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Transportation and logistics service providers (LSPs) live in an incredibly dynamic world of evolving markets, shifting customer demands, and rising competition. To survive and thrive, you need to be flexible, informed, and cost-efficient. This industry is all about people and processes – and it’s your ability to execute across these areas that drives your profitability. To stay ahead you need to empower your people and enhance your processes with information – so that all parts of your operation can work together to deliver more profitable services. For carriers, transportation asset management (locomotives, trucks, aircraft, and rail track) is an area ripe for improvement. Through better management of spare parts and more effective maintenance scheduling you can realize dramatic cost savings. Fuel impacts transportation costs and can force changes in your operation. This means you need process flexibility and business insight to make informed decisions that contain costs. And for contract logistics, the ability to tailor and support the warehouse needs of your target industries requires flexibility and sophisticated process support to deliver advanced services such as batch management, serialization, and catch weight. All of this is why SAP gives you the end-to-end process support and 360-degree visibility you need to drive down costs and improve decision making in today’s demanding business world.
Citation preview
Industry Executive Overview
Cargo Transportation and Logistics
Solutions for the Next-Generation Cargo Company
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG
© 2013 SAP AG 2 / 37
The Pursuit of Profitable Services
Transportation and logistics service providers (LSPs) live in an incredibly dynamic
world of evolving markets, shifting customer demands, and rising competition.
To survive and thrive, you need to be flexible, informed, and cost-efficient.
This industry is all about people and processes – and it’s your ability to execute across these areas
that drives your profitability. To stay ahead you need to empower your people and enhance your
processes with information – so that all parts of your operation can work together to deliver more
profitable services.
For carriers, transportation asset management (locomotives, trucks, aircraft, and rail track) is an
area ripe for improvement. Through better management of spare parts and more effective
maintenance scheduling you can realize dramatic cost savings. Fuel impacts transportation costs
and can force changes in your operation. This means you need process flexibility and business
insight to make informed decisions that contain costs. And for contract logistics, the ability to tailor
and support the warehouse needs of your target industries requires flexibility and sophisticated
process support to deliver advanced services such as batch management, serialization, and catch
weight.
All of this is why SAP gives you the end-to-end process support and 360-degree visibility you need
to drive down costs and improve decision making in today’s demanding business world.
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Information and the Path
to Growth
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
© 2013 SAP AG 3 / 37
Information visibility is the key to sustainable growth.
Improve Asset Management
You can maximize the value of your vehicles and equipment with a holistic, cradle-to-grave view
of assets – one that extends from finance and maintenance to operations. The result is better
availability, lower costs, and improved utilization.
Implement an End-to-End Lead-to-Cash Process
By integrating the entire order lifecycle, you can gain a 360-degree view of the customer through-
out the organization. The result is fewer disputes and improved days sales outstanding (DSO).
Transform Your IT Platform
Expensive to maintain and update, old systems impede profitability. To compete, you need to
modernize your IT systems. The result is increased information visibility and better collaboration
across business units, partners, and customers.
Information and the Path to Growth
With processes supported by flexible software end to end, you can improve
information visibility. This can help you maximize asset value, improve customer
service, and achieve profitable growth.
Information and the Path
to Growth
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 4 / 37
Best-run transportation and logistics companies execute customer orders as
promised at the lowest cost. This is done by leveraging people, processes, and
information assets in smart ways to improve visibility, efficiency, and performance.
Best-Run Transportation and Logistics
Understanding the value drivers for each of these priorities is key to executing as a
best-run transportation company.
Asset Management
Operations
Sales and Marketing, Customer Service
People and Talent
Finance
Procurement
IT Management
Technology Solutions
Information and the Path
to Growth
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 5 / 37
Information and the Path
to Growth
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
For over 40 years, SAP’s innovations have helped companies transform and achieve the goals
they never thought possible – making more informed decisions and innovating to lead in new
markets. SAP enables the real-time enterprise, empowers new experiences, and unwires the
business.
Enable the Real-Time Enterprise
SAP’s integrated, real-time analytical, predictive, and in-memory database solutions improve the
business value of your information and optimize business outcomes.
Empower New Experiences
The SAP software solutions allow you to deliver simple, elegant, real-time applications rapidly
across any device, with the superior consumer-grade experience users have come to expect.
Unwire the Business
Connect with your customers, partners, and employees efficiently and securely with a market-
leading mobile platform and device management technologies from SAP.
Business Transformation Through Technology
Innovation
Revenue growth and profit are no longer sufficient benchmarks for success. In
today’s economy, companies need to stand out in crowded and highly competitive
markets. The pace of business is relentless, where today’s innovation becomes
tomorrow’s status quo. Organizations that embrace technology can transform to
gain a significant advantage rapidly over the competition.
© 2013 SAP AG 6 / 37
SAP Innovations
Successful businesses use technology to drive business performance. It all starts
with an IT platform strategy that improves and integrates your processes and data,
enables real-time analytics and visibility, and minimizes IT costs.
Because LSPs depend on the constant flow of information, analytics can play a critical role in
ensuring business success. But in an information-rich environment – the challenge is about
utilizing data it in a cost-effective manner. Fortunately, breakthrough solutions such as the SAP
HANA platform can help by unlocking your data and the enabling deep, real-time insight you need
to run your business.
Enterprise mobility is important as well. Though not exactly new to LSPs, the evolution of mobile
tools and increased mobile platform maturity make it easier to extend your processes and
information to all employees, customers, and business partners at a lower cost.
Finally, many LSPs are increasingly interested in cloud-based solutions to drive down costs. Given
the right business area, you can extend your IT platform investment relatively easily using the
cloud option.
Information and the Path
to Growth
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 7 / 37
The path to profitable growth.
Transportation and Logistics Value Map
Asset Management
SAP Solutions
Operations
People and Talent
Sales, Marketing and Service
Finance
IT Management
Procurement
Technology Solutions
Asset Management
Rolling Stock and Linear Asset Management
Real Estate Lifecycle Management
Sales and Marketing/Customer
Service
Marketing Management
Key Account and Territory Management
Quotes and Contract Management
Sales Force Support
Operations
Warehouse Management
Transportation Management and Operations
Fuel Management
People and
Talent Core Human Resources
and Payroll Talent Management
Time and Attendance
Management
Workforce Planning and
Analytics
Finance Financial Performance
Management
Accounting and Financial
Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations
Enterprise Risk and
Compliance Management
Procurement Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Collaborative Invoice to
Pay
IT Management Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management IT Service Management
IT Strategy and
Governance
Customer Service
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Technology
Solutions
Analytics Consumer Experience Data Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
© 2013 SAP AG 8 / 37
As a logistics service provider, you know the costs associ-
ated with your assets. Realizing cost efficiencies requires
you to holistically manage these assets in a way that
ensures the continuous handling and flow of goods.
Asset Management
Your customers want the goods delivered on
time at the lowest cost. You want to meet these
demands in the most cost-effective way possible.
Vital to this equation is the ability to manage
your transportation assets to maximize returns,
improve overall equipment effectiveness, and
minimize risks.
This requires a consolidated approach that
enables real-time visibility into asset performance
– with powerful analytics to optimize asset
usage, cut costs, and enhance environment,
health, and safety performance.
Such a consolidated approach helps drive
holistic asset planning, building, and
commissioning processes. It increases uptime,
reduces process variability, and helps you react
faster to process disruptions to satisfy more
customers. And it helps you integrate,
automate, and unify all maintenance-related
data, processes, and reporting for holistic asset
operations and maintenance. 10% Lower planned maintenance
budget versus actual cost
variance for firms where
enterprise asset management
is core component of strategy
Source: SAP Performance
Benchmarking
Priorities
Asset Management
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 9 / 37
Benefits
Improved asset performance
Lower spare parts costs
Better planning
Greater employee productivity
Fewer safety incidents
More accurate analysis insights
Asset Management
Higher asset productivity where
maintenance is streamlined
by automation of monitoring,
notification, and problem
resolution processes
Source: SAP Performance
Benchmarking
Streamline operational performance by maximizing asset utilization.
Run operations, reduce costs, and proactively manage the entire lifecycle of your
assets, ensuring availability when and where needed they’re needed most.
Rolling Stock and Linear
Asset Management
Optimize asset performance and utilization to improve the profitability
of your organization.
Real Estate Lifecycle
Management Improve real estate portfolio transparency and investment decisions.
13%
Priorities
Asset Management
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 10 / 37
For today’s LSPs, information is as vital as the shipment.
That information comes from processes, but processes
that worked in the past can stand in the way today. More
than ever, you need tools that work across end-to-end
operations.
Operations
Historically, most software vendors of manufac-
turing and retailing software did not include
specific functionality in their applications for
logistics service providers. As a result, many
LSPs developed their own applications –
leading to a lack of standardization that has
been compounded by mergers and acquisi-
tions. This has left many LSPs with operating
environments comprised of heterogeneous
applications that are costly to maintain, are
difficult to modify, and fail to integrate across
operational silos.
The fact is, information technology plays a
strategic role for today’s LSPs, who now need
to consider the business processes and infor-
mation requirements of their employees and
customers. To enable growth, LSPs need to
develop and execute plans that lead them
toward the promise of a single business
process platform. 11% Lower transportation spend
for organizations that
collaborate with contractors
and suppliers to get visibility
into supply situation
Source: SAP Performance
Benchmarking
Priorities
Operations
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 11 / 37
Benefits
Plan and orchestrate transportation processes
Ensure services sold are delivered as designed
Ensure timely payment for services
Understand profitability at the order level
Gain insight into orders, goods, and processes
Reduce costs
Operations
Higher shipments delivered
per load planner when
graphic summary reports can
be aggregated into role-based
portals for business users
Source: SAP Performance
Benchmarking
Take your business to the next level with next-generation technology.
Increase operational efficiency and improve customer satisfaction by enhancing
processes while expanding service offerings to drive higher margins.
Warehouse Management Improve warehouse processes with best-of-breed transportation and logistics
solutions.
Transportation
Management and
Operations
Streamline and automate transportation tendering, execution, tracking, and
settlement processes for cargo transport and logistics.
Fuel Management
Integrate and gain greater control of fuel processes for hedge strategies, procure-
ment, index tracking, invoice verification, inventory, reconciliation, and risk
management. 46%
Priorities
Operations
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 12 / 37
Success starts and ends with the customer. Easier said
than done in the service-intensive LSP industry, where
meeting customer demand requires timely, accurate
information and precision in service delivery. New
approaches are needed.
Sales and Marketing, Customer Service
To meet the demands of global logistics
networks, reduce costs, and improve overall
inventory management, LSPs are taking a page
from the manufacturing playbook. The first idea
is a renewed focus on the customer. Siloed
operations that manage contracts, customer
orders, pricing, and bill collection in disconnected
systems are out. To achieve 360-degree
customer visibility, the new approach puts the
customer in the middle – defining processes
and services that work in an end-to-end fashion
with and around the customer.
The second approach emphasizes service
products – with a goal to minimize disconnects
between what the business designs and sells
and how it is delivered. Here, the company
specifies how it performs tasks based on what
has been sold. This helps increase efficiency
by minimizing the variance between what is
sold and what actually happens operationally. 25% Higher rate reduction realized
where there is ability to
structure and codify freight
charge agreement terms with
customers
Source: SAP Performance
Benchmarking
Priorities
Sales, Marketing and Service
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 13 / 37
Benefits
Improved responsiveness to market needs
Reduced customer disputes and rework
Enhanced reporting and analytics
Improved, real-time decision making
Integrated end-to-end customer view
Greater visibility
Sales and Marketing, Customer Service
Organizations have a 360-
degree view of customers
to optimize interactions in
marketing
Source: SAP Performance
Benchmarking
Obtain a 360-degree view of the customer.
Define and align your services across the enterprise to make service activities
visible internally while incorporating the customer. This improves performance and
drives higher rates of customer satisfaction.
Marketing Management Align business strategy and service products with carrier operations for
targeted customer segments.
Key Account and
Territory Management Organize sales markets and map employee relationships to accounts.
Quotes and Contract
Management
Automate contract renewals and manage price and service negotiations and
approvals.
Sales Force Support Coordinate sales activities, analyze customers and territories, and send alerts
for customer shipments.
Customer Service Identify issues proactively through alerts, manage customer interactions across
channels, resolve disputes, address freight claims, and streamline collections.
16%
Priorities
Sales, Marketing and Service
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 14 / 37
Talent is a true competitive advantage today and critical
when aligning business strategy and execution. Best-run
organizations achieve profitable growth by leveraging
their talent and out-innovating the competition.
People and Talent
For organizational growth and an agile
response to business change, organizations
must give people the knowledge and
technology to facilitate innovation. They must
also move into new markets, adapting to local
practices and recruiting the right local talent. In
addition, they must retain new talent acquired
through mergers and acquisitions.
Organizations that quickly respond with the
right talent in the right places will have a unique
advantage in the marketplace.
32% Less employee turnover by
using analysis of workforce
data to design, implement,
and monitor workforce
optimization strategies
Source: SAP Performance
Benchmarking
Priorities
People and Talent
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 15 / 37
Benefits
Align people to business strategies
Reduce turnover
Streamline the hire and onboarding processes
Improve productivity and engagement
Provide real-time insight into business needs
Connect better to a distributed workforce
People and Talent
Lower costs for HR organiza-
tions with a high degree of
internal integration compared
to organizations with a
fragmented HR environment
Source: SAP Performance
Benchmarking
The new world of work.
Enable growth and stability by providing choice in the delivery of HR processes and
services. Couple global reach, integration, and real-time insight with mobile-device
support to drive greater value, increase employee and customer satisfaction, and
improve business performance.
Core Human Resources
and Payroll
Consolidate HR and payroll processes on a global platform for better workforce
data and legal compliance.
Talent Management Improve alignment, increase productivity, and accelerate results by identifying,
developing, motivating, and retaining talent.
Time and Attendance
Management
Streamline time management to enhance resource effectiveness and improve
visibility and control regarding labor costs.
Workforce Planning and
Analytics
Identify and analyze talent gaps and streamline workforce planning, recruitment,
and retention for efficient and effective management of workforce demand and
supply.
38%
Priorities
People and Talent
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 16 / 37
For LSPs, finance is the lifeblood of operations. From
revenue and costs to profitability and compliance – every
facet of the best-run transportation and logistics enterprise
requires input, transparency, and oversight from finance.
Finance
Know your business across all business units
and geographic dimensions. Assess and
manage key factors that impact cost and
profitability. Gain the insight needed to take
the right action at the right time and to adjust
course as conditions change.
Plan and operate to meet service-level
expectations. Respond to complex and variable
global, regional, and local requirements.
Achieve and maintain the highest possible
safety and compliance standards.
Reduce operating costs and know your exact
cash position at all times. Make better treasury
decisions based on solid liquidity planning.
Mitigate financial risks associated with market
fluctuations and provide transparency to all key
business functions.
Across all of these imperatives, winning
performance requires actionable insight from
financial systems and processes that are
consistent, transparent, scalable, compliant,
and cost-effective.
37% Lower cycle time for forecasts
when standardized planning
models ensure consistency
and comparability of
submitted results
Source: SAP Performance
Benchmarking
Priorities
Finance
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 17 / 37
Benefits
Real-time insight into business performance
Optimized cash and liquidity management
Reduced bad debts and days sales
outstanding
Shorter time to close and reduced process cost
Finance
Lower overdue accounts
receivable for organizations
where A/R system
automatically matches
payments with A/R balances
through electronic interfaces
Source: SAP Performance
Benchmarking
Strengthen operations through financial performance.
Enable a comprehensive, real-time view of enterprise performance – both
operational and financial – while mitigating risk and managing compliance.
Financial Performance
Management
Define, execute, and measure the impact of financial decisions on business
strategy.
Accounting and Financial
Close
Close books and create financial statements at the entity and corporate level
according to IFRS and local legal requirements.
Treasury and Financial
Risk Management Know your cash position, and take action to improve your investments.
Collaborative Finance
Operations
Define and drive strategy, model costs, improve financial forecasting, and
analyze massive amounts of data.
Enterprise Risk and
Compliance Management Ensure regulatory compliance and effective risk management.
24%
Priorities
Finance
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 18 / 37
While companies often focus on revenue, procurement
savings can increase profits about five times more. The
key to maximizing procurement’s success in this critical
role is to deliver consistent quality, savings, and
compliance over time.
Procurement Excellence
Procurement leaders set a baseline for success
by implementing best practices, excelling in
category expertise, and working with key stake-
holders on cost control programs.
While savings is always a priority, new
objectives have emerged as well. Procurement
must manage supplier risk and performance,
improve process efficiency, drive innovation,
and ensure sustainability practices.
You need solutions that give you the tools to
cut costs as well as add value, supporting
processes, including spend analysis, sourcing,
contract management, operational procure-
ment, supplier information management, and
risk and performance management – available
both on premise and in the cloud.
These tools, when coupled with an unparalleled
collaborative business network, drive real-time
insight and efficiency that can only be delivered
through the power of “many.”
60% Higher average annual
savings for organizations with
high maturity and leadership
in procurement strategy
Source: SAP Performance
Benchmarking
Priorities
Procurement
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 19 / 37
Benefits
Optimize spend under management
Increase average annual savings
Decrease FTE per billion in spend
Drive innovation with suppliers
Reduce cost and risk with faster turnaround
Procurement Excellence
Lower FTE per billion in
spending for companies
conducting electronic supplier
collaboration on a network
Source: SAP Performance
Benchmarking
Drive sustainable savings while supporting innovation.
Ensure best practices in the source-to-pay process, on-premise or in the cloud,
while leveraging the power of network collaboration for efficiency and insights.
Supplier Discovery and
Lifecycle Management
Find new suppliers through Ariba Network, and manage these relationships
through supplier management solutions.
Strategic Sourcing and
Contracting
Identify and act on sourcing opportunities, and create favorable, low-risk supply
contracts.
Procurement and Order
Collaboration
Realize savings with compliant, user-friendly self-service procurement and
collaborate on Ariba Network to make transactions more efficient.
Collaborative Invoice
to Pay
Drive invoice automation and exception management with available dynamic
discounting on Ariba Network. 76%
Priorities
Procurement
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 20 / 37
Business enterprises should forge a strategic business
partnership with their IT organizations by aligning goals.
Business-oriented IT management is all about maximizing
efficiency and responsiveness by running IT like a
business.
IT Management: Run IT Like a Business
Lines of business want to ascertain the value of
their IT investment. IT organizations no longer
decide alone which IT projects to fund.
The challenge is that IT management is often
seen as just running the technical landscape.
To become more relevant to an enterprise, IT
needs to reposition itself to run like a business.
SAP offers an integrated portfolio of solutions
to do just that. New technologies like mobile,
in-memory, and cloud computing generate
value to a business in an unprecedented way.
To benefit from these new technologies, IT
needs to manage them effectively. By lever-
aging SAP solutions that follow proven best
practices, everyone from CIOs and CEOs to
managers and employees can tap into and help
ensure efficiency, continuity, and responsiveness
– making IT more strategic to the business.
2x More projects completed on
or ahead of time by top IT
management performers
Source: SAP Performance
Benchmarking
Priorities
IT Management
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 21 / 37
Benefits
Better alignment of IT and business strategy
Shorter IT delivery and business cycles
Lower IT management costs
Reduced system upgrade and operation costs
Lower cost of risk mitigation
Less downtime for critical business systems
IT Management: Run IT Like a Business
More projects delivered within
or below budget by IT
management top performers
Source: SAP Performance
Benchmarking
Evaluate and control risk and ensure flexibility and scale. Control and
optimize costs while maximizing strategic value.
Ensure business continuity, drive efficiency, lower costs, and increase IT respon-
siveness to business objectives – all with IT management solutions designed for
businesses of any size.
Application Lifecycle Management
Use best practices, methods, and services based on IT Infrastructure Library (ITIL) to manage the application lifecycle.
IT Infrastructure Management
Monitor all network assets to drive an integrated infrastructure and application lifecycle.
IT Portfolio and Project Management
Align the portfolio and manage projects to drive innovation.
IT Service Management Align service-desk operations with service-level agreements using ITIL best practices to resolve incidents fast.
IT Strategy and Governance
Use a coherent set of policies and processes to ensure security and map risks and compliance activities to business impact.
1.9x
Priorities
IT Management
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 22 / 37
To drive business transformation, organizations must
leverage the value of real-time information, empower new
developer and user experiences, and unwire their
businesses to better engage with customers, partners,
and employees.
Technology Solutions
As users become savvier their needs escalate.
They expect real-time insights, predictive
analysis, and real-time access to mobile appli-
cations. All of this must seamlessly integrate
with their favorite social platforms. And the
number of users expecting access is growing.
At the same time, data volumes are exploding,
while the window to capitalize on opportunities
is shrinking. Users must be empowered with
applications that deliver real-time information –
and developers must have a platform they can
use to innovate faster than ever before.
Today’s challenges are complex – but
innovative technology solutions can make the
difference between surviving and thriving.
Winning organizations will improve the value of
real-time information, deliver new developer
and user experiences, and use mobile
technology to better engage with customers,
partners, and employees.
Priorities
Technology Solutions
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
“Cloud, social networking,
mobility and the strategic use
of information are the four
forces that combine to create
a new era of computing and
new opportunities for
business.”
Source: Gartner, “SAP Is Driving
Analytics, Cloud and Mobility in the
Nexus of Forces,” Donald Feinberg,
August 24, 2012
4
© 2013 SAP AG 23 / 37
Benefits
Operate your business in real time
Reduce time to value and speed innovation
Turn data into an enterprise asset
Unwire the business to innovate engagement
Technology Solutions
Technologies to drive change and help your business thrive.
SAP enables the real-time enterprise, empowers new experiences, and unwires
the business.
Analytics Increase the value of data with real-time, predictive analytics; business intelligence;
and performance and risk management.
Data Management Zero in on the right information, and manage data with scalability, trust, and
performance.
Application Development
and Integration
Develop applications and innovation rapidly in a mobile, always-on world of
collaborative business networks for secure, cloud-scale applications.
Enterprise Mobility Unwire your employees, customers, and partners.
Consumer Experience Increase productivity and competitiveness with real-time, consumer-grade
software.
SAP HANA Platform Streamline applications, analytics, planning, and predictive and sentiment analysis
with in-memory technology.
Priorities
Technology Solutions
SAP Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
“Through 2015, organizations
integrating high-value, di-
verse, new information types
and sources into a coherent
information management
infrastructure will outperform
their industry peers financially
by more than 20%.”
Source: Gartner, “Hype Cycle for
Information Infrastructure, 2012,”
Michael Blechar, July 31, 2012
20%
© 2013 SAP AG 24 / 37
When it comes to technology innovation, one of the hottest areas of focus today for LSPs is
enterprise mobility. SAP customers see it as an opportunity to leverage the breadth of their
SAP solution landscapes to drive efficiencies and innovation even further.
Cloud technology is important, too. In areas such as human resources and business networks,
LSPs need flexibility with services that can scale and adapt quickly. This is where cloud technology
can act as a beneficial complement to traditional business systems.
Finally, data management and access demands intense interest – especially for LSP companies
where information is king. Just a few years ago, sophisticated data analysis required tools that only
IT specialists could use. Today, these are being replaced by information-rich yet easy-to-use
business analytics tools.
For the last 40 years, SAP has always led in the area of technology innovation – and today you
can benefit from a new generation of technology that will enable you to better understand and
serve the needs of your customers.
In the LSP industry, information about the shipment is as
important as the shipment itself. To improve performance
while keeping costs down, you need the right technology
to put that information at the fingertips of your employees
and your customers – anywhere, anytime.
SAP Innovations
75% Of companies believe that
the cloud will amplify other
technology megatrends,
such as enterprise mobility,
Big Data, and analytics
Source: SAP Performance
Benchmarking
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 25 / 37
Asset Management
Predictive analysis of data from connected equipment results in up-to-date scheduling information
in maintenance operations and reaction to unplanned disruptions to increase asset utilization and
improve service-level agreements and proactive customer notifications.
Operations
Real-time decision support using impact and what-if analysis helps optimize outcomes, for
example, profitability. Accelerate reporting on large volumes of supply chain data, for example,
real-time stock insight and inventory monitoring.
Sales and Marketing, Customer Service
Easy identification of profitable customers to adjust targeted service offerings. Precision marketing
to personalize every interaction with the customer. Near-real-time monitoring and reporting on
marketing performance. Real-time monitoring of service operations, service levels, and field
resource utilization, including predictive analysis on sensor data from connected assets and
equipment.
SAP Business Suite powered by SAP HANA enables
cargo and freight transportation and logistics providers to
be first to market with services to maximize profit and
asset utilization, and to achieve optimal customer service.
SAP Business Suite Powered by SAP HANA
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 26 / 37
Asset Management
Utilize asset information with sophisticated algorithms to predict maintenance needs. This helps
you reduce spare parts inventory while maintaining and improving asset availability.
Operations
Collect, store, manage, and analyze large volumes of service event data to prioritize and respond
proactively.
Sales and Marketing
Analyze granular data faster for better-than-ever understanding of business performance to drive
new revenue-generating initiatives.
The unprecedented availability of operational data offers
significant opportunities for LSPs to run their businesses
like never before. With the SAP HANA platform, your
company can benefit from “Big Data” to drive landslide
competition.
SAP HANA
48% Of organizations foresee a
need for having predictive
modeling and complex
optimization techniques on
Big Data analysis
Source: SAP Performance
Benchmarking
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 27 / 37
Asset Management
Enable field workers and technicians to be productive at the point of service (inspections and work
orders), whether in the field or in the shops, connected or disconnected. Monitor assets, facilities,
and infrastructure to ensure asset availability as well as corporate and regulatory compliance.
Operations
Empower operations managers to monitor KPIs and status across performance dimensions and
enable flexible and timely access to deliveries, purchase orders, and invoices.
Sales and Marketing
Equip sales and executives with instant access to order status information, account review
meetings, and order history.
Connecting, interacting, and engaging with consumers
anytime, anywhere, and empowering marketing, sales,
and operations teams with convenient, real-time visibility
into market dynamics.
Mobile
24% Higher operating margins
where enterprise mobility is
embedded in all business
processes
Source: SAP Performance
Benchmarking
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 28 / 37
Asset Management
Use analytic solutions to model and optimize all aspects of asset management – including
root-cause analysis for identifying causal factors and leading indicators, predictive maintenance
to ensure higher availability, and integrated maintenance decision support to ensure peak
performance.
Operations
Measure the key drivers of operational efficiency and effectiveness, and create accountability for
services compliance.
Sales and Marketing, Customer Service
Equip sales and service teams with instant access to order status information, customer visits,
contribution levels, order analysis, and incidents.
Providing up-to-the-minute visibility of key performance
indicators across every facet of business operations –
with real-time monitoring, root-cause analysis, risk
mitigation, predictive modeling, and optimization.
Analytics
26% Higher inventory turns with
warehouse analytics software
from SAP
Source: SAP Performance
Benchmarking
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 29 / 37
Asset Management
Connect to your suppliers anywhere at any time from any application or device to source key
materials and parts.
Sales and Marketing
Build a nimble and flexible sales organization, manage accounts, enable team collaboration, and
monitor sales results with flexible and low-TCO sales execution.
Use a cloud-based approach to building and maintaining business networks that reduce costs for
collaborating with customers and business partners.
Fast and flexible deployment of critical and complementary
solutions is the essential aspect of on demand. Best-run
companies are starting to deploy cloud solutions in certain
areas to extend IT investments while reducing total costs.
Cloud
75% Of companies believe that
the cloud will amplify other
technology megatrends,
such as enterprise mobility,
Big Data, and analytics
Source: SAP Performance
Benchmarking
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 30 / 37
9 of the Top 10 railways companies run SAP.
Our customers courier more than 50% of the world’s packages.
Best-Run Customers
Artoni
Best-Run Customers
Cargojet
Why SAP?
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 31 / 37
SAP co-innovates with leading transportation and logistics companies.
Models range from direct one-on-one engagements to established SAP user
groups.
Customer Co-Innovation
SAP Railways User Group (“SUGRail”)
The strategic goals of SUGRail are: 1) to provide rail companies with a means to share their
experiences, and 2) to work directly with SAP and affiliate partners to provide input as well as
collaborate on solutions and best practices in an effort to better meet rail industry needs.
Artoni
Best-Run Customers
Cargojet
Why SAP?
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 32 / 37
“The SAP solutions helped us realize a 10% savings on the cost of goods
transported. In addition, our warehouse worker productivity increased by
30%, as measured in hours spent per 100 kilos transported.”
Norberto Delendati, Organization and IT Director, Artoni
Artoni is a family business that processes more than
700,000 shipments per month. Headquartered in Northern Italy,
Artoni employs about 600 direct employees and 3,000 sub-
contractors and has an annual revenue of €217 million.
Artoni decided to reengineer its business processes and replace its
legacy system with transportation and warehouse management solutions
from SAP to transform itself from a regional transportation provider to an
international logistics company. As a result, Artoni managed to boost its
operational efficiencies and cut cost.
Key Benefits
Reduced CO2 emissions through optimized transportation routes
Increased operational efficiencies
Reduced operational costs through closer planning between logistics
and transportation
30% Increase in productivity (ratio between 100 kilos transported and hours worked)
20% Reduction in storage space for goods to be transported
10% Reduction in cost per 100 kilos transported
Artoni
Best-Run Customers
Cargojet
Why SAP?
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 33 / 37
“At Cargojet we wanted a single system that could grow with the
company, and our philosophy is why interface when you can integrate?”
Anju Virmani, Chief Information Officer, Cargojet Income Fund
Cargojet: Soaring to New Heights with Greater Financial
Visibility.
Operating nearly 12,000 flights a year with consistent on-time reliability,
Canada’s Cargojet Income Fund helped the firm replace an aging legacy
system with the SAP ERP Financials solution to support future strong
growth. As a result, Cargojet has reduced financial closing times,
accelerated report generation, and gained greater visibility and control
over its financial information.
Key Benefits
Improved visibility and control of costs
Increased efficiency with automation of finance processes
Improved decision making with flexible reporting and drill-down
functionality
Increased productivity in finance group
Improved employee satisfaction with new opportunities to build
skill sets
-50% Time to close books
-50% Time, and less, to create new financial reports
-10% And less for audit
costs
Artoni
Best-Run Customers
Cargojet
Why SAP?
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 34 / 37
SAP solutions for the cargo transportation and logistics industry enable profitable,
differentiated services by leveraging the latest in technology innovations and
industry best practices.
Tightly Integrated Business Solutions
SAP offers the most comprehensive portfolio of solutions for the LSP industry, enabling companies
to focus on the customer.
Leveraging Key Breakthrough Innovations
The SAP solution portfolio is based on the industry‘s most innovative technology foundation
including the SAP HANA platform, mobile solutions, analytics, and cloud solutions.
Enabling Business Transformation
Leading LSPs are evolving their strategies from logistics execution to integrated supply chain
process management with SAP.
40 Years of Delivering Value
SAP is known for value, innovation, and performance. You depend on SAP to help run your
business. Your customers do, too. And when you speak the same language as your customers,
business is easier and more profitable.
Why SAP?
Artoni
Best-Run Customers
Cargojet
Why SAP?
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 35 / 37
The best-run logistics service providers organizations rely on SAP.
Why SAP?
63% of the world’s transaction revenue touches an SAP software system.
SAP customers report 80% lower customer churn with mobile-enabled sales teams.
SAP customers experience 3 times higher operating margins for organizations with the highest degree
of mobile access to enterprise applications.
SAP customers have 40% higher employee productivity where mobile access is provided to employees
across all levels.
SAP Mobile Platform reliably delivers 1.8 billion text messages worldwide every day.
SAP HANA can increase analysis speed by more than 10,000 times, comparable to walking from
California to New York in 6 minutes.
SAP enables 68% greater ability to use Big Data with a well-defined, enterprise-wide, high-
performance analytics strategy.
79% of the SAP customers are small to midsize businesses using SAP software to solve business
problems.
Cloud solutions from SAP provide the freedom for 17 million people to work from anywhere.
Artoni
Best-Run Customers
Cargojet
Why SAP?
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 36 / 37
Benchmark Your Performance
Position your organization for dominance in this new economy with the business performance
benchmarking program from SAP – available free to SAP customers and select prospects. The
SAP benchmarking program has helped more than 3,000 organizations assess their strengths,
uncover areas for improvement, and identify best practices and IT strategies that generate clear,
tangible value – not someday, but today.
Go Live in Weeks
Here’s the fastest way to run your business better: our rapid-deployment solutions. In one
package, you get everything you need to be up and running quickly – including preconfigured
software and implementation services – in just weeks. With a defined scope and predictable costs,
there are no surprises.
Join Your Community of Practices
Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It
lets members help one another solve problems, learn, and invent new ways to get things done –
faster. Find out how to connect with people, content, and resources.
Find Out More About How Your Organization Can
Become Best-Run
Visit valuemanagement.sap.com >>
Visit sap.com/solutions/rds >>
Visit scn.sap.com >>
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Industry Executive Overview
Cargo Transportation and Logistics
Visit us:
http://scn.sap.com/community/transportation-and-
logistics
http://logisticsviewpoints.com/
www.linkedin.com/groups?gid=4366195&mostPopula
r=&trk=tyah
www.linkedin.com/groups/SAP-MRO-Aviation-
Railway-Professional-
2795461?gid=2795461&mostPopular=&trk=tyah
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG
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