Lex205 Tm Overview-w

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SAP Training

Web-Based Training

LEX205: Transportation Management Overview

Logistics Execution

18-JUN-2013

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� This course provides an overview of

Transportation Management (TM),

which is a part of Logistics Execution

(LEX). This course also explains the

benefits, structure and components of

� Prior to completing this training, the

following courses are required:� SAP Navigation

About this Course

After completing this course, you will be able to:

� Explain the LEX process area at 3M.

� Discuss the sub-processes within LEX.

� Describe Transportation Management (TM) at 3M.

� Explain the benefits of TM.

� Explain the structure of TM.

� List the various components of TM.

� Explain the integration between ECC and TM.

Course Objectives

Take a moment to familiarize yourself with these terms.

Terminology

Term Definition

Enterprise Resource Planning

The integration of systems to manage information

across an entire organization.

ERP Central Component (ECC) It is a core component of SAP that supports 3M’s

main areas of functionality. Data from ECC is

automatically transferred to GTS.

Logistics Execution (LEX) It is a major component of the Supply Chain

Management (SCM) application of SAP. It covers

the areas of Inventory Warehouse Management

(IWM), Inbound Receiving, and Outbound

Shipping.

Company Code The smallest organizational unit for which there is

an independent accounting department within

external accounting.

Terminology (continued)

Term Definition

Global Trade Services (GTS) It is a sub-process that automates global trade

transactions, manages large numbers of business

partners and documents, and ensures that the company

is compliant with changing international legal

regulations.

Extended Warehouse

Management (EWM)

An SAP application used to manage highly complex

warehouse structures that allow for higher detail in the

location and processing of material stocks.

Transportation Management

It supports all the activities connected with physical

transportation of goods from one location to another.

Term Definition

Forwarding Agent An agent who performs transportation services in return for

payment of goods, arranging carrier services and handling

customs issues.

Service Agent A Person who carries out a service – a carrier or freight

forwarder.

Direct Shipment

Option (DSO)

A tool for finding the least cost carrier, means of transport, and

Available-to-

Promise (ATP)

A process for checking the available quantities of a material.

Transportation

Request (TRQ)

A transportation requirement representing demand based on

an order (OTR) or a delivery (DTR).

Term Definition

Order-Based

Transportation

Requirement (OTR)

A transportation demand based on an order that was created

in an SAP ERP system. The order-based transportation

requirement can be used as a basis for transportation

planning. The OTR corresponds to a single order in SAP ERP

and cannot be edited in SAP Transportation Management

(SAP TM).

Delivery-Based

Transportation

Requirement (DTR)

A transportation demand based on a delivery created in SAP

ERP. The DTR in SAP TM corresponds to a single delivery in

SAP ERP.

Transportation

Used to group products in order to drive vehicle selection.

Term Definition

Transportation Lane A relationship between an origin and a destination.

Transportation

Service Providers

(TSPs)

They assist in the process of transporting 3M loads.

Freight Unit (FU) A set of goods that are transported together across the entire

transportation chain. A FU can include transportation

constraints for transportation planning. It is the smallest unit

that can be transported. The transportation request data and

the FU building rules form the basis for building FUs.

Freight Request for

Quote (RFQ)

A request for a carrier quote of the cost associated with

carrying the freight.

Term Definition

Process Interface

A group of operations used by other processes or services -

Brings transactions between ECC and TM.

Core Interface (CIF) A standard interface between ERP (R/3 or ECC) and SCM

APO, used to transfer Master Data and Transactional Data.

Master Data Used in a variety of business transactions in 3M TM system. It

comprises information on business partners, carriers,

organization, transportation network, product, equipment,

resources and transportation charges.

Net Weaver

Business Client

(NWBC)

A web-based front end interface for TM.

LEX Overview

After completing this module, you will be able to:

� Explain the LEX process area at 3M.

� Explain the benefits of the LEX process area to the 3M businesses.

� Discuss the sub-processes within LEX.

Module Objectives

Scenario: Introducing Logistics Execution

� Logistics relates to coordination of a

goods movement operation involving

many people, facilities, and supplies.

� The LEX process area is one of the

four main areas or capacities of

functionality in ECC.

� It is a major component of the

Supply Chain Management (SCM)

application.

Introduction to Logistics Execution

Applications

Supply Chain

Management

PLM Product Lifecycle

Management

PLM Product Lifecycle

Management

SRM Supplier

Relationship Management

SRM Supplier

CRM Customer

� LEX connects the SCM activities involved in procurement, order

processing, production, storage, inventory management, shipping,

and sales.

� It covers the areas of warehouse management, inbound receiving,

and outbound shipping processing.

Introduction to Logistics Execution (continued)

Benefits of Logistics Execution

The LEX process area offers several benefits.

Streamlined coordination of foreign trade processing

requirements procedures

Streamlined coordination of foreign trade processing

requirements procedures

Improved management of transportation

scheduling and delivery

Improved management of transportation

scheduling and delivery

Increased visibility of warehouse operations

including, inbound and outbound

activities

Increased visibility of warehouse operations

including, inbound and outbound

activities

Logistics Execution and other Sub-processes at 3M

LEX at 3M consists of

these three

sub-processes:

� GTS

� TM

� EWM

Global Trade Services

GTS automates global

trade transactions,

manages large

numbers of business

partners and

documents, and

ensures that the

company is compliant

with changing

government

regulations.

Extended Warehouse Management

EWM supports

planned and efficient

processing of all

logistics processes in

the warehouse. It

offers flexible and

automated support for

processing various

goods movements and

managing stocks in the

warehouse.

Extended Warehouse Management (continued)

The various activities in the EWM sub-process area are:

You will learn more about the EWM sub-process in the EWM Overview course, if applicable.

Internal Processes

Cross and Additional Processes

Monitoring and Visibility Processes and Data

Cross DockingCross DockingQuality ManagementQuality Management Yard ManagementYard Management Value Added ServicesValue Added Services Hazardous GoodsHazardous Goods

Activity PlanningActivity PlanningMaster Data

Maintenance

Master Data

Maintenance

Resource and

Labor Management

Resource and

Labor Management

Warehouse

Optimization

Warehouse

OptimizationStock InformationStock Information Activity MonitoringActivity Monitoring

Ad Hoc MovementsAd Hoc Movements

SlottingSlotting

ReplenishmentReplenishment

RearrangementRearrangement

ScrappingScrapping

Production SupplyProduction Supply

Inbound Processes

PackingPacking

Goods ReceiptGoods Receipt

PutawayPutaway

Inbound DeliveryInbound Delivery Outbound DeliveryOutbound Delivery

PickingPicking

PackingPacking

StagingStaging

LoadingLoading

Goods IssueGoods Issue

Outbound Processes

Physical InventoryPhysical Inventory

Transportation Management

TM supports all the

activities connected with

the physical

transportation of goods

from one location to

another.

The functions in the TM sub-process area are:

Transportation Management (continued)

� For outbound, TM begins when a sales order is created and transportation needs

are communicated to TM. It then generates and executes the freight orders based

on requirements and regulations.

� For inbound, TM begins when a purchase order is received.

PROPERTIES

On passing, 'Finish' button: Goes to Next SlideOn failing, 'Finish' button: Goes to Next SlideAllow user to leave quiz: After user has completed quizUser may view slides after quiz: At any timeUser may attempt quiz: Unlimited times

The key points covered in this module are:

� The LEX process area relates to the coordination of a goods

movement operation involving many people, facilities, and supplies.

� The LEX process area is a major component of the SCM application.

� The SCM activities in LEX are procurement, order processing,

production, storage, Inventory Management, shipping, and sales.

� The LEX process area offers several benefits:� Streamlined coordination of foreign trade processing requirements and

procedures

� Improved management of transportation scheduling and delivery

� Increased visibility of warehouse operations, including inbound and outbound

activities

Module Summary

� GTS, EWM, and TM are sub-processes within LEX.

� GTS automates global trade transactions, manages large numbers of

business partners and documents, and ensures the company’s

compliance with changing international legal regulations.

� EWM manages highly complex warehouse structures that allow for

higher detail in the location and processing of material stocks.

� TM supports all the activities connected with physical transportation

of goods from one location to another.

Module Summary (continued)

Introduction to Transportation

Management

After completing this module, you will be able to:

� Describe TM at 3M.

� Explain the benefits of TM at 3M.

� Explain the structure of TM at 3M.

� List the various components of TM at 3M.

� Explain the integration between ECC and TM.

Module Objectives

Scenario

3M TM system supports all the activities connected with physical

transportation of goods from one location to another.

Activities that can be performed in 3M TM system, include:

� Plan the transportation and select carriers

� Dispatch and monitor the transportation

� Calculate the transportation charges

� Manage dangerous goods regulations

Transportation Management at 3M

Benefits of Transportation Management at 3M

The key benefits of TM at 3M are:

Determine options to

save costs and to

optimize the use of

available resources.

React to transportation

events and find

solutions to possible

deviations from the

original transportation

Create and monitor an

efficient transportation

The functions in the TM sub-process area are:

Transportation Management Process

� For outbound, TM begins when a sales order is created and transportation needs

are communicated to TM. It then generates and executes the freight orders based

on requirements and regulations.

� For inbound, TM begins when a purchase order is received.

• Sales order

• Delivery order

• Consolidates orders

• Minimizes

transportation costs

Transportation

Planning

Transportation

Planning

• Freight order

• Freight units

• Assignment optimization

Transportation

Execution

and Monitoring

Transportation

Execution

and Monitoring

• Truck, rail, and air carriers

• Improves regulation and compliance

• Shipment tendering

Freight

Settlement

Freight

Settlement

• Freight costing and billing

• Calculates and settles freight costs with greater accuracy

Order EntryOrder Entry

Order Management Transportation Management

The key components of TM at 3M are:

Components of Transportation Management at 3M

Transportation Master Data

Order Scheduling and Integration

Plan and Optimize Transportation

Transportation Execution

Rate Freight

Freight Settlement

Components of Transportation Management at 3M (continued)

The Transportation Master Data

underlies all business transactions

and contains information on the

various components of the

transportation network – business

partners, carriers, organization,

products, equipment, and tariffs.

The Order Scheduling and

Integration process starts with the creation of a SO and ends with a

scheduled date and time for order.

It automatically takes into account

requested delivery dates,

transportation relevant information,

and product requirements from

Sales Orders and Delivery Orders.

The Transportation Planning and

Optimization process supports the user in manual and automatic

transportation planning.

Transportation planning involves

organizing customer orders into valid

freight orders (shipments), which can

then be handed over to a

transportation service provider for

delivering to customers, as well as

managing dangerous goods and

vehicle incompatibilities.

The Transportation Execution

process covers the actual execution of planned transportation of Freight

Orders, shipping a product to the

customer.

The Freight Processor monitors the

freight order work list to ensure that

the ordered product reaches the

customer in a timely fashion.

The Rate Freight process describes a set of primary system activities that

are executed to determine freight

charges, for a Freight Order.

Transportation costs play an essential

role in the calculation of the price of a

product. It is important to keep these

transportation costs to a minimum so

that the price of a product remains

competitive.

Freight Settlement process is performed with suppliers or carriers by

creating a Freight Settlement

Document (FSD). This process allows

accurate discrepancy handling and

cost allocation.

Freight Settlement Creator/Maintainer

manages exceptions through TM. It

will help to mitigate the risk of

payment delays and deviations.

Overview of integration between ECC and TM:

� The integration of ECC and TM allows for transportation planning

and execution in TM, based on orders and deliveries created in ECC.

This allows TM to receive real-time changes to orders in ECC.

� The CIF process transfers Master Data from ECC to TM.

� The PI process transfers Transactional Data from ECC to TM.

Integration between ECC and TM

ECC TM

Transportation Master Data

Transportation Transaction Data

Transportation

Data from

Orders and

Deliveries

PROPERTIES

On passing, 'Finish' button: Goes to Next SlideOn failing, 'Finish' button: Goes to Next SlideAllow user to leave quiz: After user has completed quizUser may view slides after quiz: At any timeUser may attempt quiz: Unlimited times

� TM supports all the activities connected with physical transportation

of goods from one location to another.

� TM at 3M offers several benefits:� Create and monitor an efficient transportation plan

� Determine options to save costs

� React to transportation events

� Find solutions if there are any deviations from the original transportation plan

� Transportation Master Data, Order Scheduling and Integration, and

Plan and Optimize Transportation are some of the components of TM

at 3M.

� TM Master data is used for a variety of business transactions in 3M.

� CIF enables master data transfers from SAP ECC to SAP TM.

Module Summary

The key points covered in this course are:

� The LEX process area relates to the coordination of a goods

movement operation involving many people, facilities, and supplies.

� The LEX process area is a major component of the SCM application.

� GTS, EWM, and TM are the sub-processes within LEX.

Conclusion

� The TM system at 3M allows to perform the following activities:� Plan the transportation and select carriers

� Dispatch and monitor transportation

� Calculate transportation charges

� Manage dangerous goods regulations at 3M

� Following are some of the benefits derived from the TM system:� Create and monitor an efficient transportation plan

� Determine options to save costs

� React to transportation events

� Find solutions if there are any deviations from the original transportation plan

Conclusion (continued)

� The various components of 3M TM are: � Transportation Master Data

� Order Scheduling and Delivery

� Plan and Optimize Transportation

� Transportation Execution

� Rate Freight

� Freight Settlement

� The TM Master data at 3M comprises information on business

partners, carriers, organization, transportation network, product,

equipment, resources, and transportation charges.

Conclusion (continued)

� Take a brief assessment to validate

your training in this course. You

must pass the assessment with at

least an 80% score.

� Before you start the assessment,

you can review the entire course

again, or review selected slides

using the course navigation pane.

� Once you have passed the

assessment, you will be given your

final information and verification for

the completion of this course.

Knowledge Assessment

PROPERTIES

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