2013 OTM EU SIG: Integrating SAP with OTM

Integra(ng SAP with OTM

2013 European SIG Conference

Neil Hatcher Rob van Haaster Monday 28 January 2013

© Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved


Agenda

§  SAP / OTM IntegraLon Background §  Design Approach §  High Level architecture

§  Lessons Learnt §  ImplementaLon Details

•  SAP EnLLes •  Sample use cases •  Best PracLce elements

§  ParLng Thoughts §  QuesLons



SAP / OTM History §  OTM is designed and supported as a stand alone best pracLce

enterprise TMS § Majority of OTM users in Europe are SAP clients

§  OTM allows common view of mulLple SAP instances §  Single global model in co-‐ordinaLon with single SAP instance



SAP/OTM Integra(on Background

§  IntegraLng OTM with SAP •  Can be done •  Has been done successfully •  Challenges are the same as will occur when integraLng

SAP to any TMS soluLon that handles real world transportaLon.

§  In this presentaLon, we aim to •  Highlight some design consideraLons and best pracLce •  Present Real life use cases in ProducLon



Agenda







Key Design Considera(ons

§  SAP ECC as with other ERP’s has no concept of Order / Shipment relaLonships in comparison with TMS •  One to many / many to one Order:Shipment not standard

§  SAP LogisLcs concept is Orders:Deliveries but is limited •  Deliveries cannot be split across shipments •  Triggers funcLonality in SAP – assigns Stock •  Typically based on stock / inventory available

§  Hence the need for an Enterprise TMS for true LogisLcs Management



Typical Perceived Challenges

§ Which SAP object should we use for the order release in OTM?

§ When should we send the order releases to OTM? §  OTM likes to split orders across loads but the OTM order is an

SAP delivery and SAP does not like that to be split.



Real Challenge

§  Get end to end clarity of the supply chain business process and business needs.

§  Then define the system support required to enable that.


Who owns each segment in the supply chain process?

Challenge: Define which business area (and therefore IT system) owns the overall business process for the supply chain segment. Most o_en this is not the Transport organisaLon. Instead it is sales or manufacturing or an external customer

Clarifica(on Achieved: Which system in the IT landscape owns the overall business process for the supply chain segment

Examples of segments: Demand planning driven. Customer order driven. Manufacturing driven Some companies will have mulLple supply chain segments

MulLple business process models can be handled in a single OTM

instance giving end to end visibility across the supply chain

segments


Business pressure on IT landscape

Challenge: Is there a business desire for each end user to only work in one system for the whole of their working day, or is there a drive to have business funcLonality handled in

Clarifica(on Achieved: Other challenges need to be addressed depending on which approach the business require

(trade off between end user training on mulLple applicaLons and Single Sign On umbrella vs messaging backwards and forwards with duplicated visibility informaLon and funcLonality in mulLple places)


TMS load op(misa(on

Challenge: Should the TMS be allowed to opLmise loads by splibng orders and or changing pickup and delivery days?

Clarifica(on Achieved: If the answer is yes then the message flow should be SO / STO / PO from SAP to OTM and OTM to plan and integrate the deliveries back to SAP. If the answer is No. Then SAP should define the Inbound and Outbound deliveries and those should be integrated towards OTMs order release object.


Details of supply chain interac(ons

Challenge: Have understanding across the business funcLons what the impact of any acLon at any point in Lme would be.

Example: At what point do you allow the sales department to change add or remove items from an order.

Clarifica(on Achieved: Understanding of : What acLons should be allowed or blocked at each stage What system support for modificaLons is required



Agenda






SAPPI

GLogXMLElement iDoc

TransmissionReport SYSTAT

SAP -‐> OTM Integra(on


OTM -‐> SAP Integra(on

SAPPI

GLogXMLElement iDoc

ALEAUD TransactionAck



Agenda






Relevant SAP modules

SAP ECC Enterprise

Core Component

LE LogisLcs ExecuLon

SD Sales &

DistribuLon

FI Financial AccounLng

CO Controlling

QM Quality

Management

PP ProducLon Planning

MM Materials

Management

MavenWire (Europe) Copyright Company Proprietary

Key modules within SAP ECC for Transportation Process Integration:


SAP Documents & Flow

§  End to End Supply Chain Documents within SAP Modules independent of enterprise TMS


Master Data

Best Practice Logistics Master Data Management Sample Mapping All other Logistics Data using MavenWire evolvTM Data Loader


Outbound Use Cases

§  We will walkthrough two different Outbound Use Cases, applicable depending on the perspecLves of Orders / ProducLon Scheduling and Inventory….

§  These samples provide for: •  Order / Delivery splibng •  Delivery creaLon from OTM Shipment plan or SAP creaLon process •  Shipment creaLon in OTM with/without SAP Shipments •  Dynamic producLon plans

§  Scenario 1 •  Discrete Manufacturing model

§  Scenario 2 •  Process Manufacturing model


Sample Outbound Scenario I (Discrete Mfg)



Sample Outbound Scenario II (Process Mfg)


Inbound Use Case

§  OTM / SAP can equally be deployed for Inbound LogisLcs §  SAP Purchase Order control §  OTM inbound logisLcs management §  Allows for Factory Gate pricing model §  LogisLcs part of PO payment process control (ASN, ePOD)


Sample Inbound Scenario I


Agenda






Par(ng Thoughts §  OTM can be integrated to the SAP ordering modules in many ways.

•  The "right" way is not simply a case of which business verLcal your organisaLon belongs to.

§  Transport is not required unless another part of the organisaLon is requesLng it. •  Take a partnership approach with the ordering business area (whether it be

manufacturing or sales or something else)

§  Don't make decisions as to overall business process alone. §  Don't get lost in theoreLcal nirvana.

•  In a real world supply chain things change on a daily basis, strive for supply chain stability but don't put blinkers on and ignore reality.

§  There is no such thing as a "handover point" at which one area completely ceases to touch the order and another area takes over. •  have sessions with the relevant parLes round a table to drill into the details and to

define real world applicable processes.

§  Buy in at a strategic level is a must

e: [email protected]

Ques(ons?

e: [email protected]

Thank-‐You!

2013 OTM EU SIG: Integrating SAP with OTM

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