SAP S4HANA Business Experience Distribution Simulation

1 1 2 2 3 3 What is ERPsim Business decisions Business analytics SIMULATION ENGINE Participants Business decisions Business analytics End-to-end process collaboration 1 2 3 Customer and supplier behavior algorithms Simplification of administrative tasks Time acceleration 1 2 3

Holistic learning approach

Who Uses ERPsim? +200 companies 17,000 simulations 22,000 students COMMERCIAL ACADEMIC +200 companies Cardinal Health, GE, Boeing, Coca Cola, Kraft, Caterpillar, Vale, GM, General Atomics, USDA, … Since 2009, more than 17,000 simulations In 225 universities around the world. 22,000 students Used ERPsim in 2014 1000 faculty Trained on ERPsim worldwide. Soon available as MOOC Expanding in emerging markets China, India, Latin America

About ERPsim

Simulation Objectives Experience an integrated business process and the impact of real-time information from the end-user perspective Understand how enterprise systems support business strategies and decision-making Develop SAP navigation skills (SAPGUI & Fiori) Discuss lessons learned and strategic, operational or organizational implications for your organization

Simulation Basics In groups of at most 4 participants, you operate a water distribution company. Using SAP transactions and reports, participants make business decisions to ensure the profitability of their operation You are competing in the same market against the other teams in the room

Agenda Contents 15 min – Introductions and team set-up 15 min - Intro to SAP (login, navigation) 20min - Play Q1 10 min - Debrief of Q1 + Q2 overview 20min - Play Q2 15 min - Break 10 min. - Debrief of Q2 40 min - Play Q3 (with Fiori navigation) 20 min - Lessons learned

Game Layout 20 days 20 min

Rules Each round will be 20 virtual days (approx. 1 min/day) End-of-round inventory is carried over to the next round You can sell a product only if you have it in stock You compete against the other teams Your only objective is to maximize profit Backward chaining model/learning approach Each round will be of 20 virtual days (approx 1 min per day) End-of-round inventory is carried over to the next round You can sell a product only if you have it in stock You compete against the other teams and importers Your objective is to maximize profit

Welcome to your new job! Your products and market are… North 45 retailers 6 products (boxes of 12x1L and 24x500mL) 3 regions with distinct marketing accounts One distribution channel : 18 Market size of about € 6,000 per company per day You are part of a small executive team leading ERP Water AG. As a member of the executive team, you will make strategic decisions. Your team will forecast sales, make pricing decisions and determine the advertising budget. Your team will also be responsible for accounting functions, including reporting quarterly profits. West 40 retailers South 38 retailers

6 Products Product Code Product Description Units in box Cost of boxes 1L ClearPure 12 bottles 11.99 $$-B02 1L Spritz 14.99 $$-B03 1L Lemon Spritz 16.99 $$-B04 500mL ClearPure 24 bottles $$-B05 500mL Spritz 19.99 $$-B06 500mL Lemon Spritz 22.99

Roles Each participant plays one or more roles so that all business activities are covered: Roles Procurement Shipping & Receiving Warehousing Production Execution Production Planning Accounting Sales

Interacting Through SAP Transactions Show that the SAP supports the business process through a series of transactions and reports. Notice that in the procurement process 3 transactions are automated by ERPsim (good receipt, post invoice and pay vendors).

User Interface Navigate to the following link as provided Before you go to the link, clear your browsing history. Close and reopen your browser.

Participant’s job aid & Menu – Round 1

Participant’s job aid & Menu – Round 2

Participant’s job aid & Menu – Round 3

SAP Lumira Reports H is winning. Sales view looking at sales document, contribution margin does not include marketing spend. Heat Map is revenue, not quantity, not cumulative. In a heat map, all boxes are same size Lower numbers in round 1 are because teams were not able to resupply. Round 2 numbers indicate better the potential demand in the market for specific products. Reason all sales are equivalent in round 1 is that when a popular product runs out, customers buy other available products. Products are subsitutable in the same size, not across sizes. To see a single team, uncheck team letter(s) to the right.

SAP Lumira Reports Bottom tree view is visualization of the table. Larger box=larger revenue, darker color=larger profit Individual gas stations buy multiple products, they prefer to buy from suppliers that have all products available, not just one. Color scale is dynamic and related to a team chart, not across charts. For example dark green is not the same across all teams. It is relative Boxes are clickable.

SAP Lumira Reports Scale is dynamic Red line = average price for team, as indicated in legend in upper right corner There are gaps in horizontal axis legend. The graph does not include when team stocked out (missing values). We we are working on fixing that. This is based on obversable sales documents. If you have made no sales, there are no sales documents.

Browser navigation hints If clicking on a tile does not launch transaction, pop-up blocking needs to be de-activated F11 goes to full screen in all browsers « Ctrl + » or « Ctrl – » will change browser screen resolution

Debriefing What were your individual key learning moments? How does decision-making and collaboration with real-time analytics differ from the way you currently operate? What skills /competencies become critical in an integrated process environment? What behaviours must management encourage/discourage to maximize value realization?