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SAP Business ByDesign

Third-Party Logistics Provider (3PL) Integration


February 2013 Customer
Legal Disclaimer

This presentation outlines our general product direction and should not be
relied on in making a purchase decision. This presentation is not subject to
your license agreement or any other agreement with SAP. SAP has no
obligation to pursue any course of business outlined in this presentation or to
develop or release any functionality mentioned in this presentation. This
presentation and SAP's strategy and possible future developments are subject
to change and may be changed by SAP at any time for any reason without
notice. This document is provided without a warranty of any kind, either
express or implied, including but not limited to, the implied warranties of
merchantability, fitness for a particular purpose, or non-infringement. SAP
assumes no responsibility for errors or omissions in this document, except if
such damages were caused by SAP intentionally or grossly negligent.

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Use of the Third-Party Logistics scenario is subject to the
licensing of a warehouse provider communication add-on via
the SAP Store. Licensing of the warehouse provider
communication add-on may be subject to additional fees.

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Agenda

Integration Overview
Business Scenario Description
Work Center Third-Party Logistics
Processes in Scope
Outbound
Process
Inbound
Process
Inventory
Notifications

Not in Scope
Appendix
System
Setup

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Integration Overview

ByDesign System Functionality ByDesign System:


Sales Order handling
Availability Check
Purchasing
Release to execution
Invoicing

Site 1 Site 2 Site 3 Site 4 Site 5 Site 6

B2B B2B B2B B2B B2B B2B

WM System 1 WM System 2

Functionality External WM
System
Inbound Logistics Execution
Site 4
Site 1 Site 2 Site 5 Outbound Log. Execution
incl. Export
Value-added services
Quality Checks
Site 3
Physical Inventory
etc
Site 6

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Business Scenario Description

Business Scope

Connect the ByDesign system to a system of a 3PL Provider.

ByDesign keeps the full purchasing, sales and fulfillment processes including invoicing.

The warehouse execution (and the transport) is outsourced.

The 3PL can directly connect his system to ByDesign via B2B interfaces (following UN/EDIFACT standard).

The 3PL will therefore take over the mapping of the ByDesign messages to his systems interfaces and technical setup.

Sales Order
Outbound Return to Supplier
Stock Transfer
Delivery Proposal 3PL Request 3PL Execution Outbound Delivery

Purchase Order
Inbound Return from Customer
Stock Transfer
Inbound Delivery
Notification
3PL Execution Inbound Delivery

Inventory 3PL Execution Inventory Notification

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Work Center Third-Party Logistics

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Processes in Scope

Shipments of goods
(Requests send to 3PL /receiving of executed Outbound Deliveries in ByDesign via B2B)
Standard Deliveries
Return to Supplier
Stock Transfer (Intercompany and Intracompany)

Goods Receipts
(Transfer of PO information to 3PL and/or Transfer of Inbound Delivery Notification to 3PL.
Receiving of executed Inbound Deliveries in ByDesign via B2B)
Supplier Delivery
Return from Customer
Stock Transfer (Intercompany and Intracompany)

.2013 SAP AG. All rights reserved. Customer 8


Processes in Scope

Inventory adjustments and manual postings


Inventory Change in externally managed location ( via B2B )
Scrapping and disruptive Sampling ( via B2B )
Consumption/Return for cost center/project (via B2B )
Change of stock ( via B2B )
Inventory alignment with externally managed location. (manuall posting only in ByDesignesign)

All documents (Outbound Deliveries, Inbound Deliveries, Inventory Notifications) which are created via B2B messages, can also directly be created
manually in the ByDesign system to keep business running e.g. in case the electronical interfaces are down.

Standard and Party specific IDs in the B2B messages


Standard IDs for DUNS, GLN, SCAC and GTIN are sent from ByDesign to 3PL.
Party-specific IDs are sent from ByDesign to 3PL: customer part number, supplier part number, customer ID at supplier
ByDesign receives all internal IDs and/or Standard IDs for DUNS, GLN, SCAC and GTIN.

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Outbound Process: Standard Deliveries

Customer ByDesign Third-Party Logistics Provider


1:1
Wave Management
Sales Order 3PL Request Internal Routing
Yard Management
ODER
n:m Picking
Outbound Delivery
Execution Request Packing
Delivery
VAS
Proposals
Staging
n:m Loading
Export Papers
3PL Request Outbound Deliveries
Print Shipments
Out
ASN
Reference 1:n

Outbound 1:1 Outbound


ASN
optional Delivery Delivery
ODEC
Inventory
Outbound Delivery
Update
Execution Confirmation

Customer
Invoice

ASN optional Goods shipped to


customers

Delivery Note

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Outbound Process: Return to Supplier
Warehouse Provider informs that
he returns goods to the supplier.
Supplier ByDesign Third-Party Logistics Provider
1:1
Return to Wave Management
Supplier 3PL Request Internal Routing
Request
ODER Yard Management
n:m Outbound Delivery Picking
Execution Request
Packing
Delivery
VAS
Proposals
Staging
n:m Loading
Export Papers
3PL Request Outbound Deliveries
Print Shipments
Out
ASN
Reference 1:n

Outbound 1:1 Outbound


ASN
optional Delivery Delivery
ODEC
Inventory
Outbound Delivery
Update
Execution Confirmation

ASN optional Goods shipped to


supplier

Delivery Note

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Outbound Process: Stock Transfer (3PL Provider is sending party)

ByDesign Third-Party Logistics Provider


1:1
Stock Wave Management
Transfer 3PL Request Internal Routing
Order
ODER Yard Management
Outbound Delivery
n:m Picking
Execution Request
Packing
Delivery
VAS
Proposals
Staging
n:m Loading
Export Papers
3PL Request Outbound Deliveries
Print Shipments
Out
ASN
Reference 1:n

Outbound 1:1 Outbound


Delivery Delivery
ODEC
Inventory
Outbound Delivery
Update
Execution Confirmation

Inbound Process for


Receiving Site
Delivery Note
to receiving Goods shipped to
site receiving site

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Inbound Process: Standard Deliveries

Supplier
ByDesign Third-Party Logistics Provider
ASN

Purchase Orders
created per site Purchase
Order
Purchase Goods Receipt
Order (SRM)
Internal Routing
Deconsolidation
Slotting
Purchase 1:1 Putaway
Order Bin Determination
IDER
Reference n:m Inbound Delivery
Execution Request
Inbound Inbound
Delivery Delivery
Notification Notification
DDAN
Delivery Despatch
Reference 1:1 Advice Notification

Inbound 1:1
Delivery

Inventory
Update Inbound
Delivery
IDEC
Inbound Delivery
Supplier Execution Confirmation
Goods receipt
Invoice from supplier

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Inbound Process: Customer Return

Customer
ByDesign Third-Party Logistics Provider

Goods Receipt
Warehouse Provider informs that Internal Routing
customer has returned goods
to the 3PL. Deconsolidation
Slotting
Customer Putaway
Return
Notification Bin Determination

Inbound Inbound
Delivery Delivery
Notification Notification
DDAN
Delivery Despatch
Advice Notification
Reference 1:1

Inbound 1:1
Delivery

Inventory
Update Inbound
Delivery
IDEC
Inbound Delivery
Execution Confirmation
Goods receipt
from customer

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Inbound Process: Stock Transfer (3PL Provider is receiving party)

ByDesign Third-Party Logistics Provider


Stock
Transfer
Order

Goods Receipt
Outbound Process for Internal Routing
sending site
Deconsolidation
Slotting
Putaway
Bin Determination

Reference n:m

Inbound Inbound
Delivery Delivery
Notification Notification
DDAN
Delivery Despatch
Advice Notification
Reference 1:1

Inbound 1:1
Delivery

Inventory
Update Inbound
Delivery
IDEC
Inbound Delivery
Execution Confirmation
Goods receipt
from sending site

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Inventory Management: Inventory Notifications I

ByDesign Third-Party Logistics Provider


Consumption /
Return of not
consumed
goods

Scrapping /
Disruptive
Sampling

Inventory
Difference

Transfer
Inventory Inventory (Change of
Notification Change stock)
Document
IN
Inventory Notification
Reference 1:n

Goods and
Activity
Confirmation
Inventory
Update

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Inventory Management: Inventory Notifications II

ByDesign Third-Party Logistics Provider

Inventory
alignment with
externally
managed
location.
No message
from 3PL to
Inventory Alignment
ByDesignesign!
is done on ByDesignside

Inventory
Notification Inventory

Manual comparision
of stock
Reference 1:n

Goods and
Activity
Confirmation
Inventory
Update

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Not in Scope

Not possible to model locations underneath the externally managed site within ByDesign.
No exchange of master data (products, business partners) via standard interface in FP3.5.
Spare Part processes are not supported.
No B2B interface or features within ByDesign for stock comparison and reconcilliation.
Multi site Purchase Orders are not possible due to technical reasons.
Late sales order changes are not forwarded from ByDesign to the 3PL.
No communication of Pick Denials from 3PL via B2B interface

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Not in Scope

PRS is no attribute of the B2B messages (project specific solution possible). PRS is handed over for
shipping processes/receiving processes as an attachment.
No automatic istock creation via B2B messages in ByDesign.
No support of serial numbers through the 3PL interfaces.
Packing is not in scope for the 3PL scenario in FP3.5.
Assumption is, that packages are handled by the 3PL including ASN and export declaration.
No transfer of prices to 3PL.

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Appendix
System Setup
ByDesign System Set Up: Scoping

BC scoping / activation of 3PL...


Warehouse Provider creation
Externally managed site screenshot
Delivery numbering
Text and Attachment Flow

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ByDesign System Set Up: Creation of Warehouse Provider

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ByDesign System Set Up: Creation of Warehouse Provider

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ByDesign System Set Up: Creation of 3PL Site

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ByDesign System Set Up: Communication Arrangement

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ByDesign System Set Up: Communication Arrangement

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ByDesign System Set Up: Communication Arrangement

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ByDesign System Set Up: Communication Arrangement

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ByDesign System Set Up: Communication Arrangement

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ByDesign System Set Up: Inbound Delivery Numbering

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ByDesign System Set Up: Outbound Delivery Numbering

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ByDesign System Set Up: Maintain 3PL Process Settings

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Message Mapping

ByDesign message UN/EDIFACT message


ODER INSDES
(Outbound Delivery Execution Request)

ODEC DESADV
(Outbound Delivery Execution Confirmation)

IDER ORDERS
(Inbound Delivery Execution Request)

DDAN DESADV
(Delivery Despatch Advice Notifiction)

IDEC RECADV
(Inbound Delivery Execution Confirmation)

IN INVPRT
(Inventory Notification)

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Message Mapping

The messages are XML based. Examples for protocols:

Protocol Remarks
XI 3.0 protocol XI 3.0 is SAP-proprietary. Therefore usually a
hub might be used in between.

WS reliable messaging Connection P2P or via hub

Plain SOAP Typically P2P connection

When talking about EDI we usually deal with the hub based scenarios above where the hub maps our SAP proprietary XML
messages to some standard message format like UN/EDIFACT or ANSI X.12. In addition we also support the peer-2-
peer/direct communication with the 3PL e.g. via SOAP or WS-Reliable Messaging.

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Thank You!

Contact information:
Suvankar Bhaduri

ByDesign SCM Product Management