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Transcript of SAP Transportation management
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SAP Transportation Managem Andres Botero, Solution MarketingMay 15-19, 2011
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© 2011 SAP AG. All rights reserved.
SAP Transporation Management
The SAP Transportation Management solution allows companies to holistically manage a
transpiration spend across the logistics and distribution process, maintaining high levels
satisfaction while achieving profitability and asset utilization goals .
• SAP TM 8.0 is the fruit of over 20 years of SAP continuous investment in the areaManagement
• SAP TM 8.0 is the 3rd release of a TMS product by SAP –an evolution of prior tranevent management solutions- and brings to bear all the learnings and experiencethis area
LES - TPVS
TM 6.0 TM 7.0 TM 8.0
• Over 3,000+ customers rely today on SAP software to manage their transportation
• Can be used stand-alone but derives the most benefit when used in conjunction w
• SAP TM 8.0 addresses the needs of Shippers (Chemical, CPG, Auto, Mills…) and
foundation for LSPs and Retail customers
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Transportation Management - Players and Collaboration
SHIPPER
FREIGHTFORWARDER
CARRIERS
Goods Delivery
Collaboration
PLANNING, ORCHESTRATION, & EXECUTION
OF THE PHYSICAL MOVEMENT OF GOODS
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Shipper /
Supplier
Outbound
Carrier /
Transportation
Provider
GoodsOrder
GoodsDelivery
GoodsReceipt
CustomeBilling
Fo
Order Mgmt.Transport.Planning
Transport.Execution
FreightCosting &Billing
TruckCarriage
OceanVoyageCarriage
Air Carriage
RailCarriage
The Logistics & Transportation Network
High Process and Network Complexity
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Coverage:Comprehensive
transportation mgmt.
For core operations
For shipper industries &foundation for freight forwa
Focus: Usability & configurability
Performance & processsimplification
Customer & SAP TCO
Coverage:Integrated transportation
planning & execution
Stand-alone solution
Inbound & outbound transp. Central transportation charge
engine
Limitations: TCO
Restricted availability
SAP Transportation Mgmt. combines a long history of
transportation business, process and IT expertise
SAP Transportation Solution HistoryStrong, Continued Investment to Deliver THE Market-Leading Solution
Coverage:Shipping planning &optimization
Order-based planning
Integrated with
ERP LE-TRA
Limitations: No combined in-/outbound
movements ….
Coverage:Shipment execution
Limitations:
No shipments combining
in/outbound movements Delivery-based only
No transportation capacity
planning
Transportation Managem
(TM 8.0)
Transportation Management
(TM 6.0 & 7.0)APO – Transport.
Planning/ Vehicle
Scheduling (TP/VS)
ERP - Logistics Exec.
Transportation
(LE-TRA)
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The SAP Transportation Management Solution
Highlights and Differentiators
Customer Co-Innovated Deep Process Integration
Order-to-CashProcure-to-Pay
Customs & Compliance Mgmt.
Dangerous Goods Mgmt.
Best-in-Cla
Customer Influencer
Group
SAP
Flexible Mobile &Web Collaboration
In
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SAP Transportation Management Analytics
SAP TM Dashboard
SAP TM Analytics
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Analytics & Reporting
Overview SAP Transportation Management 8.0
Solution Coverage
Order Management
FreightPlanning &Tendering
FreightExecution &Monitoring
FreigSettlem
Event Management
Import / Export, Dangerous Goods & Compliance
Document & Output Management
Integration & Connectivity
TransportaCharge Cle
TransportationPlanner
TransportationDispatcher
Specialist(i.e.Tendering)
SAP TRANSPORTATION MGMT. 8.0
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Analytics & Reporting
Overview SAP Transportation Management 8.0
Solution Coverage
Order Management
FreightPlanning &Tendering
FreightExecution &Monitoring
FreigSettlem
SAP ERP integration- Order-to-Cash,Procure-to-Pay
Freight Orders
Forwarding Orders Freight Bookings
Logistics Execution
Transportation StatusVisibility& Monitoring
Freight AgreeManagement
Charge & TariManagement
Forwarding OSettlement
Freight Order Settlement
Event Management
Import / Export, Dangerous Goods & Compliance
Document & Output Management
Integration & Connectivity
Manual & Autom.Planning &Dispatching
Resource &
Carrier Selection Carrier Tendering
Ocean Booking
TransportaCharge C
TransportationPlanner
TransportationDispatcher
Specialist(i.e.Tendering)
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Transportation
Charge Clerk
Transportation
Planner
Transportation
Dispatcher
Specialist
(Tendering)Freight
Execution &Monitoring
FreightSettlement
FreightPlanning &Tendering
Order Management
Order ManagementSAP TM 8.0 - Order Management Area Details
■ Integrated order processing & management
Out-of-the box integration with order-to-cash & procure-to-pay
Integrated freight settlement with ERP billing & invoicing
■ Comprehensive order management
Forwarding, freight (land), & booking (sea & air) orders
■ Full document flow & order life-cycle management
Centralized order data mgmt. (for planning, tendering, exec. ...)
Sales Orde
Purchase O
Stock Tran
Delivery
SAP TM
SAP ERP
Freight OOrder, Fr
General & Subcontr Transpor Order sta Linked do Dangero
Benefit
Efficient, end-to-end order & process
High customer service levels & satisfa
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Freight Planning & Tendering OverviewSAP TM 8.0 - Freight Planning & Tendering Area Details
■ Advanced, interactive transportation planning Flexible, configurable transportation planning cockpit
Drag & drop, graphical capabilities (map integration)
■ Manual / automatic transportation optimizer planning
Constraint-based, multi-variant & mode scheduling and routing Zero-click planning from order entry to carrier settlement
■ Domestic & international shipment planning Incl. ocean freight booking & customs / compliance mgmt. integration
■ Best-in-class, collaborative tendering Manual & automated RFQ-based & direct tendering
Multiple tendering types: direct, peer-to-peer, broadcast
Flexible carrier communication (Web UI, e-mail, SMS, B2B) for RFQ / tendering processing & visibility
Benefit
Reduced costs & improved operationa
Improved carrier collaboration & resou
Transportation
Charge Clerk
Transportation
Planner
Transportation
Dispatcher
Specialist
(Tendering)Freight
Execution &Monitoring
FreightSettlement
FreightPlanning &Tendering
Order Management
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Freight Execution & Monitoring OverviewSAP TM 8.0 - Freight Execution & Monitoring Area Details
■ Comprehensive transportation d
■ Document creation, printing, status manageme(Bill of ladings (Road, Sea, Air), labels, forward
■ Integrated logistics & fulfillmen
SAP ERP integration for inbound & outbound
SAP EHS integration for dangerous goods han
■ Integrated customs & complianc
SAP GTS for export doc. & customs procedure
■ Transportation execution visibil
Shipment visibility for customers, supplier, car
Integrated event mgmt. for event notification
Benefit
Efficient logistics & fulfillment process
Improved execution visibility & respon
TransportationCharge Clerk
TransportationPlanner
TransportationDispatcher
Specialist(Tendering)
FreightExecution &Monitoring
FreightSettlement
FreightPlanning &Tendering
Order Management
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Freight Settlement OverviewSAP TM 8.0 - Freight Settlement Area Details
■ Comprehensive Freight Cost Mgmt.
Instant costing & dynamic rating
Advanced, flexible charge calculation
■ Integrated Freight & Forward
SAP ERP financials integration
Partial invoicing & billing
Full document flow / life-cycle manageme
SAP TM (Freight Settlement) SAP ERP (Financials)
Forward-ing Order
ForwardingSettlementDocument
Customer Invoice
FreightOrder
FreightSettlementDocument
Credit Memo Carrier Invoice Invoice Payment Invoice Confirmation
Invoice Confirmation
Shipper
Benefit
Accurate transportation costing
Integrated transportation managemen
TransportationCharge Clerk
TransportationPlanner
TransportationDispatcher
Specialist(Tendering)
FreightExecution &Monitoring
FreightSettlement
FreightPlanning &Tendering
Order Management
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Transportation Mgmt. Processes and ScenariosSolution Manager Content Delivered with SAP TM 8.0
SAP TM 8.0 Processes
■ Managing Transportation Requirements
■ Managing Forwarding Orders
■ Managing Freight & Bookings
■ Planning Freight & Selecting Carriers
■ Tendering Freight
■ Executing & Monitoring Freight
■ Settling Freight Orders■ Settling Forwarding Orders
SAP TM 8.0 Scenarios
■ Domestic Inbound Transportation
■ International Inbound Logistics
■ Outsourced Transportation
■ Domestic Outbound Transportation
■ International Outbound Transportation
Transportation Management
Processes & Scenarios
Comprehensive DocumentationProcess, scenario, configuration, customizing &
SAP TM 8.0 Master Guide
SAP TM 8.0 ScConfiguration G
SAP TM 8.0 Online
Benefit
Efficient, end-to-end processes & scena
Reduced implementation time, effort and
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International Inbound LogisticsScenario Example
International, intermodal transportation management for purchased go
overseas vendors with integrated purchase order, transportation and invoic
Vendor 1(Mainland China)
Vendor 2(Mainland China)
Port-of-
Loading(Shanghai, China)
Port-of-
Discharge(Hamburg, Germany)
Pre-carriage
Main Carriage On-carriage
Packing of purchasedmaterial incontainer
Direct pre-carriagevia truck fromvendors toport-of-loading
Main carriage via scheduledvessel from China to Germany
On-carriage via scheduledtrain from Hamburg toLudwigshafen
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Planned Innovations for Transportation Management
Key Needs Key Innovatio
• A complete solution for the Transportation and Logistics industries • Core ProcesseForwarders
• End-to-end process enablement • SCE Process I
• Optimized delivery synchronization for multi-consignment orders• Need for better asset utilization and higher load density, less empty trucks, cost
savings for transportation• Rapid time-to-value
• Transportationenhancements
• TP RDS
• Reduce expense of setting up load tendering relationships• Improve visibility in shipping scenarios
• Collaborative FTendering RDS
• Improve visibility to in transit ocean shipments• Reduce expense of setting up integration with ocean carriers
• Ocean Booking
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Selected TM Clients
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ChemicalsConsumer Products Consum
Company:Chemicals company specializing in silicone-basedmaterials
Implementation:SAP TM 7.0ca. 50 sites with 300 shipping points
Goal:Efficient, accurate transportation settlement andinvoicing
Implementation Scope:Transportation charge management, with extensivecharge calculation, invoice creation and verification
Shipment creation in SAP ERP.Charge calculation with carrier verification & freightsettlement in TM. Automated invoicing in SAP ERP.
Company:Consumer packaging for beverage, personal care,healthcare, food
Implementation:SAP TM 6.0
Goal:Complete automation of thetendering process (subcontracting)
Implementation Scope:Transportation optimization -freight unit building, truck planning, carrier selection.
Sales order processing in SAP ERP.Transportation planning in SAP TM. Logisticsexecution in SAP LES(ERP-Logistic Execution System).
Company:World leading combeverages, health
ImplementatSAP TM 8.0
Goal: A common transpeliminate legacy spend reduction &increase.
ImplementatFull TM implemenmgmt., transportaselection, tenderinsettlement.
Selected Transportation Management ProjectsSAP Transportation Management 6.0, 7.0 & 8.0
D C i U SAP® TM t R d
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Dow Corning Uses SAP® TM to Reduce
Product Costing WorkloadChallenges and Opportunities
Understanding margin impacts
Fragmented business processes in all
areas related to freight cost documentationand allocation
Contracts not maintained in a commonformat or centralized system, leading todated and invalid freight contracts
No verification with the actual contract andthe invoice generated
No reporting functionalities around freightcosts
Objectives
Visibility into freight costs down to thematerial level
Implementation Highlights
First 6 sites implemented in only 8 months
QUICK FACTS
Dow Corning Corporation
Headquarters: Midland, Michigan
Industry: Chemicals Products and services: Silicones and high -purity
silicon
Revenue: US$5.1 billion (2009)
Employees: 10,000
Web site: www.dowcorning.com
SAP® solutions and services: SAP® Transportation
Management (SAP TM) application
Why SAP
SAP® TM is an inrequires synergyinvoice processi
SAP TM is built tdynamic needs oenvironment.
SAP TM touches
Benefits
Ability to proactivprior to shipping rate changes fou
70% reduction in
Real-time cost alines of business
Ability to make fudecisions
Ability to streamthat will have im
“SAP has provided us with world-class
support during the implementation of
SAP TM. We really appreciate SAP’s
focus on customer service during this
project.”
Shruti Bahadur
Project Leader Dow Corning Corporation
R Q 8
9 6 6 ( 1 0 / 0 7 )
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© 2011 SAP AG. All rights reserved.
SAP brings together software and services in 3 o
give you essential transportation management fu
quickly and affordably Preconfigured software: either
1. domestic transportation planning
2. ocean carrier booking
3. domestic freight tendering
Rapid delivery thanks to accelerators, amethodology
An affordable, well-priced solution:
fixed-price for fixed scope
Clear path to your full TMS vision: use
scenarios as they are or as a big stepp
Preconfigured TM Software & Services Enabling Rapid D
Solution At a Glance
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Solution At-a-GlanceThe SAP Transportation Management rapid-deployment solution for
domestic transportation planning
Business Requirement Solution Tar
What is my pain?
Need to reduce transportation expense
Lack of control in transportation decisions
Limited visibility of customer requirements in transportationdecision making
Lack of transparency to carrier equipment availability
What are my needs?
Shipping demand creation
Pass and process demand changes
Optimized planning and carrier selection
Synchronization of transportation planning and execution
What will excite me?
Quick ROI: The RDS is designed to reduce the implementationtimeframe in order to speed up the availability of the solution for productive use as well as reduce TCO for the customer.
Leverage customers initial investment in SAP while allowing toexpand solution footprint in future.
Removes the complexity of integration, maintenance and cost.
Business KPI’s
Lower transportation cost
Increased resource utilization
Greater on-time performance
Better customer satisfaction
Solution DescriptionThe rapid-deployment solution addresses maximizing transportationefficiencies which result in greater control of transportation operations andcosts while managing customer delivery satisfaction.
Business Processes Order consolidation – consolidation of orders going to a similar
geographical area which results in a lower cost per unit. Routing and scheduling – comparing various modes and methods of
transportation while considering the service level and customer scheduling requested.
Carrier selection – effectively selecting the right business partner basedon strategies including cost, priority, and business share.
Technical ComponentsSAP Transportation Management 8.0SAP ECC 6.0
General Availability Planned for Q3/2011
Industry
Manufacturing, package
Companies dealing withoutbound orders to redu
Type of Customer/Pre
Installed base SAP ECC
New customers in TM thtransportation planning
Target Geography Global
Roadmap Growth Pot SAP TM for broader sco
as tracking and tracing w
Ready to run „SAP Transportation Management rapid-deployment solution for domestic transportation planning
transportation package with fixed scope, predefined services at a predictable price with the flexibility for future e
Solution At-a-Glance
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Solution At-a-GlanceThe SAP Transportation Management rapid-deployment solution for
ocean carrier booking
Business Requirement Solution Tar
What is my pain? Slow an inefficient collaboration with ocean carriers
Excessive cost due to inefficient container utilization andexpedited transportation need
High integration cost to ocean carrier platforms
Missing visibility into long transportation legs
What are my needs?
Quick connectivity to ocean carriers
Higher productivity and flexibility in managing & monitoring oceanbookings and container tracking
What will excite me? Extension of pure SAP functionality to connectivity providers li ke SAP
Partner Crossgate and ocean e-commerce platform provider GT Nexus.
Lower TCO avoiding custom development while delivering standardintegration to industry platforms (GT Nexus, INTTRA)
Business KPI’s
Easy access to the most important ocean carrier platform
Visibility into ocean transportation status
Lower transportation cost
Solution DescriptionThe rapid-deployment solution is to address the long lasting trend of globalization, outsourced manufacturing and the resulting increase in globaltransportation over ocean waters, especially in form of containerized goods.
Business Processes Booking of Ocean Vessel Capacity Reserve capacity with carriers Pre Booking possible Receive Booking Confirmations ERP Integration and Enabling of the freight unit allocation to bookings
Shipping Instructions Mapping of the following Enterprise Services to Crossgate and/or GTNexus Pre-Configured Output Management / Electronic Transmission
OceanVisibility
Ocean specific Master Data elements (ISO Codes, LocationIdentifiers) Event Management to track Container Movements & BOL access
Technical Components
SAP Transportation Management 8.0SAP ERP 6.0SAP Event Management 7.01SAP Information Interchange by Crossgate
General Availability Planned for Q2/2011
Industry Shipper companies who
Chem, Discrete MFG, etransportation requireme
Type of Customer/Pre
New customers in TM thprocesses
Any R/3 or SAP ERP cuSystem (LES) and has thshipping processes.
Target Geography Global
Roadmap Growth Pot SAP TM for broader sco
execution/freight chargin
Ready to run „SAP Transportation Management rapid-deployment solution for ocean carrier booking“ is an esse
package with fixed scope, predefined services at a predictable price with the flexibility for future extension.
Solution At-a-Glance
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Solution At-a-GlanceThe SAP Transportation Management rapid-deployment solution for
domestic freight tendering
Business Requirement Solution Tar
What is my pain? Lengthy process of carrier collaboration for shipment and load
tendering
Tendering results contradict strategic or tactical company goals
Reductionof ongoing cost for using 3rd party tendering platforms
What are my needs?
Quick and easy collaboration with carriers
Carrier collaboration follows predefined rules and can be adaptedflexibly
Onboarding of new carriers as „plug&play“
What will excite me?
Quick ROI: The RDS is designed to reduce the implementationtimeframe in order to increase the solution readiness as well asreduce TCO for the customer.
Out of the box integration between ERP and TM.
Offers potential replacement of legacy or competitive applicationsreducing maintenance.
Carrier connectivity via SAP Information Interchange (powered byCrossGate)
Business KPI’s
Reduced cost for outsourced transportationservices
Efficiency and speed in tendering process
Transparency of tendering status
Solution DescriptionThe rapid-deployment solution extends ERP based transportation executionwith superior carrier collaboration for shipment and load tendering includingelectronic connectivity to carriers.
Business Processes TM: managing transportation requirements
Optional: carrier selectionas part of planning
Tendering freight (communicate shipments to carriers)
Carrier collaboration
Execution and monitoring freight (Transportation Execution, Freight Costing, ERS,Invoice Verification)
Technical Components
SAP Transportation Management 8.0SAP ECC 6.0SAP Information Interchange (powered by CrossGate)
General Availability Planned for Q3/2011
Industry Manufacturing industries
packaged good shippers
Companies dealing withinbound/outbound order
Type of Customer/Pre
Net New Customers
Installed Base
Target Geography Global
Roadmap Growth Pot SAP TM for broader sco
ocean carrier booking, tr
Ready to run „SAP Transportation Management rapid-deployment solution for domestic freight tendering“ is an
package with fixed scope, predefined services at a predictable price with the flexibility for future extension.
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Thank You!
Contact information:
Andres BoteroSenior Director, Supply Chain Execution [email protected]
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