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SAP Supply Chain Summit
How ACH Foods Companies Inc. leveraged a Proof-of-Concept to evaluate SAP Transportation Management
Newtown Square, PA – April 3rd, 2013
Bjorn Bernard Vice President, SCM/TM Practice, GOPA ITC
Kim Ladd Business Process Manager, ACH Foods
Agenda
Introduction
The Proof-of-Concept Approach at GOPA ITC
‘Instant TM’ as the foundation
Benefits of a Proof-of-Concept
TM POC at ACH Foods Companies Inc.
Wrap-Up
GOPA ITC – Your Speaker
Bjorn Bernard
VP SCM/TM Practice
12 years at SAP in variety of roles – Development, Solution Management, Strategic Sales
11 years in U.S.A.
comprehensive skill set in suite of SAP SCM solutions
Early member of SAP TM design and Go-to-Market team
Solution Architect role in current TM implementations
GOPA IT Consultants – SAP SCM / TM Resource Location Map
San Mateo, USA: US Headquarters
& SAP TM Innovation Center
Frankfurt, Germany:
EMEA Headquarters
Walldorf, Germany: SAP Competency Ctr.,
SAP Data Center
Tunis, Tunisia: SAP Support &
Development Center
Istanbul, Turkey: SAP TM Technical
Development Center
Hanoi, Vietnam: Satellite Office,
SAP TM Resource Pool
Shanghai, China: Satellite Office,
SAP Resource Pool
GOPA Group GOPA IT Consultants GOPA ITC Partner Location
GOPA Group
Founded in 1965 as „ roup for rganisation
lanning and dvancement“
60 Other Global Location of GOPA Group
Competency groups in dedicated companies
Experience from more than 3.000 projects
Group revenue in 2012*: ~180 mill. USD
Madrid, Spain: GOPA IT Iberia,
S.L. SAP TM Delivery Center
Miami, USA: Latin & South America Hub
SAP HANA Platform
Full SAP End-to-end
Implementations
Select Focus Areas i.e.
SCM, Transportation
SAP Virtualization
Cloud Services
SCM Innovation Solutions &
Services
Enterprise IT Infrastructure &
Data Center Mgmt.
GOPA ITC – Service Segments
Delivering high-end SAP Solutions by
blending SAP Application, Infrastructure and
Consulting Expertise
SAP TM Practice - Services Portfolio
Exploration & Evaluation
TMS Application Selection
TM System Demonstration
Custom Proof of Concepts
Architecture & Solutions Design
Platform & Roadmap Assessments
Solutions Design Workshops
Feasibility Studies
Integration Strategy
3rd Party Apps Integration
Implementation Services
Project Leadership & QA
Instant TM Template Projects
Model Based Design Methodology
End to end Implementations
Roll-Out Projects
Education Services
GOPA TM Academy
Custom Training Programs
Context Related Training
G O P A S A P T M P r a c t i c e – F o u n d a t i o n
SCM / TM Innovation
Center
Cloud SAP TM System
Environment
Scalable Resource Mix
Enhancements, Accelerators,
Solutions
Rapid Delivery Model
Partnership Model
Agenda
Introduction
The Proof-of-Concept Approach at GOPA ITC
‘Instant TM’ as the foundation
Benefits of a Proof-of-Concept
TM POC at ACH Foods Companies Inc.
Wrap-Up
GOPA ITC – Implementation Options and Methodologies
Proof-of-Concept (POC)
• Evaluate SAP TM with respect to feasibility of solution
RDS (Rapid Deployment Solution)
• Typically covers only small snapshot of entire SAP TM capabilities (e.g.,
one single process, such as Planning or Tendering)
Template-based implementation and POC
• Delivers end-to-end scenarios (from Order Management, Planning, Freight
Costing, Tendering, to Freight
Settlement)
• Conduct blueprint hands-on in model-based approach
Classic implementation methodology
• Primarily paper-based design versus model-based design
Big Bang
GOPA ITC – Comparison of Implementation Methodologies
Every methodology has pros and cons
Proof-of-Concept
RDS Template-based
Classic Big Bang
Risk Low Moderate Moderate Medium to high Very high
Scope Very narrow Narrow End-to-end End-to-end End-to-end
Customer-Specific
Tailored to customer need
Based on standards
Based on standards
Often highly customized
Highly customized
Timeline 2-12 weeks ~ 3 months 3 months and longer
Typically 6 months or more
Up to 12 months or more
Design Phase Scoping Workshop
Dictated by RDS content
Model-based in system
Typically Paper-based
Typically Paper-based
Go-Live No Yes Yes Yes Yes
Time-to-value n/a “Rapid” “Instant” Slow Very Slow
A typical POC Offer by GOPA ITC includes…
• a dedicated POC environment hosted by GOPA ITC (includes either TM81 or TM90, TM
Optimizer, ECC 6.0 EHP6, PI). The system will be de-commissioned after the POC, meaning the
data created during the POC is secure at all times
• 2 Full-Time TM consultants (1 Lead Consultant, 1 Junior Consultant) for duration of the POC
• 1 part-time Solution Architect for 3 days (2 days Kick-Off Workshop, 1 day for final
presentation). Solution Architect also monitors the progress of the POC on a continuous basis
and participates in weekly review calls
• Recorded demos including voice-over of the configured scenarios that will be made available to
you after the POC completion
• A Findings Report documenting the major results of the POC (including hi-level gap analysis)
• Scenario Documentation
Sasol – GOPA ITC Typical Proof-of-Concept (POC) offer
This is a sample offer based on experience, everything will depend on scope and can be adjusted
Agenda
Introduction
The Proof-of-Concept Approach at GOPA ITC
‘Instant TM’ as the foundation
Benefits of a Proof-of-Concept
TM POC at ACH Foods Companies Inc.
Wrap-Up
Value Prototyping /Proof of Concept
Feasibility Study
System Demo
Accelerated Implementation
Innovation
Training
System Architecture Planning
3rd Party Solution Integration
CUSTOMER ENGAGEMENT
Chemical
Transportation Requirements from:
Use Cases:
Preconfigured Transport Scenarios
Preconfigured Major
Transport Modes
3rd Party Solution
Integration
End-to-end System
Landscape
Project Deliverables & Accelerators
Model Based
Design Implemen-
tation Method
CP / Food
High Tech
Oil, Gas, Energy
LSP
Other
GOPA ITC Instant TM Template
GOPA ITC – Instant TM – Scenario Overview
1. Domestic Outbound – Cost and Savings driven Planning
2. Domestic Outbound – LTL / FTL
3. Domestic Outbound – Multiple Stop
4. Domestic Outbound – Hub & Pool Distribution Scenario
5. Domestic Outbound – Customer Pick Up
6. Domestic Outbound – Stock Transfer Order
7. Domestic Outbound – Rush Order
8. International Inbound
9. Domestic Inbound
10. Combined Inbound & Outbound Planning (SO, PO and STO)
11. LSP Scenario
12. Special Functions
• Additional Agreement Parties
• Third Party Order
• Private Fleet
• Backhaul
• Change controller
• BRF+ based carrier rotation rules
• DSO Shipments incl. Cost Savings Visibility
• Batch Characteristics Integration
• Mass Uploads
• …
Truck
Rail
Ocean
Air
Parcel (Rel. TM 9.1 or via
separate XPS license)
- Confidential -
Agenda
Introduction
The Proof-of-Concept Approach at GOPA ITC
‘Instant TM’ as the foundation
Benefits of a Proof-of-Concept
TM POC at ACH Foods Companies Inc.
Wrap-Up
Benefits
Test-Drive SAP TM before making a capital investment decision
Mitigate your Investment Risk
Customer personnel will be much more familiar with the TM design and concept
Knowledge Transfer Effect
POC acts as Blueprint accelerator
Reduce Implementation Time and Cost
Certain Gaps of TM will already be identified/documented
Mitigate Deployment Risk
GOPA ITC – Benefits of a POC
Agenda
Introduction
The Proof-of-Concept Approach at GOPA ITC
‘Instant TM’ as the foundation
Benefits of a Proof-of-Concept
TM POC at ACH Foods Companies Inc.
Wrap-Up
ACH Food Companies
Experience with
GOPA’s Proof of Concept
Approach
April 3, 2013
17
Kim Ladd
Business Process Manager at ACH
◦ Oversee team of business analysts that support SAP
platform and legacy
Assigned creation of SAP TM Business Case
◦ Potential benefits, projected cost & time savings, ROI,
implementation time line & cost, impacts, risks
How was I going to glean that information for
Business Case having no exposure to TM?
◦ Through GOPA’s interactive workshop
◦ Proof of Concept
First, let me tell you more about ACH………
18
Who is ACH Food Companies?
Consumer Products Manufacturing Food Company ◦ Cooking Oils ◦ Spices and Seasonings ◦ Baking Ingredients ◦ Food Service categories
One of the largest consumer oils manufacturer in North America
2nd largest in spices and seasonings
Serve all types of customers ◦ Retail ◦ Club ◦ Food Service ◦ Food & Drug / Mass Merchandisers ◦ Export ◦ Distributors
19
20
DC Mira Loma,
CA DC
Dallas, TX
PLANT Ankeny, IA
DC Woodridge,
IL
PLANT Argo, IL
DC Mississauga
, ON
DC Camp Hill,
PA
ACH Distribution Network
2 Plants, 5 Distribution Centers, 3 Offices
OFFICE Memphis,
TN
OFFICE Chicago
OFFICE Ontario Canada
21
Transportation Facts
Ship direct to ◦ Customers ◦ Distribution Centers ◦ Pool Points
Ship Modes ◦ FTL (Full Truck Load) ◦ LTL (Less Than Truck Load) and/or consolidated loads ◦ IMO (Intermodal) ◦ Ground
Statistics ◦ Ankeny : Truckload (67.2%); Pool (11.7%); LTL(9.6%); Ground (11.4%)
◦ Argo: Intermodal (63.9%) and Truckload (36.1%)
22
The Journey to POC
Building of Business Case ◦ Needed consultant that had deep transportation experience as well as SAP TM ◦ Ability to work with us to help identify benefits, savings, gaps ◦ Business contact referred us to GOPA ◦ GOPA was the perfect fit for ACH
3 Day Workshop Engagement with GOPA
◦ ACH provided in-depth review of Transportation processes ◦ GOPA reviewed TM functionality ◦ Interactive workshop to discuss potential benefits, savings, gaps ◦ GOPA provided an initial project estimate based upon the workshop
GOPA introduced us to POC approach ◦ Opportunity to “try before we buy” ◦ Demonstrate TM processes functioning with our data ◦ Enable us to glean more FACTS for business case ◦ Build confidence that TM can indeed handle our business processes ◦ Experience GOPA as implementation partner
23
Activity
Establish Team
Determine Objectives for Proof of
Concept
Identify business scenarios
Review ACH business requirements,
rules, and data
GOPA set up data in their system
GOPA configuration of TM
Working Sessions with ACH Team
Formal Demos with ACH Business
Finalize POC Findings & Deliverables
Prep Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8
“Proof of Concept” Time Line
24
Post
POC Team
“Partnership between Business, IT, and GOPA”
25
Team
ACH Director of Transportation & Logistics
ACH Logistics & Distribution Manager
ACH Logistics & Planning Analyst
ACH Sr. Financial Analyst – Logistics (Freight)
ACH IT Business Analyst (Supply Chain)
ACH IT Business Analyst (Finance)
ACH IT Business Process Manager
GOPA IT Consulting – Solution Architect
GOPA IT Consulting – Lead TM Consultant
GOPA IT Consulting - TM Consultant
GOPA IT Consulting – TM Developer
Objectives for POC
“Execute with the end in mind.” Document information for Business Case
◦ Business Benefits
◦ Cost & Time Savings
◦ Business Impacts for Change Management assessment
◦ Gaps & Customizations
◦ Integrations
PC Miler
SMC3 for LTL freight rates
Legacy Warehouse Management system
GOPA – to provide an accurate project timeline and implementation costs based on POC experience
26
ACH Scenarios
27
No. Scenario Expected Output (Transport, Carrier Selection)
1 Full truck load multi pick up – 2 transfer orders Means of transport = FTL
2 Full truck load one stop – 2 sales orders Means of transport = FTL
Carrier selection based on priority
3 Full truck load one stop – 1 sales order Means of transport = FTL
Carrier selection based on allocations
4 Less than truck load one stop – 2 sales order Means of transport = LTL
Carrier selection based on priority
5 Less than truck load one stop – 1 sales order (Wal-Mart)
Means of transport = LTL
Carrier selection based on priority
6 1 multi-stop truckload to 2 pools Means of transport = FTL
Carrier selection based on priority to hub
Carrier selection based on cost from hub to final location
7 1 multi-stop truckload to 4 customers Means of transport = FTL
Carrier selection based on cost
8 1 truckload to a customer, pool, and Sam’s location Means of transport = FTL
Carrier selection based on cost
9 Inbound multi pick up truckload Means of transport = FTL
Carrier selection based on cost
10 Inbound LTL from vendor Means of transport = LTL
Carrier selection based on cost
11 Inbound non-inventory from vendor Means of transport = unknown
28
Scenario Summary Example – Page 1
29
Scenario Summary Example – Page 2
Lessons Learned
Business Involvement is critical ◦ 70% of business time in first 3 weeks….estimate 30% after that
◦ Define business requirements, rules, data to run POC scenarios
Document your business rules and requirements prior to Day 1 of POC ◦ User satisfaction with POC is largely determined by amount of time & effort you put into it.
◦ Ensures TM is configured to match your company requirements as much as possible
Create a Summary Sheet per scenario ◦ Summary is described in detail, expected output defined, and rules to be applied
◦ Included agreed upon Check list of TM functionality that will be demonstrated in each scenario
◦ Creates a roadmap of POC based upon scenarios
Determine your objectives for POC beforehand ◦ Work with “the end in mind” so you can glean appropriate information along the way
Identify scenarios that will give you insight into TM functionality that you are concerned about ◦ ACH focused on planning, optimization, interaction with carrier (portal, event management), freight pay process
Be mindful of data & mix of orders that you are using to drive scenarios ◦ Validates TM rules work as expected and introduces new methodology that might be even better!
◦ Choose 25-30 orders so when optimizer runs you can get a better picture of how TM grouped orders and why (based on lowest cost carrier, preferred carrier)
30
Would we do it again?
Absolutely! – Highly recommend this approach
1. Business Case can now be built based on facts & firsthand experience rather than hearsay
2. Can go into project with “eyes wide open” regarding scope, implementation
cost, change management opportunities, impacts to organization, as well as benefits coming out of the project
3. Provides a more realistic project cost & timeline for budget planning purposes
4. Will reduce our blueprint phase by approximately 60%
5. GOPA + ACH Relationship
Confirmed business partner compatibility
Developed relationship & trust between ACH and GOPA
GOPA leveraged relationship with SAP to see future functionality and roadmap for TM
GOPA now understands our organization and business processes prior to project
31
Agenda
Introduction
The Proof-of-Concept Approach at GOPA ITC
‘Instant TM’ as the foundation
Benefits of a Proof-of-Concept
TM POC at ACH Foods Companies Inc.
Wrap-Up
GOPA ITC – SAP TM Engagement Path
Instant TM –
Delivery
Value
Practice
Launch
First
Mover
Partner
• Foundation of SAP TM Practice
• TM POC Delivery
• TM 7.0 Template Development
• Sales Support for SAP Solution
Management
• TM POC Delivery
• Participation in TM 8.0 Bootcamp
• Support RKT Development
• Support SAP Tests
• Extend Team of TM Experts
• Press Release of Instant TM
• First POC Engagements
• GOPA SAP TM Whitepaper
• Weekly TM Blog
• Joint SAP / GOPA Template
Development “Instant TM”
• TM Customer Demo & POC Support
• Ramp-Up Customers
Expand &
Grow
Engage,
Support &
Educate
Market &
Thought
Leader • Leadership Position – SAP TM Services
• Dedicated SAP TM Practice w/ Global
Reach
• End-to-End Customer Solutions
• Close, Strategic Collaboration with SAP
• Participation in TM 8.1 Bootcamp
TM Project
Delivery
• Customer Implementations
• Proof of Concepts
• TM Solutions Extensions
Launch
Innovation
Center
• SCM Innovation Solutions &
Services
FOCUS
We focus deeply on SAP SCM/TM:
• Long history – early mover
• Dedicated Practice
• TM Innovation Center
• Strong commitment and continued investments
• Scalable Model
ASSETS
Portfolio:
• Proven References
• Outstanding proven close relationships with SAP
• End to end SAP TM System environments
• „Instant TM‟ Template
• Committed Consulting Team
Value Proposition to our customers
Long Term view delivery model:
• Understand Customer Business and SAP roadmap and align accordingly
• Leverage Partnerships for extended service & solution delivery
• Knowledge Transfer: Scale Internal and external team / skills in synch
EXPERTISE COMMITMENT
Deep Competence:
• Industry Leading Expert Leadership
• Hand Selected Consulting Team
• Extensive Education Program: GOPA TM Academy
• Right Resource Mix to deliver
• Understand SAP‟s SCM / SC Execution roadmap
Thought Leadership activities continue
GOPA ITC – TM Practice Thought Leadership
Instant TM Press Release
Press Release announced availability of „Instant TM‟ on March 16th, 2011
http://www.marketwire.com/press-release/GOPA-ITC-Introduces-Instant-TM-SAP-Transportation-Management-80-On-Demand-Template-1412443.htm
SAP TM 8.0 & TM 8.1 / 9.0 White Papers
Please contact GOPA ITC for a copy of the White Paper
2011: A specific assessment of SAP history in the TMS market
2012: Deployment, Value & Transformation Focus
2013: Release 9.0 Updates
GOPA SAP TM Blog
Weekly blogs on topics related to SAP TM
http://blog.gopa-itc.com/
Launch of SAP SCM – TM Innovation Center
http://www.gopa-itc.com/aktuell/gopa-itc-launched-transportation-management-innovation-center-led-by-bernd-mosbrucker.html
Event Presentations conducted by GOPA ITC
SAP SCM Insider – Orlando, March 2011
„Leverage a prototype approach to your SAP TM implementation‟
SAPPHIRE & ASUG – Orlando, May 2011
„Support a Business Case for an Implementation of SAP TM by Conducting a Value Prototype or Proof-of-Concept‟01
SAP Customer Value Network – Palo Alto, June 2011
„SAP Transportation Management - take full control of your Transportation Processes‟
SAP Customer Value Network – Newtown Square, July 2011
Gold Sponsor for event
Co-host and Speaker of TM Break-Out session
Supply Chain Digest, Oct-2011 – On Demand Videocast, Slides and QA Podcast: Driving Business Value with an Integrated Transportation Management System (GOPA ITC and SAP)http://www.sctvchannel.com/webinars/videocast3.php?cid=4974
SAP Customer Value Network – Philadelphia, March 2012
„SAP Transportation Management – Early Adopters Lessons Learned
International SAP T&L Conference, Walldorf (Sponsorship)
SAPPHIRE USA & SAPPHIRE EMEA 2012 (Exhibition and Speaking Engagements, Customer Events)
SAP Supply Chain Execution Roadmap Q4-2012. 4 USA Cities focus Customer Events
SAP Insider Feature Article: Embark on a successful SAP TM Implementation – January 2013
SAP Insider SCM 2013: Pre-conference workshop "A comprehensive guide to Transportation Management”
- Confidential -
Please visit the news section of
GOPA ITC homepage to download
the presentations http://www.gopa-
itc.com/news.html
GOPA ITC TM White Papers
4/21/2013 38 © GOPA ITC
© GOPA ITC 39 07/11/2012
Consistent Experience
• Efficient Consulting Service
• Seamless System Access
• Educated and experienced Teams
Business Service
• IT independent business consulting
• Software based solutions
• Run business service e.g. in Contract Procurement
GOPA Innovation in Service and Solutions
• New Employee Academy
• Product Training • Rapid Deployment
Training • Operations
Training
• RDP by Menu (Rapid Deployment Packages)
• Instant TM Services
• RDS – Rapid Deployment Solutions (SAP)
• Demo- and Education Systems
• Proof of Concept Services
• Rapid Prototyping Services (..up to operations)
• Business Consulting Services
• Freight Procurement Delivery Service
• Freight Procurement Operations Service
GOPA ITC – Further Information & Contact
GOPA ITC – TM Blog
Please visit us at http://blog.gopa-itc.com
GOPA ITC – SAP TM White Paper
http://whitepapers.sapinsideronline.com/view.cfm?white_paper=631
GOPA ITC Homepage
http://www.gopa-itc.com/services/sap-transportation-management.html
