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LATIN AMERICA Integrated Planning SAP Forum DOCUMENT USE IN ACCORDANCE WITH COMPANY POLICIES

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Agenda

• SAP SCM Journey • • •

SNP 2013 scenario SNP implementation Upcoming

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Our Journey in Planning with SAP SCM

Johnson & Johnson Latin America have implemented SAP SCM system since 2000. During this Journey the Company grown its knowledge and experience around the process and the tool.

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Gained experience Hardware Poor performance SAP SCM outdated – Huge number of SAP Notes required No Regional Business Process Management Complaints about complex SAP SCM User Interface

Market offer of SAP SCM consultants limited Low level of Master Data maturity Lack of SAP SCM IT Governance

High Business Users Turnover

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Agenda

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SAP SCM Journey

• SNP 2013 scenario • •

SNP implementation Upcoming

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SNP 2013 scenario... Global/Regional Process Business Management – GPEX Global Best Practices and Templates Infrastructure & SAP SCM upgraded Good level of Master Data maturity SAP Consultancy involved

SAP SCM IT Governance Implementation of 2012 SAP recommendations All integration models revised All Jobs revised SAP SCM User Interface training

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Agenda

• •

SAP SCM Journey SNP 2013 scenario

• SNP implementation •

Upcoming

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Overall End to End Vision Information Flow Physical Flow

Vendor, Supplier Plant’s

Supply Network Collaboration (SNC)

LASC Manufacturing Plant

Plant Planning

Distribution Center

Supply Network Planning

Sales & Marketing

Demand Planning S&OP

• Continuous flow and full visibility of information • E2E Supply Chain is Demand Driven • SNP brings a visibility of mayor part of the entire process

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Implementation Model Pillars • Visibility Improved, faster and more reliable supply chain. • Standard process aligned with global templates. • Support decision making

• Strengthen planning skills within Latin America Supply Chain community • Inventory optimization • OTIF increase

• One standard tool for PLAN processes

Process

Technology

People

KPIs

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SNP Implementation Scope Caribbean

Mexico

Central America

Venezuela Colombia

Ecuador

J&J S&M J&J Manufacturing

Peru

Brazil

Bolivia Paraguay

Regional Information • 16 countries • 25 Distribution Centers • 4 Manufacturing Sites

Chile

Planning Complexity • 2 major Plants • Brazil: 200 SKUs, 12.000 purchase requisitions • Colombia: 538 SKUs, 35.000 purchase requisitions • 6 External Manufacturers • 150 SKUs

Argentina Uruguay

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Timeline Mar-Apr’13

Planning May-Jun’13

Design Jul-Sep’13

Develop Oct-Dec’13

Implement

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Specific Solutions (1/3) Seasonal Safety Time Customized capability allowing to have Dynamic Safety Time.

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Specific Solutions (2/3) Aggregated Capability that allow us to plan supply grouping markets to share Minimum Order Quantity or to balance inventory across the networks.

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Specific Solutions (3/3) Centralized Process to avoid frozen period at Distribution Center level, but to keep it at Source level, sending the same total requirement to the plants but with adjustments within the Distribution Centers.

Total Quantity Constant

Source

% DC2 % DC3

Variable Quantities

% DC1

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Agenda

• • •

SAP SCM Journey SNP 2013 scenario SNP implementation

• Upcoming

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Upcoming • Plant Planning implementation • Demand Planning re-implementation

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• Carolina Barca [email protected] • Walter Valencia [email protected]

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