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Copyright © Capgemini 2016. All Rights Reserved!
Transforming the Distributor
Network with SAP Fiori and
MFGPath
Orlando, 18 May 2016
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.
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
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
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%)
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
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
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
The information contained in this presentation is proprietary.
Copyright ©2016 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
www.capgemini.com
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 www.capgemini.com.

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Transforming the Distributor Network with SAP Fiori and MFGPath

  • 1. Copyright © Capgemini 2016. All Rights Reserved! Transforming the Distributor Network with SAP Fiori and MFGPath Orlando, 18 May 2016
  • 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. 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. 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. 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. 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. 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. 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. The information contained in this presentation is proprietary. Copyright ©2016 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. www.capgemini.com 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 www.capgemini.com.