RAPID-DEPLOYMENT SOLUTION SERVICE PARTS PLANNING SOLUTION in DETAIL

1. RAPID-DEPLOYMENT SOLUTION SERVICE PARTS PLANNING SOLUTION in DETAIL Month Year

2. We Are Here to Discuss What is the Rapid Deployment Solution Benefits and Value Proposition Scope & Deliverables Product Demo Project Approach and Planning Pre-requisites Positioning for SAP Consulting Customer References

3. We Are Here to Discuss What is the Rapid Deployment Solution Benefits and Value Proposition Scope & Deliverables Product Demo Project Approach and Planning Pre-requisites Positioning for SAP Consulting Customer References

4. Service Parts Planning & Procurement Solution Objectives, issues, capabilities and benefits Objective: Balanced and profitable demand and supply of service parts Best practice solution:Determine trade-off between inventory costs and service levels and provide inventory visibility across the whole service parts supply chain Issues Key business capabilities Benefits • Less than optimal inventory strategy to meet customer requirements • Poor parts inventory visibility • Parts inventory is not in the proper location to fulfill the customer requirement in time and at minimal logistics costs • Obsolete and excess inventory • Suppliers not performing as required and agreed upon (time and quantity) • Create the optimal strategy to have the right part, at the right time at the right location • Minimize transportation costs by having a "balanced" inventory plan and efficient distribution network • Take the optimal allocation decision to the latest possible point in time based on real-time data and visibility into both, internal network demand and customer-facing demand • Enable collaboration with customers and the supplier eco-system • A correct inventory plan is the foundation for being able to deliver superior customer service • Reduced logistics cost • Supplier collaboration improves supply visibility, allowing both sides to anticipate supply delays, and increased responsiveness to demand changes • Customer collaboration extends demand visibility of the entire service supply chain and increases planning quality and efficiency

5. Parts Demand Planning Parts Inventory Planning SAP Service Parts Planning rapid-deployment solution SAP Solution and Scope of RDS for SPP Parts Supply Planning • RDS for Service Parts Planning is • Lowering the entry barriers for customers to look into SCM-APO-SPP • Offering a quick implementation for a quick return on investment • Reducing the risk for customers to run into long SPP implementation projects with high implementation costs SAP for Service Parts Planning • RDS for Service Parts Planning scenarios include: • Demand Management and Forecasting • Inventory Planning • RDS for Service Parts Planning scenarios include: • Demand Management and Forecasting • Inventory Planning • Procurement • Network Replenishment Parts Supply Moni-toring & Analysis Customer Collaboration Parts Demand Planning • Provide full inventory visibility across the whole service parts supply chain • Properly plan inventory across a distribution network based on the part volume, velocity, segments, and other practical business rules • Out of the box business process collaboration with the help of intuitive easy to use web interface for the suppliers • Basing distribution decisions on what is occurring in real time throughout the network Parts Distribution Logistics Parts Inventory Planning Parts Internal Assembly / Repair Parts Supply Planning Parts Supply Planning Parts External Procurement Parts Distribution Logistics Parts Distribution Logistics Supplier Collaboration SAP Differentiators End-To-End: Supports the complete business process - not only to generate the optimal plan (plan for the expected), but also be able to react in real-time on the unexpected Collaboration: Real-time data sharing between you and your suppliers, proactive monitoring, and measuring performance using supplier scorecards Flexibility: Flexibility in configuration to support the different business strategies Flexible deployment strategies, balancing of inventory within the network, and ordering base on the optimal price and package size End-To-End: Supports the complete business process - not only to generate the optimal plan (plan for the expected), but also be able to react in real-time on the unexpected Collaboration: Proactive monitoring and measuring performance Flexibility: Flexibility in configuration to support the different business strategies Flexible deployment strategies, balancing of inventory within the network,

6. Preconfigured Service Parts Planning software and services enabling rapid deployment SAP brings together software and services in a new offering that gives you essential Service Parts Planning functionality quickly and affordably • Preconfigured software to eliminate the guesswork • Rapid deliver in as little as 20 weeks, using SAP consulting • An affordable, flexibly priced solution • A clear path to your full Service Parts Planning vision .

7. Immediate Value From Pre-configured ContentYou Get What You Need to Run Your Business ‘Out-of-the-box’ Value Adding Quick and Lean Cost-effective • Clearly defined scope • Includes pre-configuration content and knowledge transfer to key users • Fast-track implementation methodology • Enables you to go live in 20 weeks • Bundled licensing for software and services • Attractive fixed-price services • Reduced resource requirement from Business and IT • Increase customer service levels • Inventory investment reduction • Reduction in operational/ logistics cost

8. We Are Here to Discuss What is the Rapid Deployment Solution Benefits and Value Proposition Scope & Deliverables Product Demo Project Approach and Planning Pre-requisites Positioning for SAP Consulting Customer References

9. The Business Challenge Customer Pain Points • Less than optimal inventory strategy • Poor parts inventory visibility • Parts inventory is not in the proper location • Obsolete and excess inventory • Suppliers not performing as required and agreed upon Customer Goals/Needs • Optimal inventory strategy to meet customer requirements • Better parts inventory visibility • Parts inventory in the proper location to fulfill the customer requirement in time and at minimal logistics costs

10. Software to Give You Compelling Service Parts Planning Functionality Quickly and Affordably What‘s in SAP Service Parts Planning rapid-deployment? • Scenarios included: • Demand Management and Forecasting • Inventory Planning • Procurement • Network Replenishment • SAP Rapid Deployment solutions value profile • Provides preconfigured software • Implementation Time in less than 20 weeks • Faster time to value compared to standard implementations • Low cost implementation with a fixed scope and fixed price • Simple buying process • Did you know that with SAP SPP you can • Provide full inventory visibility across the whole service parts supply chain • Properly plan inventory across a distribution network based on practical business rules • Basing distribution decisions on what is occurring in real time throughout the network

11. We Are Here to Discuss What is the Rapid Deployment Solution Benefits and Value Proposition Scope & Deliverables Product Demo Project Approach and Planning Pre-requisites Positioning for SAP Consulting Customer References

12. Parts Demand Management and Forecasting Process Overview RDS Scope Parts Demand Planning represents the starting point for subsequent tactical and operational planning applications by predicting the future customer-facing demand. Parts Supply Moni-toring & Analysis Parts Demand Planning Customer Collaboration Parts Inventory Planning Process Steps Parts Internal Assembly / Repair 1 2 3 Parts Supply Planning Phase-In/Phase-OutForecasting Capture Historical Demand Manage Historical Demand Forecasting Parts External Procurement Parts Distribution Logistics • Retrieve historical demand from order management system • Aggregate demand data along bill of distribution (BoD) locations • Allocate demand to the location, where demand should have occurred • Separate demand data based on forecast relevance • Reorganize historical demand data based on changes in business policy or events in reality, like • Supersession (1:1) • Stocking / De-stocking decisions • Changes in customer sourcing rules • Changes of the BoD • Service parts specific forecasting models, i.e. for slow-moving items, sporadic demand • Automated forecast model evaluation and selection based on forecast performance • Forecast generated locally and on an aggregated basis in order to utilize portfolio effect Supplier Collaboration

13. Parts Inventory Planning Process Overview RDS Scope Inventory Planning determines where to stock which parts and how much of it - balancing maximum service levels with lowest inventory costs.  Parts Supply Moni-toring & Analysis Parts Demand Planning Customer Collaboration Parts Inventory Planning Process Steps Parts Internal Assembly / Repair 1 2 Parts Supply Planning Safety Sock and Economic Order Quantity Surplus / Obsolescence Planning Stocking / De-stocking Parts External Procurement Parts Distribution Logistics Supplier Collaboration • Dynamic Stocking / De-Stocking decisions based on cost, demand frequency and customer-specific classification criteria • Stocking / De-Stocking decisions or policies are integrated with the location determination rules in gATP for customer order fulfillment • Calculation of safety stock (SFT) based on service level, lead time and standard deviation as well as on distribution assumption (normal or poisson) • Determination of economic order quantity (EOQ) and SFT in dependence of each other

14. Parts Supply Planning - ProcurementProcess Overview RDS Scope Parts Supply Planning determines the net requirements from an overall network perspective, as the basis for providing external and internal supply in the right quantity, to the right point in time. Efficient approval procedures help to highly automate and to focus on exceptional situations. Parts Supply Moni-toring & Analysis Parts Demand Planning Customer Collaboration Parts Inventory Planning Process Steps Parts Internal Assembly / Repair 1 2 3 Parts Supply Planning Run DistributionRequirementsPlanning (DRP) GenerateOrder Proposals Review / ApproveSupply Plan Parts External Procurement Parts Distribution Logistics • Roll-up net requirements through the network • Procurement recommendation decision support • DRP is executed in a time-phased mode • Generate purchase requisitions or release schedules in case of external new buy • Check order proposals against standard or customer-specific approval rules • Status-and event-driven approach with objective of high automation as well as filtering out sensitive situations subject to manual approval • Full integration into execution after approval Supplier Collaboration

15. Parts Distribution Logistics - Network Replenishment Process Overview RDS Scope Parts Distribution Planning determines the most appropriate allocation of available quantities in a multi-level network in real-time. A pull deployment strategy supports the efficient internal replenishment of parts between two locations. Parts Supply Moni-toring & Analysis Parts Demand Planning Customer Collaboration Parts Inventory Planning Process Steps Parts Internal Assembly / Repair Parts Supply Planning Distribution Execution Pull Deployment Inventory Balancing Parts External Procurement Parts Distribution Logistics • Triggered by an actual demand over lead time at a child location • Move parts to the demand location along the BoD – from parent level • Apply priority level processing if available quantity is less than the demand • Priority-tier processing across multi-levels of the BoD • Triggered by a short supply situation, de-stocking or super-session • Transfers inventory between location using other than the standard BOD distribution paths • Determines locations with excess inventory and inventory need • Planned stock transfer order (result of step 1a/b/c) fully integrated with transfer execution Supplier Collaboration

16. Key Deliverables • Installation check • Initial scoping workshop to understand and cover your requirements • Project documents: process description, project plan and WBS activities • Customization of chosen packages for the SAP Service Parts Planning rapid-deployment solution in the development system • Knowledge transfer to key users on configured SAP Service Parts Planning rapid-deployment solution system • Support for going live • Provide the IT infrastructure (server) • Install the SAP Service Parts Planning application, EHP1 for SAP SCM 7.0, on the development and production environments • Provide fixed contact people in the business and IT departments • Conduct end-user training • Performance testing What does SAP deliver? What do you have to do?

17. We Are Here to Discuss What is the Rapid Deployment Solution Benefits and Value Proposition Scope & Deliverables Product Demo Project Approach and Planning Pre-requisites Positioning for SAP Consulting Customer References

18. Product Demonstration

19. We Are Here to Discuss What is the Rapid Deployment Solution Benefits and Value Proposition Scope & Deliverables Product Demo Project Approach and Planning Pre-requisites Positioning for SAP Consulting Customer References

20. Project Plan and Timelines 1 2 3 4 Steps Start Deploy Run Project Management Kick off workshop Business Process Management Technical Solution Management Implementation Performance Testing Key User Workshop Data management Transport End-user Training Customer Testing Project Sign-off &Support SAP involvement Customer involvement

21. Successfully Deploy in as Little as 20 Weeks Run Start Deploy 1 2 3 Expectations • User-acceptance testing • Onsite and remote support • Project management • Kick-off workshop participation • Preparing technical infrastructure • Implementation • Testing • Key User Training Results • Superior support to ensure smooth functioning • Mutually-approved scope document • Working SAP Service Parts Planning system • Successful rollout and adoption • Configuration documentation

22. Pre-defined Services for Rapid Deployment solutions • Your path to Go-Live — fast, efficiently and at predictable cost • Fixed-price Implementation Services • Pre-defined Project Methodology • Ready-to-use Accelerators

23. Implementation Methodology Start Deploy Run Kickoff Workshop Installation Guide Rapid-deployment Deliverables: Project Plan Readiness Check Check Lists Support Portal Access to the implementation methodology materials:http://service.sap.com/solutionpackages

24. Project Team: SAP • SAP Project Manager • Serves as a central contact person, from project initiation to going live and support • On the SAP side, responsible for functional project management, coordination, support and coaching of the customer’s project manager, and so on • Core Project Team • Service Parts Planning solution consultants / solution architects • Particularly responsible for monitoring process configuration, know-how transfer, and so on • SAP Consultants • Responsible for implementation of the agreed upon scope for the SAP Service Parts Planning rapid-deployment solution

25. Project Team: Customer • Leading Project Manager • Serves as a central contact person, from project initiation to going live and support • On your side: responsible for functional and commercial project management, coordination, overall project controlling, preparation of steering committees, and so on • Core Project Team • Basis staff • Especially responsible for the installation and administration of the development and productive system landscapes • Functional department staff / key user • Responsible for workshops, questions from SAP, end-user training, and possibly as a power user for simple configurations • Specialized Staff (Optional) • Responsible for further specialized areas such as customization and configuration

26. We Are Here to Discuss What is the Rapid Deployment Solution Benefits and Value Proposition Scope & Deliverables Product Demo Project Approach and Planning Pre-requisites Positioning for SAP Consulting Customer References

27. RDS - Service Parts Planning System Requirements and Development System Landscape SCM 7.01 • EHP1 FOR SAP SCM 7.0 with live Cache (including gATP) • BI Content 7.05 • SAP NW Business Client 3.0 • Enterprise Business Functions: • SCM_GEN_1 • SCM_GEN_2 • SCM_SNC_GEN_1 • /BCV/MAIN ERP • EHP 4 for SAP ERP 6.0 - SP06 SP06 ABAP, based on SAP NW 7.01 SPS06 • Installed Solution Manager 7.0 SP26 (Optional)

28. Deployment Options • The Rapid Deployment Solution of SAP Service Parts Planning (SPP) is based on the standard SAP SCM 7.0 best practice scenarios and other accelerated solutions. There are two different deployment options available with this Rapid Deployment Service including (there is no cost difference): • Implementation Option 1: Deployment of SCM SPP Demand Management and Forecasting, Inventory Planning, Procurement, and Network Replenishment. • Implementation Option 2: Deployment of SCM SPP Demand Management and Forecasting and Inventory Planning. Use of ECC MRP instead of SCM SPP Procurement and Network Replenishment.

29. SAP Spare Parts Planning rapid-deployment solutionKey assumptions • The customer has available: • ECC Master Data (plants, materials, calendars, UoM, etc) • ECC Four years of Sales Order Demand History (conversion if not using gATP) • ECC SD for Sales Order Processing (Badi if not using gATP) • ECC Procurement • ECC MRP for supply planning (if doing implementation option 2 only) • General Master data is “acceptably clean” and within limits • General Customer provides the recommended number of qualified people • General Project team members attend SPP training (overview and configuration) prior to kickoff. • Traditional 3 tier landscape (development, test, production) • Project team members attend SPP training (overview and configuration) prior to kickoff • Legacy data conversion, migration, and archiving is responsibility of customer

30. SAP Spare Parts Planning rapid-deployment solutionKey assumptions • The customer has provided the following data prior to kick-off: • Input forecast periodicity • Input approval levels • Input lead times • Input service levels • Input ordering costs • Input inventory costs • Input Bill of Distribution(s) • Input Sales Order history • Output Forecast in ECC (Implementation Option 2) • Output Inventory Planning Parameters in ECC (Implementation Option 2) • Output Scheduling Releases • Output Transport orders

31. We Are Here to Discuss What is the Rapid Deployment Solution Benefits and Value Proposition Scope & Deliverables Product Demo Project Approach and Planning Pre-requisites Positioning for SAP Consulting Customer References

32. SAP Consulting – Worldwide Delivery • SAP Consulting • 12,000 consultants worldwide • Consultants with special SAP Service Parts Planning or SCM application expertise • Consultants located all over the world, in every region • Why SAP Consulting • Product and solution experts • SAP knows SAP software best • Deep process knowledge and translation of processes to standard software • Best use of own SAP product close to standard, which gains release “sustainability” and protection of investment • Numerous satisfied customers of SAP Service Parts Planning • Quality assurance

33. Benefits of SAP Consulting • Sales Support • Sales support via single point of contacts in every market unit • Various deployment possibilities • Presales customer experience by supporting test drives (what you see is what you get) • Delivery • Experience in lean, fast implementation leveraging a “quick time to value” implementation methodology • Service offering developed based on years of customer experiences • Numerous satisfied customers of rapidly deployed SAP Service Parts Planning • Direct access to sales, development, and support organizations – the global skills, information networks, and resources of SAP

34. We Are Here to Discuss What is the Rapid Deployment Solution Benefits and Value Proposition Scope & Deliverables Product Demo Project Approach and Planning Pre-requisites Positioning for SAP Consulting Customer References

35. Customers Drive Value with Service Parts Planning & Logistics to Stay on the Cutting Edge • 15% Service Inventory reduction • Increased Service Levels • Global ATP provides view of the entire • Distribution Network • Supersession integrated fully within Forecasting, Planning and Execution • Integrated Platform shared by Engineering, Customer Service and Supply Chain • Implement Global Process/System • Improveand Sustain Fill of 98% • Reduced Inventory by 10% • Increase Part Sales • Improve Inventory and Order Visibility • Eliminate Unplanned Outages • Improvement in warehouse productivity • Improvement in fill rates • 15% to 25% reduction in inventory • 20% to 30% reduction in IT support costs “ When Caterpillar Logistics Services, Inc. wanted to move its aftermarket parts operation to a next-generation platform, it joined forces with Ford Motor Company and SAP to develop a powerful service parts management solution. Now part of the SAP Service and Asset Management solution, the software is helping the company stay on the cutting edge.”

36. Key Takeaways • FAST TO DEPLOY AND EASIER TO CONSUME • Rapid-deployment – Preconfigured software that delivers essential service parts planning processes in as little as 20 weeks. • Reduced complexity – A robust Service Parts Planning solution from a single vendor, with superior global support, means fewer worries for you 1 • COMPETITIVELY PRICED • Predictable costs – Low, predetermined fees and clearly outlined deliverables mean no hidden fees or ˝gotchas˝ for the delivered solution 2 • BUILDING FOR SUCCESS • Foundation for growth – start small, prove the value of this solution, and then grow on your schedule to the full SAP Service Parts Planning application, if needed. • Valuable customer insight – integrated with the SAP ERP application, the solution can provide a complete picture of your customers 3

37. Questions

38. Appendix

39. Overview The scenario describes an automated process capturing sales history and generating a forecast. Based on automated and repeatable technical processes, automated forecasting or interactive forecasting allows creation of an optimal forecast for every part at every location within your network. Benefits Simplifies the technical process of capturing sales order Enables a repeatable and sustainable forecasting process System automatically adjusts to changes in your business Allows user interaction to fine tune the automated forecasting results The forecasting results are immediately available for use Key process flows covered Capturing sales orders Managing demand history Realigning demand history Automated forecasting Interactive forecasting Forecast approval Demand Management and Forecasting Scenario

40. Overview Inventory Planning determines where to stock which parts and how and how much of it - balancing maximum service levels with lowest inventory costs. The scenario includes decisions about dynamic stocking and destocking as well as user interaction through work lists and manual planning capabilities. Benefits Simplifies the stocking decision process Supports multiple service strategies Lowers inventory investments Improves service levels Key process flows covered Create stocking policies Dynamic stocking and de-stocking decisions Optional user approval work list Determine you business strategy and targets Performs a combined planning of economic order quantity and safety stock Interactively fine tune the plan if desired Inventory Planning Scenario

41. Overview This scenario calculates and rounds demand to aggregate demand through the Bill of Distribution (BOD). The result is used to create scheduling agreement and purchase requisitions, that are transferred to ERP after an automated or manual approval process. Benefits Simplifies how to meet demand within your network Supports either schedule agreements or purchase orders Reduces planner review time by use of planner work lists Standard order integration to SAP ERP Key process flows covered Calculates demand & Rounds demand based on rounding profiles Aggregates demand along the Bill of Distribution (BOD) Creates Scheduling agreement delivery schedule & Creates purchase requisitions Automatic or manual approval of recommendations & Approved results sent to ERP via Core Interface (CIF) Procurement Scenario

42. Overview Network Replenishment is describing business activities to distribute goods through a network to meet customer requirements. Demand is determined at parent and each child location and stock transport requisitions are created automatically. Benefits Simplifies the replenishment process Balanced network distribution of goods Automatic fair share analysis Integrates stock transport requisitions automatically to SAP ERP Key process flows covered Determine deployable quantity at the parent location Calculates demand at each child location Fair share analysis if required Creates stock transport requisitions Automatic or manual approval process Network Replenishment Scenario

43. Thank You! • Contact information: • F name MI. L name • Title • Address • Phone number