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SAP for LSP and Seaports Francesco De Toma / Industry Value Engineering May 22, 2014
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SAP for LSP and Seaports Francesco De Toma / Industry Value EngineeringMay 22, 2014
Agenda
SAP for Logistic Service Providers The Challenge: low margins and highly competitive environment
SAP for Seaports
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The Challenge Innovation Drivers in Logistics
Demanding Customers
Globalization Networked economy
Innovation Drivers
New IT
Volatility and Risk
Management
Sustainability
Regulation and
Compliance
Talent Shortfall
economy
2014 SAP AG or an SAP affiliate company. All rights reserved. 4Public
Leaders of global logistics organizations must innovate and invest in new processes and technologies to remain relevant and competitive. Focusing myopically on cost reduction is no longer a valid strategy; logistics organizations must concentrate more on enhancing differentiation
Predicts 2014: Global Logistics Differentiating for the Future, Gartner
Compliance
The Challenge - Margin Pressure
100%90%80%70%60%50%40%30%
80%
Gross Profit
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30%20%10%
0% LSP GrossRevenue
3rd party Freight Costs, Duties
Staff Expenses
Other Overhead Expenses
EBIT
Gross Profit20%-25%
2,5 - 4%
Agenda
SAP for Logistic Service Providers SAP solutions for the LSP Industry
SAP for Seaports
2014 SAP AG or an SAP affiliate company. All rights reserved. 6Public
How can SAP Help
OperationalExecution
OperationalExecution
Product OfferingsProduct
OfferingsCustomer ServiceCustomer ServiceCustomer
RelationsCustomerRelations
Financial Management
Financial Management
Customer Focus
ExecutionExecutionOfferingsOfferingsRelationsRelations ManagementManagement
Global Service Product Catalog
Quotes and Service Configuration
Sales Force AutomationProfitability, Transaction
Analytics
Global Service Product Catalog
Quotes and Service Configuration
Sales Force AutomationProfitability, Transaction
Analytics
360 Customer Intelligence
Contract AdministrationCustomer Portal with self-
service options
360 Customer Intelligence
Contract AdministrationCustomer Portal with self-
service options
Order Management Planning & Optimization
Pricing & Charge Calculation
Tendering & BookingShipment Visibility
Hub Handling, Cross-docking
Order Management Planning & Optimization
Pricing & Charge Calculation
Tendering & BookingShipment Visibility
Hub Handling, Cross-docking
Incident ManagementEvent ManagementException Solution Knowledge Sharing
Incident ManagementEvent ManagementException Solution Knowledge Sharing
Flexible BillingDispute ManagementCredit Management
Revenue / Cost SettlementFinancial Reporting
Flexible BillingDispute ManagementCredit Management
Revenue / Cost SettlementFinancial Reporting
Solution Excellence delivered through component activation, extension, and integrationSolution Excellence delivered through component activation, extension, and integration
Customer OperationsSales
SupportService Backoffice
2014 SAP AG or an SAP affiliate company. All rights reserved. 7Public
Customer Relationship ManagementCustomer Relationship Management
Analytics, BI , Event ManagementAnalytics, BI , Event ManagementSAP ERP SAP ERP
Transportation, Warehouse Mgt.Transportation, Warehouse Mgt.
SAP Standard Transportation Solution Platform
Solution Excellence delivered through component activation, extension, and integrationSolution Excellence delivered through component activation, extension, and integration
SAPs Industry Footprint (Selection)More than 500 customers run SAP in Cargo & Logistics
C
u
s
t
o
m
e
r
V
a
l
u
e
Corporate Functions & Technology
Sales & Customer Service
Key Account Management
Operations
Transportation Management Warehousing & Value Added Services
2014 SAP AG or an SAP affiliate company. All rights reserved. 8Public
Finance & Controlling Human Resources Purchasing Connectivity / System Integration Business Intelligence
Interaction Center Marketing & Campaign Management Payables Automation / Billing Supply Chain Visibility (Proactive
Event Management)
Timeline
Agenda
SAP for Logistic Service Providers The Heart of Operational Execution: SAP Transportation Management
SAP for Seaports
2014 SAP AG or an SAP affiliate company. All rights reserved. 9Public
SAP Transportation Management Overview
Multimodal TransportationSAP TM supports all modes of transportSAP TM supports all modes of transport
End-to-End MovementsPlan your customer orders end to end
Shipper Integration and B2B connectivityEnable easy integration of your shippers
Reporting Capabilities
Key Take
Aways
2014 SAP AG or an SAP affiliate company. All rights reserved. 10Public
Reporting CapabilitiesContains embedded best practice industry analyticsAways
SAP Transportation Management
Complete transportation management solution International and domestic
Truck distribution and pickup
Long-haul trucking (FTL/LTL)
International and domestic All modes of transportation including airfreight,
covering latest security regulations Compliance with international trade
regulations and Dangerous Goods (with GTS and EH&S add-ons)
Interactive transportation and shipment planning, collaborative tendering
Integrated logistics and fulfillment
Ocean LCL
Ocean FCLAirfreight
Parcel / Express
SAP TM Order Management
PlanningCompliance
SubcontractingCharge Management
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Integrated logistics and fulfillmentmanagement, transportation execution visibility and monitoring
Comprehensive freight cost management, Integrated freight and forwarding settlement
Railway
SAP TM Supports all Transportation ScenariosA few Examples...
Direct truck shipment Consig-Consig-nee
ShipperShipper Consig-Consig-nee
Truck networks
Multi-modal domestic shipment
Airfreight D2D
Airfreight shipment P2P Air Air
Ware-houseWare-houseShipperShipper
Consig-Consig-nee
Consig-Consig-nee
Ware-houseWare-house
RampRail
RampConsig-Consig-
neeShipperShipper Ramp
RailRampRamp
RailRamp
ShipperShipper StationStation StationStation Consig-Consig-nee
Airport
Ware-houseWare-house
Airport
Ware-houseWare-house
ShipperShipper Ware-houseWare-house
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Airfreight shipment P2P
Ocean LCL shipment D2D
Ocean FCL shipment D2D
Airport
Airport
ShipperShipper ShipperShipper Consig-Consig-nee
Consig-Consig-nee
PortWare-houseWare-house Port
Ware-houseWare-house
ShipperShipper Consig-Consig-nee
Port Port
SAP TM Supports End-to-End Collaboration Shipper - LSP - Carrier
Shippers Customer places order for goodsEnd Customer
Pre-Pre- Order Order Freight Freight Tendering & Tendering & Execution & Execution &
Order and Operations Processes
Order Acceptance
Order Acceptance
Shipment ProposalShipment Proposal
Shipment PlacementShipment Placement Logistics Operations through LSP PaymentPayment
FreightFreight
Shipper
Logistics ServiceTM
TM
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Pre-Planning
Pre-Planning
Order Management
Order Management
Freight PlanningFreight
PlanningTendering &
SubcontractingTendering &
SubcontractingExecution & Monitoring
Execution & Monitoring
FreightSettlement
FreightSettlement
Logistics ServiceProvider
Carrier /Subcontractor
BookingManagement
BookingManagement
CargoPlanning
CargoPlanning PartneringPartnering
Execution & Monitoring
Execution & Monitoring
Receiv-ables
Receiv-ables
TM
External Communication and ConnectivityEnabling effective B2B and collaborative transportation management
SAP TM Tendering
Carrier-specific WebUI view
Email / SMS RFQNotification
Tendering Collaboration Request for Quotation
Carriers for all Modes of Transport
SAP TM Order Mgmt.
Freight / Booking Order
B2B Freight Order / BookingReceipt and Processing
SAP Event Mgmt. Web UICarrier Event
Mobile Device Milestone Visibility
SAP TM Planning Cockpit
Execution Status
Subcontracting Freight Order Subcontracting Freight Booking (Ocean and Air)
Event Tracking and Monitoring Carrier Event Notification Execution Milestone, Event and Alert Visibility
For Shippers, Suppliers, Carriers, Consignees
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NotificationMilestone Visibility& Event Notification
Status
PartnerSystem
For Shippers, Suppliers, Carriers, Consignees
Trading Partner and 3rd Party Connectivity TM Enterprise Services
For GIS integration and connectivity (SAP II), Freight Rates (SMC3), Ocean Booking & Schedules (INTTRA), Descartes Systems for booking (all modes, incl. GFX for air) and for status and event management
Mode-specific transaction messagingSAP Information
Interchange
SAP TM
SAP TM supports performance management with comprehensive, flexible reporting capabilities
Transportation Dashboard Embedded Contextual Analytics
Role & User-specific Worklists Adhoc Reporting on Mobile Devices
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Key Takeaways for Logistic Service Providers
SAP has a strong presence in the Cargo and Logistic industry addressing, Corporate Functions, Sales and Marketing and Core Operational process
SAP Transportation Management is a mature solutions that enables LSP to differentiate by providing value added services for their customers while at the same time increasing operating margins and efficiency
2014 SAP AG or an SAP affiliate company. All rights reserved. 16Public
SAP innovation for Seaports
A Port comprises hundreds of companies and authorities
that mostly work on bilateral, 1:1 agreements
Port of Hamburg
2014 SAP AG or an SAP affiliate company. All rights reserved. 19Public
Ecosystems Needs
spaceterminal
hospitality
services
A Smart Hub addresses the efficiency and value added
services needs of any Ecosystem
space
providersterminal
operators
tax &
customs
authorities
equipment
& tools
providers
vessel
operators
postal
service
providers
Hub
Operators
PortsAirports
Cities, Metropolitan
Regions,
performance
benchmarking
trade facilitation
procedures
education
ecosystems
intelligence services
equipment2go
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freight forwarders
trailer providers
railway operators
other
operations
service
providers
providersRegions,
traffic & movement
patternssystems integration
traffic control
A Smart Hub is the digital fingerprint of a network of
stakeholders that share a common purpose
Freight Forwarders
Telematics Unit, Tablets & SmartphonesTrailer
Truck
ContainerNetwork of Individual Users
Services Platform
Freight Forwarders
Traffic Control Systems
Space Providers
Parking, Storage, Packing Station,
2014 SAP AG or an SAP affiliate company. All rights reserved. 21Public
Transportation Management and Operations
(Knowledge Base + Operations)
Business Network of Connected BusinessesBack-end
Systems
How to get started with Smart Logistics
Engage in a 3-months pilot
Benefit from a co-innovation setup
2014 SAP AG or an SAP affiliate company. All rights reserved. 22Public
contact: Francesco de Toma, [email protected]& Barbara Flgge, [email protected]
3 Things to remember about Smart Logistics
it combats loss of efficiency and effectiveness in the hub
operations businessoperations business
it eases collaboration needs hubs are not able to resolve
yet
it triggers growth opportunities for any adjacent industry
and user group
2014 SAP AG or an SAP affiliate company. All rights reserved. 23Public
Thank you
2014 SAP AG or an SAP affiliate company. All rights reserved.
Contact information:
Francesco de TomaTitle: Senior Industry Value EngineerEmail: [email protected]
