Enabling Complex Multi-variant Product Configuration, Pricing & Delivery Across the - PowerPoint Presentation

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Enabling Complex Multi-variant Product Configuration, Pricing & Delivery Across the Global Sales Channel

Shenzhen Mindray Bio-Medical Electronics Co. Ltd.

SAP Innovation Awards 2022

Entry Pitch Deck

Shenzhen, China

Biomedicine

https://wwww.mindray.com/en

Shenzhen Mindray Bio-Medical Electronics Co. Ltd.

together with its subsidiaries and branches hereinafter referred to as “Mindray”

）

supports patients in nearly 110,000 Chinese medical institutions and most of the country’s

Triple-A hospitals with its world-class products and services. The company has branches established in 30+ provinces and its products are widely recognized and used in top hospitals throughout China.Mindray’s about 40 overseas subsidiaries are serving over 190 countries and regions around the world. Over 10,000 employees from 30 countries choose to join Mindray, and a quarter of them are R&D experts who explore the most advanced medical technology. Top-tier medical institutes recognize our performance in Europe, the U.S. , China and more.In recent years, Mindray has mobilized global resources to donate medical devices in several developing countries. Mindray also supports education at the grassroots level by establishing “Hope Schools” for children in China’s rural areas to stimulate growth in communities from the ground up

Vision Healthier Living for Everyone

Mission

T

o

M

ake

H

ealthcare More Accessible Worldwide

Leveraging

SAP Variant Configuration and Pricing, Mindray created an integrated solution for managing the entire opportunity-to-sales process. The solution enables us to configure and price complex products accurately and more efficiently to quickly meet our customers’ unique product requirements.

Sales representative (hereinafter referred to as “Sales reps”) now work smarter and more efficiently. By eliminating order errors, providing customized configure-to-order and make-to-stock pricing, generating quotes faster, and simplifying approvals, the solution enables sales reps and dealers to maximize sales opportunities.

The global COVID-19 pandemic led to skyrocketing requests for complex patient monitoring and life-support systems, resulting in high demand for solutions capable of enabling quick and easy adoption by Mindray sales staff and dealers and rapid delivery of uniquely configured products.

Shenzhen Mindray Bio-Medical Electronics Co. Ltd.

99%

Consistent customer, product & order information

100%

Reduction of production material volume

50+%

Product Configuration, Pricing & Quotations Delivered Intelligently across the Sales Channel

Time-saving on order creation

In just over a month, we processed 2,100 orders through our warehouse on SAP Commerce Cloud. SAP Advanced Deployment helped us get up and running fast, enabling us to

focus on fulfilling our sales goals.

Wang Lue, Application Development and Support Manager

SAP MaxAttention helped us fully integrate SAP CPQ within our broader SAP landscape. It allows us to

quickly meet the unique needs of every customer

while ensuring compliance and more

flexbile

pricing, giving us a solid foundation for growth.

Henry Wu, IT General Manager

Processing product and pricing information from sales teams and other distribution channels in a timely manner. (Prior to implementing our CPQ solution, offline offers were not linked to Mindray’s IT systems, resulting in inaccurate inputs for product configuration and pricing quotes and fewer sales.)

Overcoming obstacles posed by an inadequate price management system, a high volume of special price approvals, too many procedural steps and nodes in the workflow, and other operational inefficiencies.Responding to growing dealer customization needs in a timely and flexible manner.

Enable variant configuration ordering for channels:

Improve sales performance, reduce workloads, and control channel price policies.

Standardize business control rules (e.g., terms of trade, payment).

Streamline reseller management and develop data analytics system for resellers.

Implement order-related system, including below foundation functions (e.g., master data management for dealers, product authorization, billing for HQ).

Migrate CRM HQ billing-order-related processing functions. Enable variant configuration ordering for dealers:Output regional portfolio strategies to meet regulatory and marketing requirements.Develop a robust price management system, including exclusive-distribution, secondary-distribution, and end-sales pricing.Completely integrate product and price management processes.

Powered by

SAP S/4 HANA

for AVC

SAP S/4HANA

R&D

Produce

Order

Purchasing

Deliver

Services

SAP Variant Configuration and Pricing

SAP Business Technology Platform

SAP CPQ

SAP

Commerce Cloud

Innovative Product & Pricing Management Solution

Configure

Price

Quotation

Configure

Apply for Price

Place Order

SAP Commerce Cloud

(as Distributor Management System)

One model, freely configured.

SAP Sales Cloud

SAP CPQ

Select Products

Configure

Pricing calculation

Quotation

Browse

Product

Catalog

Search/

Filter

Create Quotation

Add Product

Production

Configuration

(CTO)

Automatic Production Match

Guided Selling

Find Products

Add

Spare Parts

Match Promotion and Pricing

Generate Approval Path

Submit for Approval

Management Team Approval

Quotation Generated

Authority Control

Create Quotation

(CTO)

Validate Margin

Adjust Discount

Requests for product quotations from distributors were received via email or telephone and processed offline. Delayed responses and out-of-date pricing information often resulted in lost business opportunities.

Due to the complexity of configuring various models, distributors could not order configurable products directly, nor could they take advantage of promotions or offers for special pricing.

Mindray sales and distributors now save time and get better product configurations and pricing. The new Distributor Management System (DMS) developed on SAP Commerce Cloud gives distributors the power to use batch setup, product configuration, and guided-selling functionalities.The system also includes a traceable management system with historical data for Mindray distributors worldwide.

SAP Commerce Cloud

(as Distributor Management System)

There was no system for sales reps to manage the quotation process. To create quotes, reps had to communicate offline with Mindray business support teams.

Sales reps had to find prices in the ordering system on their desktops and adjust their quotations to account for any changes in pricing or configurations — a time-consuming process involving lots of internal communication.Global sales activities across the many different time zones in Mindray’s sales channel were not effectively supported.

Sales reps now create quotations in SAP Sales Cloud and navigate to SAP CPQ for selecting and pricing product configurations, applying discounts, and preparing or revising quotes using time-saving Excel templates. Quotes are automatically stored in the backend system.

The entire approval process is managed online.

When queried by distributors through SAP Commerce Cloud, sales reps can check their quotes in SAP CPQ via SAP Sales Cloud.

All legal compliance data regarding regional product sales permissions is managed centrally in SAP S/4HANA and replicated to SAP CPQ to ensure that sales reps only see products that are eligible for sale in any given region worldwide.

SAP CPQ

Self-ordering for dealers saves time for Mindray and its distributors.

All rules are correctly applied and adhered to in sales processes involving distributors and sellers.

Distributors get faster response times, smarter production support, and optimal product configurations.

The effort expended on customizations is greatly reduced with an easy-to-use SaaS solution. SAP Commerce Cloud and SAP CPQ are fully integrated in the variant configuration module in SAP S/4HANA, minimizing the customization workload.

It’s a great time-saver for all teams involved in the entire sales cycle — processes that previously took up to two days per order can now be completed in as little as one hour.

A completely integrated, end-to-end SAP solution supports of the full array of Mindray sales processes.

A traceable and trusted system provides accurate analytical data, reducing risk in our global marketplace.

SAP CPQ

Basic Data

Business Process

Product

Material

Product Attributes

Admission

Spare Parts/Services/

Configure

Spare Parts/Services

Discount Control

Pricing

Quotation Print

SAP Sales Cloud

Lead Management

Quotation Management

SAP CRM

Global Trade Management

PI

Print Out

PI Confirm

Order Split

Portal

Special Price Approval

Trade Term Management

SAP S/4HANA

Overseas Quotations

HQ order

Order Execution

Overseas Orders

Business Process

Super BOM

Price Agreement

Pricing Condition

VC BOM

Basic Data

Quotation

Approval Request

Result

HQ Billing

HQ PI

SAP Commerce

Basic Data

Busines Process

Product

Material

Product Attributes

Admission

Spare Parts/Services

Configure

Spare Parts/Services

PO

Pricing

PO flow

Rebate

Order Requests via Quotation

Distributors

Sales Reps

Customer Data

Production

Data

Price Condition

Dependency

Customer Data

Production

Data

Price Condition

Dependency

Local Billing

SAP Commerce Cloud + SAP CPQ

SAP

Product

Primary

Product

Deployment Status 

Contribution to Project

1

SAP Commerce Cloud

Live

A library of highly flexible and extensible tools enabled Mindray to build unique commerce experiences, actions, and modularized feature sets. Native integration with the CPS system enables SAP Commerce Cloud to efficiently and accurately apply VC data from SAP S/4HANA.

2

SAP CPQ

Live

Functions as an online app for price calculation and quotation for our sales department. Out-of-box features provide a ready-to-run system in the Explore phase. Low-code customization of configurations in the backend and flexibility of front-end extension capabilities make the project a good reference for transformation from CRM OP to Cloud.

3

SAP S/4HANA

On

premise

Live

Works as the leading backend system of variant configurations, pricing, and quotation transaction follow-up.

4

SAP BTP – Variant Configuration and Pricing

Live

Enabled out-of-box integration between SAP S/4HANA, SAP CPQ, and SAP Commerce Cloud, which significantly reduced the amount of coding needed to expose backend product configuration and pricing logic to front office systems. The extensibility of SaaS and its FaaS add-on provide ample support to meet the complex requirements of our customers’ business operations.

2021-10

phase 1

1,000+

Live

100+

2,000

orders

per

month

SAP MaxAttention and SAP Customer Experience Solutions brought in

Good

Practices for SAP CPQ and assisted with SAP S/4HANA integration using SAP Integration Suite and the SAP Variant Configuration and Pricing solution.

SAP Advanced Deployment expanded the capability of SAP Commerce Cloud to build up an enhanced platform serving as the portal to connect Mindray with its distributors.

SAP Preferred Success provided technology transformation advisory services to

safeguard digital transformation to c

loud.

X

X

X

X

Technology

or Use Case

Product *

Contribution to Project/

How Solution Integrates with SAP Products

1

Advanced Cloud Integration

New business models using APIs, connecting business partner(s) with APIs, Integration Advisor, digital integration hub architecture, and Event Mesh.

SAP CPQ /

SAP Commerce Cloud

Provides a native cloud solution and native integration with the core digital SAP S/4HANA system. A unified UI and single-entry to the corresponding system for each user role gives customers a seamless, end-to-end experience from quote to order. Modern integration technology makes the solution easy to consume and expand with low operational and deployment costs.

2

Combined Transactions and Analytics on Single Data Set

Reduce data latency and footprint from dedicated data marts, data warehouses, and data lakes (> 1TB).

SAP S/4HANA /

SAP BTP – Variant Configuration and Pricing

The variant configuration engine enables Mindray to allow dealers and sales reps to use SAP Variant Configuration and Pricing the same way they use SAP S/4HANA — anywhere, anytime. Users worldwide can now access the same data source with unified management of the business rule engine.

*If this is not an SAP

product

, explain how it integrates with SAP products.