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SAP Transportation

Management 8.0

Transportation & Logistics Product Unit

February, 2011

© 2011 SAP AG. All rights reserved. / Page 2

Agenda

1. Overview Transportation & Logistics

Overview of Transportation & Logistics

SAP Transportation & Logistics Strategy

Overview SAP Transportation Management 8.0

2. Solution Details

SAP TM 8.0 process/coverage details

SAP TM scenarios

3. SAP Transportation Management Implementation

Customer Implementation Projects

Architecture Overview & Release Timelines

4. Summary & Wrap-up

SAP's Supply Chain Execution Vision & Plans

Summary


Agenda





2. Solution Details

SAP TM 8.0 Process / Coverage Details

SAP TM scenarios






Summary


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

© SAP AG 2011. All rights reserved. / Page 5

Transportation & Logistics Challenges

Top Executive Issues

How can I manage my logistics network in a holistic fashion?

How can I ensure transparency & minimize supply chain risk?

How can I reduce my operational costs and better understand

transportation costs at the customer level?

How can I ensure best possible usage of my assets?

How do I ensure high customer service levels and responsiveness to

unexpected supply chain events?

How do I ensure I am compliant with all the varying regulations and

compliance policies?


The Transportation Network

Players and Collaboration

SHIPPER CUSTOMER

FREIGHT

FORWARDER

CARRIERS

Goods Delivery

Collaboration

PLANNING, ORCHESTRATION, & EXECUTION

OF THE PHYSICAL MOVEMENT OF GOODS


The Transportation Process

A Highly Complex & Dynamic Process

OrderManagement

Receive / create

transportation

requirements From sales,

purchasing, deliveries

Freight Settlement

Calculate

transportation

charges

Pay

subcontractors /

carriers

Invoice

customer(s)

Freight Execution &Monitoring

Print / send

transportation

documents

Transport freight

Track & manage

transportation

milestones &

events

FreightPlanning &Tendering

Plan & optimize

freight

transportation Load, mode,

schedule, route

Select carrier(s) Price, service,

lane, …

Tender freight &

assign carrier(s)

CUSTOMER

CARRIERS

FREIGHT

FORWARDER

Transportation Planner

TransportationCharge Clerk

TransportationDispatcher

SHIPPER

TRANSPORTATION MANAGEMENT


SAP Transportation & Logistics

Our Mission and Strategy

Best-in Class

Solution

Verticalized

Offering

Integrated &

ConnectedProcesses

Best-in class functionality

Complete, comprehensive solution

Intra & inter-enterprise solution

End-to-end process integration

Out-of-the box connectivity

Industry-specific functionality

Multi-industry offering

The MARKET LEADER in Supply Chain Execution

The THOUGHT LEADER in Supply Chain ConvergenceSAP Mission

SUPPLY

CHAIN

EXECUTION

LEADERSHIP


ComprehensiveTransportationManagement For core

transportation mgmt. operations

For shipper industries

TransportationPlanning & Execution Stand-alone solution

Inbound & outbound transportation

Transportation charge engine

SAP Transportation Mgmt. combines a long history of

transportation business, process and IT expertise

SAP Transportation Solution History

Strong, Continued Investment to Deliver THE Market-Leading Solution

Shipping Planning& Optimization Order-based

planning

Integrated with ERP LE-TRA

Shipment Execution

THEmarket-

leading

solution

SAP TransportationManagement(TM 8.0)

SAP TransportationManagement(TM 6.0 & 7.0)

SAP APOTransportationPlanning / VehicleScheduling (TP/VS)

SAP ERP Logistics Execution Transportation (LE-TRA)


The SAP Transportation Management 8.0

Development Focus

Customer Co-Innovation Deep Process Integration

Order-to-Cash

Procure-to-Pay

Customs & Compliance Mgmt.

Dangerous Goods Mgmt.

Best-in-Class Functionality

Customer

Influencer

Group

SAP

Flexibility, Simplicity,& Performance

Collaboration Decision Support


SAP TM Transportation Cockpit

Highly Flexible Role & User-specific User Interface

Power User (Transportation Manager) layout

Rich UI content and functionality

Simplified Transportation Clerk layout

2 frame layout with worklists

© SAP AG 2011. Alle Rechte vorbehalten. / Seite 12

Transportation Analytics

Comprehensive, Flexible Reporting Capabilities

Transportation Dashboard

Adhoc Reporting on Mobile Devices

Embedded Contextual Analytics

Role & User-specific Worklists


Analytics & Reporting

SAP Transportation Management 8.0

Solution Overview

OrderManagement



Freight Settlement

Event Management

Import / Export, Dangerous Goods & Compliance

Document & Output Management

Integration & Connectivity




Specialist(i.e.Tendering)

SAP TRANSPORTATION MGMT. 8.0


Transportation Mgmt. Processes and Scenarios

Solution Manager Content Delivered with SAP TM 8.0

SAP TM 8.0 Processes■ Managing Transportation Requirements

■ Managing Forwarding Orders

■ Managing Freight & Bookings

■ Planning Freight & Selecting Carriers

■ Tendering Freight

■ Executing & Monitoring Freight

■ Settling Freight Orders

■ Settling Forwarding Orders

SAP TM 8.0 Scenarios■ Domestic Inbound Transportation

■ International Inbound Logistics

■ Outsourced Transportation

■ Domestic Outbound Transportation

■ International Outbound Transportation

Transportation Management

Processes & Scenarios

Comprehensive Documentation Process, scenario, configuration, customizing & implementation

SAP TM 8.0 Master Guide

SAP TM 8.0 Scenario

Configuration Guides

SAP TM 8.0 Online Documentation

Benefit

Efficient, end-to-end processes & scenarios

Reduced implementation time, effort and cost


Customer Benefits

Reduced

Costs

Operational

Efficiency

Sustainability

& Regulatory

Compliance

Low TCO /

High ROI

Powerful performance monitoring & decision support

Full transportation cost control & auditability

Optimal, dynamic planning - mode, route, carriers, assets

Efficient freight contract, rate & carrier performance mgmt.

Comprehensive, flexible, scaleable, extensible system

International coverage for global deployment

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

Full documentation for faster time-to-value

High customer service & responsiveness

Automated transportation planning & exec. processes

Synchronized O2C, P2P with logistics & transportation

Efficient asset utilization

Automated B2B & web-based network collaboration

Optimized load, route and mode scheduling

Compliant international transportation of dangerous goods

Integrated customs & compliance management


Agenda





2. Solution Details


SAP TM scenarios






Summary




Solution Coverage

OrderManagement



Freight Settlement

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

Freight Orders

Forwarding Orders

Freight Bookings

Logistics Execution

Transportation Status Visibility& Monitoring

Freight Agreement Management

Charge & Tariff Management

SAP ERP integration -Forwarding & Freight Order Settlement

Event Management




Manual & Autom. Planning & Dispatching

Resource & Carrier Selection

Order Tendering

Ocean Booking






System Flexibility

SAP TM Process Customization & UI Personlization

Transportation Planning Cockpit

Example forTransportation Managers

Transportation Planning Cockpit

Example for Transportation Clerk

Flexible Process Configuration

■ Manual & automated processes

■ Short-cut & complex processes

■ Flexible planning strategies, output mgmt. messaging / communication etc.

■ Embedded & standalone analytics, maps etc.

Role & User-specific UI Personlization

■ Layout of cockpit, user interfaces, worklists

■ Screen content & data sequence

■ Display settings(time zones, kms/miles, currencies etc.)

■ User authorization





Specialist(Tendering)


Freight Settlement

Freight Planning &Tendering

Order Management

Order Management

SAP TM 8.0 - Order Management Area Details

■ Integrated order processing & management

Out-of-the box integration with order-to-cash & procure-to-pay

Integrated freight settlement with ERP billing & invoicing

■ Comprehensive order management

Forwarding, freight (land), & booking (sea & air) orders

■ Full document flow & order life-cycle management

Centralized order data mgmt. (for planning, tendering, exec. ...)

Sales Order

Purchase Order

Stock Transfer

Delivery

SAP TM

SAP ERP

Freight Order,

Forwarding Order,

Freight Booking

General & item data Subcontracting data Transportation exec. data Order status Linked documents Dangerous goods data

Benefit

Efficient, end-to-end order & process management

High customer service levels & satisfaction


Order Management Details

Clearly structured

Comprehensive order information

Tab-organized information

Workflow and life-cycle status tracking

Order Coverage

Product data (material, quantities, weight, dangerous goods data...)

Business partner data (shipper, consignee,…)

Planning data (mode, stages …) & subcontracting data (carriers, prices, tendering…)

Transportation documents

Execution data (pick-up & delivery locations, dates, times, execution milestones, status …)

Charges, terms & conditions for payment


Freight Planning & Tendering Overview

SAP TM 8.0 - Freight Planning & Tendering Area Details

■ 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 UI, e-mail, SMS, B2B)for Request for Quotation processing & status visibility

Benefit

Reduced costs & improved operational performance

Improved carrier collaboration & resource utilizationTransportationCharge Clerk





Freight Settlement


Order Management


Freight Planning Details

Transportation Optimization Planning

■ Freight UnitsBuilding strategies: Freight

consolidation / split Maximum transportation

quantities Compatibility

■ Freight OrdersPlanning 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/SchedulesVariants: Truck, Rail, Ocean, Air Truckload Less Than Truck Load

■ Map IntegrationGraphical routing

■ Link for SubcontractingCarrier selection options: Cost, priority, lane Business share

Order Processing

Freight Unit (FU) Creation

Freight Planning

FreightOrder Creation

Tendering Delivery ProposalCreation

Example Process: Transportation Planning

Example UI: Transportation Planning Cockpit


Freight Planning Optimization Example

Constraint-based Transportation Planning

Transportation Proposal with Multi-mode, Stage, Route & Schedule Plans


Zero Click Planning Example

Story Line:

1. Shipper receives an order for a Full-Truck-Load (FTL).

2. System selects most desirable carrier

3. Freight Order is tendered to the pre-determined carrier

4. No response from carrier is considered as ‘Acceptance’ to service the request.

5. Shipper awards the carrier.

ManualSales OrderCreation

Automatic Creation ofOrder-based Transportation

Request

Automatic Freight Order

Creation

Automatic CarrierSelection

Automatic FreIght Order Tendering

Automatic QuotationEvaluation& Carrier

Assignment

SAP TM

SALES AGENT

SAP ERP

Scenario: Zero Click Transportation Planning


Freight Order Tendering Details

CarrierSelection Rules-based

Freight Order Tendering Request for

Quotation (RFQ) creation & publishing

Carrier Quotation RFQ

acceptance /rejection with price quotation

Freight Quotation Evaluation &Carrier Assignment

Carrier ranking

Embedded analytics for decision support

Freight Order Update,&Sending to Carrier

FreightOrder

■ Automated rules-based carrier

determination

Freight agreements

Costs (internal, carrier rates)

Tranportation lane allocations

Buiness share

■ Flexible, collaborative tendering process

Fully or semi-automatic rules-based tendering

Multiple variants - direct, peer-to-peer, broadcasting

Web-based, Email, SMS, B2B collaboration

Authorization-based RFQ processing

Realtime tendering monitor for process & RFQ status

Exception-based management

Example Process: Peer-to-Peer Tendering

Tendering Details

Carrier Determination & Freight Order Tendering


Peer-to-Peer Tendering Example

Carrier Determination & Freight Order Tendering

Freight Order Tendering with

Tendering Plan & Status Overview

Freight Quotation Evaluation with

Carrier Ranking and Embedded Analytics

RFQ

Notification

via Email


Dangerous Goods Support Details

SAP EHS Integration for Safe & Complaint Transportation

■ Global dangerous goods compliance

According to national & international regulations

According to transportation mode

■ Automatic/manual DG checking

Flexible DG check set-up & processing

Out-of-the-box DG checks

(mixed load & means of transport validity)

Easy extensibility for customer-specific DG checks

■ End-to-end process support

Product / item DG data included in TM orders/bookings

Dangerous goods identification for freight units

Dangerous goods checks for transportation planning

(for freight unit building & vehicle scheduling)

Dangerous goods data in transportation documents

(Dangerous Goods UN number, classification, phrases)


Dangerous Goods Information Example

Freight Order with Dangerous Goods Data Tab

for Dangerous Goods Regulation, Classification, UN Number Overview


Freight Execution & Monitoring Overview

SAP TM 8.0 - Freight Execution & Monitoring Area Details

■ Comprehensive transportation document mgmt.

■ Document creation, printing, status management

(Out-of-the box form teamplates 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 mgmt. for event notification & handling

Benefit

Efficient logistics & fulfillment processes

Improved execution visibility & responsivenessTransportationCharge Clerk





Freight Settlement


Order Management


Document & Output Mgmt. Details

Comprehensive Workflow, Document & Output Capabilities

■ Out-of-the-box transportation document templates

Comprehensive set of preconfigured, standard documents

Including product, export, dangerous goods & transportation data

For road, sea & air transportation

Road waybill (Europe & USA), House air waybill, House sea B/L

Shipping manifest

Transportation labels

FIATA forwarding instructions

For forwarding order management

Forwarding orders, quotations and forwarding order confirmation

For freight settlement

Supplier freight invoice request

Customer freight invoice request

■ Full electronic document & life-cycle mgmt.

Easy-to-use tools for customer-specific form creation/change

■ Flexible manual & automated output management

Document preview and archiving

Triggering of workflow, alert, print/fax/Email & B2B communication(individual or batch processing)

Output status tracking


Document Flow Example

Comprehensive Document Flow Overview with

Life-cycle Tracking & Direct Document Access


Integrated Event Management Details

Flexible Event Reporting, Tracking & Alert Management

Integration of

Execution Status in the

SAP TM Cockpit

■ Integrated Event Management

SAP TM communication to SAP EM:

Freight unit & order, transportation activities

SAP EM communication to SAP TM:

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)

Event Notification &

Tracking via

SAP Event Management


Freight Settlement Overview

SAP TM 8.0 - Freight Settlement Area Details

■ 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

CarrierSAP TM (Freight Settlement) SAP ERP (Financials)

Forward-ing Order

ForwardingSettlementDocument

Customer Invoice

Freight Order

FreightSettlementDocument

Credit Memo

Carrier Invoice

Invoice Payment

Invoice Confirmation

Invoice Confirmation

Shipper

Benefit

Accurate transportation costing

Integrated transportation management & billingTransportationCharge Clerk





Freight Settlement


Order Management


Charge Mgmt. & Freight Settlement Details

Freight Order Charge Calculation Example: Freight Settlement Document

Comprehensive charge calculation based on:

Freight/forwarding agreements

Split/consolidation strategies

Rules-based rate determination

(destination, cargo weight, item group discounts,

surcharges, discounts)

Charge calculation formulas

Settlement Document transfer to SAP ERP

For supplier/carrier invoice verification & freight payment

For customer invoicing

Life-cycle & confirmation status tracking

Life-cycle: Ready for accruals, accruals posted, etc.

Confirmation: Transfered to SAP ERP, Confiirmation

from SAP ERP etc.

© SAP AG 2011. Alle Rechte vorbehalten. / Seite 35

Transportation Mgmt. Analytics / Reporting

Comprehensive & Flexible Reporting & Decision Support Tools

Transportation Dashboard

Preconfigured, graphical transportation dashboard

Interactive navigation, data selection and drill-down

Aggregrated 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 trasnportation subcontracting (i.e. for carrier ranking, carrier tendering acceptance rate with bar, line, pie charts etc.)

Transportation Worklists

Object-based overview worklists for direct object/order selection & processing

Highly configurable role & user-specific query definition

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

Business Warehouse Reporting

Adhoc, 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 , profitiability analysis etc.)


Integrated SAP Applications & Processeses

Native Integration for Synchronized Planning & Execution

OrderManagement



Freight Settlement

ERP Billing & Invoicing

■ Customer freight invoicing

■ Forwarding settlement document(for customer billing of freight costs)

■ Carrier/supplier freight settlement

■ Freight settlement document(for carrier invoice verification & settlement)

ERP Logistics Execution

■ Delivery & shipment execution

Shipment data

Ocean freight booking data

Tendering & carrier data

ERP Sales Order Scheduling

■ Delivery date &

ATP scheduling

Transportation planning

simulation results (Feasible delivery date and

quantities for sales order items)

ERP Order Integration

■ TM transportation planning

ERP sales & returns orders

ERP purchase & returns orders

ERP stock transport &

returns orders

ERP deliveries

ERP DG Management

■ Dangerous goods Data

Dangerous goods ID

Classification

Phrases

SAP Event Mgmt.

■ Event notification &

monitoring

Transportation

execution milestones

Carrier event

notification

SAP Global Trade

Services

■ Customs procedure &

approval processing

Export declaration

Customs status


External Communication & Connectivity

Enabling Effective B2B & Collaborative Transportation Mgmt.

SAP TM Tendering

Carrier-specific WebUI viewEmail / SMS RFQ

Notification

SAP TM Order Mgmt.Freight / Booking Order

B2B

Freight Order / BookingReceipt & Processing

Carrier,

Freight Forw.

System

SAP Event Mgmt. Web UICarrier Event Notification

Mobile Device Milestone Visibility& Event Notification

SAP TMPlanning CockpitExecution Status

SAP TM

Partner

System

Tendering Collaboration

Request for Quotation

Subcontracting

Freight Order Subcontracting

Freight Booking (Ocean / Air)

Event Tracking & Monitoring

Carrier Event Notification

Execution Milestone, Event & Alert Visibility

For Shippers, Suppliers, Carriers, Consignees

Trading Partner & 3rd Party Connectivity

TM Enterprise Services

For GIS integration & connectivity (CrossGate), Freight Rates (SMC3), Ocean Booking (GT Nexus), …


Agenda





2. Solution Details


SAP TM scenarios






Summary


SAP Transportation Management Scenarios

Predefined, Best Practice Transportation Scenarios with SAP TM 8.0

Scenario Overview

■ Integrated, end-to-end transportation scenarios

■ Predefined, best practice processes & configuration

Scenarios Covered

■ Domestic Inbound Transportation

■ International Inbound Logistics

■ Outsourced Transportation

■ Domestic Outbound Transportation

■ International Outbound Transportation

Scenario Deliverables (in Solution Manager)

■ Scenario Description

■ Scenario & Process Component List

■ Configuration Guide (incl. Scenario Master Data)

Customer / Partner Benefits

■ Reduced implementation time, effort and cost

■ Efficient, lower cost operations


Domestic Inbound Transportation

Scenario Overview

Inbound shipment processing for purchased goods from domestic suppliers –

with integrated shipper transportation planning and logistics service provider execution

Vendor 1(Plant Lippstadt, DE)

Land-based main carriage via truck with multi-pick for full truck load transportation and multi-drop delivery to consignee plants

Inbound delivery

Vendor 1(Plant Hamm, DE)

Vendor 2(Plant

Dortmund,DE)

Vendor 1(Plant Lüdenscheid, DE)

Vendor 2(Sindelfingen, DE)

Consignee 1(Plant Dingolfing, DE)

Consignee 1(Plant Munich, DE)

Multi pick-up

Direct main carriage

Direct, land-based transportation via truck from supplier to consignee plants Inbound delivery

Main carriage with multi-drop


Domestic Inbound Transportation

Scenario & Process Details

Purchase order creation (in SAP ERP)

Vendor determination via purchasing contracts

Goods supplier deviating from vendor

Manual / automated transportation planning

Optimizer planning (Multi-pick, multi-drop scheduling & routing)

Freight order creation

Automatic carrier selection and assignment based on transportation lanes

Document sending

Event message reporting (in SAP EM)

Loading / unloading of freight order freight units

Arrival & departure confirmation

Unplanned event tracking & alerting

Advanced Shipping Notification (ASN)(in SAP ERP)

Receipt of ASN from supplier, processed as inbound delivery

SAP TM update for transportation request triggering

Goods receipt processing

Posting to stock

Proof of delivery (POD) sending to vendor

Purchase Order

Processing

Transportation Requirement Processing

Freight Planning& Carrier Selection

Freight Execution & Monitoring

Inbound processing

Freight Settlement

WarehouseManager


Order-based transportation requirement creation(in SAP TM)

Automatically created based on purchase order

Freight unit creation

Automatically created according to building rules

Delivery-based transportation requirement creation

Automatically created based on later inbound delivery

Plan / actual update

MaterialPlanner


Transportation ServiceProvider / Carrier

Transportation Charge Calculation

According to freight agreements

Haulage charges dependent on weight& distance

Supplier Freight Invoice Request (SFIR) processing

Create & transfer freight settlement document to SAP ERP

Freight settlement (in SAP ERP)

Carrier invoice entry

Invoice verification & payment

Evaluated Receipt Settlement (ERS)


International Inbound Logistics

Scenario Overview

International, intermodal transportation management for purchased goods from

overseas vendors with integrated purchase order, transportation and invoice management

Vendor 1(Mainland China)

Vendor 2(Mainland China)

Port-of-

Loading(Shanghai, China)

Port-of-

Discharge(Hamburg, Germany)

Pre-carriage

Main Carriage On-carriage

Consignee (Ludwigshafen,Germany)

Packing of purchased material in container

Direct pre-carriage via truck from vendors to port-of-loading

Main carriage via scheduled vessel from China to Germany

On-carriage via scheduled train from Hamburg to Ludwigshafen

Inbound delivery


Manual / automated transportation planning

Dangerous goods check (via SAP EHS)

Stage level planning with scheduling and routing

Ocean carrier selection via pre-booked transportation allocations

Ocean carrier booking confirmation

Sending of shipping instruction

International Inbound Logistics


TransportationPlanner

(Main Carriage)


(Pre-& On-Carriage)



Purchase OrderProcessing

Main Carriage Planning &

Booking

Pre- & On-Carriage Transportation

Planning

Inbound Transp. Dispatching &

Monitoring

Supplier Freight Costing

Purchase order creation & release(SAP ERP)

Electronic (EDI) or manual

Automatic transportation request creation(in SAP TM)

Automatic freight unit creation(in SAP TM)

PurchasingAgent

Pre- and on-carriage planning

With port delivery & pick-up date/time constraints


Automatic inbound delivery creation in ERP

Vendor notification

Transportation milestone & event tracking (SAP EM)

Web-UI-based event notification

Pre-, main and on-carriage event processing

Automatic update of inbound delivery, freight unit, booking order, delivery for goods receipt

Document printing

Shipping instruction creation & sending

Transportation charge calculation

Freight order-based according to freight agreements

Including ocean shipment-specific rates, dangerous goods surcharges etc.

Supplier freight invoice request (SFIR) creation

Automatic / manual SFIR transfer to ERP

For carrier invoice verification, processing & payment


Domestic Outbound Transportation

North America – Scenario & Process Details

Domestic outbound transportation management with automatic planning optimization and

carrier selection, as well as tendering, dispatching, and freight settlement

Multi-drop transportation to customers via LTL carrier

Shipper

Plant Warehouse/

Distribution

Center(Chicago, IL, USA)

Packing of material in boxes. Material grouping & staging per trip.

Truckload shipment direct to customer

Consignee 17(Provo, UT, USA)

Truckload Planning

Less-than-Truckload Planning

Consignee 09(Carrolton, KYUSA)

Intermodal Planning

Consignee 10(Los Angeles, CAUSA)

Consignee 07(Evansville, INUSA) Consignee 08

(Louisville, KYUSA)

Rail transportation to nearest destination railhead

Truck transportationto local railhead

Truck transportationto customer


, Interactive / automatic transportation planning

Planning optimization across multiple planning ‘variants’: truckload, less-than-truckload, intermodal, and multi-stop

Automatic freight order consolidation, routing & scheduling

What-if analysis (mode / carrier)

Automatic resource & carrier selection(based on cost, priority)

Exception handling (under-capitalized equipment, missing carrier)

Domestic Outbound Freight Management

North America - Scenario & Process Details




OrderProcessing

Freight Planning & Carrier Selection

CarrierTendering

Outbound Transp. Dispatching &

Monitoring

Supplier Freight Costing & Settlement

Sales order or delivery creation (SAP ERP)

Automatic transportation request creation

With notes / order requirements, instructions & appointment times

Automatic freight unit creation

According to freight unit building rules

Customer Service Representative

Freight order tendering

Peer-to-peer tendering to selected carriers

Carrier acceptance / rejection via Web-UI

Freight order & carrier allocation update

■ Automatic outbound delivery creation in ERP

Shipment status check

New & existing freight orders

Appointment scheduling

Pick-up & delivery appointments

Shipment loading Hazardous goods check

& vehicle check-out

Bill of lading creation

Shipment execution monitoring & event tracking

Web-UI-based transp. milestone/ event notification (SAP EM)

Automatic shipment execution update(SAP TM)


Carrier transportation cost calculation and evaluation (freight order-based according to freight agreements)

With National Motor Freight Classification (NMFC) based freight class codes

Supplier freight invoice request (SFIR) creation and transfer to ERP

Accrual posting

Service purchase order & service entry sheet (SES) creation

Carrier invoice verification & payment


■ Sales order-based transportation requests

■ Equipment restriction for a max. 28-foot trailer

■ Handling instruction for truck with lifting ramp

■ Transportation planning optimization with direct, multi-stop, crossdock truckload routing

■ Master and sub-bill documentation, freight class code.

Domestic Outbound Freight Management

North America - Transport Modes & Planning Method Details

Domestic outbound freight transportation management - supporting multiple planning

optimization ‘variants’, customer requirements and carrier selection methods

Planning ‘Variant’ Process-specific Information

Less Than Truck Load(Direct, Multi-stop,and Pool)

Truckload planning

■ Delivery-based transportation requests

■ Truckload optimization planning for freight units

■ Carrier restriction: A carrier is not permitted

■ Carrier selection based on lowest costs

■ Transportation order tendering via peer-to-peer

■ Bill of lading creation with driver notes

Intermodal planning(Truck/Rail)

■ Sales order-based transportation requests

■ Customer requirement with mandatory appointment schedule

■ Manual intermodal optimization planning withwhat-if analysis

■ Order split across 3 truck loads

■ Carrier selection based on lane priority

■ Peer-to-peer tendering with shipper qty. change

■ Schedule with rail cut-off times


Final delivery

International Outbound Transportation

Scenario Overview

Full Container Transportation - from forwarding order processing, ocean carrier booking,

freight planning, execution & tracking to order settlement

Drop-off carriage via fixed trucking company to port-of-loading

Final delivery via truck from port-of-destination and delivery to consignee

Material packing at shipper location in 3 containers (20 foot standard dry containers) and delivery to the transportation division’s warehouse

Main carriage ocean transportation via ocean liner (Free On Board (FOB)) using pre-booked freight capacity

Shipper(Newark, USA)

Drop-off

carriage

Port-of-

Discharge(Rotterdam, Holland)

Main Carriage

Consignee(Düsseldorf,Germany)

Shipper

Warehouse

(Transp. Division)(Newark, USA)

Port-of-

Loading(Newark, USA)

Goods delivery at consignee (with proof of delivery)


International Outbound Transportation


Forwarding order creation

And attachment of transport documents received from shipper

Automatic freight unit creation


Forwarding order confirmation sent to the shipper

House B/L printing & sending

Transportation execution event monitoring(SAP EM)

For pick-up, onboard, departure, arrival, proof of delivery

Freight settlement document creation & transfer to ERP

With accrual posting for supplier, invoice verification, processing & payment

Self-billing Credit memo

creation & sending to transportation suppliers

Forwarding settlement document creation & transfer to ERP

Customer invoice creation(SAP ERP)

For Consignee

ForwardingOrder

Processing

FreightBooking

Freight Planning& CarrierSelection

Transportation Execution & Monitoring

Freight Order Settlement

ForwardingOrder

Settlement

Customer Service Representative

Ocean FreightBooking Specialist

Dispatcher TransportationCharge Clerk

Ocean freight pre-booking creation & sending to ocean carrier

Automatic ocean carrier confirmation receipt

Send confirmed booking usage to carrier

Execution booking order sending to carrier

Ocean freight charge calculation


Freight order For container

drayage & drop-off at port

Document printing

For export declaration

Automatic carrier selection

For drop-off carriage & final delivery


For drop-off and final delivery

Charge calculation for drop-off carriage & final delivery


Outsourced Transportation

Scenario Overview

Outsourced transportation process management - with shipper transportation

planning and 3rd party shipment execution and event monitoring

Packing of sold material in boxes

Full truck load transportation via 3rd party carrier to customer location Delivery toCustomer

Shipper Plant (Chicago,USA)

Customer(Bellevue, USA)

Carriage


Outsourced Transportation


Sales order creation & sending to TM (SAP ERP)

Order-based transportation request creation(SAP TM)

Order quantity/ weight check

Automatic freight order creation

For truck load

Sales order update

Freight order data

Tendering restart

Carrier tendering

Peer-to-peer & broadcast tendering

- Email-based request for quotation (RFQ)

- SMS carrier notification of RFQ receipt

- Alert monitoring

Document printing

Carrier transportation event notification (SAP EM)

Web-based event notification (i.e. POD)

Event monitoring (SAP EM)

Cargo in transit

Exception handling (SAP EM)

For shipment execution

Document printing

Transportation milestone creation(SAP EM)

Based on transportation order

Event monitoring (SAP EM)

Cargo in transit

Exception handling(SAP EM)

Customer notification


Freight order-based according to freight agreements

Supplier freight invoice request (SFIR) creation

SFIR transfer to ERP

With accrual posting for supplier invoice verification, processing & payment

Sales OrderProcessing

Freight Planning& CarrierSelection

FreightTendering

Transportation Execution & Monitoring

Transportation Monitoring


Sales Agent(Shipper)

Tendering & CarrierSelection Specialist

(Shipper)

TransportationDisptacher

(Shipper)

Logistics ServiceProvider Carrier


(Shipper)

Automatic carrier selection and assignment

Carrier determination (via lanes and allocation)

- Real cost-based carrier selection

Outbound delivery creation in ERP


Agenda





2. Solution Details


SAP TM scenarios






Summary


ChemicalsConsumer Products Consumer Products

Company:Chemicals company specializing in

silicone-based materials

Implementation:SAP TM 7.0

ca. 50 sites with 300 shipping points

Goal: Efficient, accurate transportation

settlement and invoicing

Implementation Scope:Transportation charge management,

with extensive charge calculation,

invoice creation and verification

Shipment creation in SAP ERP.

Charge calculation with carrier

verification & freight settlement in TM.

Automated invoicing in SAP ERP.

Company:Consumer packaging for beverage,

personal care, healthcare, food


Goal: Complete automation of the

tendering process (subcontracting)

Implementation Scope:Transportation optimization -

freight unit building, truck planning,

carrier selection.

Sales order processing in SAP ERP.

Transportation planning in SAP TM.

Logistics execution in SAP LES

(ERP-Logistic Execution System).

Company:World leading company for food

and beverages, health &

performance nutrition


Goal: A common transportation mgmt.

system to eliminate legacy TM

systems. Transportation spend

reduction & operational efficiency

increase.

Implementation Scope:Full TM implementation across

freight order mgmt., transportation

planning & carrier selection,

tendering, subcontracting and

freight settlement.

Selected Transportation Management Projects

SAP Transportation Management 6.0, 7.0 & 8.0


Customer Co-Innovation for SAP TM

A Strong, Productive Partnership

Customer input on solution priorities and requirements

Business expert and end-user feedback on UI’s, processes and functionality

Validation of SAP TMmarket-readiness

Early insight into SAP TM development plans, specifications, solution

Direct contact with development to voice customer priorities and needs

Participation in SAP TM solution testing & validation

SAP

TM

SAP TM Development Customers


Architecture Overview

For Full, End-to-End, Process Integration

SAP ERPEnterprise 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 EMEvent Management

Event Notification,

Tracking & Mgmt.

SAP NetWeaver

SAP TRANSPORTATION

MANAGEMENT 8.0


Architecture Overview

For Full, End-to-End, Process Integration

SAP NetWeaver

NW 7.02

Transportation

Management

TM 8.0

Business Suite

BS_FND 7.02

Supply Chain Mgmt. Basis

SCMB 7.0 EhP1


SAP Ramp-Up for SAP Transportation Mgmt. 8.0

Process and Benefits

Customer Proposal

Electronic Scoping

Ramp-Up Coach

Assignment

Detailed

Assessment

Customer

Nomination

SAP Ramp-Up

Decision Meeting

Receipt of

Customer Approval

Letter

SAP Ramp-Up

Decision

Customer Approval

Letter (CAL)

Signature

Software Shipment

Customer

Enrollment

Customer

Implementation

SAP Ramp-Up

Support

SAP Ramp-Up for TM 8.0

SAP Ramp-Up delivers early access to SAP TM 8.0, combined with intensive

support for a smoother implementation with reduced risk and accelerated payback

Accelerated Payback

SAP ramp-up project coaching

Reduced Risk

Early training + E-learning access

Single Point of contact from Product Unit & IBU

Direct support from experts and project staffing

with trained consultants

Direct feedback loop and expedited support

SAP Ramp-Up Benefits


Agenda





2. Solution Details


SAP TM scenarios






Summary

5. Appendix: System Example


SAP T&L Solution History (1994 - 2011)

A long history of T&L business, process and IT expertise

SAP R/3 ERP Logistics Execution Transportation (LE-TRA)

Shipment Execution

SAP APOTransportationPlanning / VehicleScheduling (TP/VS)

Shipping Planning& Optimization

Order-based planning

Integrated with ERP LE-TRA

SAP TransportationManagement(TM 6.0 & 7.0)

TransportationPlanning & Execution

Stand-alonesolution

Inbound & outbound

Transportation charge engine

SAP TransportationManagement(TM 8.0)

ComprehensiveTransportationManagement

For core transportation mgmt. operations

For shipper industries

SAP R/3 ERP WarehouseManagament(Rel. 2.0 - 4.7)

Core GoodsStorage

Inbound / outbound

Logistics Execution

incl. Cross docking

Value added services

SAP SCMExtended Warehouse Management(Rel. 5.0 - 5.1)

Distribution CenterLogistics

End-to-end processes

Advanced storagestrategies

SAP SCMExtended Warehouse Management(Rel. 7.2)

Best-in-classWarehouse Mgmt.

Complete, advancedsolution

Implementation & migration acceler-ators

SAP SCMExtended Warehouse Management (Rel. 7.0 - 7.1)

Advanced Warehouse Mgmt.

Material flow system

Integrated warehouse & supply chain management Market-

leading

Supply

Chain

Exec-

ution



SAP Extended Warehouse Mgmt. 7.1

Solution Coverage

Inbound Processing

Storage & Operations

Outbound Processing

Transportation Unit Processing

Goods Receipt Management & Optimization

Inbound Quality Management

Internal Routing

Physical Inventory

Replenishment / Rearrangement

Kit-to-Stock Management

Outbound Planning(Route, Wave, Bin…)

Picking Optimization, Packing, Staging & Load Management

Resource & Labor Management

Cross Docking

Yard Management

Native Technologies (RF, RFID Material Flow System)


Extended Warehouse Management



SAP Transportation Management 8.0

Solution Coverage

OrderManagement



Freight Settlement

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

Freight Orders

Forwarding Orders

Freight Bookings

Logistics Execution

Transportation Status Visibility& Monitoring

Freight Agreement Management

Charge & Tariff Management

Forwarding Order Settlement


Event Management




Manual & Autom. Planning & Dispatching

Resource & Carrier Selection

Carrier Tendering

Ocean Booking






SAP Supply Chain Convergence Strategy

Integrated SAP TM, SAP EWM, & ERP Logistics

SHIPPER CUSTOMER

FREIGHT

FORWARDER

CARRIERS

INTEGRATED PLANNING, ORCHESTRATION, & EXECUTION

OF THE PHYSICAL STORAGE & MOVEMENT OF GOODS

OrderMgmt.

Freight Settlement

Transportation Execution

TransportationPlanning

Inbound Processing

Outbound Processing

Storage & Operations

Collaboration


SAP T&L Roadmap Details - 2011

SAP TM, SAP EWM, SAP EM Solution Focus

SAP Transportation Management 8.0 (General Availability June 2011)

■ Core Transportation Management Processes for Shippers

Order integration with ERP (purchasing, sales, deliveries, invoicing, etc.)

Transportation optimization, route determination

Multi-modal transportation

Tendering

Hazardous goods handling (quantity, mixed load check, phrases, DG classification)

Export handling (integration with SAP BusinessObjects Global Trade Services)

Charge & tariff management

SAP Extended Warehouse Management 7.1 (General Availability June 2011)

■ Functional Enhancements

Claims and returns processing

Integration to ERP transportation (ERP-LE-TRA)

■ Improved Usability

SAP Crystal Reports, SAP xCelsius Dashboard

SAP Event Management

■ Transportation Execution Monitoring

■ High Performance and Cold Chain Scenarios for SAP Object Event Repository

Deliver SAP TM solution for shippers for core transportation management operations

Improve warehouse management effiency via SAP EWM integration with logisticsGoals


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!


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