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.

© 2013 SAP AG. All rights reserved. Customer 3

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

© 2013 SAP AG. All rights reserved. Customer 4

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?

© 2013 SAP AG. All rights reserved. Customer 5

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

© 2013 SAP AG. All rights reserved. Customer 6

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

© 2013 SAP AG. All rights reserved. Customer 7

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
© 2013 SAP AG. All rights reserved. Customer 8
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 basis
plan them for future shipments.
• 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.

© 2013 SAP AG. All rights reserved. Customer 10

SAP Remote Logistics Management
Supported Processes
Material Requests

Supply External Sourcing

1 Chain
Processing

Goods
Remote Locations Material
6 Tracking 2 Receipt
Processing Vendor
Supply Base

Material
5 Holding

3 Shipping &
Container
4 Management

Deliveries
Shipments

Returns
7 Handling

Returning Shipments

© 2013 SAP AG. All rights reserved. Customer 11

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

© 2013 SAP AG. All rights reserved. Customer 12

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)

© 2013 SAP AG. All rights reserved. Customer 13

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 should now to fulfill transport
be forwarded to the remote location. If so requisition.
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

© 2013 SAP AG. All rights reserved. Customer 14

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.

© 2013 SAP AG. All rights reserved. Customer 15

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

© 2013 SAP AG. All rights reserved. Customer 16

Business Process 3:
Dispatch: Shipping and Container Management
Representation of the physical
container used in the shipment
Working with a shipment, a specific
container can be tracked by
referencing the flexible container
master record
© 2013 SAP AG. All rights reserved.
Container Master
 Customizable Object for representing containers in the
system.
Container Tracking
 Provides location of individual containers and shipments.
Voyage
 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.
Customer 17
Business Process 4:
Shipment Receipt: Shipping and Container Management
Shipment received. Which items
Which containers and still 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

© 2013 SAP AG. All rights reserved. Customer 18

Business Process 4:
Shipment Receipt: Shipping and Container Management
Process all containers and deliveries
at one time.
 Transfer container to new shipment or loading area.
 Release container from Shipment.
 Change Container Location.
 Post goods receipt for delivery.
 Update SAP Remote Logistics Management document
flow.
Overview over the status of
containers and items of received
shipments.
© 2013 SAP AG. All rights reserved.
Shipment Receipt Work Area
 Select shipments for inclusion in the work area by using a
selection screen. 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.
 Select objects or groups of objects from the hierarchy tree
for processing.
 Error and warning messages are collected for each
individual object.
 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 .
 Choose the Messages button from the application toolbar
to display a collective hierarchical log for the entire work
area.
Customer 19
Business Process 5:
Material Holding

We need in 10
days sharp parts
for an important This Material needs
maintenance task to 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

© 2013 SAP AG. All rights reserved. Customer 20

Business Process 5:
Material Holding

The material is not immediately put Hold Flag

 On the material request screens for SAP Remote Logistics
into a delivery, but is held at the base Management, such as the Plant Maintenance (PM) order,
location. It is only sent after the the Materials Maintenance (MM) requisition, and the stock
transport requisition, a hold flag appears next to the
remote location calls it off. 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.

© 2013 SAP AG. All rights reserved. Customer 21

Business Process 6:
Dispatch: Material Tracking

Where is the Where is the

shipment at the shipment at the
moment? Vendor moment?

Supply Vehicle
Delivery
Remote Location Base Location

Container 1 Container 2 Container 3

Material Tracking
Loading Area
Track materials from the initiating document
to the final receipt. Tracking is displayed in
the form of a document flow in an 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.

© 2013 SAP AG. All rights reserved. Customer 22

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.

© 2013 SAP AG. All rights reserved. Customer 23

Business Process 7:
Returns: Returns Management

Not needed
To be anymore
To be 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.

© 2013 SAP AG. All rights reserved. Customer 24

Business Process 7:
Returns: Returns Management
Handle the return of material and
containers to base plant and their
subsequent handling once they reach
the base plant.
© 2013 SAP AG. All rights reserved.
Returns – Reference
 Create a returns document with reference to a PM order
component, a PS network order material, or a transport
requisition item.
 A link is maintained between the material return item and
the order component.
Customer 25
SAP Remote Logistics Management
Architecture and Technical Details
Architecture Options for SAP Remote Logistics
Management

SAP RLM can be Option Option Since SAP ERP 6

operated on basis A B 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

© 2013 SAP AG. All rights reserved. Customer 27

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)

© 2013 SAP AG. All rights reserved. Customer 28

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

© 2013 SAP AG. All rights reserved. Customer 30

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
© 2013 SAP AG. All rights reserved. Customer 31
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

© 2013 SAP AG. All rights reserved. Customer 32

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

© 2013 SAP AG. All rights reserved. Customer 33

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
THE BEST-RUN BUSINESSES RUN
SAP