SAP Transportation Management Scenarios

SAP AG

December, 2010

SAP Transportation Management

Scenarios

© 2010 SAP AG. All rights reserved. / Page 2


Supported Industry Scenarios


SAP Transportation Management Scenarios

Predefined, Best Practice Transportation Scenarios with SAP TM 8.0

Scenario Overview

■ Integrated, end-to-end transportation scenarios

■ Predefined, best practice processes & configuration

Scenarios Covered

■ Domestic Inbound Transportation

■ International Inbound Logistics

■ Outsourced Transportation

■ Domestic Outbound Transportation

■ International Outbound Transportation

Scenario Deliverables (in Solution Manager)

■ Scenario Description

■ Scenario & Process Component List

■ Configuration Guide (incl. Scenario Master Data)

Customer / Partner Benefits

■ Reduced implementation time, effort and cost

■ Efficient, lower cost operations



Scenario Details


Domestic Inbound Transportation

Scenario Overview

Inbound shipment processing for purchased goods from domestic suppliers –

with integrated shipper transportation planning and logistics service provider execution

Vendor 1(Plant Lippstadt, DE)

Land-based main carriage via truck with multi-pick for full truck load transportation and multi-drop delivery to consignee plants

Inbound delivery

Vendor 1(Plant Hamm, DE)

Vendor 2(Plant

Dortmund,DE)

Vendor 1(Plant Lüdenscheid, DE)

Vendor 2(Sindelfingen, DE)

Consignee 1(Plant Dingolfing, DE)

Consignee 1(Plant Munich, DE)

Multi pick-up

Direct main carriage

Direct, land-based transportation via truck from supplier to consignee plants Inbound delivery

Main carriage with multi-drop


Domestic Inbound Transportation

Scenario & Process Details

Purchase order creation (in SAP ERP)

Vendor determination via purchasing contracts

Goods supplier deviating from vendor

Manual / automated transportation planning

Optimizer planning (Multi-pick, multi-drop scheduling & routing)

Freight order creation

Automatic carrier selection and assignment based on transportation lanes

Document sending

Event message reporting (in SAP EM)

Loading / unloading of freight order freight units

Arrival & departure confirmation

Unplanned event tracking & alerting

Advanced Shipping Notification (ASN)(in SAP ERP)

Receipt of ASN from supplier, processed as inbound delivery

SAP TM update for transportation request triggering

Goods receipt processing

Posting to stock

Proof of delivery (POD) sending to vendor

Purchase Order

Processing

Transportation Requirement Processing

Freight Planning& Carrier Selection

Freight Execution & Monitoring

Inbound processing

Freight Settlement

WarehouseManager

TransportationCharge Clerk

Order-based transportation requirement creation(in SAP TM)

Automatically created based on purchase order

Freight unit creation

Automatically created according to building rules

Delivery-based transportation requirement creation

Automatically created based on later inbound delivery

Plan / actual update

MaterialPlanner

Transportation Planner

Transportation ServiceProvider / Carrier

Transportation Charge Calculation

According to freight agreements

Haulage charges dependent on weight& distance

Supplier Freight Invoice Request (SFIR) processing

Create & transfer freight settlement document to SAP ERP

Freight settlement (in SAP ERP)

Carrier invoice entry

Invoice verification & payment

Evaluated Receipt Settlement (ERS)


International Inbound Logistics

Scenario Overview

International, intermodal shipment management for purchased goods from

overseas vendors with integrated purchase order, transportation and invoice management

Vendor 1(Mainland China)

Vendor 2(Mainland China)

Port-of-

Loading(Shanghai, China)

Port-of-

Destination(Hamburg, Germany)

Pre-carriage

Main Carriage On-carriage

Consignee (Ludwigshafen,Germany)

Packing of purchased material in container

Direct pre-carriage via truck from vendors to port-of-loading

Main carriage via scheduled vessel from China to Germany

On-carriage via scheduled train from Hamburg to Ludwigshafen

Inbound delivery


Manual / automated transportation planning

Dangerous goods check (via SAP EHS)

Stage level planning with scheduling and routing

Ocean carrier selection via pre-booked transportation allocations

Ocean carrier booking confirmation

Sending of shipping instruction

International Inbound Logistics


TransportationPlanner

(Main Carriage)


(Pre-& On-Carriage)

TransportationDispatcher


Purchase OrderProcessing

Main Carriage Planning &

Booking

Pre- & On-Carriage Transportation

Planning

Inbound Transp. Dispatching &

Monitoring

Supplier Freight Costing

Purchase order creation & release(SAP ERP)

Electronic (EDI) or manual

Automatic transportation request creation(in SAP TM)

Automatic freight unit creation(in SAP TM)

PurchasingAgent

Pre- and on-carriage planning

With port delivery & pick-up date/time constraints


Automatic inbound delivery creation in ERP

Vendor notification

Transportation milestone & event tracking (SAP EM)

Web-UI-based event notification

Pre-, main and on-carriage event processing

Automatic update of inbound delivery, freight unit, booking order, delivery for goods receipt

Document printing

Shipping instruction creation & sending

Transportation charge calculation

Freight order-based according to freight agreements

Including ocean shipment-specific rates, dangerous goods surcharges etc.

Supplier freight invoice request (SFIR) creation

Automatic / manual SFIR transfer to ERP

For carrier invoice verification, processing & payment


Domestic Outbound Transportation

North America – Scenario & Process Details

Domestic outbound transportation management with automatic planning optimization and

carrier selection, as well as tendering, dispatching, and freight settlement

Multi-drop transportation to customers via LTL carrier

Shipper

Plant Warehouse/

Distribution

Center(Chicago, IL, USA)

Packing of material in boxes. Material grouping & staging per trip.

Truckload shipment direct to customer

Consignee 17(Provo, UT, USA)

Truckload Planning

Less-than-Truckload Planning

Consignee 09(Carrolton, KYUSA)

Intermodal Planning

Consignee 10(Los Angeles, CAUSA)

Consignee 07(Evansville, INUSA) Consignee 08

(Louisville, KYUSA)

Rail transportation to nearest destination railhead

Truck transportationto local railhead

Truck transportationto customer


, Interactive / automatic transportation planning

Planning optimization across multiple planning ‘variants’: truckload, less-than-truckload, intermodal, and multi-stop

Automatic freight order consolidation, routing & scheduling

What-if analysis (mode / carrier)

Automatic resource & carrier selection(based on cost, priority)

Exception handling (under-capitalized equipment, missing carrier)

Domestic Outbound Freight Management

North America - Scenario & Process Details


TransportationDispatcher


OrderProcessing

Freight Planning & Carrier Selection

CarrierTendering

Outbound Transp. Dispatching &

Monitoring

Supplier Freight Costing & Settlement

Sales order or delivery creation (SAP ERP)

Automatic transportation request creation

With notes / order requirements, instructions & appointment times

Automatic freight unit creation

According to freight unit building rules

Customer Service Representative

Freight order tendering

Peer-to-peer tendering to selected carriers

Carrier acceptance / rejection via Web-UI

Freight order & carrier allocation update

■ Automatic outbound delivery creation in ERP

Shipment status check

New & existing freight orders

Appointment scheduling

Pick-up & delivery appointments

Shipment loading Hazardous goods check

& vehicle check-out

Bill of lading creation

Shipment execution monitoring & event tracking

Web-UI-based transp. milestone/ event notification (SAP EM)

Automatic shipment execution update(SAP TM)


Carrier transportation cost calculation and evaluation (freight order-based according to freight agreements)

With National Motor Freight Classification (NMFC) based freight class codes

Supplier freight invoice request (SFIR) creation and transfer to ERP

Accrual posting

Service purchase order & service entry sheet (SES) creation

Carrier invoice verification & payment


■ Sales order-based transportation requests

■ Equipment restriction for a max. 28-foot trailer

■ Handling instruction for truck with lifting ramp

■ Transportation planning optimization with direct, multi-stop, crossdock truckload routing

■ Master and sub-bill documentation, freight class code.

Domestic Outbound Freight Management

North America - Transport Modes & Planning Method Details

Domestic outbound freight transportation management - supporting multiple planning

optimization ‘variants’, customer requirements and carrier selection methods

Planning ‘Variant’ Process-specific Information

Less Than Truck Load(Direct, Multi-stop,and Pool)

Truckload planning

■ Delivery-based transportation requests

■ Truckload optimization planning for freight units

■ Carrier restriction: A carrier is not permitted

■ Carrier selection based on lowest costs

■ Transportation order tendering via peer-to-peer

■ Bill of lading creation with driver notes

Intermodal planning(Truck/Rail)

■ Sales order-based transportation requests

■ Customer requirement with mandatory appointment schedule

■ Manual intermodal optimization planning withwhat-if analysis

■ Order split across 3 truck loads

■ Carrier selection based on lane priority

■ Peer-to-peer tendering with shipper qty. change

■ Schedule with rail cut-off times


Final delivery

International Outbound Transportation

Scenario Overview

Full Container Transportation - from forwarding order processing, ocean carrier booking,

freight planning, execution & tracking to order settlement

Drop-off carriage via fixed trucking company to port-of-loading

Final delivery via truck from port-of-destination and delivery to consignee

Material packing at shipper location in 3 containers (20 foot standard dry containers) and delivery to the transportation division’s warehouse

Main carriage ocean transportation via ocean liner (Free On Board (FOB)) using pre-booked freight capacity

Shipper(Newark, USA)

Drop-off

carriage

Port-of-

Destination(Rotterdam, Holland)

Main Carriage

Consignee(Düsseldorf,Germany)

Shipper

Warehouse

(Transp. Division)(Newark, USA)

Port-of-

Loading(Newark, USA)

Goods delivery at consignee (with proof of delivery)


International Outbound Transportation


Forwarding order creation

And attachment of transport documents received from shipper

Automatic freight unit creation


Forwarding order confirmation sent to the shipper

House B/L printing & sending

Transportation execution event monitoring(SAP EM)

For pick-up, onboard, departure, arrival, proof of delivery

Freight settlement document creation & transfer to ERP

With accrual posting for supplier, invoice verification, processing & payment

Self-billing Credit memo

creation & sending to transportation suppliers

Forwarding settlement document creation & transfer to ERP

Customer invoice creation(SAP ERP)

For Consignee

ForwardingOrder

Processing

FreightBooking

Freight Planning& CarrierSelection

Transportation Execution & Monitoring

Freight Order Settlement

ForwardingOrder

Settlement

Customer Service Representative

Ocean FreightBooking Specialist

Dispatcher TransportationCharge Clerk

Ocean freight pre-booking creation & sending to ocean carrier

Automatic ocean carrier confirmation receipt

Send confirmed booking usage to carrier

Execution booking order sending to carrier

Ocean freight charge calculation

Transportation Planner

Freight order For container

drayage & drop-off at port

Document printing

For export declaration

Automatic carrier selection

For drop-off carriage & final delivery


For drop-off and final delivery

Charge calculation for drop-off carriage & final delivery


Outsourced Transportation

Scenario Overview

Outsourced transportation process management - with shipper transportation

planning and 3rd party shipment execution and event monitoring

Packing of sold material in boxes

Full truck load transportation via 3rd party carrier to customer location Delivery toCustomer

Shipper Plant (Chicago,USA)

Customer(Bellevue, USA)

Carriage


Outsourced Transportation


Sales order creation & sending to TM (SAP ERP)

Order-based transportation request creation(SAP TM)

Order quantity/ weight check

Automatic freight order creation

For truck load

Sales order update

Freight order data

Tendering restart

Carrier tendering

Peer-to-peer & broadcast tendering

- Email-based request for quotation (RFQ)

- SMS carrier notification of RFQ receipt

- Alert monitoring

Document printing

Carrier transportation event notification (SAP EM)

Web-based event notification (i.e. POD)

Event monitoring (SAP EM)

Cargo in transit

Exception handling (SAP EM)

For shipment execution

Document printing

Transportation milestone creation(SAP EM)

Based on transportation order

Event monitoring (SAP EM)

Cargo in transit

Exception handling(SAP EM)

Customer notification


Freight order-based according to freight agreements

Supplier freight invoice request (SFIR) creation

SFIR transfer to ERP

With accrual posting for supplier invoice verification, processing & payment

Sales OrderProcessing

Freight Planning& CarrierSelection

FreightTendering

Transportation Execution & Monitoring

Transportation Monitoring

Freight Order Settlement

Sales Agent(Shipper)

Tendering & CarrierSelection Specialist

(Shipper)

TransportationDisptacher

(Shipper)

Logistics ServiceProvider Carrier


(Shipper)

Automatic carrier selection and assignment

Carrier determination (via lanes and allocation)

- Real cost-based carrier selection

Outbound delivery creation in ERP

Thank You

Contact


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