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manufacturing industry

Former Member
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hello guys,

please let me know in detail the different and typical business scenarios of a manufacturing industry.

the points will be rewarded for more detailed and helpful answers.

sripriya

Accepted Solutions (1)

Accepted Solutions (1)

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hi,

go to this link and select industry

http://help.sap.com/bp_bblibrary/600/BBlibrary_start.htm

Answers (7)

Answers (7)

Former Member
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Hi Sripriya,

Manufacturing has been the foundation of SAP's customer base since the company's origin more than 30 years ago. In fact, SAP's very first customers were in the chemicals, consumer goods and pharmaceutical manufacturing industries, where SAP solutions revolutionized the integration of materials management and financial accounting. Today, SAP industry solutions enable closed-loop processes across engineering, manufacturing and supply chain operations to managing product life cycles, customer and supplier relationships, human resources and finances.

Of all enterprise application providers in the world, SAP unquestionably supports the largest set of manufacturing companies. With its unmatched depth and breadth of industry-specific experience, SAP offers solution sets tailored to meet the unique business demands of more than 12,000 manufacturing companies of all sizes across diverse industry sectors, including aerospace and defense; automotive; chemicals; consumer products; engineering, construction and operations; high tech; industrial machinery and components; mill products; mining; oil and gas and pharmaceuticals.

As increasing competition reigns across all industries throughout the global market, SAP® solutions are empowering companies with the added-value capabilities they need to grow their customer base and competitive advantage, such as after-sales service management throughout the product or project life cycle.

SAP industry solutions support all common manufacturing methods ranging from make-to-stock in relatively stable manufacturing environments to planning with and without final assemblies in manufacturing environments confronted by rapid supply-demand fluctuations. Building on the capabilities of its enterprise software to improve business process efficiency and reduce costs, SAP is helping manufacturing companies to drive growth by enabling the next step in business process evolution: adaptive supply chain networks.

SAP sees adaptive supply chain networks as encompassing five key abilities that competitive businesses need to compete in today's marketplace:

• Plan – Optimize and schedule supply chain and shop floor operations based on resource and material availability

• Execute – Manage build, move, modify, track and document activities on across the supply chain

• Sense – Continually monitor and alert in real-time exceptions that impact operations

• Respond – React rapidly and efficiently to demand and supply signals to internal and external deviations

• Learn – Continually evolve and incorporate knowledge into supply chain and manufacturing process

SAP solutions empower companies with these abilities, creating enhanced visibility into the extended supply chain and thereby enabling businesses to adapt processes and respond in real time to meet customer demands. SAP builds user-centric solutions that adaptive manufacturers run to intelligently monitor, manage and optimize supply chain and shop floor operations and to seamlessly integrate into demand chain processes.

• Increased revenue – SAP solutions help companies increase their ability to anticipate market needs, seize new business opportunities, enable new levels of innovation and make sales and marketing campaigns more effective.

• Reduced costs – From reducing transaction costs to streamlining engineering, manufacturing, maintenance and logistics, SAP solutions empower companies to do what they do best, quickly identify where costs are being incurred, and reduce these costs across the enterprise.

• Increased capacity and improved delivery – Visibility into production and project schedules and customer requirements enables companies to precisely evaluate and quickly respond to market changes.

• Enhanced customer service – A more responsive customer service organization helps companies retain satisfied customers and drive new revenue streams from after-sales services and parts sales.

• Improved sales and increased customer lifetime value – With effective customer segmentation and accurate market forecasting, companies can make sales efforts count by identifying and retaining the most profitable customers through a continual understanding of the needs of individual customers and customer segments.

• Clarified business vision – Enhanced insight throughout the entire extended enterprise helps companies make more informed decisions, improve processes and streamline procedures to increase return on assets.

• Expand reach – SAP solutions enable tight-knit collaboration across enterprise and international boundaries, creating links through enterprise portals to work successfully with suppliers, partners and customers.

SAP Manufacturing Solutions for Small and Midsize Businesses

While a majority of Fortune 500 companies in manufacturing industries are SAP customers, more than half of all SAP implementations in the sector are for small and midsize businesses (SMBs). With SAP® Business One and SAP All-in-One, SAP offers flexible and scalable solutions that are customized by SAP Business Partners to meet the demands of SMBs across diverse mircrovertical manufacturing sectors from automotive and high tech to oil & gas and pharmaceuticals.

Technology Platform to Enable Business Change and Innovation

Convinced that adaptive manufacturers will outperform all others, SAP builds its industry-tailored solutions on adaptive, services-based architecture with the SAP NetWeaver™ open integration and application platform. SAP NetWeaver empowers companies with the agility to quickly meet new challenges and seize new opportunities. The open integration and application platform creates a flexible IT landscape that better supports business process evolution and innovation, provides the best way to integrate SAP and non-SAP systems and helps reduce the cost and risk of business process change.

As manufacturing nodes across the supply chain continue to be pushed to remote locations around the world, SAP NetWeaver enables seamless connectivity between different applications in use by the manufacturer and its supply chain partners. This near real-time link with supply chain partners is what enables manufacturers to become truly adaptive.

SAP NetWeaver offers a full suite of enabling software technologies including functionality for business intelligence, knowledge and master data management, portal and exchange infrastructure, Web application server, mobile technologies and more.

Manufacturing Industry Solutions from SAP

• SAP for Aerospace & Defense (SAP for A&D) meets the demands of an industry marked by increasing global competition, consolidation and the emergence of complex industrial alliances - also increasing the need for collaboration and cooperation between competitors. Serving more than 300 companies, the industry solution provides Internet-enabled tools that help companies better collaborate with partners, efficiently manage global operations, shorten time to market and effectively plan and forecast to minimize risk.

• SAP for Automotive supports industry-specific processes within all types of automotive companies, including original equipment manufacturers (OEMs), suppliers, and sales & service organizations. Serving more than 1,300 automotive customers worldwide, the industry solution helps companies acquire customers and attain competitive advantage in the long term by meeting today's dynamic business demands.

• SAP for Chemicals is designed to meet the unique demands of small, midsize and large chemical companies. Serving 1,241 customers worldwide, the industry solution provides best practices to streamline processes in a closed-loop chemical value chain - from planning, procurement and manufacturing to sales, delivery and service.

• SAP for Consumer Products covers the unique needs of diverse businesses within the industry, including consumer products, apparel, footwear, beverage, and food companies. Serving 2,123 customers worldwide, the industry solution provides best practices for adaptive supply chains, improved customer and supplier relationships and efficient product development, introduction and life-cycle management.

• SAP for Engineering, Construction & Operations (SAP for EC&O) addresses the business demands of companies in the plant contracting, construction, homebuilding and shipbuilding sectors. Serving 349 customers worldwide, the industry solution delivers a single, integrated set of applications that meet all business process needs-from concept, specification and design through procurement, construction and maintenance-to help EC&O companies increase profit margins, boost after-sales, increase customer satisfaction and maintain competitive edge.

• SAP for High Tech targets the needs of high-tech and electronics manufacturing companies. Serving more than 2,079 customers worldwide, the industry solution gives companies a competitive advantage by integrating their entire business with global supply chains and partner networks, linking business processes and third-party systems through RosettaNet, the open standard for the high-tech supply chain. SAP for High Tech supports the full range of industry business processes - from design, planning and procurement to manufacturing, sales, distribution and customer service.

• SAP for Industrial Machinery & Components (SAP for IM&C) supports the unique business processes of industrial manufacturers, engineering partners and suppliers, helping them streamline their enterprises, boost their after-sales and sustain product leadership. Serving more than 1,429 customers worldwide, the industry solution offers tailored solutions for engineering, planning, supply chain management, procurement and customer relationship management. SAP for IM&C increases collaboration and efficiency within the enterprise and across global supply chains and partner networks.

• SAP for Mill Products delivers tailored solutions to meet the specific needs of companies specializing in metal, forest products, textile, and building materials. Serving 2,073 customers worldwide, the industry solution offers best practices for adaptive supply chain management, efficient enterprise asset management and improved customer relationship management. The solution enables seamless integration of business processes and third-party systems in compliance with papiNET, the paper industry's data exchange standard.

• SAP for Mining helps mining companies manage their supply chain from end to end, control costs, increase profitability and serve customers more effectively in a complex global market marked by consolidation, geopolitical uncertainties, environmental and safety concerns and highly volatile commodity prices. Serving 152 customers, the industry solution delivers tailored solutions to effectively support exploration, extraction and processing, conversion to saleable product, sales and marketing, transportation, customer service, and management of safety and regulatory compliance.

• SAP for Oil & Gas (SAP for O&G) offers a complete business solution for oil and gas companies of all sizes, addressing the upstream, midstream, production and downstream needs various of business segments across the globe-from wellhead to retail outlet. SAP is the industry's leading business solutions provider, with 97 percent of Fortune 500 oil companies running SAP and more than 500 customers in the oil and gas industry worldwide -comprising more than 500,000 users.

• SAP for Pharmaceuticals is designed to meet the specific demands of companies and their suppliers, distributors and partners in the pharmaceutical, biotechnology, biopharmaceutical, genomic and proteonomic industries. Serving 607 customers in the pharmaceuticals industry worldwide, the industry solution provides proven end-to-end solutions from R&D to sales and service, delivering best practices to effectively manage complex manufacturing processes, meet stringent quality and safety standards, achieve faster time-to-market with product innovation and enhance customer service.

Cross-Industry Solutions in SAP Industry Solutions

SAP industry solutions for the manufacturing industries build upon SAP Business Suite cross-industry solutions, including:

• SAP ERP addresses the core and extended business software requirements of midsize and large organizations, whatever their industry or global reach. The comprehensive enterprise resource planning software suite features leading-edge self-services, analytics, finance, human capital management, operations and corporate services applications. Powered by the SAP NetWeaver™ technology platform, SAP ERP helps customers reduce total cost of ownership, achieve a faster return on investment and benefit from a more flexible IT infrastructure that helps drive innovation.

• SAP Customer Relationship Management (SAP CRM) leverages SAP's innovation and unmatched industry expertise to evolve the way companies connect with their customers and partners, creating customer-centric business processes across enterprisewide operations and business applications. SAP CRM delivers the market's greatest breadth and depth of functionality, offering more than 280 end-to-end, industry-specific processes to cover the unique business demands of more than twenty-five industries.

• SAP Product Lifecycle Management (SAP PLM) creates a collaborative environment for users to manage, track and control all product- and project-related information over the complete product, project and asset life cycle. With capabilities such as Enterprise Asset Management and SAP® Service Management, SAP PLM helps companies across diverse sectors create scalable service packages, better control service costs and tap new revenue sources.

• SAP Supply Chain Management (SAP SCM) provides companies and their supply chain partners with visibility, planning, execution and collaboration capabilities across suppliers, logistics service providers and customers to manage allocations, inventory levels, orders, forecasts, production plans and key performance indicators. SAP SCM helps companies create more adaptive supply chains-for example, through RFID-enabled (radio frequency identification) supply chain execution processes-to react quickly to changing market conditions and customer needs, resulting in higher value for all participants.

• SAP Supplier Relationship Management (SAP SRM) maximizes the return on relationship with all suppliers across all categories of spend on a continuous basis. SAP SRM is instrumental to effective supplier management as it replaces unmanaged, savings-driven transactions with long-term collaborative relationships for mutual benefit.

If it helps reward point

Regards

Adarsh Mathur

Former Member
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Hi

Broadly a Manufacturing Industry has the following business scenarios:

<b>1. P2P - Purchase to Pay</b>

It is the entire end to end cycle for External Procurement till the Payment to the Supplier.This includes all external purchases from Vendors and suppliers for Assets, Raw materials, Machineries, Tools, etc required for manufacturing and assembly of the the finished product. This involves the SCM module, Material Management, Quality management etc This is basically the integration between MM and FI

<b>2. Manufacturing and Production</b> - This includes the entire manufacturing process, from raw materials to finished product. There is Production Planning, Production control and Material Requirement Planning to name a few.

<b>3. O2C - order to Cash</b>

The end to end cycle from Customer Inquiry, Quotation Order Delivery and Invoice to Payment collection from customer is called O2C

<b>4. H2R - Hire to Retire</b>

This is the HR functions like personnel management and Payroll etc carried out in any big organization.

5<b>. Inventory Book Close</b> - the entire inventory maangement functions fall under this category. Inventory of raw materials, Spares parts, Finished Goods and the transfer of materials from one location to other comes under this function.

Hope this gives you a broad over view,

Former Member
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Former Member
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Lakshmipathi
Active Contributor
Former Member
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Hi Sripriya

The below link will help u

http://www.cimdata.com/index.html

Reward if useful to u

Former Member
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Hi Sripriya,

Check the link

<u>http://www.sap.com/about/press/factsheets/manufacturing_industries.epx</u>.

Thanks

Mohan