SAP Transportation Management

Andrea Ricciarelli,

Business Development Director EMEA – LoB Supply Chain Management

Tel Aviv – June 19th, 2012

SAP Transportation Management Logistics Excellence in Transportation

© 2012 SAP AG. All rights reserved. 2

SAP Transportation Solution History (1994 - 2012)

A long history of T&L business, process and IT expertise

1994 2007 2011 ….

SAP R/3 Logistics Exec. Transportation (LE-TRA)

Shipment execution

SAP APO Transportation Planning / Vehicle Scheduling (TP/VS)

Shipping planning & optimization

1993

SAP Transportation

Management (TM)

SAP TM 8.0-8.1

Comprehensive transportation management

2000

SAP Transportation mgmt combines a long history of

transportation business, process and IT expertise

Market-

leading

Supply

Chain

Execution


The SAP Transportation Management Development focus

SAP Transportation Management

Customer Co-Innovation Deep Process Integration

Order-to-Cash

Procure-to-Pay

Customs & Compliance Mgmt.

Dangerous Goods Mgmt.

Best-in-Class Functionality

Customer

Network SAP

Flexibility, Simplicity, & Performance

Collaboration Decision Support


SAP Mobile Scenarios for Transportation Management

Standard SAP mobile solutions …..

SAP Transport Tendering SAP Transport Tracker

….. and a service-enabled solution for partner and customer mobile add-ons


Analytics & Reporting

Overview SAP Transportation Management Solution coverage

Event Management

Import / Export, Dangerous Goods & Compliance

Document & Output Management

Integration & Connectivity

Transportation Charge Clerk

Transportation Planner

Transportation Dispatcher

Specialist (i.e.Tendering)

Order

Management

SAP ERP integration: Order-to-Cash, Procure-to-Pay

Freight Orders

Forwarding Orders

Freight Bookings

Freight

Settlement

Freight Agreement Management

Charge & Tariff Mgmt.

SAP ERP integration: Forwarding & Freight Order Settlement

Freight Execution

& Monitoring

Logistics Execution

Transportation Status Visibility & Monitoring

Freight Planning

& Tendering

Manual & Autom. Planning & Dispatching

Resource & Carrier Selection

Order Tendering

Ocean Booking



Integrated SAP Applications & Processes

Native integration for synchronized planning & execution

ERP Billing & Invoicing Customer freight invoicing

Forwarding settlement document (for customer billing of freight costs)

Carrier/supplier freight settlement

Freight settlement document (for carrier invoice verification & settlement)

ERP Logistics Execution Delivery & shipment execution

Shipment data

Ocean freight booking data

Tendering & carrier data

ERP Sales Order

Scheduling Delivery date & ATP Scheduling

Transportation planning simulation results (Feasible delivery date and quantities for sales order items)

ERP Order Integration TM transportation planning

ERP sales & returns orders

ERP purchase & returns orders

ERP stock transport & returns orders

ERP deliveries

ERP DG Management Dangerous goods data

Dangerous goods ID

Classification

Phrases

SAP Event mgmt Event notification & monitoring

Transportation execution milestones

Carrier event notification

SAP Global Trade Services Customs procedure & approval processing

Export declaration

Customs status



Trading Partner & 3rd Party Connectivity TM Enterprise Services

For GIS integration & connectivity (CrossGate), Freight Rates (SMC3), Ocean Booking (GT Nexus), …

External Communication & Connectivity Enabling effective B2B & collaborative transportation management

SAP TM Tendering: Carrier WebUI view

Email / SMS RFQ Notification with link to carrier WebUI

SAP TM Order Mgmt.: Freight / Booking Order

B2B

Freight Order / Booking Receipt & Processing

Carrier /

Freight Forwarder

System

SAP Event Mgmt : Web UI for Carrier Event Notification

Mobile Device: Milestone Visibility & Event Notification

SAP TM Planning Cockpit: Execution Status

SAP TM

Partner

System

Tendering Collaboration

Request for quotation

Subcontracting

Freight order subcontracting

Freight booking (Ocean / Air)

Event Tracking & Monitoring

Carrier event notification

Execution milestone, event & alert visibility

For Shippers, Suppliers, Carriers, Consignees


2010 2011 2012

SAP T&L Release Plan Release-To-Customer Delivery Plans

EWM

7.02 Extended Warehouse Mgmt.

Transportation Management

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

EWM

7.01

EWM

9.0

TM

8.1

TM

8.0

TM

9.0

Supply Chain

Execution Platform

Synchronized delivery

First TM/EWM integration (via ERP)


2012 Innovations for Transportation Management For Shippers & Freight Fowarders

Ocean freight management (Sailing schedules, and ocean bookings)

Superior manual transportation planning (Multi-modal schedules, heirarchy-based planning, map-based route planning & resource tracking)

Superior event management (Container & service product tracking)

Integrated document flow (ERP-TM) (TM data visibility in sales, purchase and delivery orders)

SAP TM / EWM integration (via ERP)

Transportation cost distribution (Proportional cost allocation (sales orders / materials)

Master data cockpit (For freight agreement mgmt. and freight rates; quick transportation cost quote)

Integration to on-demand dangerous goods database

Additional TM analytics, reports and dashboards

Transportation Mgmt. 2012

Innovations for both Shippers & Freight Forwarders


2012 Innovations for Transportation Management Core transportation processes for freight forwarders

Transportation Mgmt. 2012

Innovations for Freight Forwarders

• Comprehensive forwarding order mgmt.

• Ocean & airfreight management

• Service products & items

• Freight forwarder-specific documents

• Transportation cost allocation & freight settlement

Order

Management

Customer Service Agent

Capacity Procurement & Network Planning

Transportation Planner

Freight Execution

& Monitoring

Document Processing Agent

Customer Billing & Freight Settlement

Office Management & Accounting


2012 Innovations for Transportation Management Ocean freight full container load & less than container load for LSPs

Ocean Freight Management Highlights

Freight & forwarding order management (for freight forwarders) End-to-end routing; sailing schedules based on carrier schedules; export/import handling

Cargo management Cargo consolidation/deconsolidation; cargo visibility (status, events, discrepancies)

Compliance support Export customs and dangerous goods management

Full document & output management (incl. print, email, & business partner connectivity)

Shipper 2

Port-of- Loading

Shipper 1

Station of Origin

Container Freight Station

Station of Destination

Container Freight Station

Port-of- Destination

• Order taking

• Routing

• Pick-up subcontracting

• Billing

• Consolidation

• Ocean carrier booking

• Oean freight documentation

• Customs & security filing

• Container drayage

• De/recon-solidation

• Customs clearance

• On-carriage

• Settlement

• Final delivery with POD

• Billing

• Settlement

Delivery

Linehaul

Pickups

On-carriage

Consignee 1

Consignee 2

Main Carriage


2012 Innovations for Transportation Management

Airfreight - Gateway Consolidation

Enhancements for Airfreight Management

Airfreight shipment management Direct, back-to-back, consolidation (consols) shipments; export/import handling

Capacity management Based on air carrier schedules (master & operative flight schedules)

Cargo management With enhanced status visibility and Unit Load Device (ULD) handling

Gateway operations (load plan & warehouse receipt management for consolidation/deconsolidation)

Shipper 2

Airport-of- Departure

Shipper 1

Station of Origin

Gateway Export

Gateway Import

Airport-of- Destination

• Order taking

• Routing

• Pick-up subcontracting

• Customer billing & settlement

• Consolidation

• Capacity mgmt. & controlling (Airline booking, paperwork, equipment handling)

• Carrier settlement

• De/recon-solidation

• Gateway operations import/export

• On-carriage

Main Carriage Delivery

Linehaul

Pickups

On-carriage

Consignee 1

Consignee 2 Station of Destination

• Final delivery with POD

• Billing

• Settlement


Strong SAP TM Momentum and Success

Over 50 new customers in 2011

Across all regions

In all transportation-relevant industries

Over 20 ongoing implementation projects

Productive use of SAP TM in multiple industries

and sites around the globe

Consumer Products, Chemicals, High Tech, Wholesale Distribution,

Logistics Service Providers,…

Strong and growing SAP and Partner Service Portfolio

http://www.panalpina.com/www/global/en/home.html


… some SAP TM customers


Apple TM 8.0 Project Overview

High Tech Industry

Computer hardware, consumer

electronics, Software, Digital Distr.

iPhone, iPod, iPad, MacBook,

Mac OS, Apple TV

Implementation: Worldwide TM Coverage: OEM; Shanghai, China

SAP TM 8.0 Project Details

Go-Live Sept 4th , 2011

• Coverage

All purchase & sales orders worldwide for products from OEM in Shanghai

4000-5000 distribution / transportation requests per day

Implementation scope

Freight order mgmt. and carrier selection (with Apple-specific logic)

International shipment of finished goods from China OEM to Apple

distribution centers

Direct shipment of finished goods from China OEM to customers

Goals

Process automation (carrier determination process) - replacing existing

manual processes (excel spreadsheets, e-mail, telephone)

Shipment optimization to increase shipment capacity for China OEMs

Future roll-out plans

Further OEMs (increase in volume to be processed by TM)

Transportation Charge Management

Possibly SAP Event Management integration (Apple is using own system

for tracking and tracing currently) & consolidation process

Consultants GOPA

Apple Cupertino, CA, USA

http://www.gopa-itc.de/


Nestlé Rollout-Planning for TM

Hungary / Germany (Purina):

GoLive of Nestlé Purina Pat Food Hungary and Germany will be a pilot GoLive before the

major GoLive of Nestlé USA (NUSA).

NUSA is the biggest company of Nestlé(!):

– Nestlé Foods USA, Nestlé Waters North America (NWNA) and Nestlé Purina Pat Care (NPPC).

NUSA has complex transportation requirements with a high number of items to be shipped

with a variety of scenarios:

– 60.000 Customers

– 3.000 Trucks per day

– 10.000 Sales Orders to be handled within TM per day.

Further Nestlé divisions are applying to be next on the list to use TM 8.0 for their operations

(→ very high demand of further divisions to use TM 8.0).


Arkema and SAP Transportation Management the video

../../SAP Products/TM/Customers/Arkema_Chemical_Company__SAP_Transportation_Management_(wmv).wmv


CH Guenter & Son

SAP TM 8.0 Project Overview

Consumer Products

Industry

Mixes - Pancake,

cornbread, biscuit, tortilla,

gravy…

Flour

Implementation location Prosperity SC, USA

SAP TM 8.0 Project Details

Go live October 1st, 2011

• Planned coverage

ca.10 planners

4000 transportation requests per month

2000 settlement documents per month

8000 event messages per month

Implementation scope

Mainly domestic outbound transportation

Small volume international outbound (From 1 location to Germany)

ERP-based order management, transportation planning, carrier selection,

freight tendering, EM based monitoring

Goals

Replace existing legacy system and manual processes

Optimize freight planning, tendering & execution

Future roll-out plans

Several further plants until mid 2012

Consultants


CH Guenter & Son Scenario & Process Details

Consignee 1 Domestic Shipment Plant-to-Customer Full Truck Load

Less than Truck Load

Multi-drop Consignee 2 C3 C4

Domestic Shipment Plant-to-Pool Point / DC Full Truck Load to DC

LTL Shipments to Consignee

Distribution

Center C5

C7 C6

Customer

Plant (Prosperity)

International Ocean Shipment Full Container Load

C100

Order

Management

SAP ERP integration: Order-to-Cash, Procure-to-Pay

Freight order mgmt.

Freight

Settlement

Charge Management

External rate engine integration SMC3 (Czarlite)

SAP ERP financials integration

Freight Execution

& Monitoring

Document & output mgmt. (TM waybills, labels, shipping manifest, …)

SAP Event Mgmt. (7.01) for transportation status visibility & monitoring

Freight Planning

& Tendering

Manual, automated, zero-click & optimizer planning

External map & geocoding integration: ALK (PC Miler)

Order tendering (all types)

Scenario Details

Process Highlights

Port, US

Port,DE



Customer benefits

Powerful performance monitoring & decision support

Full transportation cost control & auditability

Optimal, dynamic planning - mode, route, carriers, assets

Efficient freight contract, rate & carrier performance mgmt

Comprehensive, flexible, scaleable, extensible system

International coverage for global deployment

Standard integration to ERP, GTS & interfaces to 3rd party

Full documentation for faster time-to-value

High customer service & responsiveness

Automated transportation planning & exec. processes

Synchronized O2C, P2P with logistics & transportation

Efficient asset utilization

Automated B2B & web-based network collaboration

Optimized load, route and mode scheduling

Compliant international transportation of dangerous goods

Integrated customs & compliance management

Reduced

Costs

Operational

Efficiency

Sustainability

& Regulatory

Compliance

Low TCO /

High ROI

Contact information:

Andrea Ricciarelli

Business Development Director EMEA – LoB Supply Chain Management

[email protected]

Join me on

Thank You!

mailto:[email protected]

SAP Transportation Management

Documents