Integra(ng  SAP  with  OTM  

 

2013  European  SIG  Conference  
Neil  Hatcher   Rob  van  Haaster   Monday  28  January  2013  

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Agenda  

§  SAP  /  OTM  IntegraLon  Background   §  Design  Approach   §  High  Level  architecture  
§  Lessons  Learnt   §  ImplementaLon  Details   •  SAP  EnLLes   •  Sample  use  cases   •  Best  PracLce  elements   §  ParLng  Thoughts   §  QuesLons      
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SAP  /  OTM  History  

§  OTM  is  designed  and  supported  as  a  stand  alone  best  pracLce  
enterprise  TMS   §  Majority  of  OTM  users  in  Europe  are  SAP  clients                   §  OTM  allows  common  view  of  mulLple  SAP  instances   §  Single  global  model  in  co-­‐ordinaLon  with  single  SAP  instance  
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SAP/OTM  Integra(on  Background  

§  IntegraLng  OTM  with  SAP   •  Can  be  done   •  Has  been  done  successfully   •  Challenges  are  the  same  as  will  occur  when  integraLng  

SAP  to  any  TMS  soluLon  that  handles  real  world   transportaLon.   §  In  this  presentaLon,  we  aim  to     •  Highlight  some  design  consideraLons  and  best  pracLce   •  Present  Real  life  use  cases  in  ProducLon  

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Agenda  

§  SAP  /  OTM  IntegraLon  Background   §  Design  Approach   §  High  Level  architecture  
§  Lessons  Learnt   §  ImplementaLon  Details   •  SAP  EnLLes   •  Sample  use  cases   •  Best  PracLce  elements   §  ParLng  Thoughts   §  QuesLons      
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Key  Design  Considera(ons  

§  SAP  ECC  as  with  other  ERP’s  has  no  concept  of  Order  /  

Shipment  relaLonships  in  comparison  with  TMS   •  One  to  many  /  many  to  one  Order:Shipment  not  standard   §  SAP  LogisLcs  concept  is  Orders:Deliveries  but  is  limited   •  Deliveries  cannot  be  split  across  shipments   •  Triggers  funcLonality  in  SAP  –  assigns  Stock   •  Typically  based  on  stock  /  inventory  available  

§  Hence  the  need  for  an  Enterprise  TMS  for  true  LogisLcs  
Management  

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Typical  Perceived  Challenges  

§  Which  SAP  object  should  we  use  for  the  order  release  in  

OTM?   §  When  should  we  send  the  order  releases  to  OTM?   §  OTM  likes  to  split  orders  across  loads  but  the  OTM  order  is  an   SAP  delivery  and  SAP  does  not  like  that  to  be  split.  

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Real  Challenge  

§  Get  end  to  end  clarity  of  the  supply  chain  business  process  
and  business  needs.   §  Then  define  the  system  support  required  to  enable  that.  

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Who  owns  each  segment  in  the  supply  chain  process?  
Clarifica(on  Achieved:   Challenge:   Which  system  in  the  IT   Define  which  business  area   landscape  owns  the   (and  therefore  IT  system)  owns   overall  business  process   the  overall  business  process  for   for  the  supply  chain   the  supply  chain  segment.   MulLple  business  process  models   segment     can  be  handled  in  a  single  OTM     Most  o_en  this  is  not  the   instance  giving  end  to  end     Transport  organisaLon.   Examples  of  segments:   visibility  across  the  supply  chain     Instead  it  is  sales  or   Demand  planning  driven.   segments   manufacturing  or  an  external   Customer  order  driven.     Manufacturing  driven   customer       Some  companies  will  have     mulLple  supply  chain  segments      

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Business  pressure  on  IT  landscape  
Challenge:   Is  there  a  business  desire  for   each  end  user  to  only  work  in   one  system  for  the  whole  of   their  working  day,  or  is  there  a   drive  to  have  business   funcLonality  handled  in         Clarifica(on  Achieved:   Other  challenges  need   to  be  addressed   depending  on  which   approach  the  business   require        (trade  off  between  end  user     training  on  mulLple  applicaLons   and  Single  Sign  On  umbrella  vs   messaging  backwards  and   forwards  with  duplicated   visibility  informaLon  and   funcLonality  in  mulLple  places)  

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TMS  load  op(misa(on  
Challenge:   Should  the  TMS  be  allowed  to   opLmise  loads  by  splibng   orders  and  or  changing  pickup   and  delivery  days?       Clarifica(on  Achieved:   If  the  answer  is  yes  then   the  message  flow  should   be  SO  /  STO  /  PO  from  SAP   to  OTM  and  OTM  to  plan   and  integrate  the  deliveries   back  to  SAP.     If  the  answer  is  No.    Then   SAP  should  define  the   Inbound  and  Outbound   deliveries  and  those  should   be  integrated  towards   OTMs  order  release  object.        

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Details  of  supply  chain  interac(ons  
Challenge:   Have  understanding   across  the  business   funcLons  what  the   impact  of  any  acLon  at   any  point  in  Lme  would   be.     Clarifica(on  Achieved:   Understanding  of  :   What  acLons  should  be   allowed  or  blocked  at  each   stage   What  system  support  for   modificaLons  is  required           Example:     At  what  point  do  you  allow   the  sales  department  to   change  add  or  remove   items  from  an  order.          
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Agenda  

§  SAP  /  OTM  IntegraLon  Background   §  Design  Approach   §  High  Level  architecture  
§  Lessons  Learnt   §  ImplementaLon  Details   •  SAP  EnLLes   •  Sample  use  cases   •  Best  PracLce  elements   §  ParLng  Thoughts   §  QuesLons      
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SAP  -­‐>  OTM  Integra(on  
iDoc GLogXMLElement
SAP PI

SYSTAT

TransmissionReport

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OTM  -­‐>  SAP  Integra(on  
GLogXMLElement
SAP PI

iDoc

TransactionAck

ALEAUD

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Agenda  

§  SAP  /  OTM  IntegraLon  Background   §  Design  Approach   §  High  Level  architecture  
§  Lessons  Learnt   §  ImplementaLon  Details   •  SAP  EnLLes   •  Sample  use  cases   •  Best  PracLce  elements   §  ParLng  Thoughts   §  QuesLons      
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Relevant  SAP  modules  
Key modules within SAP ECC for Transportation Process Integration:
LE   LogisLcs   ExecuLon   MM   Materials   Management   SD   Sales  &   DistribuLon  

PP   ProducLon   Planning  

SAP  ECC   Enterprise   Core   Component  

FI   Financial   AccounLng  

QM   Quality   Management  

CO   Controlling  

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SAP  Documents  &  Flow  

§  End  to  End  Supply  Chain  Documents  within  SAP  Modules  
independent  of  enterprise  TMS  

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Master  Data  
Best Practice Logistics Master Data Management Sample Mapping

All other Logistics Data using MavenWire evolvTM Data Loader

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Outbound  Use  Cases  

§  § 

We  will  walkthrough  two  different  Outbound  Use  Cases,  applicable   depending  on  the  perspecLves  of  Orders  /  ProducLon  Scheduling  and     Inventory….   These  samples  provide  for:   •  Order  /  Delivery  splibng   •  Delivery  creaLon  from  OTM  Shipment  plan  or  SAP  creaLon  process   •  Shipment  creaLon  in  OTM  with/without  SAP  Shipments   •  Dynamic  producLon  plans   Scenario  1   •  Discrete  Manufacturing  model   Scenario  2   •  Process  Manufacturing  model  

§  § 

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Sample  Outbound  Scenario  I  (Discrete  Mfg)  

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Sample  Outbound  Scenario  II  (Process  Mfg)  

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Inbound  Use  Case  

§  OTM  /  SAP  can  equally  be  deployed  for  Inbound  LogisLcs   §  SAP  Purchase  Order  control   §  OTM  inbound  logisLcs  management   §  Allows  for  Factory  Gate  pricing  model   §  LogisLcs  part  of  PO  payment  process  control  (ASN,  ePOD)  

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Sample  Inbound  Scenario  I  

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Agenda  

§  SAP  /  OTM  IntegraLon  Background   §  Design  Approach   §  High  Level  architecture  
§  Lessons  Learnt   §  ImplementaLon  Details   •  SAP  EnLLes   •  Sample  use  cases   •  Best  PracLce  elements   §  ParLng  Thoughts   §  QuesLons      
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Par(ng  Thoughts  

§  §  §  §  §  § 

OTM  can  be  integrated  to  the  SAP  ordering  modules  in  many  ways.  

• 

The  "right"  way  is  not  simply  a  case  of  which  business  verLcal  your  organisaLon  belongs   to.  

Transport  is  not  required  unless  another  part  of  the  organisaLon  is   requesLng  it.  

• 

Take  a  partnership  approach  with  the  ordering  business  area  (whether  it  be   manufacturing  or  sales  or  something  else)  

Don't  make  decisions  as  to  overall  business  process  alone.   Don't  get  lost  in  theoreLcal  nirvana.      

•  • 

In  a  real  world  supply  chain  things  change  on  a  daily  basis,  strive  for  supply  chain   stability  but  don't  put  blinkers  on  and  ignore  reality.  

There  is  no  such  thing  as  a  "handover  point"  at  which  one  area  completely   ceases  to  touch  the  order  and  another  area  takes  over.  
have  sessions  with  the  relevant  parLes  round  a  table  to  drill  into  the  details  and  to   define  real  world  applicable  processes.  

Buy  in  at  a  strategic  level  is  a  must  

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