Supply Chain Transportation SAP

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


2/21

CONFID

Why SAP Transportation Management at Woodgrain

How and what we implemented Lessons Learned

Business Benefits

Future use of SAP

AGENDA


3/21

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


4/21

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?


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)


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


7/21CONFID

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


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


9/21CONFID

Ties into ATP check

Runs a simulation oorder optimization in

TM ORDER SCHEDULING


10/21CONFID

TM OPTIMIZER

S O S G G O


11/21

CONFID

Visibi

hand

(pack

TM

Autom

creat

shipm

TM frorder

loadin

SAP WAREHOUSE MANAGEMENT INTEGRATION

GIS INTEGRATION WITH NOKIA HERE


12/21

CONFID

Geocoding

Geo-routing

Map display

GIS INTEGRATION WITH NOKIA HERE

3RD PARTY SYSTEMS INTEGRATION


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


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


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


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


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


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


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


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


21/21

CONFID

Thank You!

Supply Chain Transportation SAP

Documents