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Andres Botero, Solution Marketing May 15-19, 2011
SAP Transporation Management
The SAP Transportation Management solution allows companies to holistically manage and optimize their transpiration spend across the logistics and distribution process, maintaining high levels of customer satisfaction while achieving profitability and asset utilization goals .
• SAP TM 8.0 is the fruit of over 20 years of SAP continuous investment in the area of Transportation Management • SAP TM 8.0 is the 3rd release of a TMS product by SAP –an evolution of prior transportation and event management solutions- and brings to bear all the learnings and experience accumulated in this area
LES - TPVS TM 6.0 TM 7.0 TM 8.0
• Over 3,000+ customers rely today on SAP software to manage their transportation needs
• Can be used stand-alone but derives the most benefit when used in conjunction with SAP ECC 6.0
• SAP TM 8.0 addresses the needs of Shippers (Chemical, CPG, Auto, Mills…) and serves as a foundation for LSPs and Retail customers
© 2011 SAP AG. All rights reserved. 2
Players and Collaboration PLANNING. 3 .Transportation Management . ORCHESTRATION. All rights reserved. & EXECUTION OF THE PHYSICAL MOVEMENT OF GOODS FREIGHT FORWARDER SHIPPER Collaboration Goods Delivery CUSTOMER CARRIERS © 2011 SAP AG.
Execution Ocean Voyage Carriage Rail Carriage Carrier / Transportation Provider © 2011 SAP AG. Truck Carriage Air Carriage 4 .The Logistics & Transportation Network High Process and Network Complexity Goods Order Shipper / Supplier Outbound Goods Delivery Goods Receipt Customer Billing Freight Costing & Billing Freight Forwarder Shipper / Retailer Inbound Order Mgmt. Transport. Planning Transport. All rights reserved.
Planning/ Vehicle Scheduling (TP/VS) Coverage: Shipping planning & optimization Transportation Management (TM 6. 5 . combines a long history of transportation business.Logistics Exec.SAP Transportation Solution History Strong. process and IT expertise ERP .0) Coverage: Integrated transportation planning & execution Transportation Management (TM 8. All rights reserved. Central transportation charge engine For core operations For shipper industries & foundation for freight forwarders THE marketleading solution Focus: No combined in-/outbound movements …. Continued Investment to Deliver THE Market-Leading Solution SAP Transportation Mgmt. Limitations: TCO Restricted availability Usability & configurability Performance & process simplification Customer & SAP TCO © 2011 SAP AG.0 & 7. in/outbound movements Delivery-based only No transportation capacity planning Order-based planning Integrated with ERP LE-TRA Limitations: Stand-alone solution Inbound & outbound transp.0) Coverage: Comprehensive transportation mgmt. Transportation (LE-TRA) Coverage: Shipment execution Limitations: No shipments combining APO – Transport.
6 . Flexible Mobile & Web Collaboration Intelligent © 2011 SAP AG. All rights reserved. Dangerous Goods Mgmt.The SAP Transportation Management Solution Highlights and Differentiators Customer Co-Innovated SAP Customer Influencer Group Deep Process Integration Order-to-Cash Procure-to-Pay Best-in-Class Functionality Customs & Compliance Mgmt.
SAP Transportation Management Analytics SAP TM Analytics SAP TM Dashboard © 2011 SAP AG. All rights reserved. 7 .
8.Overview SAP Transportation Management 8. 8 .Tendering) Transportation Dispatcher Transportation Charge Clerk Order Management Freight Freight Planning & Execution & Tendering Monitoring Analytics & Reporting Event Management Import / Export.0 Solution Coverage SAP TRANSPORTATION MGMT. All rights reserved.0 Transportation Planner Specialist (i.e. Dangerous Goods & Compliance Document & Output Management Integration & Connectivity Freight Settlement © 2011 SAP AG.
0 Solution Coverage Transportation Planner Specialist (i. 9 .Overview SAP Transportation Management 8. Procure-to-Pay Freight Orders Forwarding Orders Freight Bookings Manual & Autom. Dangerous Goods & Compliance Document & Output Management Integration & Connectivity © 2011 SAP AG.e. All rights reserved.Tendering) Transportation Dispatcher Transportation Charge Clerk Order Management Freight Planning & Tendering Freight Execution & Monitoring Freight Settlement SAP ERP integration . Planning & Dispatching Resource & Carrier Selection Carrier Tendering Ocean Booking Logistics Execution Transportation Status Visibility & Monitoring Freight Agreement Management Charge & Tariff Management Forwarding Order Settlement Freight Order Settlement Analytics & Reporting Event Management Import / Export.Order-to-Cash.
(for planning. exec.Order Management SAP TM 8. data Order status Linked documents Dangerous goods data 10 © 2011 SAP AG. . All rights reserved. end-to-end order & process management High customer service levels & satisfaction SAP ERP ■ Integrated order processing & management Out-of-the box integration with order-to-cash & procure-to-pay Integrated freight settlement with ERP billing & invoicing Sales Order Purchase Order Stock Transfer Delivery SAP TM ■ Comprehensive order management Freight Order.. tendering. freight (land).Forwarding Order.. & booking (sea & air) orders ■ Full document flow & order life-cycle management Centralized order data mgmt.0 .Order Management Area Details Benefit Transportation Planner Order Management Specialist (Tendering) Freight Planning & Tendering Transportation Dispatcher Freight Execution & Monitoring Transportation Charge Clerk Freight Settlement Efficient.) General & item data Subcontracting data Transportation exec. Freight Booking Forwarding. .
graphical capabilities (map integration) ■ Manual / automatic transportation optimizer planning Constraint-based.Freight Planning & Tendering Area Details Benefit Transportation Planner Order Management Specialist (Tendering) Freight Planning & Tendering Transportation Dispatcher Freight Execution & Monitoring Transportation Charge Clerk Freight Settlement Reduced costs & improved operational performance Improved carrier collaboration & resource utilization ■ Advanced. interactive transportation planning Flexible. broadcast Flexible carrier communication (Web UI.Freight Planning & Tendering Overview SAP TM 8. integration ■ Best-in-class. All rights reserved. ocean freight booking & customs / compliance mgmt. peer-to-peer. e-mail. multi-variant & mode scheduling and routing Zero-click planning from order entry to carrier settlement ■ Domestic & international shipment planning Incl. SMS. B2B) for RFQ / tendering processing & visibility 11 © 2011 SAP AG.0 . . configurable transportation planning cockpit Drag & drop. collaborative tendering Manual & automated RFQ-based & direct tendering Multiple tendering types: direct.
& customs procedure processing ■ Transportation execution visibility & monitoring © 2011 SAP AG. Shipment visibility for customers. carriers Integrated event mgmt. for event notification & handling 13 .. forwarding instructions.Freight Execution & Monitoring Area Details Benefit Transportation Planner Order Management Specialist (Tendering) Freight Planning & Tendering Transportation Dispatcher Freight Execution & Monitoring Transportation Charge Clerk Freight Settlement Efficient logistics & fulfillment processes Improved execution visibility & responsiveness ■ Comprehensive transportation document mgmt. labels. All rights reserved. ) ■ 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.. printing. ■ Document creation.Freight Execution & Monitoring Overview SAP TM 8. supplier.0 . status management (Bill of ladings (Road. Sea. Air).
Forwarding Settlement Document Customer Invoice Invoice Confirmation Customer 14 . All rights reserved.Freight Settlement Area Details Benefit Transportation Planner Order Management Specialist (Tendering) Freight Planning & Tendering Transportation Dispatcher Freight Execution & Monitoring Transportation Charge Clerk Freight Settlement Accurate transportation costing Integrated transportation management & billing ■ Comprehensive Freight Cost Mgmt.0 . flexible charge calculation Partial invoicing & billing Full document flow / life-cycle management SAP TM (Freight Settlement) Freight Order Freight Settlement Document SAP ERP (Financials) Credit Memo Carrier Invoice Invoice Payment Invoice Confirmation Carrier Shipper Forwarding Order © 2011 SAP AG. ■ Integrated Freight & Forwarding Settlement Instant costing & dynamic rating SAP ERP financials integration Advanced.Freight Settlement Overview SAP TM 8.
.0 Transportation Management Processes & Scenarios SAP TM 8. All rights reserved.0 Scenario Configuration Guides ■ ■ ■ ■ ■ Managing Forwarding Orders Managing Freight & Bookings Planning Freight & Selecting Carriers Tendering Freight Executing & Monitoring Freight ■ ■ Settling Freight Orders Settling Forwarding Orders SAP TM 8. Processes and Scenarios Solution Manager Content Delivered with SAP TM 8.0 Online Documentation 15 © 2011 SAP AG. scenario. end-to-end processes & scenarios Reduced implementation time.0 Master Guide SAP TM 8. configuration. customizing & implementation SAP TM 8. effort and cost Comprehensive Documentation Process.0 Processes ■ Managing Transportation Requirements Benefit Efficient.Transportation Mgmt.0 Scenarios ■ ■ ■ ■ ■ Domestic Inbound Transportation International Inbound Logistics Outsourced Transportation Domestic Outbound Transportation International Outbound Transportation SAP TM 8.
transportation and invoice management Vendor 1 (Mainland China) Consignee Port-ofLoading (Shanghai. Germany) Pre-carriage Vendor 2 (Mainland China) 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 © 2011 SAP AG. Germany) On-carriage (Ludwigshafen. China) Main Carriage Port-ofDischarge (Hamburg. intermodal transportation management for purchased goods from overseas vendors with integrated purchase order. All rights reserved. 16 .International Inbound Logistics Scenario Example International.
cost savings for transportation • Rapid time-to-value • Reduce expense of setting up load tendering relationships • Improve visibility in shipping scenarios • Improve visibility to in transit ocean shipments • Reduce expense of setting up integration with ocean carriers Key Innovations • Core Processes for Freight Forwarders • SCE Process Integration • Transportation Planning enhancements • TP RDS • Collaborative Freight Tendering RDS • Ocean Booking RDS © 2011 SAP AG.Planned Innovations for Transportation Management Key Needs • A complete solution for the Transportation and Logistics industries • End-to-end process enablement • Optimized delivery synchronization for multi-consignment orders • Need for better asset utilization and higher load density. 17 . All rights reserved. less empty trucks.
All rights reserved.Selected TM Clients © 2011 SAP AG. 19 .
carrier selection. Charge calculation with carrier verification & freight settlement in TM. subcontracting and freight settlement. © 2011 SAP AG. Implementation Scope: Transportation charge management. All rights reserved. Logistics execution in SAP LES (ERP-Logistic Execution System). healthcare. personal care. Shipment creation in SAP ERP. 50 sites with 300 shipping points Implementation: SAP TM 8. transportation planning & carrier selection.0. 7.0 Consumer Products Chemicals Consumer Products Company: Consumer packaging for beverage. system to eliminate legacy TM systems.Selected Transportation Management Projects SAP Transportation Management 6. truck planning. with extensive charge calculation. Automated invoicing in SAP ERP.0 ca.0 & 8. Implementation Scope: Transportation optimization freight unit building. tendering. 20 . food Company: Chemicals company specializing in silicone-based materials Company: World leading company for food and beverages. health & performance nutrition Implementation: SAP TM 6. Transportation planning in SAP TM. accurate transportation settlement and invoicing Goal: A common transportation mgmt. Transportation spend reduction & operational efficiency increase.0 Implementation: SAP TM 7. invoice creation and verification Implementation Scope: Full TM implementation across freight order mgmt. Sales order processing in SAP ERP.0 Goal: Complete automation of the tendering process (subcontracting) Goal: Efficient..
We really appreciate SAP’s focus on customer service during this project. Products and services: Silicones and high -purity silicon Revenue: US$5. Michigan Industry: Chemicals SAP® TM is an integrated solution that requires synergy from rate negotiation to invoice processing.000 Web site: www.com SAP® solutions and services: SAP® Transportation Management (SAP TM) application “SAP has provided us with world-class support during the implementation of SAP TM. SAP TM is built to attempt to meet the dynamic needs of the global transportation environment.” RQ 8966 (10/07) No verification with the actual contract and Benefits the invoice generated Ability to proactively ensure accurate rates No reporting functionalities around freight prior to shipping rather than reacting to costs rate changes found during invoice receipt Objectives Visibility into freight costs down to the material level 70% reduction in product costing workload Real-time cost allocation to appropriate lines of business Ability to make fully informed business decisions Implementation Highlights Shruti Bahadur Project Leader Dow Corning Corporation First 6 sites implemented in only 8 months Ability to streamline business processes that will have impact beyond freight .1 billion (2009) Employees: 10. SAP TM touches multiple functions.Dow Corning Uses SAP® TM to Reduce Product Costing Workload QUICK FACTS Dow Corning Corporation Challenges and Opportunities Why SAP Understanding margin impacts Fragmented business processes in all areas related to freight cost documentation and allocation Contracts not maintained in a common format or centralized system.dowcorning. leading to dated and invalid freight contracts Headquarters: Midland.
Preconfigured TM Software & Services Enabling Rapid Deployment SAP brings together software and services in 3 offerings that give you essential transportation management functionality quickly and affordably Preconfigured software: either 1. All rights reserved. ocean carrier booking domestic freight tendering Rapid delivery thanks to accelerators. 3. and RDS methodology An affordable. well-priced solution: fixed-price for fixed scope Clear path to your full TMS vision: use the pre-configured scenarios as they are or as a big stepping stone © 2011 SAP AG. 23 . domestic transportation planning 2.
deployment@sap. Target Market Industry Manufacturing. Carrier selection – effectively selecting the right business partner based on strategies including cost. as well as tracking and tracing with SAP EM General Availability Planned for Q3/2011 SAP Contact rapid. Routing and scheduling – comparing various modes and methods of transportation while considering the service level and customer scheduling requested. maintenance and cost. Business Processes What are my needs? Shipping demand creation Pass and process demand changes Optimized planning and carrier selection Synchronization of transportation planning and execution Order consolidation – consolidation of orders going to a similar geographical area which results in a lower cost per unit.0 SAP ECC 6.0 Roadmap Growth Potential SAP TM for broader scope: intermodal planning. priority. packaged goods. Business Requirement What is my pain? Need to reduce transportation expense Lack of control in transportation decisions Limited visibility of customer requirements in transportation decision making Lack of transparency to carrier equipment availability Solution Solution Description The rapid-deployment solution addresses maximizing transportation efficiencies which result in greater control of transportation operations and costs while managing customer delivery satisfaction.com Business KPI’s Lower transportation cost Increased resource utilization Greater on-time performance Better customer satisfaction . Type of Customer/Prerequisite Installed base SAP ECC 6. Leverage customers initial investment in SAP while allowing to expand solution footprint in future. and process industries Companies dealing with LTL/FTL opportunities or combining outbound orders to reduce transportation cost. and business share. Removes the complexity of integration. tendering.Solution At-a-Glance The SAP Transportation Management rapid-deployment solution for domestic transportation planning Ready to run „SAP Transportation Management rapid-deployment solution for domestic transportation planning “ is an essential transportation package with fixed scope. Global Technical Components SAP Transportation Management 8.0 New customers in TM that want to streamline domestic transportation planning Target Geography What will excite me? Quick ROI: The RDS is designed to reduce the implementation timeframe in order to speed up the availability of the solution for productive use as well as reduce TCO for the customer. predefined services at a predictable price with the flexibility for future extension.
Discrete MFG. execution/freight charging etc Business KPI’s Easy access to the most important ocean carrier platform Visibility into ocean transportation status Lower transportation cost Technical Components SAP Transportation Management 8.0 SAP Event Management 7. rail. Business Processes What are my needs? Quick connectivity to ocean carriers Higher productivity and flexibility in managing & monitoring ocean bookings and container tracking What will excite me? Extension of pure SAP functionality to connectivity providers like SAP Partner Crossgate and ocean e-commerce platform provider GT Nexus.01 SAP Information Interchange by Crossgate SAP Contact rapid.Solution At-a-Glance The SAP Transportation Management rapid-deployment solution for ocean carrier booking Ready to run „SAP Transportation Management rapid-deployment solution for ocean carrier booking“ is an essential transportation package with fixed scope. air. Lower TCO avoiding custom development while delivering standard integration to industry platforms (GT Nexus. outsourced manufacturing and the resulting increase in global transportation over ocean waters.com General Availability Planned for Q2/2011 . Location Identifiers) Event Management to track Container Movements & BOL access Type of Customer/Prerequisite New customers in TM that want to streamline ocean shipping processes Any R/3 or SAP ERP customer that is using Logistic Execution System (LES) and has the desire/need to steamline/manage ocean shipping processes.0 SAP ERP 6. Business Requirement What is my pain? Slow an inefficient collaboration with ocean carriers Excessive cost due to inefficient container utilization and expedited transportation need High integration cost to ocean carrier platforms Missing visibility into long transportation legs Solution Solution Description The rapid-deployment solution is to address the long lasting trend of globalization. multi-modal). etc) or retailers with international transportation requirements. INTTRA) Booking of Ocean Vessel Capacity Reserve capacity with carriers Pre Booking possible Receive Booking Confirmations ERP Integration and Enabling of the freight unit allocation to bookings Shipping Instructions Mapping of the following Enterprise Services to Crossgate and/or GT Nexus Pre-Configured Output Management / Electronic Transmission Ocean Visibility Ocean specific Master Data elements (ISO Codes. Automotive. predefined services at a predictable price with the flexibility for future extension. Target Geography Global Roadmap Growth Potential SAP TM for broader scope: planning (land.deployment@sap. Chem. especially in form of containerized goods. Target Market Industry Shipper companies who manufacture goods (CP.
predefined services at a predictable price with the flexibility for future extension.0 SAP Information Interchange (powered by CrossGate) Roadmap Growth Potential SAP TM for broader scope: full blown transportation planning. ERS. Invoice Verification) Type of Customer/Prerequisite Net New Customers Installed Base Target Geography Global What will excite me? Quick ROI: The RDS is designed to reduce the implementation timeframe in order to increase the solution readiness as well as reduce TCO for the customer. tracking and tracing with SAP EM General Availability Planned for Q3/2011 SAP Contact rapid. ocean carrier booking. Out of the box integration between ERP and TM. Freight Costing. especially CPG & Chemical. or other packaged good shippers. Target Market Industry Manufacturing industries. Offers potential replacement of legacy or competitive applications reducing maintenance. Companies dealing with LTL/FTL opportunities or combining inbound/outbound orders to reduce transportation cost. Business Processes TM: managing transportation requirements What are my needs? Quick and easy collaboration with carriers Carrier collaboration follows predefined rules and can be adapted flexibly Onboarding of new carriers as „plug&play“ Optional: carrier selection as part of planning Tendering freight (communicate shipments to carriers) Carrier collaboration Execution and monitoring freight (Transportation Execution.Solution At-a-Glance The SAP Transportation Management rapid-deployment solution for domestic freight tendering Ready to run „SAP Transportation Management rapid-deployment solution for domestic freight tendering“ is an essential transportation package with fixed scope.com Business KPI’s Reduced cost for outsourced transportation services Efficiency and speed in tendering process Transparency of tendering status .0 SAP ECC 6. Business Requirement What is my pain? Lengthy process of carrier collaboration for shipment and load tendering Tendering results contradict strategic or tactical company goals Reduction of ongoing cost for using 3rd party tendering platforms Solution Solution Description The rapid-deployment solution extends ERP based transportation execution with superior carrier collaboration for shipment and load tendering including electronic connectivity to carriers.deployment@sap. Carrier connectivity via SAP Information Interchange (powered by CrossGate) Technical Components SAP Transportation Management 8.
com .Botero@SAP.Thank You! Contact information: Andres Botero Senior Director. Supply Chain Execution Andres.
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