segregation of

duty (SoD), and concern points form previous audit reports

Lead and facilitate session with business process owners, internal control & compliance

representatives to get agreement on new role & authorization matrix

Authorization Matrix

Identify and prepare change impact repository on various aspects (SIPO; system,

information, process, organization), with recommendation on change management

approaches and sustainability plan

Position Documents on Key Impacts

Change Impacts Report

Perform mapping of new business process and technology that will effectively enable the

change based on existing landscape, optimized TCO, and long-term sustainability

Technology Recommendation Report

Define measurable business benefits for each business process improvements with details

on how each KPI can be measured and calculated

Measurable Business Benefits Summary

Sign-off on Measureable Business Benefits Report from Executives

Project Deliverables | Project Timeline & Management

22/05/2018 25

SHERA has taken overall digital transformation program and all 21 projects dependency into consideration in regards to strategizing the implementation timeline. Therefore, the expected implementation for this project will be as following

2018 2019

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9

SAP S/4HANA Implementation

Global Blueprint and Business Process Transformation

SAP Blueprint (1.5 mo.)

Business Blueprint (3 months)

Realization (Vendor 4.5)

Final Prep (2 months)

Go-live Sup. (2 months)

Go-Live

Option 1

Project Deliverables | Project Timeline & Management

22/05/2018 26

SHERA has taken overall digital transformation program and all 21 projects dependency into consideration in regards to strategizing the implementation timeline. Therefore, the expected implementation for this project will be as following

2018 2019

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9

SAP S/4HANA Implementation

Global Blueprint and Business Process Transformation

SAP Blueprint (1.5 mo.)

Business Blueprint (3 months)

Realization (Vendor 4.5)

Final Prep (2 months)

Go-live Sup. (2 months)

Go-Live

Option 2

Project Deliverables | Workplace

22/05/2018 27

BIDDER is expected to work at their own location or SHERA Public Company Limited headquarter located in Bangkok as needed.

• The implementer must be conditioned to work at SHERA Public Company Limited headquarter located in Bangkok and /or at factory sites or a site under SHERA’s discretion without any further expenses originated from the employed.

• The implementer must strictly abide to SHERA normal working hours. However, if an employed or outsourcing party obligation must extend beyond SHERA normal working hours, permission must be granted by SHERA authorize personnel only. In the case of failure of performance to any of the employed party obligation originating from not being permitted to work beyond SHERA normal working hours, the proposer or employed will not be able to use such argument and/or to recover any damages and/or compensation from SHERA.

• SHERA will procure the facilities under normal work practice to the employed as SHERA sees fit and SHERA will be responsible for these expenses as it might happen, such as, office desk expenses, photocopy machines, etc. However, procuring all facilities shall all be subjected under SHERA’s discretion.

• The implementer must be responsible for other expenses above, such as, telephone long distance bill to foreign countries and SHERA shall be duly entitled to reimburse any paid expenses that SHERA sees fit.

• Any damages or expenses originated with regard to the employed not strictly abiding to SHERA’s set of regulations or negligence or other malfeasance of the employed party, the employed party shall take full responsibility.

• The implementer must strictly abide by all announce standards and policies.

Bidder Qualifications

22/05/2018 28

BIDDER must possess following qualification:

• BIDDER is not a mutual beneficiary to the other bidder submitted to SHERA.

• BIDDER is the contractor who has been considered / approved by SHERA procurement department.

• BIDDER must be a limited company or partnership or juristic person registered in Thailand with at least 1 year experience in Business Consulting, Business Process Improvement to state enterprise or private company.

• BIDDER must possess the certificate and the copy of the service contract at least one completed Business Blueprint / Business Process Improvement contract, and the amount is not less than 5 million baht. SHERA reserves the right to review the facts until the tender submission.

• BIDDER must commit to provide qualified personnel who have the knowledge, expertise and experience as a working group in similar prior project with listed company in SET50 or well-known MNC in all majors areas (innovation and product development, marketing & sales, supply chain, manufacturing, financial & accounting, HR and share services transformation, digital and new technology).

• BIDDER must have stable financial performance and minimum revenue of 20 million baht in the most recent financial year.

• BIDDER must not be named on the company's or government's list of work abandonment.

• BIDDER must not be granted the privilege or immunity which may be refused to the Thai court. Unless the government of the bidder has ordered such waiver and immunity.

• BIDDER must comply with the security rules and strictly follow the instructions of SHERA safety department.

• BIDDER must comply with the various company rules. Any entry to company building must comply strictly with SHERA HR regulations.

Bidding Instruction

22/05/2018 29

1. This Terms of Reference (TOR) has been issued by Shera Public Company Limited ("OWNER") to invite bids from qualified vendors ("BIDDER") to carry out “Global Blueprint and Business Process Transformation Project” ("PROJECT")

2. BIDDER is responsible for examining with appropriate care the complete TOR document and is also responsible for informing itself with respect to all conditions which might in any way affect the cost or the performance of the work including their own assessment of the potential liability to Thai tax. Failure to do so will be at the sole risk of the BIDDER and no relief will be given for error or omission by the BIDDER.

3. All information in the document is believed by OWNER to be true and accurate as at the date of this document. However, OWNER makes no representation or warranty in this respect with regard to any information contained within this TOR. The information given by the TOR documents shall in no way limit the BIDDER's responsibility to quote, whether mentioned in the TOR documents or not, for all materials, services and works necessary to provide a complete and properly working installation in full compliance with this TOR.

4. The BIDDER shall make its own interpretation of any or all information given or otherwise included in TOR document.

5. BIDDER shall verify on its own responsibility, the laws and regulations of Thailand under which the work under the PROJECT is to be performed.

6. In order to assist BIDDERs to fully understand the requirements of TOR document, OWNER is prepared to clarify questions via e-mail or hold necessary meetings with BIDDER to discuss any specific commercial matters and technical matters.

7. As appropriate, the replies to questions will be distributed to all BIDDERs (without indicating the source of the question). Should the reply to any question, change or supplement the basis for bidding, the appropriate TOR document may be revised or an addendum issued.

8. Should the BIDDER find discrepancies in or omissions from TOR document, or should their intent or meaning appear unclear or ambiguous, or should any other questions arise relative to TOR document, the BIDDER should notify the OWNER of such finding in writing as soon as possible. No answers or clarifications will be given to questions on any matters received within the period of 3 days prior to BID Submission Date.

9. In addition to examination of TOR document, each BIDDER shall make whatever other arrangements it deems necessary to become fully informed regarding all existing and expected conditions and matters which might in any way affect the effective execution of the PROJECT. Any failure to fully investigate the foregoing conditions shall not relieve the BIDDER from responsibility for estimating properly the difficulty or cost of the work.

10. In addition to commercial proposal content, BIDDER shall provide details on project execution per next slide.

Bidding Instruction | Project Execution Details

22/05/2018 30

Project Execution Details

• Project execution should give a concise description of BIDDER's plans, and should only contain specifically relevant information. BIDDER should note that it is intended that BIDDER's PROJECT EXECUTION PROPOSALs as discussed, modified as necessary and agreed with OWNER shall be become part of the contract.

• A description of how the BIDDER plans to execute the various functions, (e.g. designing, engineering, etc.), the offices where the various portions of the work will be executed, and detailed description of how all the work will be coordinated and managed and how standardization between offices shall be achieved. The description shall contain sufficient detail to provide a comprehensive understanding of the proposed procedures and the relationships between the various disciplines.

• Organization charts showing the BIDDER's proposed project organization, both in his office and at worksite, showing lines of authority/responsibility and communication. This project organization should be constituted as a team comprised of compatible, highly motivated/qualified personnel, with the requisite overall skill balance. Key project positions shall be identified by title and brief job description.

• The name of the individual that the BIDDER proposes for each of the following key positions for the PROJECT. For each nomination, BIDDER shall provide a resume showing the candidate's position or grade within the company, ability with the English language (oral and written), age, nationality, qualifications and experience (indicating clearly the length of experience with BIDDER's company and the experience of relevance to this PROJECT) and the date of availability for this work. For each nomination, BIDDER shall give the name, address and telephone number of a recent client representative who may be referred to for a reference.

• BIDDER shall also provide a tabulation showing the anticipated length of assignment of all key personnel both in the home office and the field and shall confirm that such personnel are available to work on the PROJECT as required by the schedule and will be assigned on full time basis, and that key staff will not be removed without OWNER's written approval in accordance with the contract.

• The BIDDER shall advise its intended normal work hours per week during the contract period.

• The BIDDER shall advise the dates of all BIDDER's proposed holidays for the duration of Contract.

Bidding Instruction | Payment Milestone

22/05/2018 31

SHERA proposed below payment milestone based on earned value method (EVM) for the project:

Item Milestone % Payment Deliverables

1

Project Kick-off 10% Project Management Project Structure & Governance Work Planning & Scheduling Issue Management Scope Control Risk Management Define Project Standard

Requirement Traceability Document

2 Complete Blueprint 50% Business Blueprint To-Be Business Process Flow Role & Authorization Matrix

3 Project Sign-off 40% Position Documents on Key Impacts Change Impacts Report Technology Recommendation Report Measurable Business Benefits Summary Sign-off on Measureable Business Benefits Report from Executives

Attachments | SHERA Key Process and Technology Events

22/05/2018 32

Below are timeline of key business process and technology change at Shera.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2015 2016 2017 2018 2019 2020

SAP R/3 HR

SAP HR has been implemented in 1999 by SAP Thailand

SAP R/3 HR Payroll

SAP HR Payroll has been implemented in 2001 by SAP Thailand

Shera Direct B2B

B2B solution has been implemented in 2003-2005 by Thomas Ideas

Microsoft SharePoint 2010

DMS has been implemented in 2012 by CDS Solutions

SAP Business Object – Supply Chain

SAP Business Object 4.0 has been implemneted for Supply Chain in 2013 by Sahasedsiri

Corporate Web Site and B2B2C

Global web site, community sites, B2B, B2C, mobile app are planned to be re-implemented in 2018

Sales & Operation Planning (S&OP)

Forecast Pro and MFO has been implemented in 2017-2018 by M-Focus

Business Analytics

Sales analytics journey started with Microsoft Azure, PowerBI, Tableau and SAP Business Objects in 2017-2018 by Shera IT & VWise IT

Non-SAP Data Center Cloud Hosting

Non-SAP data center is planned to be migrated to cloud hosting in 2018

SAP R/3 4.0

Mahaphant Group have implemented SAP R/3 4.0 in 1996 by SAP Thailand & HP Singapore

SAP Business Object – War Room

War Room System (SAP BO Edge BI) has been implemented with SAP Business Object 4.0 in 2011 by Sahasedsiri

SAP for Indonesia

SAP ECC 6.0 has been rollout to Shera Indonesia as 1st country outside Thailand in 2017-2018 by Shera IT

Sales Force Automation

Salesforce for Fields Sales will be implemented in 2018

Global Blueprint & SAP S4HANA 1709

Shera PCL will established global template and SAP S/4HANA for global expansion in 2018-2019

SAP ECC 6.0 & DB2 Upgrade

SAP has been upgraded to ECC 6.0 and IBM DB2 database in 2007-2008 by Netizen

SAP ECC 6.0 Private Cloud Hosting

SAP has been migrated to private cloud hosting in 2013 by TCC Technology

Microsoft Office 365 Public Cloud

Company has migrated from Zimbra/Lotus Note e-mail to O365 cloud in 2017 by TCC Technology

Non-SAP Data Center on VMWare On-Prem

Data Center has been modernized with VMWare technology in 2013 by G-Able

Attachments | SHERA Solution Landscape

SH

ERA

VEN

DO

R / C

USTO

MER

CO

NSU

MER

R&D and Innovation

Sales Supply Chain Management



Information Technology

Marketing Customer Service

Purchasing Human Resources

Business Operation Excellence - Idea to Launch, Plan to Execute (S&OP, WMS), Order to Cash, Source to Pay, Hire to Retire, Record to Report SAP S/4 HANA | SAP ECC 6.0

Business Analytics & Big Data - Sales Analytics, Supply Chain Analytics, Financial Analytics SAP Business Object | Tableau | Microsoft Power BI

GLPI (ITSM)

Gogs GIT

SHERA HR eSlip

Forecast Pro

Master Fulfillment Optimizer (MFO)

SHERA Weight/Queuing

elastix (Call Center)

SHERA Live Better

Sage CRM

SHERA Own B2B / B2C E-Commerce Channel SHERA Direct | SHERA B2C Web Site

E-Commerce Channel BUILK.com, thaiwatsadu.com, megahome.co.th, homepro.co.th, dohome.co.th

Brick & Mortar Channel Modern Trade (MT), Traditional Trade (TT) / MPP, Professional Service (PS)

Government Revenue Dept.

Government Social Security

Bank (AP) 4 Banks

Bank (AR) 8 Banks

Bank (FX) Bank of Thailand

SHERA Corporate Website shera.com | sherasolution.com hahuang.co.th sheraply.com shera.in sheraeu.com sherabuildingsolution.com

SHERA SMS

Vendor Web Sites

Sales Force Automation

Customer ERP Systems SAP, Express Accounting, BC Account (บ้านเชียง), Business Plus, Customized ERP, etc.

Programmable Logic Controller (PLC)

Digital Transformed Current

Digital Enterprise Operation – Intranet, E-Mail, Unified Communication, Office Operation & Automation, Social Collaboration, Mobile Application, Artificial Intelligent (AI) Microsoft Office 365 | Microsoft Azure | Mail, Calendar, OneDrive, WEPO (Word/Excel/PowerPoint/OneNote), SharePoint, Skype/Teams, Yammer, Form, Flow, Planner, Stream, PowerApps

Last updated 2018.04.03

Microsoft Azure (SG) Microsoft Office 365 (SG)

Sh

ipm

en

t D

ata

Attachments | SHERA IT Application Landscape

Public Cloud

Private Cloud (TCCT)

On-Premise – HQ 2nd Floor

SAP ECC 6.0

SHERA HR eSlip

SHERA Weight System

Sage CRM

SAP Business Object

GLPI (ITSM)

SHERA Queuing System

elastix (Call Center/VOIP)

On-Premise – Factories

Microsoft Office 365

Business Solutions

Solution Delivery

Business Analytics

Technology Solutions

Digital Solutions

SHERA Internal

SHERA Direct (Web)

SHERA Direct (DB)

External Partner

shera.com sherasolution.com

hahuang.co.th

sheraply.com

sherabuildingsolution.com

shera.in / sheraeu.com

SHERA Live Better

mahaphant.com

Consumer

SHERA SMS, Gogs GIT

SHERA APP

Exchange Rate Customer Payment Data

Material Customer Billing

Order Proposal

Purchasing Data Inventory Data Accounts Receivables Data Employee Movement Data

Sh

ipm

en

t W

eig

ht

Slip Data

Employee SSF Data Personal Income Tax

Payroll Data Vendor Payment Instruction

Order Confirmation Purchase Order

Sales Data

SHERA Weight System Server Lopburi

Material Customer Sales Contract Billing

SHERA Weight System PC Sai 5

SHERA Weight System PC Nabon

SHERA Weight System PC Lopburi

Sunset Solutions

Sales Order

Government Departments RD, SSF

Bank Web Site BOT, BBL, Citi

Web EDI (MT) GH, TWS, MGH, HP, DH

SHERA File Server

Forecast Pro

Master Fulfillment Optimizer

SHERA Data Warehouse

Tableau | MS Power BI Desktop

SHERA Data Warehouse on Cloud

SHERA Distributor Data Integration (SDDI)

Sales Out (MT)

Sales In

Sales Out (TT)

Sales In

Remote Desktop Services

Microsoft Active Directory

ERP TT Customers

mobileOne Cloud (MY)

mForce SFA

AWN Data Center (TH)

Palo Alto Centralized Firewall

• Outlook • OneDrive • SharePoint • Word / Excel / PowerPoint / OneNote • Forms • Flow • PowerApps • Planner • Teams • Stream • Yammer

Last updated 2018.04.03