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SAP Transportation Management

Markus Rosemann

Vice President Solution Management, SAP AG

Zell am See, May 22nd 2012

© 2011 SAP AG. All rights reserved. 2

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Agenda

Overview Transportation & Logistics

Transportation Management Solution

Customer Examples

Summary & Wrap-up


The Transportation and Logistics Market A priority investment area for SAP & our customers

Transportation and Logistics (T&L)

represents an area of major focus for...

...the global economy

Global transportation spend

Consumer prices & company profitability

Global CO2 emissions

...our customers

Global supply networks

Customer service

Operational efficiency and cost reduction

...SAP

T&L market size and growth

Core solution extension

Strategic investment


The Transportation & Logistics Network Players and collaboration

PLANNING, ORCHESTRATRATION, & EXECUTION

OF THE PHYSICAL STORAGE & MOVEMENT OF GOODS

CARRIERS

Collaboration

FREIGHT

FORWARDER

CUSTOMER

Order

Management

Freight

Settlement

Transportation

Execution

Transportation

Planning

Inbound

Processing

Outbound

Processing

Storage &

Operations

SHIPPER

WAREHOUSE MANAGEMENT

TRANSPORTATION MANAGEMENT


SAP Transportation & Logistics Our mission and strategy

The MARKET LEADER in Supply Chain Execution

The THOUGHT LEADER in Supply Chain Convergence Mission

SUPPLY

CHAIN

EXECUTION

LEADERSHIP

Best-in Class Solution

Best-in class functionality

Complete, comprehensive solution

Integrated & Connected

Processes

Intra & inter-enterprise solution

End-to-end process integration

Out-of-the box connectivity

Verticalized Offering

Industry-specific functionality

Multi-industry offering


Customer Demands

Powerful performance monitoring & decision support

Full transportation cost control & auditability

Efficient freight contract, rate & carrier performance mgmt

Comprehensive, flexible, scalable, extensible system

International coverage for global deployment

Standard integration to ERP, GTS & interfaces to 3rd party

Automated transportation planning & exec. processes

Synchronized O2C, P2P with logistics & transportation

Efficient asset utilization

Optimized load, route and mode scheduling

Compliant international transportation of dangerous goods

Integrated customs & compliance management

Reduced

Costs

Operational

Efficiency

Sustainability

& Regulatory

Compliance

Low TCO /

High ROI


Analytics & Reporting

Overview SAP Transportation Management 8.1 Solution coverage

Event Management

Import / Export, Dangerous Goods & Compliance

Document & Output Management

Integration & Connectivity

Transportation Charge Clerk

Transportation Planner

Transportation Dispatcher

Specialist (i.e.Tendering)

Order

Management

SAP ERP integration: Order-to-Cash, Procure-to-Pay

Freight Orders

Forwarding Orders

Freight Bookings

Freight

Settlement

Freight Agreement Management

Charge & Tariff Mgmt.

SAP ERP integration: Forwarding & Freight Order Settlement

Freight Execution

& Monitoring

Logistics Execution

Transportation Status Visibility & Monitoring

Freight Planning

& Tendering

Manual & Autom. Planning & Dispatching

Resource & Carrier Selection

Order Tendering

Ocean Booking


The SAP Transportation Management 8.1 Development focus

SAP Transportation Management 8.1

Customer Co-Innovation Deep Process Integration

Order-to-Cash

Procure-to-Pay

Customs & Compliance Mgmt.

Dangerous Goods Mgmt.

Best-in-Class Functionality

Customer

Network SAP

Flexibility, Simplicity, & Performance

Collaboration Decision Support


SAP TM Architecture Overview For full, end-to-end, process integration

SAP ERP Enterprise Resource Management

Purchasing

Sales

Materials Management

Inventory Management

Environment, Health & Safety

Human Resource Planning

Invoice processing

Customer Billing

SAP BusinessObjects

Global Trade Services

Customs Mgmt.

Compliance Mgmt.

Mobile Devices GIS / Maps

SAP EM Event Management

Event Notification,

Tracking & Mgmt.

SAP NetWeaver

SAP Transportation

Management 8.1


User Experience: SAP Business Client


SAP TM User Interface Flexibility Highly flexible role & user-specific user interface

Power User (Transportation Manager) layout

with rich UI content and functionality

Simplified Transportation Clerk layout

with simplified 2 frame layout


Agenda



Customer Examples

Summary & Wrap-up


Analytics & Reporting

Overview SAP Transportation Management 8.1 Solution coverage

Event Management

Import / Export, Dangerous Goods & Compliance

Document & Output Management

Integration & Connectivity

Transportation Charge Clerk

Transportation Planner

Transportation Dispatcher

Specialist (i.e.Tendering)

Order

Management

Freight

Settlement

Freight Execution

& Monitoring

Freight Planning

& Tendering


Order Management

Sales Order

Purchase Order

Stock Transfer

Delivery

SAP TM

SAP ERP

Freight Order, Forwarding Order,

Freight Booking

– General & item data

– Subcontracting data

– Transportation execution data

– Order status

– Linked documents

– Dangerous goods data

Integrated order processing & management

– Integration with order-to-cash & procure-to-pay

– Integrated freight settlement with ERP billing & invoicing

Comprehensive order management

Forwarding, freight & booking (sea & air) orders

Full document flow & order life-cycle mgmt.

– Centralized order data management (for planning, tendering, execution...)

Benefits Efficient, end-to-end order & process mgmt.

High customer service levels & satisfaction


Freight Planning & Tendering

Advanced, interactive transportation planning

– Flexible, configurable transportation planning cockpit

– Drag & drop, graphical capabilities (map integration)

Manual / automatic transportation optimizer planning

– Constraint-based, multi-variant & mode scheduling and routing

– Zero-click planning from order entry to carrier settlement

Domestic & international shipment planning

– Incl. ocean freight booking & customs / compliance mgmt integration

Best-in-class, collaborative tendering

– Manual & automated tendering (direct & RFQ-based)

– Multiple tendering types: peer-to-peer, broadcast

– Flexible carrier communication (Web & mobile UI, e-mail, SMS, B2B) for Request for Quotation processing & status visibility

Benefits Reduced costs & improved operational performance

Improved carrier collaboration & resource utilization


Freight Planning Transportation optimization planning

Freight Units

Building strategies: Freight

consolidation / split Maximum transportation

quantities Compatibility

Freight Orders Planning constraints:

Requested delivery date/times Driver operating hours Time windows Trip & un/loading durations Transport schedules Vehicle availability & capacities Incompatibilities Handling resources Costs (load, penalty)…

Vehicle Resources/ Schedules Variants:

Truck, rail, ocean, air Truckload Less-than-truck-load

Map Integration – Graphical routing

Link for Subcontracting

Carrier selection options: Cost, priority, lane Business share

Order Processing

Freight Unit (FU) Creation

Freight Planning

Freight Order Creation

Tendering Delivery Proposal Creation

Example Process: Transportation Planning

Example UI: Transportation Planning Cockpit


Freight Execution & Monitoring

Comprehensive transportation document mgmt.

– Document creation, printing, status management (Out-of-the box form templates for bill of ladings (road, sea, air), labels, forwarding instructions... )

Integrated logistics & fulfillment management

– SAP ERP integration for inbound & outbound processing

– SAP EHS integration for dangerous goods handling

Integrated customs & compliance management

– SAP GTS for export doc. & customs procedure processing

Transportation execution visibility & monitoring

– Shipment visibility for customers, supplier, carriers

– Integrated event management for event notification & handling

Benefits Efficient logistics & fulfillment processes

Improved execution visibility & responsiveness


Integrated Event Management

Execution status

integrated in the

TM planning cockpit

Event notification

& tracking via

SAP Event Mgmt.

Integrated Event Management

– Freight unit & order, transportation activities

– Event status and alerts

Freight Execution Tracking

– Flexible, configurable event tracking (for freight units, orders & bookings)

– From loading begin to proof of delivery

– Predefined shipper, carrier & consignee views

Event Notification & Reporting

– Expected & unexpected events

– Event notification via WebUI, mobile & technical (RFID, scanner) devices

– Rules-based follow-up activity & alert triggering

– Overdue event monitor

– Unexpected event alerting & communication (via email, SMS, fax, B2B)

– Automatic schedule update of follow-on events

– Event analytics (with SAP Bus. Warehouse)


Freight Settlement

Comprehensive Freight Cost Mgmt.

– Freight agreement management

– Flexible tariff and charge management

– Advanced charge calculation

Integrated Freight & Forwarding Settlement

– SAP ERP financials integration for freight carrier

payment & customer invoicing

– Partial invoicing & billing

– Full document flow / life-cycle management

CUSTOMER

CARRIER SAP TM (Freight Settlement) SAP ERP (Financials)

Forward- ing Order

Forwarding Settlement Document

Customer Invoice

Freight Order

Freight

Settlement

Document

Credit Memo

Carrier Invoice

Invoice Payment

Invoice Confirmation

Invoice Confirmation

Benefits Accurate transportation costing

Integrated transportation management & billing

SHIPPER


Transportation Mgmt Analytics / Reporting Comprehensive & flexible reporting & decision support tools

Transportation Dashboard Preconfigured, graphical transportation dashboard

Interactive navigation, data selection and drill-down

Aggregated and drill-down KPI data for transportation costs, weight, volume (i.e. for country, time period, shipper, carrier, consignee, transp. mode, shipment locations,..)

Embedded Transportation Analytics Graphical analytics embedded in transportation transactions

Contextual business data & analytics for decision support

Flexible query & visualization configuration for transportation subcontracting (i.e. for carrier ranking, carrier tendering acceptance rate with bar, line, pie charts etc.)

Transportation Work lists Object-based overview work lists for direct object/order selection & processing

Highly configurable role & user-specific query definition

Predefined work lists for all transportation management processes (i.e. Transportation requirement, order, tendering, freight settlement etc. work lists)

Business Warehouse Reporting Ad-hoc, multi-dimensional transportation reporting & visualization

Comprehensive, flexible reporting with easy, drag & drop query definition

Broad set of standard transportation & ERP data for required KPI reporting (i.e. for carrier, customer, cost, load, order, profitability analysis etc.)


SAP Rapid Deployment solutions …Packaging now becomes part of the SAP DNA…

SAP RAPID DEPLOYMENT SOLUTION

Complete solution, ready-to-run

Fixed scope, fixed cost, 100% transparent

For new customers, but also fits with existing landscape, ready to expand in modular steps

Fast time to value

Low software : services ratio

Flexible pricing and deployment

AVAILABLE NOW

SAP Transportation Management rapid- deployment solution for domestic transportation planning

SAP Transportation Management rapid-deployment solution for domestic transportation tendering


Agenda



Customer Examples

Summary & Wrap-up


SAP TM 8.1 in Action

“The primary news in the TMS market may have been that SAP made significant

strides in its TMS offering. They now have an offering with best-of-breed functionality".

ARC Advisory Group; Steve Banker; June 16th, 2011

Solid, fast growing customer adoption

General availability in June 2011

> 20 ongoing implementation projects - across multiple industries & around the globe

Strong Infrastructure ready to support

Comprehensive education curriculum and materials

> 80 SAP TM consultant experts around the globe

> 20 partner companies trained

"SAP TM 8.1 is helping Artoni boost operational efficiencies and cut costs.....

Through the deployment of SAP TM 8.1, Artoni has benefited from the automatic

pricing and billing process capabilities provided, which has led to the company

increasing its speed by more than 20 times, allowing it to manage and release more

than 100,000 delivery notes a day".

Artoni; August 3rd, 2011


Consumer Products Customer

SAP TM 8.1 Project Overview

Consumer

Products Industry

Mixes - Pancake,

cornbread, biscuit, tortilla,

gravy…

Flour

Implementation location Prosperity SC, USA

SAP TM 8.1 Project Details

Go live October 1st, 2011

• Planned coverage

ca.10 planners

4000 transportation requests per month

2000 settlement documents per month

8000 event messages per month

Implementation scope

Mainly domestic outbound transportation

Small volume international outbound (From 1 location to Germany)

ERP-based order management, transportation planning, carrier selection,

freight tendering, EM based monitoring

Goals

Replace existing legacy system and manual processes

Optimize freight planning, tendering & execution

Future roll-out plans

Several further plants until mid 2012

Consultants


Wholesale Distribution Customer

SAP TM 8.1 Project Overview

Wholesale Distribution

Distribution & sales of consumer

goods in Saudi Arabia

Leading brands: i.e. Procter &

Gamble, Quaker, Clorox

SAP TM 8.1 Project Details

Go-live June1st, 2011

Planned coverage

500 deliveries per day

5 dispatchers and 15 Event Management users

Planning for 100 own trucks & transportation providers trucks

Implementation scope

Domestic outbound transportation

Transportation planning, execution and shipment cost

calculation

Manual & automated optimizer planning - single-mode, land-

based truck transportation with multi-pick-up, multi-drop

planning & direct carrier assignment

Goals

Efficient truck planning - capacity, schedule, routing etc.

Transportation execution visibility

Accurate cost calculation (improved data quality)

Consultants

Implementation location Jeddah, Saudi Arabia


Agenda



Customer Examples

Summary & Wrap-up


SAP Transportation & Logistics Next steps

Shippers Contract

Logistics

Rail Carriers

Logistics

Service Prov.

Ocean / Air

Carriers

Oil & Gas

Truck Carriers

Freight

Forwarders

2011 2012 2013 2014 2015

TA

RG

ET

MA

RK

ET

DE

VE

LO

PM

EN

T

FO

CU

S

Core TM processes for shippers

EWM returns & claims management

Supply chain execution platform

Core TM processes for freight forwarders

Advanced costing, settlement & charge management

Profitability costing & cost distribution

Door Appointment Scheduling

Order-to-cash for rail

TM enhancements for retail & automotive

Parcel Management

Carrier Portal

TM enhancements for ocean & air carriers

Strategic vendor sourcing

Transportation Demand Forecasting

Fleet, asset & container mgmt.

Hub handling

Warehouse control (standalone)

TM enhancements for oil & gas

SCE platform for midmarket

EWM multi-client framework for LSP

Advanced warehouse optimization

DE

VE

LO

PM

EN

T

TO

PIC

S

User Experience, Mobile, Analytics, HANA

Connectivity, Event Management, Integration, Sustainability

TCO / TCI (incl. RDS)


Summary & Wrap-up

Transportation and Logistics is a major investment area for SAP

Strong industry focus ensures delivery of a best-in-class transportation

management solution (starting with shipper industries)

The SAP Transportation & Logistics development roadmap provides a solid

path for transportation network coverage and supply chain convergence

SAP is working in close collaboration with customers throughout the entire

development life-cycle

SAP Transportation & Logistics follows a lean development model for faster,

quality solution delivery

Thank You!

[email protected]

VP Solution Management

Line of Business Supply Chain Execution

SAP AG

mailto:[email protected]

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