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cis a German software corporation, which provides enterprise software
applications and support to businesses of all sizes globally. Headquartered
in Walldorf, Germany, with regional offices around the world, SAP is the
largest software enterprise in Europe and the fourth largest software
enterprise in the world as of 2009. The company's best known products are
its SAP Enterprise Resource Planning (SAP ERP) and Business Objects
software.

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In 1973, the SAP R/1 solution was launched. Six years later, in 1979, SAP
launched SAP R/2. In 1981, SAP brought a completely re-designed
solution to market. However, it wasn't until 1985-1990 did SAP
monumentally improve. The most major improvements weren't created by
the five SAP founders, nor their few employees, for it wasn't until SAP
partnered an unlikely educational institute did it have the progressive
intellect and manpower needed to take the ERP to new heights.

In 1985, four years after SAP R/2 emerged, SAP had big plans, but few
resources needed to improve upon their ERP. At the same time, nearly
9000 km (5600Mi) at the California State University at Chico (CSUC),
kindly referred to as "Chico State" a Grad Student attending classes in the
precursor of the College of Business at Chico State had a few big plans of
his own. The Grad Student informed a couple of the senior professors
about this new ERP tool called "SAP" and wondered if they might contact
SAP and obtain an evaluation copy to use in the Database Mgmt. and/or
the Production Mgmt. classes. Chico State professors contacted SAP and
soon the conversation went from "evaluation" to "development". Needless
to say, both sides jumped at the opportunity to become partners.

Chico State remained SAP's only educational partner for the first few years
vastly improving and extending modules within R/2 leading to the
development of R/3 with a few new modules. SAP and Chico State
developed and released several versions of R/3 in 1992 thru 1995. By the
mid 1990's, SAP followed the trend from mainframe computing to client-
server architectures. The development of SAP¶s internet strategy with
mySAP.com redesigned the concept of business processes (integration via
Internet). SAP was awarded Industry Week¶s Best Managed Companies in
1999. By 1997, SAP had partnered with over 25 educational institutes,
including the most prestigious of them all: Massachusetts Institute of
Technology (MIT).

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SAP AG Headquarters, Walldorf.

SAP is the world's largest business software company and the third-largest
independent software provider in terms of revenues (as of 2007). It
operates in three geographic regions ± EMEA, which represents Europe,
Middle East and Africa; the Americas (SAP America, headquartered in
Newtown Square, Pennsylvania), which represents both North America and
Latin America; and Asia Pacific Japan (APJ), which represents Japan,
Australia, India and parts of Asia. In addition, SAP operates a network of
115 subsidiaries, and has R&D facilities around the globe in Germany,
Turkey, Canada, China, Hungary, India, Israel, Bulgaria, and North
America.

SAP focuses on six industry sectors: process industries, discrete industries,

consumer industries, service industries, financial services, and public
services. It offers more than 25 industry solution portfolios for large
enterprises and more than 550 micro-vertical solutions for midsize
companies and small businesses.

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Service-oriented architecture moves the ERP (Enterprise Resource
Planning) landscape toward software-based and web services-based
business activities. This move increases adaptability, flexibility, openness
and efficiency. The move towards E-SOA helps companies reuse software
components and not have to rely as much on in-house ERP hardware
technologies which helps make ERP adoption more attractive for small- or
mid-sized companies.

According to a press fact sheet from SAP, "SAP is the only enterprise
applications software vendor that is both building service-orientation
directly into its solutions and providing a technology platform SAP
NetWeaver and guidance to support companies in the development of their
own service-oriented architectures spanning both SAP and non-SAP
solutions.

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You face enormous pressure to reduce costs while increasing innovation

and improving customer service and responsiveness. SAP Supply Chain
Management (SAP SCM) enables collaboration, planning, execution, and
coordination of the entire supply network, empowering you to adapt your
supply chain processes to an ever-changing competitive environment.

SAP SCM is part of the SAP Business Suite, which gives organizations the
unique ability to perform their essential business processes with modular
software that is designed to work with other SAP and non-SAP software.
Organizations and departments in all sectors can deploy SAP Business
Suite software to address specific business challenges on their own
timelines and without costly upgrades.

SAP SCM can help transform a linear, sequential supply chain into a
responsive supply network ± in which communities of customer-centric,
demand-driven companies share knowledge, intelligently adapt to changing
market conditions, and proactively respond to shorter, less predictable life
cycles. SAP SCM provides broad functionality for enabling responsive
supply networks and integrates seamlessly with both SAP and non-SAP
software. The application:
— Delivers planning and execution functions that are integrated by design
— Supports best practices and provides preconfigured software for
enabling collaborative business, accelerating implementation, and
reducing costs
— Is recognized by key industry analysts as the market-leading SCM
application
PLANNING EXECUTUION COLLABORATION

Real-time demand and signal-based replenishment need to drive supply

chains. Companies need to balance supply and demand and run their
businesses based on actual-versus-forecasted demand.

With SAP SCM, you can model your existing supply chain; set goals; and
forecast, optimize, and schedule time, materials, and other resources with
these planning activities:

— Demand planning and forecasting

— Safety stock planning
— Supply network planning
— Distribution planning
— Strategic supply chain design

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SAP SCM enables you to:

— Increase demand accuracy and order fulfillment satisfaction levels

— Reduce inventory levels and increased inventory turns across the
network
— Increase profitability and productivity

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SAP SCM delivers a complete set of features and functions for building
adaptive supply chain networks. The application enables:
— Supply chain planning and collaboration ± With SAP SCM, you can
model your existing supply chain; set goals; and forecast, optimize, and
schedule time, materials, and other resources. Supply chain planning
functionality enables you to maximize return on assets and ensure a
profitable match of supply and demand.
— Supply chain execution ± SAP SCM enables you to carry out supply
chain planning and generate high efficiency at the lowest possible cost.
You can sense and respond to demand through an adaptive supply
chain network in which distribution, transportation, and logistics are
integrated into real-time planning processes.
— Supply chain visibility design and analytics ± SAP SCM gives you
networkwide visibility across your extended supply chain to perform
strategic as well as day-to-day planning. The application also enables
collaboration and analytics, so you can monitor and analyze the
performance of your extended supply chain using predefined key
performance indicators (KPIs).

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SAP SCM includes features and functions to support collaborative supply
chain planning processes, including strategic, tactical, and operational
planning as well as service parts planning.

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With SAP SCM, you can optimize a full range of planning activities,
including:
— +c #$/c c 0"'%/ ± Forecast and plan anticipated
demand for products or product characteristics. Use state-of-the-art
forecasting algorithms for product life-cycle planning and trade
promotion planning.
— 0c "%(c #$/ ± Assign optimal safety stock and target stock
levels in all inventories in the supply network. Meet your desired
customer service levels while maintaining a minimum amount of safety
stock.
— ##$c 2"'(c #$/ ± Integrate purchasing, manufacturing,
distribution, and transportation plans into an overall supply picture ± so
you can simulate and implement comprehensive tactical planning and
sourcing decisions based on a single, globally consistent model. This
can involve heuristics and capacity planning, optimization, and
multilevel supply and demand matching.
— +'"c #$/c ± Determine the best short-term strategy to
allocate available supply to meet demand and to replenish stocking
 locations. To achieve this, planners can determine which demands can
be fulfilled by existing supply elements.
— ##$c 2"'(c %"$$"'" ± Work with partners across your
supply network. Using collaboration features that improve visibility into
supply and demand, you and your partners can reduce inventory
buffers, increase the velocity of raw materials and finished goods
through the pipeline, improve customer service, and increase revenues.

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With SAP SCM, you can also handle service parts planning activities,
including:
— 'c c #$/ ± Improve the accuracy of forecasts through
better modeling of demand quantities, events, and their respective
deviations. You can select sophisticated forecast models and optimize
model parameters to improve forecasting for slow-moving parts or for
parts with irregular demand patterns. Through aggregated forecast-
parameter profile maintenance, you can make data maintenance more
efficient.
— 'c)"'c#$/ ± Reduce inventory levels and achieve retail
service levels by providing more precise demand modeling. You can
distribute inventory optimally within the multi-echelon supply chain to
ensure high service levels while keeping inventory levels at a minimum.
— 'c ##$c #$/ ± Reduce inventory in the supply chain by
improving supplier alignment, increasing automation, and developing
accurate supply plans. You can also reduce operational cost through
efficient purchasing practices.
— 'c'"c#$/ ± Set up stock transfers for parts within a
service parts network to reduce stock-out situations and operational
costs.
— 'c ""'/ ± Work with suppliers and customers to exchange
information and handle alerts collaboratively.

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SAP Supply Chain Management (SAP SCM) delivers supply chain
execution excellence and best-of-breed functionality by integrating sales
order management, transportation, and warehouse processes, and by
linking to back-end financials, manufacturing, and purchasing. Features
and functions include:
— '$c / ± By sharing information about inventory and
procurement orders, SAP SCM ensures that the materials required for
manufacturing are in the right place at the right time. Plan-driven
procurement, inventory management, and invoicing close the feedback
loop between demand and supply ± and improve fill rates and customer
satisfaction through increased replenishment speed, delivery
confirmation, and invoice accuracy.
— 0%'/c 3%" ± SAP SCM supports all production
processes, including engineer-to-order, configure-to-order, make-to-
order, and make-to-stock. It also generates optimized production
schedules that take into account real-time material and capacity
constraints. By integrating manufacturing with other supply chain
processes, SAP SCM enables a rapid, flexible approach to responding
to engineering changes and customer requirements.
— ''c #'"/ ± Based on the global available-to-promise (ATP)
capability, order promising receives queries from order management or
CRM systems, and determines when a product is available across a
fulfillment network or can be built. It also shows how much the product
will cost, and how long it will take to deliver. Order promising is the
critical link between order management/CRM systems and supply chain
planning systems, providing a window into product availability.
— '#"'"c 3%" ± SAP SCM allows distributed enterprises
to manage transportation from a centralized location or from locations
throughout business units. Transportation managers can consolidate
orders and optimize shipments from suppliers to customers ± to get
maximum efficiency for their transportation dollars. They can also
consider transportation constraints and costs while ensuring time-
definite deliveries. SAP SCM supports shipment tendering and booking,
carrier selection, freight building, freight cost calculation, shipment cost
settlement, document printing, and international trade management,
such as denied-party list screening and embargo lists.
— Warehouse management ± Warehouse management reconciles open
purchase orders with incoming shipments, supports a put-away system
that remembers where goods are stored, and optimizes employee
picking assignments. Warehouse management also supports
warehousing tasks such as labeling, kitting, and deferred handling.

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SAP SCM supports supply chain visibility design and analytics with
features and functions that enable supply chain design and analytics
processes, including:
— '/%c ##$c %&c / ± With visibility across the entire
supply chain network, planners and key decision makers can perform
strategic and tactical business planning. They can test scenarios to
determine how the supply chain network can address changes in the
market, the business, or customer demand.
— ##$c%&c$% ± SAP SCM enables you to define, select, and
monitor KPIs to get an integrated, comprehensive view of performance
across the supply chain. You can also use predefined KPIs based on
the supply chain operations reference (SCOR) model to monitor
sourcing, planning, production, distribution, and returns processes.

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SAP SCM can help you transform a traditional linear supply chain into an
adaptive network with the following benefits:
— 'c '#"c "c %&/c c ##$c c  ± With
increased visibility into the supply chain and adaptive supply chain
networks, you can be more responsive. You can sense and respond
quickly to changes and quickly capitalize on new opportunities.
—
%'c %"'c 0%" ± By offering a common
information framework that supports communication and
 collaboration, SAP SCM enables you to better adapt to and meet
customer demands.
— "#$%c 2&c '/$"'c '5' ± You can track and
monitor compliance in areas such as environment, health, and safety.
—
#'")c %&c 0$"2 ± Information transparency and real-time
business intelligence can lead to shorter cash-to-cash cycle times.
Reduced inventory levels and increased inventory turns across the
network can lower overall costs.
— /&'c '/ ± With SAP SCM, you can lower operational
expenses with more timely planning for procurement, manufacturing,
and transportation. Better order, product, and execution tracking can
lead to improvements in performance and quality ± and lower costs.
You can also improve margins through better coordination with
business partners.
— ''c %&'"6"c 2&c c #'"' ± Tight
connections with trading partners keep your supply chain aligned with
current business strategies and priorities, improving your
organization's overall performance and achievement of goals
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Is it possible to both satisfy the demanding customer and achieve
profitability? Forward-thinking organizations are proving the answer is
yes. However, shifting from a traditional supply chain system to a global
supply network typically requires most companies to rethink conventional
business models and IT approaches.

Market leaders that have chosen to adopt a responsive supply network

business strategy are achieving significant results, including reduced
inventory levels, improved customer in-stock predictability, and overall
profitability.

By enabling end-to-end business processes, SAP Business Suite helps you

synchronize your supplies with market demand, collaborate across a global
manufacturing network, and integrate logistics with fulfillment. Furthermore,
SAP solutions can provide the visibility you need to streamline operations,
ensure sustainable processes, and respond more quickly to customer
needs with greater levels of efficiency and flexibility.

No matter the industry or size of your business, you can implement only the
software you need to solve your unique business challenges in your own
time and without expensive upgrades. By enlisting the help of SAP
Services before, during, and after any implementation, you can optimize
your IT investments. And with SAP Enterprise Support, companies take full
advantage of the integration of SAP and non-SAP solutions, minimize risk,
enable the acceleration of innovation, and address application life-cycle
management.

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Discover how value scenarios can help you:

— Synchronize demand and supply across a business network to
minimize stock outages with lower inventories
— Run manufacturing networks to deliver to demand across a global plant
floor of internal and outsourced production facilities
— Run logistics and fulfillment to source, store, move, and deliver
profitably across a global network
— Provide supply network traceability to protect your customers, your
brand, and mitigate financial and safety risks
— Optimize service parts planning and logistics to immediately impact
your bottom line

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How can one company systemically address this challenge in an

environment where lead times and demand fluctuations are often its top
production execution challenges?

Market leaders meet this challenge by effectively transforming their network

of internal and external plants, suppliers, outsourcers, and trading partners
to act as a single, virtual, global plant floor. This shift to a unified virtual
plant-floor model has the potential to deliver a reduction in lead time
execution and drive increased profitability by simultaneously reducing
stock-outs and optimizing inventory. According to the AMR Research report
"The Handbook for Becoming Demand Driven," the most advanced
demand-sensing companies have 15% less inventory, 17% better perfect-
order performance, and a 35% shorter cash-to-cash cycle time.

In today's global environment, a strategic IT challenge is to enable a single

view across multiple companies with disparate systems ± essentially, a
unified, virtual shop floor ± to minimize costs without negatively effecting
customer service. SAP addresses this challenge by providing solutions and
services for manufacturing network planning and execution.

SAP solutions help empower its customers by providing complete visibility

into operational demand, supply, and production dynamics combined with
integrated end-to-end processes to continuously update network-wide
production planning and execution. These processes include:
— ""$c 2"'(2c #'"%"c #$/ ± Minimize lead
times across multiple plants, products, and suppliers with detailed
actionable production plans.
— ""'c2"'(c3%" ± Reduce customer stock-outs, work
in process, and finished goods or material inventory through on-time,
on-demand production execution and associated material pull through
to plan.
—
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unplanned events through complete visibility across the network and
operational intelligence, enabling continuous update planning and
execution.
SAP partners provide critical complementary solutions such as inventory
optimization and real-world awareness to further increase manufacturing
responsiveness, while decreasing costs. Services from SAP and our
partners include value assessment studies, detailed road maps, and
implementation expertise.

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Business Transformation Studies

PVC pipe and pipe fitting producer Amanco Brasil Ltda. wanted to increase
sales, market share, and operational efficiency. By implementing
collaborative demand and supply planning processes through SAP
software, Amanco has dramatically improved demand forecasting and on-
time, accurate order delivery, while reducing inventory levels and operating
cost.

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Customer Success Stories

Learn how the SAP New Product Development and Introduction for
Consumer Products package provided Arla Foods with comprehensive,
integrated support. The result: faster time to market, significantly increased
new product sales, and a solid foundation for collaboration with external
partners.

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Customer Success Stories

Learn how this world -renowned automobile maker set about modernizing
its IT infrastructure and reducing the cost of warehouse and material flow
operations. The company implemented SAP SCM and functionality to
manage tasks and resources. The results: increased cost-effectiveness
and more efficient use of resources.

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Customer Success Stories

Find out how HARMAN/BECKER, a German supplier of high-end audio

systems, reduced costs, decreased operating overhead, and improved its
suppliers' scope for planning with a new collaboration portal powered by
the SAP NetWeaver Exchange Infrastructure component and the SAP
Supply Network Collaboration offering.

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Customer Success Stories

Learn how this major Indian consumer products company gained firm
change control management for a vast SAP software environment
supporting offices throughout India with SAP Solution Manager. The
change and transport system functionality supports ABAP-based and Java-
based SAP software

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Business Transformation Studies

See how Piramal Healthcare, India's second largest pharmaceutical

company, used SAP Advanced Planning & Optimization to manage its
working capital more effectively and ensure optimized capacity utilization.

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Business Transformation Studies

Take into account how India's largest watch manufacturer connected its
entire supply chain and increased its competitive advantage by
implementing the SAP Advanced Planning & Optimization component of
the SAP Supply Chain Management application through its internal project
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1. www.sap.com
2. www.tridentindia.com
3. Abhishek industries pvt. Ltd.
4. Mahindra & Mahindra Limited.
5. Harland, C.M. (1996) Supply Chain Management, Purchasing and
Supply Management, Logistics, Vertical Integration, Materials
Management and Supply Chain Dynamics. In: Slack, N (ed.)
Blackwell Encyclopedic Dictionary of Operations Management. UK:
Blackwell.
6. Mentzer, J.T. et. al. (2001): Defining Supply Chain Management, in:
Journal of Business Logistics, Vol. 22, No. 2, 2001, pp. 1±25
7. Hines, T. 2004. Supply chain strategies: Customer driven and
customer focused. Oxford: Elsevier.