Case Study: How to Improve Supply Chain Procurement Visibility Using SAP Event Management

  • by Sandeep Pradhan, SAP SCM Solution Architect, Independent Consultant (September 2009)
  • August 28, 2009
Learn how to apply SAP Event Management to get supply chain visibility and fine-tune supply chain business processes and planning. Learn the core capabilities of SAP Event Management and configuration setup to implement it in a short time frame.

SAP Event Management provides real-time visibility to the supply chain at a granular level – around anticipated business events or exceptions – with a status portal, overdue list, alert framework, workflow, and analytics to identify business priorities, escalation paths, and guidance in resolving variations.

As companies improve their Sales and Operations Planning (S&OP) processes, supply chain event management is fast becoming a means of implementing and monitoring those plans. The goal of SAP Event Management is to introduce a proactive control mechanism for managing business events – exceptions in particular – and responding to them dynamically. This process and tool set helps improve customer service and delivery performance for companies by managing exceptions to business processes versus the business process itself. SAP Event Management allows you to define business rules to detect exceptions and route alerts to be routed to the appropriate individual or groups for remediation and resolution.

Let me share my recent experience in implementing SAP Event Management for a client. A media company had a manufacturing subcontracting model. It needed to effectively collaborate with its external vendors for its manufacturing order fulfillment in order to meet market demands. The company markets home videos and wanted to improve operational efficiency by measuring supplier delivery performance and increased customer satisfaction with stock availability. My team of three (solution architect, business analyst, and developer) implemented the SAP Event Management Procurement Visibility scenario within three months by using SAP-delivered contents that accelerated the implementation timeline. The objective of the implementation was to give the company the ability to monitor and manage the purchase orders and raise exceptions notifications via email or reports. Our client wanted to see any expected purchasing business events not happening within the planned milestones date/time or delivery date, and quantity or amount variances reported by vendors.

Sandeep Pradhan

Sandeep Pradhan is an SAP SCM solution architect with more than 15 years of professional experience specializing in supply chain application advisory services. Having performed sixteen discrete supply chain projects, he has achieved results by helping clients to understand, architect, select, and implement the right SAP SCM (APO, Event Management, SNC) solutions required to run their business. Sandeep holds an MBA degree from Monash University, Australia, and is an SAP SCM/BW certified consultant.

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