SAP Transportation management

7/16/2019 SAP Transportation management

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SAP Transportation Managem Andres Botero, Solution MarketingMay 15-19, 2011



© 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




Transportation Management - Players and Collaboration

SHIPPER

FREIGHTFORWARDER

CARRIERS

Goods Delivery

Collaboration

PLANNING, ORCHESTRATION, & EXECUTION

OF THE PHYSICAL MOVEMENT OF GOODS




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)



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



SAP Transportation Management Analytics

SAP TM Dashboard

SAP TM Analytics



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



Analytics & Reporting

Overview SAP Transportation Management 8.0

Solution Coverage

Order Management



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



Specialist(i.e.Tendering)



Transportation

Charge Clerk

Transportation

Planner

Transportation

Dispatcher

Specialist

(Tendering)Freight

Execution &Monitoring

FreightSettlement


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




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


Order Management




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



Specialist(Tendering)


FreightSettlement


Order Management




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



Specialist(Tendering)


FreightSettlement


Order Management




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




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




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




Selected TM Clients

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

http://www.haworth.com/en-us

http://www.jabil.com/

http://www.galiform.com/

http://www.artonilogistica.com/




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



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 )




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



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

SAP [email protected]

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




ocean carrier booking


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


Industry Shipper companies who

Chem, Discrete MFG, etransportation requireme


New customers in TM thprocesses

Any R/3 or SAP ERP cuSystem (LES) and has thshipping processes.



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




domestic freight tendering


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)


Industry Manufacturing industries

packaged good shippers

Companies dealing withinbound/outbound order


Net New Customers

Installed Base



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.



Thank You!

Contact information:

Andres BoteroSenior Director, Supply Chain Execution [email protected]

mailto:[email protected]

mailto:[email protected]




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