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SAP Remote Logistics Management

A Detailed View

September 2013
Overview
Business Overview

Remote Logistics: Challenge the challenge


Competition for natural resources has driven
companies to explore and produce in harsh,
remote and even hostile locations, where even
the simplest of logistical tasks can be difficult.
The lack of nearby carriers creates problems.
Managing capacities , dealing with critical
transport space requirements and considering
transit times impact not only planning and project
schedules, but also financials.
The challenge is to gain transparency and
establish an integrated solution that enables a
quick, safe and efficient supply.

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Oil & Gas Industry Overview
Allocation of RLM in the Oil & Gas Industry
Functional area of RLM

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Key Business Challenges
What does this mean for your business?

Top executive questions


How do I optimize supply chain operations to
my remote locations?
How do I reduce downtime due to waiting-on-
supplies?
How do I integrate remote logistics with other
logistics processes?

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Key Business Challenges

Parts stock transparency in service provider


warehouses.
Efficient planning of maintenance cycle and
order to maintain processes.
Increased vehicle, fleet and marine vessel
utilization.
Improved accuracy and confidence of
inventory planning
Reduced distress trading and stock
situations
Minimized manual effort and duplication

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Solution Overview

SAP Remote Logistics Management (RLM) provides functions for moving materials
from base locations to remote locations (remote platforms) and vice versa.
SAP Remote Logistics Management provides functions and processes in the
following areas:
Procurement:
RLM-S Supply Chain (Planning)
RLM-G Goods Receipt (Execution)

Dispatch:
RLM-P Shipping and Container Management
RLM-H Material Holding
RLM-M Material Tracking

Returns:
RLM-R Returns Management

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Business Value Overview

Asset Maintenance and Logistics


Performance:
Integration maintenance orders into logistics
processes
Reduction of production downtime due to timely
delivery and the reduction of waiting on supply
statuses
Effective Spending:
Optimize supply and return performance
Better leverage available logistics budget
Meet operator and service provider objectives
Collaboration:
Share and learn with peers in the focus group
to upstream logistics
Enablement of integration to service companies
for greater transparency along the supply chain

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SAP Remote Logistics Management
Process Coverage and Product Details
Overview: Summary of SAP Remote Logistics
Management

SAP Remote Logistics Management (SAP Remote Logistics Management) enables natural resources and engineering
companies to supply materials from base locations to remote locations, purchase or rent material, package and un-
package materials from containers, manage loading areas (i.e. oil platform loading areas), handling returns and repairs.

Tightly integrated with SAP MM Integration of remote logistics with other


The supply chain function enables converting stock logistics processes
transport requisitions activated at the remote location into
purchase requisitions at the base plant. Planning and execution of all material
Goods receipt function allows to assign goods receipt needs in one solution
items to deliveries, package the goods and provides an Supply of materials (incl. Rentals) and
overview over the packaging status.
equipment to remote facilities on a timely
Shipping functionality allows to track the containers and
plan them for future shipments.
basis
Holding function allows materials required at remote Production downtime reduction avoids
locations to be held at the base plant until the user Waiting On Supplies (WOS) situations
requesting the materials is ready to receive them.
Container management, including third-
The returns request document that is used to control the
return of materials and containers from a remote location party containers
for various reasons, (repair, scrap, waste, return to base Material tracking
stock, and return to supplier).
SAP Remote Logistics Management allows to track
materials from the initiating document to the final receipt.

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SAP Remote Logistics Management
Supported Processes
Material Requests

External Sourcing
Supply Chain
1 Processing

Remote Locations Material Goods Receipt


6 Tracking 2 Processing
Supply Base Vendor

5 Material Holding

3 Shipping &
Container
Management

4
Deliveries
Shipments

Returns
7 Handling

Returning Shipments

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Business Process 1:
Procurement: Supply Chain Processing

We need 2 Do we have Only one on


new drill 2 drill heads stock?
heads. on stock? Order one!

Remote Location Base Location Warehouse


Prepare the (Base Plant)
MR customer order
for delivery

Delivery

TR is created. PO is created Vendor


SAP RLM via
maintains a replenishment.
link between Legend:
PO and TR MR: Material Request
PO: Purchasing Order
RLM: Remote Logistics Management
TR: Transport Request

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Business Process 1:
Procurement: Supply Chain Processing

Supports four different scenarios Integration with SAP MM


Stock at Base and Remote Location
Stock at Base; No Stock at Remote Location Utilizing MRP standard functionality
No Stock at Base; Stock at Remote Location
Enhancements to PM Orders/PS Network
No stock at Base and Remote Location. Orders:
SAP Remote Logistics Management relevant item
Customizable Actions for Material
categories
Requests
SAP Remote Logistics Management relevant
Example 1: Automatic conversion of a transport
purchasing data
request into a purchase order.
Hold flag
Example 2: Goods receipt item shall be packed
within a delivery.

Customizable Sourcing for Material


Requests
Sourcing from remote stock (reservation)
Sourcing from base stock (stock transport
requisition)
To be procured externally (purchase requisition)

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Business Process 2:
Procurement: Goods Receipt Processing

Which items are


relevant for material
requests of my remote
locations?
Delivery
Vendor Base Location

PO fulfilled. GRN TR is
converted.
Stocks are sufficient
SAP RLM checks if delivery items now to fulfill transport
should be forwarded to the remote requisition.
location. If so a reference between
GRN and the delivery is created. for
these items

Delivery referring to TO TO
created
Legend:
GRN: Goods Receipt Note
TO: Transport Order

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Business Process 2:
Procurement: Goods Receipt Processing

Improved handling of goods received Cross Docking Report


at base plant destined for a remote Displays each Goods Receipt Note Item
location. that is relevant to SAP Remote Logistics
Deliveries can be automated in SAP. Management from a Goods Receipt.
Packing and Splitting can be handled via Includes references to original documents
the Cross Docking Report and information

Splitting Screen
Split shipments of goods receipt items
Shipping a single item (a large volume of
lubricant, for example) in two or more
separate shipments instead of one.

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Business Process 3:
Dispatch: Shipping and Container Management

Let us prepare Which items


the shipment for shall go
the remote where?
location Warehouse
(Base Plant)

Container 1 Container 2 Container 3


Container 2
Base Location Harbour Loading Area

Item(s) gets assigned to RLM Container gets Supply Vehicle


container(s) assigned to shipment

Delivery Shipment
referring to TO

Items assigned to delivery RLM Loading Area Voyage


Container 2

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Business Process 3:
Dispatch: Shipping and Container Management

Representation of the physical Container Master


Customizable Object for representing containers in the
container used in the shipment system.

Working with a shipment, a specific Container Tracking


container can be tracked by Provides location of individual containers and shipments.
referencing the flexible container
Voyage
master record SAP Remote Logistics Management groups shipments
into voyages to allow, for example, materials to be
delivered to several remote locations without using the
standard SAP shipment legs.

Packing
SAP Remote Logistics Management has more packing
options than the standard SAP packing screens.
You can see the deliveries and the corresponding delivery
items
You can use loading areas, which enable you to manage
containers and contents separately from the transport
vessel.

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Business Process 4:
Shipment Receipt: Shipping and Container Management

Shipment received. Which items still


Which containers and need to be
items are there? moved?
Shipment
arrived.

Container 1 Container 2 Container 3

Remote Location Loading Area


Supply Vehicle
Storage Location

Shipments;
can be selected for Container 2 Item
the RLM Shipment
Receipt Work Area

Remote Location Storage


RLM Work Area for Loading Area Location
Shipment Receipt
Using the RLM Work Area,
Containers can be assigned to
Loading Areas and Items to
Storage Locations

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Business Process 4:
Shipment Receipt: Shipping and Container Management

Process all containers and deliveries Shipment Receipt Work Area


Select shipments for inclusion in the work area by using a
at one time. selection screen. Add and remove shipments from the
Transfer container to new shipment or loading area. work list at any time.
Release container from Shipment. Shipments are locked when they are added to the work
Change Container Location. area and unlocked when they are removed.
Post goods receipt for delivery. Select objects or groups of objects from the hierarchy tree
Update SAP Remote Logistics Management document for processing.
flow. Error and warning messages are collected for each
individual object.
Overview over the status of Click on the object status icon to display the individual
messages for an object in the hierarchy. The messages
containers and items of received are displayed in a dialog box .
shipments. Choose the Messages button from the application toolbar
to display a collective hierarchical log for the entire work
area.

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Business Process 5:
Material Holding

We need in 10 days
sharp parts for an
important This Material needs to
maintenance task be in 10 days at the
remote location.

Remote Location Base Location Material Request


A hold flag is set on materials that are to
be ordered, on the following standard
SAP material request screens:
- PM order
- Project system (PS) network order
- MM purchase requisition

Legend:
MM: Material Management
PM: Plant Maintenance

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Business Process 5:
Material Holding

The material is not immediately put Hold Flag


On the material request screens for SAP Remote
into a delivery, but is held at the base Logistics Management, such as the Plant Maintenance
location. It is only sent after the (PM) order, the Materials Maintenance (MM) requisition,
remote location calls it off. and the stock transport requisition, a hold flag appears
next to the material to indicate that the material is being
held until further notice.
If hold flag is set no further delivery can be performed
When the held flag is deselected, the material can be
shipped to the offshore location.

Holding Mass Update


Allows to hold or release from hold multiple PM order
operations, as well as multiple PS network activities.

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Business Process 6:
Dispatch: Material Tracking

Where is the Where is the


shipment at the shipment at the
Vendor
moment? moment?

Supply Vehicle
Delivery
Remote Location Base Location

Container 1 Container 2 Container 3

Loading Area
Track materials from the initiating document
to the final receipt. Tracking is displayed in
the form of a document flow in an
Material Tracking expandable tree structure, so that you can
display as much or as little of the flow as you
need. Status types are displayed for each
document flow, reflecting progress.

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Business Process 6:
Dispatch: Material Tracking

Allows tracking materials from the Material Tracking


Enables you to monitor the progress of requests
initiating document to the final originating from documents such as PM orders and
receipt. transport requisitions.
Determine subsequent documents, using the SAP
Remote Logistics Management document flow index and
standard SAP document flow.

Tracking Navigation Function


Supports recursive navigation. Reversed navigation
enables you to see all the documents preceding the
starting documents.

Conditional hide
Reduces the number of lines in a tracking hierarchy,
allowing tracking objects to be hidden when they are
followed by another tracking object.

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Business Process 7:
Returns: Returns Management
Not
needed
To be
To be anymore
repaired We received a shipment
These parts need scrapped
returning from the remote
to go back to our location with parts send
base location. back for different reasons.

Supply Vehicle Container 1 Container 2 Container 3

Remote Location Harbour Loading Area Base Location

Return Document
Handles the return of material
and containers to base plant
and their subsequent handling
once they reach the base
plant.

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Business Process 7:
Returns: Returns Management

Handle the return of material and Returns Reference


Create a returns document with reference to a PM order
containers to base plant and their component, a PS network order material, or a transport
subsequent handling once they reach requisition item.
the base plant. A link is maintained between the material return item and
the order component.

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SAP Remote Logistics Management
Architecture and Technical Details
Architecture Options for SAP Remote Logistics
Management

SAP RLM can be Since SAP ERP 6


operated on basis EHP7 it is possible to
of SAP ERP 6.0 activate and operate
and the activated SAP Remote Logistics
SAP IS-OIL SAP RLM Management without
SAP RLM
industry solution (Standalone) SAP IS-OIL

SAP IS-OIL EHP07

SAP ERP 6.0

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SAP Remote Logistics Management

With this business function you can implement Remote Logistics Management
(RLM) to use for supplying materials from base locations to remote locations.

Technical Requirements and


SAP RLM (on IS Oil) SAP RLM (Standalone)
Features
Prerequisites SAP_APPL 600 SAP_APPL 617
(Software Component) IS-OIL 600 IS-OIL 617

Type of Business Function Enterprise Business Function Enterprise Business Function

Available as of SAP ERP 6.0 SAP enhancement package 7 for


SAP ERP 6.0 SP01

Technical Usage Oil and Gas Industry Logistics and Material Management

Application Component Remote Logistics Management (IS-OIL- Remote Logistics Management (IS-OIL-
OLM) OLM)
Dependent Business Function Not relevant Not relevant
(Mandatory Activation)

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SAP Remote Logistics Management
System Screenshots
SAP Remote Logistics Management Material Tracking:
Tracking Report Layout
When you run a tracking report, the report selects the originating objects and builds a flow of
objects, according to rules defined in a tracking profile. The object flow is then displayed as
a hierarchy that can be expanded and collapsed, as required.

Tracking
Tracking
Group
Profile

Tracking
Status

Document
Flow Profile

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SAP Remote Logistics Management Container:
Container Management
The oil and gas container is a flexible master file that can be used to represent the physical
container, used for packing materials for shipment between the base plant and the remote
location.
You can identify this container master in the system with its own unique number, enabling
efficient association of the container with its intended vessel.

Flexible Container Master


Generic Functions Container Types
Read RLM containers
Display Select
PM Equipment
Display
Container Value Request Internet (customer functions)
Handling
Lock Units
Unlock One-off containers

Other ...

Packing
Container
tracking
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SAP Remote Logistics Management Material Tracking:
Tracking Report Layout
RLM has more packing options than the standard SAP packing screens.
You can see the deliveries and the corresponding delivery items
You can use loading areas, which enable you to manage containers and contents separately
from the transport vessel.

Delivery
Loading
Area

Delivery
Item

Container

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SAP Remote Logistics Management Shipment:
Shipment Receipt Work Area
You can select shipments for inclusion in the work area by using a selection screen. You can add and remove shipments from the work list at any
time.
Shipments are locked when they are added to the work area and unlocked when they are removed.
You can select objects or groups of objects from the hierarchy tree for processing.
Error and warning messages are collected for each individual object.
You can click on the object status icon to display the individual messages for an object in the hierarchy. The messages are displayed in a dialog box .
You can choose the Messages button from the application toolbar to display a collective hierarchical log for the entire work area.

Header fields for MM


goods receipt for delivery
Individual items are
marked for inclusion in
receipting. Unmarked
items may be received Shipment receipt fields,
used for container transfer
later using different
transfer data.

Process status indicates the result of


a check or update action. By clicking
on the icon you can display
explanatory messages in a dialog
box.
The shipment receipt
work area is based
on ALV tree control, Object status indicates whether an
allowing full object has already been processed,
configuration of data and whether it may be received. By
columns. clicking on the icon, you can display
explanatory messages in a dialog
box.

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Thank you
Frank Rudolf
Product Owner SAP Remote Logistics
Management
SAP Custom Development
SAP AG
Dietmar-Hopp-Allee 16
69190 Walldorf
T +49 6227 7-64651
M +49 160 90432504
F +49 6227 78-45926
mailto:frank.rudolf@sap.com
http://www.sap.com
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