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Supply Chain Transportation SAP

Apr 13, 2018

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  • 7/25/2019 Supply Chain Transportation SAP

    1/21

    CONFID

    Promote Business Growth byStreamlining Transportation Man

    May 19, 2016

    Tyler Roorda, TM Business Process Owner, Woodgrain Millwork

    Anton Kamaukhov, VP of Application Delivery, XpertMinds

  • 7/25/2019 Supply Chain Transportation SAP

    2/21

    CONFID

    Why SAP Transportation Management at Woodgrain

    How and what we implemented Lessons Learned

    Business Benefits

    Future use of SAP

    AGENDA

  • 7/25/2019 Supply Chain Transportation SAP

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    CONFID

    Privately-held, family-owned business founded in 1954

    Third generation of ownership

    Woodgrain has a diverse supply chain Vertically Integrated Tree to Trim( Raw lumber to finished product)

    Manufactures, sells, distributes diverse line of millwork products

    doors, windows, mouldings, and other specialty wood products

    Integrated supply chain international and domestic

    20 locations worldwide

    Woodgrain Millwork, Windsor Windows & Doors, Monarch Windows, Ashworth Patio Doors

    Distribution

    Each location managed their own transportation

    Rapid growth fueled by acquisitions over many years, resulting in multiple legacy sys

    and maintain

    ABOUT WOODGRAIN

  • 7/25/2019 Supply Chain Transportation SAP

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    CONFID

    Robust functionality to meet diverse set of requirements and en

    execution of business strategy Multiple sourcing and delivery methods

    Frequent shipment pooling and cross-docking

    Provide a platform for growth, reduce risk to business continui

    system can become a catalyst rather than hindrance

    Lower long-term TCO through elimination of many legacy syste

    multiple integrations ROI opportunities identified in every business unit, functional a

    WHY SAP TM 9.0?

  • 7/25/2019 Supply Chain Transportation SAP

    5/21CONFID

    Integration to SAP ECC Advantage over 3rd party products that are difficult to seamlessly integrate to O

    Management when frequent order updates and changes occur to meet custom

    TM Sales Order Scheduling

    Significant opportunity to reduce supply chain costs in the area

    Transportation Management SAP TM 9.0 greatly exceeds capabilities of current systems and processes

    Bring the entire organization together under one transportation group thus inc

    transportation consolidation and eliminating duplication

    Supports multiple methods of sourcing and delivery

    to customers Out-of Warehouse

    Cross-Dock

    Direct Ship

    Inter-company

    Vendor consigned

    WHY SAP TM 9.0? (CONTINUED)

    3rd-party Warehouse

    3PL service

    Customer and Vendor returns

    International (next phase)

  • 7/25/2019 Supply Chain Transportation SAP

    6/21CONFID

    Internal fleet of 50 trucks and 100 trailers

    Minor use of external carriers as well

    Shipping within 13 states in the US Multi-stop

    Functionality highlights: TM Order Scheduling

    Use of calendar resources for better alignment with Field Service Rep. schedules

    DOT regulations mapped via Scheduling Constraints

    Optimization of loads and sequencing SAP ECC Warehouse Management integration

    Integration with 3rd party software

    for proof of delivery and fleet tracking

    GIS integration with Nokia HERE

    3rd party application

    SHIPPER SCENARIO

  • 7/25/2019 Supply Chain Transportation SAP

    7/21CONFID

    Internal fleet Centrally plan routes for 7 different distribution centers in the US

    35 50 Freight Orders per day Each truck has an average of 10 to 15 stops

    500 to 1,000 Sales orders/Deliveries per day

    LTL/CPU shipments 5 to 10 LTL shipments per day (mostly automated)

    70 to 100 UPS shipments per day (one-time customers; automated)

    1 to 5 customer pick-ups per day (automated)

    External Carrier shipments Full truck load across multiple zones

    2 to 5 per day

    External 3rd party shipments

    DAILY VOLUME OF ACTIVITY MANAGED IN TM

  • 7/25/2019 Supply Chain Transportation SAP

    8/21CONFID

    No limitations on what type of ECC deliveries can be pla

    a single TM freight order

    Customer sales

    Customer returns

    Vendor purchases

    Vendor returns

    Stock transfers

    Subcontracting

    Transportation cross-docking

    SUPPORT FOR ALL TYPES OF ECC SCENARIOS

  • 7/25/2019 Supply Chain Transportation SAP

    9/21CONFID

    Ties into ATP check

    Runs a simulation oorder optimization in

    TM ORDER SCHEDULING

  • 7/25/2019 Supply Chain Transportation SAP

    10/21CONFID

    TM OPTIMIZER

    S O S G G O

  • 7/25/2019 Supply Chain Transportation SAP

    11/21

    CONFID

    Visibi

    hand

    (pack

    TM

    Autom

    creat

    shipm

    TM frorder

    loadin

    SAP WAREHOUSE MANAGEMENT INTEGRATION

    GIS INTEGRATION WITH NOKIA HERE

  • 7/25/2019 Supply Chain Transportation SAP

    12/21

    CONFID

    Geocoding

    Geo-routing

    Map display

    GIS INTEGRATION WITH NOKIA HERE

    3RD PARTY SYSTEMS INTEGRATION

  • 7/25/2019 Supply Chain Transportation SAP

    13/21

    CONFID

    Proof of Delivery system(Airclic)

    Fleet tracking system (Xatanet)

    UPS labeling (UPS Worldship)

    Integrated through SAP PI

    using standard SAP TM XML messages

    3RD PARTY SYSTEMS INTEGRATION

    LTL PARCEL POST AND CUSTOMER PICK UP

  • 7/25/2019 Supply Chain Transportation SAP

    14/21

    CONFID

    Automated creation of 1 freight order per

    1 outbound delivery Bypassing freight unit building rule

    No manual planning and route optimization involved

    Automatic carrier determination

    LTL, PARCEL POST AND CUSTOMER PICK-UP

    ADDITIONAL FUNCTIONALITY USED

  • 7/25/2019 Supply Chain Transportation SAP

    15/21

    CONFID

    Freight Execution & Monitoring

    Transportation Status Visibility & Monitoring Capacity Monitoring

    Document & Output Management

    VICS Bill of Lading (Inter-industry Commerce Std.)

    Shipping Manifest

    Shipping Confirmation

    Turn-by-turn Directions

    Transportation Packet

    ADDITIONAL FUNCTIONALITY USED

    SAP TM PHASE 2

  • 7/25/2019 Supply Chain Transportation SAP

    16/21

    CONFID

    Millwork Manufacturing Implementation

    5 diverse manufacturing locations

    95% of shipments with external carriers

    Shipping to all states in the continental US and Canada

    420 truckloads per month

    SAP TM PHASE 2

    ADDITIONAL SAP TM FUNCTIONALITY

  • 7/25/2019 Supply Chain Transportation SAP

    17/21

    CONFID

    Freight Agreements

    Carrier Tendering

    Freight Settlement

    International Transportation

    Continued Centralization of Transportation Managem

    across Woodgrain

    Advanced Analytics

    ADDITIONAL SAP TM FUNCTIONALITY

    IMPLEMENTED FOR MILLWORK MFG

    LESSONS LEARNED

  • 7/25/2019 Supply Chain Transportation SAP

    18/21

    CONFID

    Implementing TM requires a wide range of skill sets ERP - SD, MM, LE

    PI

    ABAP OO Object oriented

    SAP TM

    TM uses some of the newest technology BRFplus

    Business Objects Framework

    Post Processing Framework

    Floorplan Manager UI

    Volume testing of the optimizer is key

    Utilize SAP PI to integrate SAP ECC with SAP TM, if you already havin place. Otherwise, consider using point-to-point (WSRM) integratio

    LESSONS LEARNED

    WHATS NEXT FOR SAP TM

  • 7/25/2019 Supply Chain Transportation SAP

    19/21

    CONFID

    Upgrade

    9.3 this summer

    Gantt chart planning

    Load planning

    Fully implement forwarding orders

    Fully implement International shipments Proof of Delivery

    WHAT S NEXT FOR SAP TM

    AT WOODGRAIN?

    BUSINESS BENEFITS & ROI

  • 7/25/2019 Supply Chain Transportation SAP

    20/21

    CONFID

    Reduction in overall supply chain and inventory carrying costs Better visibility and more timely decision-making to make adjustments as product

    through the external and internal supply chain

    Effectively manage increases in volume with the same or smaller number of transplanner resources less manual intervention

    Enables critical business processes that give competitive advantage Robust integration between all information and processes. Example: Woodgrain

    orders up to 3pm to load that night and make a delivery the next morning

    User interface enables employee usability Usability supports strong end user acceptance and use

    Flexibility speeds adoption of new business processes with minimal training

    Increased service level to customers Integration between order entry and transportation planning via TM Sales Order S

    Anticipate a minimum of 15% reduction in freight spending across all Centralized planning; freight consolidation (leverage network wide volume)

    BUSINESS BENEFITS & ROI

  • 7/25/2019 Supply Chain Transportation SAP

    21/21

    CONFID

    Thank You!

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