This presentation made at the ASUG 2011 Fall Focus introduces the SAP Sustainability Executive Advisory Council (EAC) and announces the limited ramp-up of the Sustainability Business Network (SBN) solution from SAP Research.

1. Use SAP Tools and Green Purchasing
[ to Create a Sustainable Supply Chain
William Newman, CMC, MBA, SA
Managing Principal – Newport Consulting Group
Twitter @william_newman
#ASUGFOCUS

2. [ Agenda
 Introductions
 Learning Points
 Sustainability Executive Advisory Council
 SAP’s Sustainability Solution Map
 One Example: Embedded Procurement Processes
 Another Example: Sustainable Business Networks
 Planned Demonstration
 Key Take-away’s and Resources
 Q&A
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3. [ About the Speaker
William D. Newman, CMC, MBA, SA
 ASUG Recognized Influencer
 EPM, GRC, Sustainability
 Member, SAP Sustainability Executive
Advisory Council
 Certified Management Consultant (since 1995)
 Over 25 years in industry,15 years working
with SAP customers and management
 Public Speaker (ASUG, Insider, TEDx, others)
 SAP Press Author (Understanding SAP BOBJ EPM)
 Numerous articles on program oversight, stakeholder
engagement
 Twitter (william_newman)
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4. [ About the Firm
 Newport Consulting Group is an independent
consulting firm founded in 2005 and managed by
several leading directors from DMR Consulting
Group and strategy firm Booz & Company
 Our clients enjoy working with our experienced
professionals who deliver large firm capabilities
with a boutique firm culture
 We function as top-end, high-touch advisors
to our F500, Inc 5000 and GT25 clients
 We help SAP partners RUN BETTER
www.newportconsgroup.com
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5. [ If you learn nothing else …
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6. [ Emerging Sustainable Frameworks
The University of
Oregon
Sustainability
Leadership
Program is
tracking over 50
emerging
standards,
guidelines and
frameworks in the
area of
sustainability.
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7. [ What is SAP Doing?
Exemplar Enabler
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8. [
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9. [ What is the Sustainability Executive
Advisory Council?
Mission
The SAP Sustainability Executive Council brings together leading
global executives and sustainability practitioners to learn and share
best practices for utilizing SAP technology in order to realize the
vision of sustainability.
Objectives/Outcomes
• Share best practices in a global community focused by industry &
region
• Enable customer input for solution development
• Help customers design their own roadmap to sustainability
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10. [ Benefits of the Sustainability Executive
Advisory Council
Membership Benefits
• Share best practices in a thought leadership community focused
on using IT to solve sustainability problems  become your
industry’s thought leader
• Engage with fellow executives, academics, analysts and
consultants from similar and different industries Direct access to
SAP top executives and industry influencers
• Participate in Wharton Executive Education Course for
Sustainability Execs
• Become a SAP sustainability reference and industry leader
• Design your own roadmap to solve your organization’s
sustainability challenges
• VIP special treatment at SAP programs, conferences & events
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11. [ Sustainability EAC Member Structure
Chief Sustainability Officer
Executive Council or Senior Executive
■ Most senior business leaders
■ SAP’s Leading customer Executives in ■ SAP’s most recognized customers
North America, Latin America, EMEA & ■ Thought leadership
APJ Regions ■ Measurable impact
Line of Business Working Groups
Line of Business
■ Sustainability Reporting ■ Operational Risk
Strategic Executives
Direction & Analytics Management
& ■ VP Council around select topics
Priorities
■ Energy and ■ Sustainable Supply ■ ~25 executives per topic area
Environmental Resource Chain & Products ■ SAP’s most recognized customers
Management ■ Measurable impact
Line of Business Community Building Participation via SAP User
Group
■ Broad community of SAP customers with Engagement and Communities;
technology / solution focus by local country Special Interest Groups;
■ Alignment with SAP User Groups (e.g. ASUG) Industry Councils
and Industry Councils
Global Portfolio
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12. [ EAC Key Issue Map (extract)
Topic Hypothesis / Questions Impact
Energy Management Successful businesses in the future will use onsite, renewable energy management in their Decision on SAP
manufacturing processes, maximizing energy efficiency while tracking emissions reductions. How prioritization for
can these concepts be integrated into the enterprise today for future deployment? solution coverage
• How can we identify specific energy saving strategies with immediate benefits?
• How can we create hedges against rising costs and leverage smart energy usage for
competitive advantage?
• Discuss government tax incentives and utility rebate programs
Water What are the challenges of managing water scarcity and costs? What is the global perspective on Decision on SAP
best practices and business strategy with regard to water management in the enterprise? prioritization for
Discussions will explore specific opportunities for innovation related to development of new solution coverage
management tools, policy formation and business opportunities.
Risk Management How do you manage energy and weather based disaster scenarios [e.g. Fukishima]? What are the Understanding
contingencies for on-boarding new energy sources, changes in disaster-related supplier disruptions market tolerance for
[e.g. the Toyota example]? What can you do to mitigate disclosure areas and binding statements risk management
made in executive reporting? How will you manage FASB proposals for consolidated financial and solutions
sustainable reporting?
Sustainable Supply How do you structure a sustainable supply chain program? How do you onboard suppliers Decision on SAP
Chain effectively? What communication guidelines should you use? How do you structure IT systems to prioritization for
support? What are best practices for managing SSC programs? solution coverage
Sustainable How do you define sustainable procurement in your organization? What are some of the TBL Determine any
Procurement approaches to “balanced procurement” versus “low-cost” practices? How do you transition to missing areas of
TBL based procurement? How do you communicate and track supplier compliance? Green coverage for SAP
impacts?
How can companies embed sustainability into their procurement processes across their
organization? What are the challenges and barriers procurement officers face? What is the
potential for whole-life costing to drive sustainable procurement processes?
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13. [ SAP’s Sustainability Map
Source: www.sap.com/solutions/executiveview/sustainability/sustainability-map/index.epx
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14. [ Best Practices in “Green Procurement”
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15. [ One Example: Sustainable Procurement
Functions
 The roadmap for sustainable procurement will
contain elements of business practices in SAP SRM-
based applications, as opposed to unique solutions
that will address sustainability
 Tie-in to performance management and reporting
(e.g., SAP BusinessObjects Sustainability
Performance Management)
 Frameworks for online sourcing and supply chain
compliance assessments
 Address both on-premises and OnDemand
solutions
 Availability is tiered through CY 2011 with
subsequent evolutions to include more standards
Source: SAP Sustainability Executive Advisory Council, 2011.
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16. [ Target Milestones for Sustainable
Procurement Functions
• SAP ERP
 Establish master data for
vendor, purchasing process
• SAP SRM
 Enable sustainable
purchasing
 Enterprise-level Supplier
Information Management (SIM)
 Network-level supplier
information collection and
assessment Note: Mock-ups
• Ability to conduct life cycle and provided are for
conceptual
total cost of ownership discussion only
assessment
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17. [ Another Example –
Mobile SRM Applications
 SAP Supplier Search - look-up for field, mobile use via SRM
Source: SAP, 2011
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18. [ Rendering for iPhone / iPad
Different renderings for
different app environments
based on similar process /
look-up flows. Reduces look-
up times, clerical work, any
paper output, increases
response efficiency and
employee flexibility.
Source: SAP, 2011
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19. [ Working with Multiple Suppliers
Manufacturer Reporting
Internet Database Internet Supplier A
Internet
Supplier B Local
Solution
Material Plant / Shop
SAP ERP PLM / PDM
Planning Floor
Source: Newman, William. Increase Supplier Compliance with Sustainable Business Networks, GRC Expert, July 18, 2011
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20. [ Concept of a Sustainable Business Network
Source: Newman, William. Increase Supplier Compliance with Sustainable Business Networks, GRC Expert, July 18, 2011
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21. [ Benefits of a Sustainable Business Network
What is a Sustainable Business
Network?
 A Sustainable Business Network
consists of supply chains that provide
financial, environmental and social
value. It thus
1. returns profit, or at least does not
run unprofitable,
2. enhances the lives of people
involved in it, or at least does not
create disadvantages for them,
3. enhances environmental health,
or at least does not harm the
environment
Source: SAP Research
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22. [ Building a Community Network
 A sustainable supplier management capability as part of the
network on-demand model will help generate community
action
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23. [ Another Example:
Project “Glasshouse”
Addressing the need for Sustainable Business Networks
 SAP Research believes that only sustainable supply chains can
succeed in the long run.
 Sustainable supply chains have a competitive advantage that can
only be enabled and sustained through collaboration between
the partners of the network and transparency towards
customers and investors.
The intended approach
 SAP Research will provide customers with an understanding
of their supply chain, its sustainability performance, and
alerts on sustainability risks within the supply chain
Source: SAP Research
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24. [ Early Imagery – Platform Look and Feel
Source: SAP Research
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25. [ Planned Demonstration – SAP Research
 Demonstration by
Dr. Alexander Dreiling, SAP Research
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26. [ Wrap-up / More References
Source: SAP
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27. [ Wrap-up / Initiatives and Programs
Source: SAP
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28. [ Key Learnings
 Sustainable purchasing can have many forms and uses
 Simple supplier look-up and coordination
 Deep embedded use of master data management
 Broad business network compliance and reporting
 Determine what is needed by your organization
 Focus on what “collection of 50” guidelines apply
 Align to the strategy of your organization, not just compliance
 Look for support groups, case studies, active customers
 SAP Sustainability EAC excellent community forum for discussion
 Leverage existing on-premises and on-demand models
 Look for rapid, 1-year (or less) payback
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29. [ References
 Increase Supplier Compliance with Sustainable Business
Networks , GRC Expert (July 18, 2011)
 Sneak Peek: Sustainable Procurement as an Embedded Process
in Supplier Management Activities , GRC Expert (December 1,
2010)
 Comply with the EPA’s MRR Standard with SAP Carbon
Impact OnDemand, GRC Expert (January 7, 2011)
 Best practices for managing sustainable supply chains,
searchManufacturingERP.com (July 14, 2011)
 Mastering the IT demands of a sustainable supply chain,
searchManufacturingERP.com (July 7, 2011)
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30. [ Your turn!
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31. [
 Thank you for participating.
Please remember to complete and return your
evaluation form following this session.
For ongoing education on this area of focus, visit the Year-Round
Community page at www.asug.com/yrc
]
[ SESSION CODE: #ASUGFOCUS
November 16, 2011 / 330PM (Avila A)
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