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SAP Functions in Detail SAP for Utilities SAP Waste and Recycling Optimized Logistics Processes in the Waste and Recycling Industry © 2013 SAP AG or an SAP affiliate company. All rights reserved.

Optimized Logistics Processes in the Waste and Recycling Industry

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SAP Functions in DetailSAP for Utilities

SAP Waste and Recycling

Optimized Logistics Processes in the Waste and Recycling Industry

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SAP

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Table of Contents3 Quick Facts

4 Introduction: The Collection Process

5 Customer Management

7 Contract Management

8 Order Management

11 Inbound Weighing

13 Process Completion

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Quick Facts

SummaryThe SAP® Waste and Recycling application offers wide-ranging functionality to support all your customer care, service, logistics, and billing activ-ities. The functions are fully integrated in standard SAP business software, which is extremely impor-tant considering the deregulation of the waste disposal industry worldwide. In the resulting envi-ronment of increased competition among waste disposal companies, the software meets your critical business, technical, and personnel-related requirements.

Objectives • Focus on the customer • Capture, process, and complete work orders reliably and cost-effectively

• Increase transparency of business processes to increase competitiveness

• Provide prompt access to company-relevant information

Solution • Efficient, integrated support for order and data management

• Streamlined handling of your business processes at the gates and within your waste disposal facilities

• Route planning and management using efficient digital mapping technologies

• Real-time communication with your fleet and data acquisition from your fleet to your back office

• Support to meet regulatory requirements of waste and recycling processes

• Billing support for both municipal and commer-cial waste disposal services

Benefits • Efficient customer management • Legal compliance • Optimum resource utilization • Increased efficiency in municipal and commercial waste disposal

• Optimized facility management

Learn moreVisit us online at www.sap.com/solutions /solutionextensions/wasterecycling/index.epx.

Optimized Logistics Processes in the Waste and Recycling Industry

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

In order to keep this document focused on the processes performed by waste and recycling companies, procedures that are not specific to the industry – like lead management and prospect and quotation management – are not discussed. For the same reason, materials management activities performed “behind the weighbridge” are not mentioned.

Introduction: The Collection Process

The main logistics process performed by waste and recycling companies is collect-ing waste material. It may appear to be highly standardized, but it takes many details into account. While SAP® software can help you coordinate your business and sharpen your competitive edge, the SAP Waste and Recycling application can help you gain greater control over this key logistics process. This document describes the process in detail and clearly maps the steps to functions in SAP Waste and Recycling.

For each contract, an invoicing method is chosen, a bill of materials may be created, and current prices for services to be rendered can be specified.

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Customer Management

CreATIng A CuSTOMerCustomer management for a waste and recycling company starts by creating a customer in the soft-ware and concludes when an invoice is printed out and the facilities inventories are updated. Figure 1 shows how the process is typically performed by both private and commercial waste and recycling facilities.

All sales- and customer-related activities are initiat-ed in the SAP Customer Relationship Management (SAP CRM) application, for example, from the in-teraction center in SAP CRM. Because all activities take place in a single screen, the call operator at the waste facility can search for the caller in the software using a variety of search criteria, such as name or address. The software then displays the master data entered for that customer. The call operator edits the customer data, thus completing the caller’s request in a single call. (What customer data a call operator may change, however, is restrict-ed by the software based on the call operator’s assigned role, administrative authorization, and organization.) If a new customer is calling, the call operator can create an entry for the customer and enter the customer’s data right away.

Lead management

Figure 1: Customer-to-Invoice Process

Prospect and quotation management

Maintain customer

Maintain contract

Orderentry

Planning Orderexecution

Inboundweighing

Logisticscompletion

Administrationcompletion

Preinvoicingprocess

Invoiceoutput

Collectionsmanagement

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KeePIng SeArCheS FASTCustomer data is never deleted from the SAP software until it must be deleted to comply with applicable data privacy regulations. But the load on your enterprise resource planning (ERP) soft-ware can be kept to a minimum and searches accelerated by flagging inactive customers in the master data of a Business Partner. When searches are conducted, the default filter eliminates the inactive customers from the result list. Whenever a search of all customers must be conducted, the filter can be switched off.

Each customer is represented in the SAP software as a Business Partner and assigned a role, for example, Vendor or Customer. The Business Partner is assigned to the waste facility’s sales organiza- tion, which also specifies the salesperson in charge of that customer. To help you visualize your facility’s organization, several views of the business partner data are available (see Figure 2). Service-level agreements may be drawn up with a customer to specify a time period within which a service is to be performed.

Optimized Logistics Processes in the Waste and Recycling Industry

Figure 2: Business Partner Data Model

Customer master data

Business partner

Customer master data

Business partner financial data (sales)

Vendor master data

Business partner financial data (purchasing)

Vendor master data

Business partner vendor data

Business partner

Shared customer and vendor master data

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Contract Management

A Contract is created in the software to specify the services the waste facility is to provide for a specific customer. Each contract specifies (see Figure 3):

• Sold-to party • Payer • Billing address • One or more service addresses • Validity period • Pricing information

Each service to be rendered, defined in the software as a Service Product, specifies:

• The service to be performed for which the customer will pay

• How the service is priced • The tasks required to perform the service

A different Service Product may be assigned to each of a contract’s different service addresses. The information specifying waste type, packaging, and invoicing is stored for the contract separately from the Service Product. A Service Product does not specify a service sold. The materials to be delivered at a disposal facility and any additional services associated with the delivery are main-tained in the contract separately.

Figure 3: Contract Data Model

Address where a service is provided

Service address

Customer master data

Business partner

Customer master data

Business partner Sold-to party

Bill-to party

Payer

Configuredservice product

Contract main item

List with allowed addresses of this contract

Address list

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Order Management

For each contract, an invoicing method is chosen and a bill of materials may be created. Current prices for services to be rendered and profit center can be specified (see Figure 4). To indicate that a contract is subcontracted, a purchase contract can be assigned to the contract. To provide for transport subcontracting, an external transporter can be assigned via the purchase contract. Assign-ments for direct deliveries are made in the same way.

Any changes made to the contract – for example, a price change, an enhancement of the services offered, or a change in payment terms – can be made directly in the interaction center or the SAP ERP application. The changes are tracked. Some changes can be linked to a time slice.

Figure 4: Contract Structure and Product Examples

Contract

Contract main item

Contract subitem

Contract

Product: wheeled bins

flatrate 1,1 m3

paper weekly emptying

Contract

Product: construction waste

all in 5 m3 skip construction waste transport zone 1

treatment mixed construction waste in tonnage

transport 5 m3 skip transport zone 1

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OrDer CreATIOn, OrDer PLAnnIng Together, a Business Partner, Contract, and Service Product generate a Waste Disposal Order, which specifies a route or a daily workload. The order is made up of one or more Waste Disposal Order Item objects. One order item specifies an object to be serviced, for example, a container at a service address, a tank, or a cesspool. An order item is assigned directly to a Business Partner. If a service-level agreement was concluded with that Business Partner, the data is displayed. The software also records the time and date when an order is created, to be used to check for compliance with a service-level agreement.

Order entry Once an order item is associated with a customer, the sales representative assigned to that customer selects a service from the Service Product objects associated with the contract and assigns it to the order item. When the necessary data has been entered, the software creates a service for the order item. It might be a one-off pickup; the placement of a package, bin, or container; or a recurring service. For a one-off service, the appropriate order item is generated right away. A recurring service generates one order item for each instance of the service to be performed.

Depending on the contract setup, an order item may be assigned to a field worker automatically as soon as it is created or it may not yet have a route assignment.

Separate requests may be made for additional one-off services for a specific contract. If so, additional planning activities are required. If the existing contract already provides for recurring services once a week, its order items exist in the planning phase. If they were allocated to a route, including truck and driver assignment, no addi-tional manual interaction is necessary in the operational planning phase. OrDer OuTPuT, OrDer exeCuTIOnAll Waste Disposal Order Item objects need to be allocated to a route and assigned resources. Order items not yet allocated are stored in a sep-arate folder, to which access can be restricted. Dispatchers assign resources to order items. Resources include trucks, trailers, subcontractors, drivers, and loaders. A planner group authorizes which resources a dispatcher may allocate and for which areas of responsibility. An area of respon-sibility could be, for example, hazardous waste in region 123. This scheme supports a centralized dispatching operation that can be supervised by the appropriate planner group.

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If a Waste Disposal Order Item is dispatched to a resource that is a subcontractor, a process is triggered that involves the finance and logistics departments. This is because the subcontractor is a resource. Finance handles vendor acceptance; logistics handles purchase contracts and orders.

If an additional order item is created, additional resources may be required. To handle this, a pro-cess is started to create a new route. Once the new route is created, the dispatcher allocates and schedules resources and assigns services to the route. SAP Waste and Recycling supports this work with filtered lists and default lists of waste disposal facilities.

route Sheet Based on the order items assigned, a route sheet is created. An optional cover sheet provides addi-tional route information or a request for order confirmation.

Order Execution Every driver receives a route sheet stating the day’s work. If no computing system is on board, the driver adds data to the cover sheet manually, such as start and end times or distance driven. At the end of the day, the driver signs the route sheet and hands it in to logistics. A driver may use driver tickets per order item, which customers can sign.

For more information about on-board computing with SAP software, visit us online at www.sap.com /solutions/solutionextensions/wasterecycling /index.epx.

If an order item is dispatched to a resource that is a subcontractor, a process is triggered that involves the finance and logistics departments.

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Inbound Weighing

During the course of executing the daily workload, every driver, team, or truck will enter a waste disposal facility at least once a day to unload the collected waste. The weighbridge at the facility represents the entrance to the material manage-ment and waste flow process. (For a manual process in a barrel-based liquid business, for example, this would be a unit count.)

Inbound weighing at any of your waste disposal facilities can use SAP software. The most conve-nient approach for such a facility is to integrate the physical weighbridge directly with SAP ERP. With the treatment and disposal functionality in the application SAP Route and District Management for Waste and Recycling by PROLOGA, SAP provides software that can integrate with the weighbridge directly, with no intervening third-party software necessary.

If your weighbridge communicates with the soft-ware in SAP ERP, the weighing data is fed directly into the software. The weight can also be entered manually. Based on the weighing data, a weighing record for the weighing transaction is created. The software can handle two different processes at this time:

• The “order-related inbound weighing” process for trucks that have been allocated an order item in the software

• The “direct deliveries inbound weighing” process for trucks that show up with a contract for direct deliveries

Third parties arriving at the facility with no contract might be serviced through a cash-based process referred to as “pay per delivery.”

OrDer-reLATeD InBOunD WeIghIng When a truck that has been allocated an order item in SAP Waste and Recycling arrives at a weighbridge, a weighing note is created and associated with the appropriate waste disposal order or order item.

After the weight is recorded, the truck enters the waste disposal facility and unloads the waste. Driv-ing back, the tare weight is taken at the weighbridge if that data is not already stored in the software. The weighing note is posted, the note is confirmed with the order or order item, and the material that was unloaded is placed on stock within the waste disposal facility.

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Redeclarations at the waste disposal facility might lead to an exception in confirmation. To document redeclarations, samples can be taken at the weighbridge and documents, for example, pictures of the delivery, may be attached to the weighing note.

DIreCT DeLIverIeS The treatment and disposal functionality handles direct deliveries from external companies. These deliveries are unloaded at the facility and the ser-vice of disposing of the material sold. Most of these customers have contracts for their deliver-ies, which specify waste type, quantity, pricing information, and payment terms. For each direct delivery, a debit memo request is created and invoiced.

A truck making a direct delivery drives onto a weighbridge. It is determined if the waste being delivered can be accepted by that facility. Samples of the load may be taken. Once the truck and its load have been accepted, the truck is weighed in, a weighing note created, and the weight recorded. The truck then enters the waste disposal facility and is emptied. On the drive back out, the tare weight is recorded. At this point, redeclarations might take place.

For customers delivering to a facility without a contract, standard prices apply to the deliveries.

CMP25671 (13/07) © 2013 SAP AG or an SAP affiliate company. All rights reserved.

A purchase order may be created for subcon-tractor activities, disposal at an external facility, or third-party transportation.

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During a collection tour, the driver can confirm a waste disposal order in one step instead of con-firming each order item singly. Exceptions can be accessed via the business process exception management functionality.

When a waste disposal order item is completed, a debit memo request is created, which is required for invoicing. In addition, a purchase order may be created for subcontractor activities, disposal at an external facility, or third-party transportation. An internal posting in the controlling software may also be generated. DeBIT MeMO reQueST A debit memo request created when an order is completed can be processed independently from the contract or waste disposal order item. Before it is used to create an invoice, lines can be added or removed and new prices applied, if necessary. If a debit memo request has a billing block, the debit memo request must be edited and the billing block removed.

Multiple relevant debit memo requests can be invoiced together or separately. Invoice-split criteria can be applied that use the data maintained in the customer master, contract, contract item, waste disposal order item, or debit memo request. Credit memo requests and credit memos can be processed in a similar way.

InvOICe OuTPuT Depending on the message type assigned to a document type, invoices can be printed or generated as a digitally signed PDF.

OrDer COMPLeTIOn When a weighing note is posted, a goods move-ment is created in the waste disposal facility, up-dating the stock to reflect the delivered material. Depending on the customer and contract settings, a debit memo request or a cash sale may be cre-ated. The weighing note can then be printed.

The driver reports back to the office with a com-pleted printout of his tour list. Start and finish time, overall time, kilometers driven, and other key figures or remarks of the driver might now be entered into the software. Additional weighing notes from external waste disposal facilities might be completed. (Confirmations of weighing notes from facilities connected to the SAP software are already stored in the software.)

On-board computing now largely replaces the manual paper-based processes described above. The application SAP Mobile Order Management for Waste and Recycling by PROLOGA transfers the bin weight to SAP Waste and Recycling auto-matically, with no manual confirmation of the weighing note necessary. Data received from the on-board unit can be used to complete the waste disposal order and waste disposal order item.

In Order Completion, the container inventory is automatically updated to reflect the number of placed, removed, or exchanged containers. Again, the on-board computing system minimizes any manual effort.

Process Completion

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