Keeping transportation operations on tracK - HCL · PDF fileKeeping transportation operations on tracK SAP ... Order Mgmt. Transport Planning Transport ... to specific import/export

Keeping transportation operations on tracK

SAP® Transportation Management (TM) helps companies remove cost and complexity by simplifying the transportation process – from planning and optimization to execution and settlement

Accelerate Value

keePing TrAnSPorTATion oPerATionS on TrAck

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In today’s global economy, the need to transport products has

never been greater. While globalization opens up new markets and

revenue streams, it also increases operational costs.

Transportation is irrevocably bound to the fuel industry, which can

be highly volatile both in terms of cost and supply – especially given

the world’s diminishing oil resources.

These shortages along with concerns about climate change -

transportation is responsible for 15% of global CO2 emissions1 - are

prompting governments to introduce taxes and regulations that also

drive up freight shipment costs.

The impact of rising fuel costs is exacerbated by the fact that

many trucks leave warehouses and distribution centers with spare

capacity. It is estimated that only half of the trucks traversing

the European Union have a full load1, which has financial and

environmental ramifications for both carriers and shippers.

Despite spiralling freight costs, the demand for transportation will

continue but to grow: products and supply chains have become

increasingly complex – between 3,000 and 5,000 suppliers are

involved in the production of a car1.

This not only increases the need for transportation but also

introduces additional business risk, as delayed or missed

deliveries could lead to a critical break in the supply chain and

the non-fulfilment of customer orders. This in turn will have a

negative impact on product availability, competitive advantage and

profitability.

More stringent trade and product regulations also add to

transportation complexity and risk, with non-compliance or poor

audit trails resulting in excessive dwell time and unforeseen stop-

offs. In an era of ‘just-in-time’ deliveries, such delays can come with

far-reaching consequences.

introDUction

Products and supply chains have become increasingly complex – between 3,000 and 5,000 suppliers are involved in the production of a car1

1 Eric Osterroth, SAP, September 2010


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case for action

Faced with growing complexity and costs, companies need to

bring greater accuracy, speed and flexibility to their transportation

operations, which increasingly involve not only multiple modes of

transportation but also numerous shipping partners around the

world and multiple internal stakeholders.

Transportation Management Systems (TMS) help companies

determine the most efficient and cost-effective way to execute the

movement of products.

Although many businesses recognize the benefits of TMS, very

few have deployed an integrated platform that supports the entire

transportation lifecycle. Instead organizations are reliant on

standalone solutions or the limited functionality offered by generic

business planning systems.

ULTIMATE SUPPLIERS

SUPPLIERS MANUFACTURERSDISTRIBUTORS /

3PLSRETAILERS CUSTOMER

OUTBOUND LOGISTICSINBOUND LOGISTICS

Transport Order Mgmt.

Transport Planning

Transport Execution

Transport Tracking

Freight Costing &

Billing

CARRIER / TRANSPORTATION PROVIDERS

This lack of integration and functionality prevents companies

from fully optimizing their transportation operations. To achieve

such optimization, organizations need to deploy a solution that

can go beyond shipment execution and planning to include more

sophisticated features, such as:

n Automated freight sourcing

n Logistics network remodeling

n Order consolidation

n Trend reporting and analysis.

Such advanced funtionality will lead to better optimized shipments

and further facilitate identification of problems and continuous

improvement opportunities.

The Supply chain & Transportation networkA complex network and Process


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seamless transportation management in real-time

SAP has been helping organizations address their transportation challenges for more than 20 years through the deployment of powerful enterprise IT solutions, such as the logistics execution functionality in the SAP® ERP application, and the transportation planning and vehicle scheduling (TPVS) functionality in the SAP Advanced Planning & Optimizing component.

In recognition of the evolving transportation landscape, it has now launched a dedicated application: SAP Transportation Management (TM). The software provides both in-depth functionalities and integration, which enable organizations to link transportation to upstream and downstream business processes, such as order management and finance.

For example SAP TM can be integrated with SAP ERP to allow ready access to product and customer master data as well as order/delivery requests.

These requests can then be planned, subcontracted, executed and tracked via SAP TM with transportation costs being fed back to SAP ERP for customer billing and vendor invoicing.

With transportation costs on the rise, the sub-contracting stage of this process has become particularly important. Organizations not only need to ensure they select a partner that delivers maximum value but also ensure that they take advantage of volume discounts by consolidating orders for shipment.

SAP Transportation Management: Process overview

SAP TM helps to simplify freight procurement by supporting:

n Peer-to-peer, broadcast, direct, email and web-based tendering

n Company-wide sharing of current shipping rates

n Quote acceptance with or without response to RFQ

n Collaboration with external carriers

n Exception-based management via automated alerts

n Carrier contract compliance.

Unlike many TMS, the SAP software supports both inbound and outbound freight shipments, which can be tracked in real-time. This provides an end-to-end view of the global supply chain including continuous moves and multi-leg shipments.

Such broad visibility makes it easier for companies to identify opportunities to minimize empty backhauls, which reduces both costs and impact on the environment.


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Although transportation is founded on

common processes, every company has its

own policies. These will vary depending on

the freight involved – for example if products

include dangerous goods – and shipment

destinations – some destinations are subject

to specific import/export controls.

Each TM must therefore be implemented

to meet a company’s individual needs as

well as optimized for integration with other

enterprise systems. This integration can

be quite complex encompassing not only

ERP systems but also any legacy systems,

external shipment tracking system and

Global Trade Services for import/export

compliance.

Failure to get these foundations right could

prevent organizations from realizing a full

return on their TM investment.

transformation with gUaranteeD oUtcomes

SAP TM overview System Landscape(open interface to any back-end system)

SAP TM

ECC 6.0 EhP5Master Data, Logistics, Financials

P I 7.00

Optional

Legacy Systems

External GIS

GTS 10 EM 7.01Optimizer

8.0

Web Service

Direct Integration

EDI FACT

X12

Partner Collaboration

HCL AXON has more than 15 years’

experience of helping companies transform

their transportation challenges with SAP

solutions. We provide support at every

stage - from business case creation

and performance baselining through to

implementation and user education.

Confirm the VisionMethodology & Scope

Confirm the Design

Build & Test the Solution

Manage the Transition

Deliver the Benefits

ProjectPreparation

Business Blueprint

Realization

Cut-over

BenefitsRealization

HcL AXon implementation Approach

Our expertise extends across every

area of our customers’ business, from

finance, resource planning and program

management to manufacturing supply chain

and operations. As a result, we understand

how to best integrate transportation

processes with other business disciplines.

HCL AXON takes a unique benefits

realization approach to customer

engagements, which means we commit to

a guaranteed outcome - whether it involves

lower transportation costs or better asset

utilization.


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benefits realization

Cost reduction is one of the key benefits of optimized transportation

operations. Fewer empty miles and more full loads are just two of

the factors that help minimize transportation overheads. Best-in-

class TMS can also help to reduce expenditure by:

n Encouraging users to select the most cost-effective carriers and

shipment methods

n Minimizing the manual effort involved in freight procurement,

transportation planning, shipment tracking and billing.

As well as helping companies unlock financial savings, an

integrated TMS will also address challenges surrounding supply

chain continuity by reducing the risk of unforeseen exceptions in the

shipment process and accelerating cross-border transactions with

compliant export documentation.

As a result, organizations will be able to ensure that products get to

their destination on time, which helps:

n Safeguard customer service levels

n Support a leaner product inventory

n Protect competitive advantage and profitability.

Efficient and cost-effective transportation is essential in today’s fast-

paced economy and will help businesses respond more quickly to

evolving consumer demand, legislation and supply chains.

Efficient and cost-effective transportation is essential in today’s fast-paced economy and will help businesses respond more quickly to evolving consumer demand, legislation and supply chains


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sap tm: sUpporting enD to enD transportation operations

Freight procurementCentralized purchase, carrier compliance tracking, inbound freight

integration

Planning and consolidationCentralized planning at enterprise level, inbound and outbound,

integrated customer forecast

carrier assignmentAutomatic carrier assignment, continuous moves

Tracking Real-time visibility and exception management, integrated EDI,

global supply chain view

Freight payment and settlementMatch and pay, automated invoicing, automated audit for unplanned

charges, freight cost and profitability analytics

optimizeD transportation operations

Business Benefitsn reduces freight costs

n Safeguards supply chain continuity

n Supports expansion into new markets

n Minimizes carbon footprint

n Simplifies compliance with import/export controls


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Fast Factsn HCL AXON is rated number one for customer satisfaction

according to the latest SAP survey for global system integrators

n Executed more than 100 successful go-lives of SAP in the

aviation, defense, logistics & transport providers, consumer

packaged goods and heavy engineering industry sectors

n Proven business benefits across planning and scheduling,

transportation management systems, warehouse management

systems, truck load carriers and freight logistics

n Significant investments in transportation - solutions,

accelerators, methodologies and frameworks addressing unique

functionalities providing competitive value for customers across

key performance parameters

n HCL AXON has been a key player in over a third of all global

SAP implementations in the travel, transportation and logistics

sector

n Analyst IDC has recognized HCL AXON as ‘a major player’ in

SAP implementations

our client Base includes

n AMD

n Anheuser Busch

n Arctic Cat

n Bayer

n Britvic

n Bosch

n Canadian National

n Canadian Pacific

n Dr. Pepper

n Haas Automation

n Hospira

n Lucent

n Newport

n Panasonic

n Pirelli

n Rockwell Automation

n Smiths

n Solutia

n Xerox

hcl aXon transportation eXpertise

HCL AXON has been a key player in over a third of all global SAP implementations in the travel, transportation and logistics sector


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case stUDY arctic cat

Arctic Cat, Inc. engages in the design,

engineering, manufacture, and marketing of

snowmobiles and all-terrain vehicles (ATVs).

The company also provides Arctic Cat

snowmobile and ATV parts, garments, and

accessories. It has two production facilities,

four distributions centers and 600 users.

Business needn Company was not taking advantage

of building mix loads (ATVs and

Snowmobiles) on the same truck

n Reduce the manual planning effort for

freight planners

n Systematic route optimization and load

determination

n Provide simulation capability of

transportation planning

HcL AXon Solution n Served as the lead integration partner for

implementing an SAP solution

n Integrated two third party products –

Ortec LEO VSO and Rand McNally

n Comprehensive knowledge transfer

including configuration

n Project completion in four months

HCL AXON exceeded expectations with their SAP Transportation practice teamDave PaulsonTraffic ManagerArctic Cat

Benefits n Reduced number of stops by 12%

(target: 10%)

n Reduced total number of miles traveled

by 4% (target: 2%)

n Reduced rate per mile by 4% (without

fuel price increase)

n Improved traffic coordinator efficiency

n Increased mixed loads from 3% to 15%


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aboUt hcl aXon

Accelerate ValueWe recognize that different organizations require differing outcomes from their ERP investment, and as such we provide different solutions to best address these needs:

■ consulting – Design, deployment and optimization of world-class business practices

■ Transformation – Delivering fundamentally improved levels of operational performance through the implementation of world-class ERP platforms

■ refresh – Rapid implementation of pre-configured industry specific business solutions based on world-class ERP platforms

■ re-platforming – Migrating legacy solutions onto today’s leading technology platforms

■ Sustainment – Complete heterogeneous systems applications management capabilities from remote system monitoring through to Information Technology Outsourcing (ITO)

In all of these approaches, HCL AXON combines unrivalled experience in deploying the world’s leading enterprise application software with significant industry experience to ensure that our programs deliver value for our customers, faster and more cost effectively than any of our competitors.

True global DeliveryHCL AXON operates as a single global organization allowing us to deploy consulting teams which leverage proven industry and solution best practices from our offices around the world. We fully understand that successful implementation projects require both on-site client engagement to drive process design and business change while simultaneously leveraging the significant cost and time zone benefits associated with cost effective off-shore and near-shore, round-the-clock delivery centers. Our global delivery model does not treat off-shore as an afterthought; we fully integrate our off-shore capabilities into our implementation and application management methodologies to ensure that the value of the integrated on-shore/off-shore model is fully optimized.

Financially Stable and respectedHCL AXON is a wholly owned subsidiary of HCL Technologies, a $6 billion global technology leader with over 90,000 employees. HCL is not only financially robust; it is also globally recognized for its revolutionary management practices which focus on trust, integrity and the empowerment of our employees. This approach, which we call Employee First, is the subject of one of the most frequently taught Harvard Business School Case Studies.

iT is all about certainty of outcomesUltimately our engagements are driven by the need to deliver certainty to our clients:

■ on Value■ on Time, To Budget ■ guaranteed Service Levels■ committed cost reductions■ Realized, Cashable Benefits■ Achieved Business Metric improvements

HCL AXON regularly contracts to the delivery of specific outcomes – whether it is a reduction in a call center’s average call handling time, guaranteed infrastructure management cost-reductions or a particular cost saving or performance improvement.

HCL AXON is a global pioneer in leveraging leading technologies to drive value realization. Our value management approach accelerates the realization of benefits from your investments by aligning IT to your clients’ required business outcomes. We provide the complete range of consulting, hosting and Business Process Outsourcing (BPO) services, necessary to define, realize and sustain real business change. Our unique delivery model integrates on-site business transformation consulting services with near-shore and off-shore technical development and support capabilities, to ensure that our clients receive the optimal solution at the right price point.


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HCL AXON is the best in the world at creating industry-specific, end-to-end platform solutions that deliver business performance

[email protected]

© HCL AXON 2012 (All references to HCL AXON include former Axon)

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Keeping transportation operations on tracK - HCL · PDF fileKeeping transportation operations on tracK SAP ... Order Mgmt. Transport Planning Transport ... to specific import/export