Today's businesses operate in a highly distributed, outsourced and networked environment. Globalization is not an option anymore but a necessity if you want to expand and grow your business which means that we have to be more intelligent around the way we operate. We simply have to collaborate efficiently and effectively with both our customers and our partners (vendors, manufacturers, 3PLs, carriers, service providers). It is also increasingly becoming more and more important to ensure that regulations are enforced during the entire process. With the constant drive to drive down costs and increase revenue how can we realistically hope to keep track of this ever complicated scenario?

The answer is quite simple yet difficult to execute efficiently and effectively... We need to TRACK and TRACE our products and processes across the supply chain measuring performance and reacting to any deviations to the known plan. We have a real need for complete visibility to our end-to-end processes across all our geographical and partner boundaries. We need the ability to quickly adapt to changing conditions in our process. We need to head off issues before they become an issue... SAP's standard solution that provides this information is SAP Event Management

What is SAP Event Management?

With the SAP Event Management application your company can monitor and manage events across your distributed processes involving partners, inventories and assets. It captures events from your system and your partners systems, analyzes them against it's predefined plan and alerts or workflows a response to the required people to react if deviations are found. It comes integrated with SAP NetWeaver BI and SAP Auto-Id Infrastructure (RFID enabled scenarios).

"Click Here" to listen to a 42 minute discussion with Kevin Wilson on SAP Event Management

Some key points

  • Provides monitoring capability (visibility) to any business process
    • Partners - See how your partners are performing and react to deviations to planned partners performing certain events in your process
    • Locations - If your process is intended to have Event A end up at Location A but it arrives at location B then raise an exception!!
    • Measurements - You're transporting frozen goods from point A to point B and the temperature must not go above 10 deg. If it arrives at point B at 11 deg then raise an exception!!!
  • Tracks status changes to YOUR business processes. e.g. A Proof of Delivery (POD) was received for Package A
  • Matches the planned process with the actual process (TO UNCOVER EXCEPTIONS) e.g. Invoice A was paid to Customer B on 5/11/2017.
  • Real time notification of events or exceptions using standard SAP techniques:
    • Alert framework
    • Workflow engine
  • 2 Types of events:
    • Those that you expect to happen (the plan)
    • Those that actually happen (the actual)
      • Regular event => Events that occur within the planned period
      • Early / Late event => Events occurring outside the planned period
      • Unexpected event => Events that you never planned for
      • Unreported event => Event that you expected to occur but never did
  • Manage the sequencing of your events. You can't have a POD before a delivery is Post Goods Issued!
  • Provides both operational and analytical reporting capabilities
    • Operational => Web GUI application - Where are my issues now? WIMO (Where Is My Order?)
    • Analytical => SAP NetWeaver BI integration - How well did I do and where are my improvement points?



How does it work?

Using the diagram below of a Order, production, warehousing and shipping process, we run through how it works.

  • Firstly, all your transactional processing conducted in your ERP back-end system as per normal (note that it need not even be an SAP back-end)
  • You perform the function in your ERP system and an event message is sent to SAP EM for capturing. E.g. Order Entry, Production
  • The function can also be assisted with the use of SAP Auto-ID Infrastructure to capture the asset tag of the product to be delivered. In this case SAP AII will feed SAP EM the event details. E.g.  HU tag, Packaging, WH
  • When the events get registered in SAP EM they are evaluated and produce a status for the object flowing through the process. E.g. The object is a Handling Unit and the status is "Packaging is Late" or "Shipped on Time"
  • If EM detects that the event is an exception event (E.g. Shipping Late) then it can send an alert or workflow to the responsible person or customer to notify them of the exception. SAP EM can also be used to go back in to the ERP system and perform a function there. E.g. reschedule the order
  • On top of it all we have a Visibility portal which shows you how well your processes are running and isolates the exceptions for your easy retrieval

Contact Us

Contact Kevin Wilson if you need more details on SAP EM or if you wish to explore the potential use of SAP EM to track your SAP Supply Chain processes, giving you end-to-end visibility and real-time exception and status management.


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Kevin Wilson,
Sep 13, 2017, 8:59 AM