SAP Logistics Business Network Introduction & Roadmap

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Sabine Hamlescher, Chief Product Owner | Petra Dießner, Solution Owner, SAP

April 7, 2021

SAP Logistics Business Network Introduction & Roadmap


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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

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Supply chains are more stressed than everDisconnected and complex processes negatively affect performance

Market challenges:

Complexity and cost increases

Unpredictable market volatility

Demand for precision delivery

and sustainability

System challenges:

Siloed operations and lack

of transparency

Disconnect between physical

and information flow

Inefficient onboarding of

large ecosystem

Freight Forwarders

Customers

Suppliers

Carriers

Brand Owner/Shipper

Other Networks

Warehouse/Yard Operator

© 2021 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 3


By 2025:the integrated network

economy could represent

$60 TRILLIONin Global Revenue1

~30% INCREASEin total economy share (up from 1-2% today)1

1 McKinsey Digital: How do companies create value from digital ecosystems?, Aug 2020

2 Gartner Research: Supply Chain Operational Visibility Vendor Guide, Nov 2019

will have implemented supply chain

business networks in support of end-to-

end supply chain visibility by 20242

of top 50 global companies>75%

Network momentum is growingNeed to shift from company-centric to network-centric approach

https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/how-do-companies-create-value-from-digital-ecosystems

https://www.gartner.com/doc/3971188?ref=AnalystProfile&srcId=1-4554397745


1 SAP Performance Benchmarking

consider real-time, network-wide

monitoring important to sense and

assess potential supply disruption

risk before it occurs…

of Consumer Products organizations75%

lower late shipments137%

lower inventory carrying costs113%

Organizations that have

real-time, company-wide

visibility of inventory see:

are able to do so1

Only 20%

Network-centric approachOpportunities in Logistics


Other Networks

Suppliers

SAP Logistics Business NetworkCapabilities

Freight collaboration

Manage freight more efficiently with

standardized collaboration and insights

Material traceability

Create a trust chain for up- and

downstream product genealogy

Global track and trace

Differentiate through situational

awareness and eased decision making Customers

Warehouse/Yard Operator

Logistics Business Network

Carriers / Freight

Forwarders


Brand Owner/Shipper


Digital Freight Forwarders

Other Networks

Visibility

Embrace local and regional expertise for

B2B connectivity and IoT integration

Instantly connect with pre-boarded networks for

multiple modes of transport

Easily access excess freight capacity

through digital carriers

Enable real time visibility to better predict

expected time of arrival and milestones

through geo-tracking

SAP Logistics Business Network opennessExtend the reach trough established 3rd party networks

Local / regional

Mode Specific

SAP Logistics Business Network

Logistics Business Network


8PUBLIC© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ * basic / advanced shipping with differing scope

Digital freight

documents

Real-time

insightsCollaborative

processes

Out-of-the-box

integration


SAP Logistics Business Network, freight collaboration optionStandardize E2E carrier collaboration and insights, integrated with SAP S/4HANA by design

Carrier Shipper

Order collaboration Visibility

Dock appointment scheduling and gate processing


SAP Logistics Business Network, global track and trace optionDifferentiate through situational awareness and eased decision making

Rule framework for follow-up

activities

Notifications in case of exceptions

Flexible setup, supported by templates

Back-end system Integration & & real-time

insights9© 2021 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC

Track business processes and

goods in-transit – spanning

order items, deliveries and

multi-modal shipments

Enrich by real-time insights

and predictive time of arrival

Inform stakeholders of progress

and understand impact of delays


SAP Logistics Business Network, material traceability option Create a trust chain for up- and downstream product genealogy

Natively leveraging blockchain technology

Alerts for fast issue resolution

across participants

Flexible setup and invitations through

network owner

Standard integration with SAP S/4HANA /

ERP 10

Capture the complete material

provenance from raw material origin to

finished product

Share information &

facilitate inter-company

product recalls

Value chain example

© 2021 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC


Demo


Tracking of Shipment related carbon emission© 2021 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC

SAP Logistics Business NetworkProduct Roadmap

Q2/2021 Q3/2021 Q4/2021Recent Innovations

PUBLIC

Freight Collaboration

▪ Book capacity with ocean carriers or logistics service providers

in the network

▪ Enable carrier self-registration through SAP Business Network

▪ Support multi-datacenter data federation and collaboration

▪ Optimize your dock utilization and reduce waiting times by

leveraging real-time execution insights

Track and Track

▪ Increased satisfaction through template for event-based

experience management

▪ Support multi-datacenter data federation

▪ Delivery and Shipment tracking for buyers with SAP Ariba for

buyer managed transportation

▪ Enable document exchange associated with tracked processes

Material Traceability

▪ Allow flexible UI configurations

▪ Enable data sharing and visibility along n-tier supply chain

Intelligent Insights

▪ Gain insights into the delivery experience your carriers or LSPs

create

▪ Gain comprehensive insights into your carriers’ performance

rating

▪ Gain insights into your logistics execution for global track and

trace

Standard Integration Capabilities

▪ Get insights into global air shipments with real-time visibility

▪ Provide possibility to manage freight carrier invoices

electronically

This slide and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This information is providedwithout a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement


▪ Enable distributed dispute handling in S/4

▪ Provide capability to collaborate with external

warehouse and yard operators on dock appointment

scheduling

▪ Evaluate the satisfaction of your customers with your

carriers' or LSPs' delivery service

▪ Capture execution data and events during check-in

and check-out at gate

Track and Trace

▪ Template for tracking of Freight Units

▪ Template for Air Shipment Tracking


▪ Support invitations and governance for Network

Owner


▪ Gain insights into your logistics execution for freight

collaboration

▪ Gain insights into logistics performance through

intelligent KPIs

▪ Show prediction of supply chain location risk and

threats


▪ Get insights into global air shipments with milestone

visibility


▪ Evaluate the satisfaction of your carriers or LSPs with the facility services

▪ Dynamic rescheduling of appointments based on real-time execution insights and predictive ETA

Track and Trace

▪ Delivery and Shipment tracking for buyers for supplier managed transportation, with ability to create Shipment Advise for suppliers

▪ Tracking of Shipment conditions

▪ Tracking of Shipment related carbon emission


▪ Enable serialized item numbers linked to batch genealogy

▪ Enable automated identification of missing connections


▪ Cross Network Insights


▪ Get insights into global parcel shipments with real-time visibility

▪ Monitor the observance of environmental conditions of your goods in transit

▪ Gain insights into the carbon footprint of your shipments

Track and Trace

▪ Monitor the fulfillment of purchase orders

▪ Monitor the fulfillment of sales orders

▪ Tracking of parcel shipments for optimized execution visibility

▪ Tracking of Deliveries with serialized items with SAP Corporate Serialization


▪ Initiation of automated workflows for detected product issue

▪ Insights into the execution status of deliveries through track-and-trace integration

▪ Integration to SAP Rural Sourcing Management


▪ Improved insights into satisfaction with the

service experienced at facilities

▪ Gain insights into the sentiments of your

ecosystem

PackagingSuppliersEngineers

Customers

2nd-TierSuppliers

2nd-TierSuppliers

Carriers

Carriers

Retailers

Maintenance

Credit Providers

Banks

Indirect & Direct Materials Suppliers

Manufacturing Partners

Distributors Logistics Providers

Service &Contingent WorkforceProviders

FinancialInstitutions

My Company

Our VisionTransform today's

fragmented supply chains

into unified, collaborative

and intelligent networks.

Assets

13


Operational benefits:

Connect siloed operations

Ease decision-making with real-time

information and situational insights

Enable one-time onboarding

Deliver scalability and flexibility for

growing and changing businesses

Business Benefits:

Decrease logistics costs

Increase customer satisfaction

Improve resilience

Protect your brand

SAP Logistics Business NetworkCreate a healthy, vibrant, dynamic supply chain



▪ SAP.COM

▪ SAP Store

▪ Help Portal

Where to find more information


https://www.sap.com/products/logistics-business-network.html

https://www.sapstore.com/solutions/46400/SAP-Logistics-Business-Network

https://help.sap.com/viewer/p/SAP_LOGISTICS_BUSINESS_NETWORK


Contact information:

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Thank you.

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SAP Logistics Business Network Introduction & Roadmap