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Transforming the Distributor Network with SAP Fiori and MFGPath

United Copper Industries (UCI) is a leader in the copper wire sector. Hear how UCI leveraged the pre-configured MFGPath, a qualified SAP Business All-in-One partner solution, along with the SAP Fiori user experience, to reengineer business processes for pricing and its distributor channel.

Presented at SAPPHIRE NOW 2016.

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Transforming the Distributor Network with SAP Fiori and MFGPath

  1. 1. Copyright © Capgemini 2016. All Rights Reserved! Transforming the Distributor Network with SAP Fiori and MFGPath Orlando, 18 May 2016
  2. 2. Copyright © Capgemini 2016. All Rights Reserved! United Copper Industries (UCI) UCI is owned by KPS Capital Partners, LP. KPS is a family of private equity limited partnerships with approximately $5.9 billion of assets under management. ! United Copper Industries (“UCI”) is a leading manufacturer and distributor of building wire and cable used in the construcIon of industrial, residenIal and commercial buildings in the United States. ! Headquartered in Denton, Texas, UCI where it operates a manufacturing facility. ! United Copper manufactures all major types of 600-volt building wire and cable used in both residenIal and commercial construcIon. ! United Copper sells its products through prominent naIonal, regional and local electrical distributors across the country. ! UCI is a leader in green technology by manufacturing lead-free products and powering its facility with over 40% renewable energy.
  3. 3. Copyright © Capgemini 2016. All Rights Reserved! Facilities, Locations, and Operations 1.  Denton, Texas !  Headquarters !  Manufacturing – includes copper rod mill !  Primary DistribuIon Center 2.  Atlanta DistribuIon Center 3.  Chicago DistribuIon Center 4.  New Jersey DistribuIon Center 5.  Sacramento DistribuIon Center Non- Residen+al - THHN THWN - TFFN Residen+al - NM (non metallic) - MC (metal clad) Bare Copper Wire Rod Mill Drawing Stranding Braiding/Twis+ng Spool/Packaging •  All Manufacturing takes place at Denton, Texas facility •  Custom lengths (cuts) is a growing make-to-order business •  Raw materials comprise 85+% of COGS
  4. 4. Copyright © Capgemini 2016. All Rights Reserved! UCI ERP Situation !  “Inherited” a highly customized SAP 4.7 instance from former parent company !  Improvement iniIaIves ocen made more difficult by the legacy SAP customizaIons !  ReporIng very cumbersome – extracts, custom reports and spreadsheets !  Sales Agent access through custom web front-end Legacy SAP 4.7 Scope: o Finance and Controlling o Procurement, Inventory Management, WM (Finished Goods) o Sales and DistribuIon (custom web front end for Sales Agents) o PP Process Industries
  5. 5. Copyright © Capgemini 2016. All Rights Reserved! UCI Requirement - full scope replacement in 6 months Take advantage of SAP standard processes with minimum configura+on, development, and customiza+on ! Manufacturing: • Move from legacy monthly PI Order to mixed mode RepeIIve and Discrete Order model • Make to Order for custom cuts (integrated with Sales) ! Procurement: • Leverage standard workflow for approvals • Contracts and scheduling agreements ! Sales and Distribu+on: • Replace Sales Agent custom web front end with Fiori Apps • Automate pricing, margin control and visibilty • Leverage “good” legacy processes for WM and EDI ! Finance and Controlling: • Overhaul of Chart of Accounts, Cost Center structure • Introduce AP/AR automaIon ! Repor+ng: • Replace spreadsheets with scalable BI ECC implementaIon of SAP Best PracIces Fiori – Quote, ATP, Stock Check, Sales Order, Order Status BI – Standard Content (70%)
  6. 6. Copyright © Capgemini 2016. All Rights Reserved! UCI Distributor Network – covering 50 states Legacy Situa+on: !  Distributors and Sales Agents access through custom Portal applicaIon !  Distributors had no real Ime access to informaIon !  Inventory reports emailed daily to Distributors and Sales Agents 5 SAP Fiori Apps Improvements: !  Quote – Daily Quote based on morning COMEX index !  Sales Order – on-line conversion of Quote to Order !  ATP – real-Ime during Quote and, or Order processing !  Order Status – real-Ime responsiveness !  Stock lookup – real-Ime responsiveness Fiori Demo
  7. 7. Copyright © Capgemini 2016. All Rights Reserved! Pricing Pricing Procedure ! Price ! Multiplier ! Surcharge ! Discount ! Accruals ! Index Price ! Standard Cost ! Calculated Margin ! Allowed Margin or Tolerance SAP Table Daily Index $ Improved pricing leads to improved profit margin. In Tolerance ? Transaction Processed without Exception YES Copper Index Exception based Processing Features Automatic and Real time Price Calculation based on Pricing Conditions Supports Contracts and Sales Orders Automatic routing for exception based processing Rules can be Easily Defined by Product Family NO Legacy Situa+on: !  Manual, Cumbersome, Non- Standardized !  Analysis and ReporIng Difficult !  No Tie Back from hedges to Specific TransacIon SAP Improvements !  System AutomaIcally Prices !  Formula Based Pricing !  Standard ReporIng !  IdenIfied to the sales document line item
  8. 8. Copyright © Capgemini 2016. All Rights Reserved! Solution Approach and Lessons Learned ! ECC • Design by ExcepIon Blueprint • Leverage SAP Best PracIces • MFG Path Design Templates ! Fiori • Leverage Standard Apps • New capabiliIes – quote, conversion rate monitoring • Part of the OTC project stream • BI (BW BOBJ) • Standard content and reports ! ECC • SAP to SAP presents unique change management challenges – “…where’s my old report?” • Need simple transiIon work processes before BI is online ! Fiori • Standard Apps sIll need work • Plan and manage differently – Agile approach is called for, is unavoidable • BI (BW BOBJ BPC) • QA data is sparse, producIon is the real “test” • Again, Agile approach is really called for to Solu+on Approach Lessons Learned •  MFG Path Templates now “Digital Delivery Framework” – Error-Proofing •  Good Fit for Metals/Cabling operaIons
  9. 9. The information contained in this presentation is proprietary. Copyright ©2016 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. About Capgemini With more than 180,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2015 global revenues of EUR 11.9 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model. Learn more about us at