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Dos and Don’ts of a SAP Transportation Management
Implementation
Tom VervustCGI [email protected]+46702382249
1
Agenda
• Personal Introduction
• What is SAP TM?
• Why SAP TM?
• 4 things to consider
• Q&A
2
Personal Introduction
Tom Vervust
• Belgium (Flanders)
• Master Civil Engineer-Architect & Master in General Management
• Passion for supply chain management
• 6 years of international experience as a SAP consultant
• Certified SAP TM consultant
• References:
3
What is SAP Transportation Management?
• History
• Basic process
• Different perspectives– Shipper
– Logistics Service Provider
4
1987 1993 2000 2001 2004 2006 2007 2008 2010 2011 2012 2013
Transportation
Solution in SAP R/2
Transportation
Solution in SAP R/3
Transportation Planning
in SAP APO-TP/VS
Event
Management
Track and
Trace
RFID
handling
Extended
Planning
and Ocean
Booking
SAP TM 6.0
for Shippers,
3PL and LSP
SAP TM 7.0
Integration /
Specialization
SAP
TM 8.0
TM 8.1
SAP
TM 9.0
TM 9.1
Why implement SAP Transportation Management?
Transportation cost puts profit margins under pressure
Shippers & LSPs seek similar benefits
• Transparent end-to-end process
• Traceability during execution
• Visibility on the spend
• Standardized process, automation
• Efficient integration
• Wide range of functionalities
• New technology (mobile, NWBC,...)
5
4 things to consider when implementing SAP TM
• Business Case & Strategy
• System & Process Integration
• Master Data, Master Data, Master Data!
• It is a journey
6
4 things to consider when implementing SAP TMBusiness Case & Strategy• SAP TM does not dictate you one general ‘best practice’, but it provides a
robust, yet higly flexible framework to organize your company’s shipping activities according to its strategy.
• What is your company’s supporting strategy? – In-house or external transport planning, execution, optimization?
– Do you want to consolidate shipments at all cost to increase the fill rates of trucks?
– How does this impact order confirmation and delivery accuracy?
– Do you by definition use slower, cheaper modes of transport for long distance?
– Do we have enough transportation capacity to deal with high volume peaks?
– Is a quick response time during transport execution the cutting edge you seek?
– Who has which responsibilities within your transportation organization?
– How to avoid empty returns? What does the transportation network look like?
– How do you want to integrate and communicate with different stakeholders?
– Which are the essential KPI’s you want to monitor?
• A lot of these fundamental questions need to be answered during a SAP TM implementation project, never to forget that a good transportation strategy should be an integral part of a rock-solid overall supply chain strategy.
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4 things to consider when implementing SAP TMSystem & Process Integration
• Distribution / Logistics is a central point in the organization
• Typical stakeholders: Sales, Warehouse, Sourcing, Finance
• Define handovers & timeline!
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SAP ERP
Global Trade System
Global
Capacity
Planning
Event Management
Carrier Web Portal
Logistics
Service
Provider
(LSP)
Freight Orders
& Confirmations
Web
Solution
Access
Customs Info
Master Data
(via CIF)
Master Data
Transport
Planning
Transport
Request
Overview
Advanced
Transport
Optimization
TM8 Master Data
Events
SAP TM8
Transport
Costing
Transport Cost
(via PI)
Transport
Request
(via PI)Project Transport
to site (Prod. PO)
Spare Parts
Prod. Inbound
Prod.
Intercompany
Project Transport
to site
Spare Parts
Prod. Inbound
Prod.
Intercompany
Prod. Plans
Demand
Business Intelligence
Analytics
Data
Transport Reports
Price List
Manual Transport
Request
Environment, Health
and Safety
Dangerous Goods
Man.Upd. of TM8
Auto.Upd. of TM8
Event
Collection
Device
Events
Manual
Event input
Direct EDI
Integration
1st Project
2nd set of Projects
Legend
Later Projects
Prices from RFQ
Primavera
(Construction)
Transport
Orders
Acual Cost
Visual Business
Map
Functionality
Events
Supplier
Relationship
Management
Performance
& RFQ
Document
ManagementLink to Documents
PBU
Read Access to
Project Transport
• SAP TM is not ‘another module’
• SAP TM is ‘another system’
• Standard, but complexintegration (ECC-TM, ECC-PI-TM, EM-TM, TM-LSP, dangerousgoods, global trade services, …)
4 things to consider when implementing SAP TMMaster Data, Master Data, Master Data
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Locations
Means of Transport
Lanes
Agreement
ProductsWeight
DimensionsDangerous Goods
Address
ResourcesCalendars
Loading Docks
CapacityVehicles
LSP
Leadtimes
Distance
Calculation Sheet Rate Tales Scales
Network
Schedules
• TM (optimisation) drives on MD
• Planning profiles
• Communication & Outputs
Business Partners
Organization
4 things to consider when implementing SAP TMIt is a journey• Do you know already what you want to gain from TM?
• Do you have a plan for maturing your organization? – Is this included in the timeline of your project plan and the budget?
– Do you have a strategy to make your business and IT organization self relient (train the trainer, set up key user organization, IT support organization, …)
• Do you have the right resources?
• Is your organization ready to absorb the new process and the new technology? (Change Management, Netweaver Business Client, PI integration, mobile, …)
Allow your organization the time to mature
Apply a ‘learn as you go’ approach Proof of concept, sandbox to play around and learn
Distinct phases with a limited scope
Manage expectations from management during the first phases of the project
Adjust the goal and setup as you go ("lagen om progressiva insikt")
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