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SAP Transportation ManagementAndres Botero, Solution Marketing
May 15-19, 2011
© 2011 SAP AG. All rights reserved. 2
SAP Transporation Management
The SAP Transportation Management solution allows companies to holistically manage and optimize their
transpiration spend across the logistics and distribution process, maintaining high levels of customer
satisfaction while achieving profitability and asset utilization goals .
• SAP TM 8.0 is the fruit of over 20 years of SAP continuous investment in the area of Transportation
Management
• SAP TM 8.0 is the 3rd release of a TMS product by SAP –an evolution of prior transportation and
event management solutions- and brings to bear all the learnings and experience accumulated in
this area LES - TPVS
TM 6.0
TM 7.0
TM 8.0
• Over 3,000+ customers rely today on SAP software to manage their transportation needs
• Can be used stand-alone but derives the most benefit when used in conjunction with SAP ECC 6.0
• SAP TM 8.0 addresses the needs of Shippers (Chemical, CPG, Auto, Mills…) and serves as a
foundation for LSPs and Retail customers
© 2011 SAP AG. All rights reserved. 3
Transportation Management - Players and Collaboration
SHIPPER CUSTOMER
FREIGHT
FORWARDER
CARRIERS
Goods Delivery
Collaboration
PLANNING, ORCHESTRATION, & EXECUTION
OF THE PHYSICAL MOVEMENT OF GOODS
© 2011 SAP AG. All rights reserved. 4
Shipper /
Supplier
Outbound
Shipper /
Retailer
Inbound
Carrier /
Transportation
Provider
Goods Order
Goods Delivery
Goods Receipt
Customer Billing
Freight
Forwarder
Order Mgmt.Transport. Planning
Transport. Execution
Freight Costing & Billing
Truck Carriage
Ocean VoyageCarriage
AirCarriage
RailCarriage
The Logistics & Transportation Network
High Process and Network Complexity
© 2011 SAP AG. All rights reserved. 5
Coverage:
Comprehensive
transportation mgmt.
For core operations
For shipper industries & foundation for freight forwarders
Focus:
Usability & configurability
Performance & process
simplification
Customer & SAP TCO
Coverage:
Integrated transportation
planning & execution
Stand-alone solution
Inbound & outbound transp.
Central transportation charge
engine
Limitations:
TCO
Restricted availability
SAP Transportation Mgmt. combines a long history of
transportation business, process and IT expertise
SAP Transportation Solution HistoryStrong, Continued Investment to Deliver THE Market-Leading Solution
Coverage: Shipping planning & optimization
Order-based planning
Integrated with
ERP LE-TRA
Limitations:
No combined in-/outbound
movements ….
Coverage:
Shipment execution
Limitations:
No shipments combining
in/outbound movements
Delivery-based only
No transportation capacity
planning
THE
market-
leading
solution
Transportation Management
(TM 8.0)
Transportation Management
(TM 6.0 & 7.0)
APO – Transport.
Planning/ Vehicle
Scheduling (TP/VS)
ERP - Logistics Exec.
Transportation
(LE-TRA)
© 2011 SAP AG. All rights reserved. 6
The SAP Transportation Management Solution
Highlights and Differentiators
Customer Co-Innovated Deep Process Integration
Order-to-Cash
Procure-to-Pay
Customs & Compliance Mgmt.
Dangerous Goods Mgmt.
Best-in-Class Functionality
Customer
Influencer
Group
SAP
Flexible Mobile & Web Collaboration
Intelligent
© 2011 SAP AG. All rights reserved. 7
SAP Transportation Management Analytics
SAP TM Dashboard
SAP TM Analytics
© 2011 SAP AG. All rights reserved. 8
Analytics & Reporting
Overview SAP Transportation Management 8.0
Solution Coverage
OrderManagement
FreightPlanning &Tendering
Freight Execution &Monitoring
Freight Settlement
Event Management
Import / Export, Dangerous Goods & Compliance
Document & Output Management
Integration & Connectivity
TransportationCharge Clerk
Transportation Planner
TransportationDispatcher
Specialist(i.e.Tendering)
SAP TRANSPORTATION MGMT. 8.0
© 2011 SAP AG. All rights reserved. 9
Analytics & Reporting
Overview SAP Transportation Management 8.0
Solution Coverage
OrderManagement
FreightPlanning &Tendering
Freight Execution &Monitoring
Freight Settlement
SAP ERP integration - Order-to-Cash, Procure-to-Pay
Freight Orders
Forwarding Orders
Freight Bookings
Logistics Execution
Transportation Status Visibility& Monitoring
Freight Agreement Management
Charge & Tariff Management
Forwarding Order Settlement
Freight Order Settlement
Event Management
Import / Export, Dangerous Goods & Compliance
Document & Output Management
Integration & Connectivity
Manual & Autom. Planning & Dispatching
Resource & Carrier Selection
Carrier Tendering
Ocean Booking
TransportationCharge Clerk
Transportation Planner
TransportationDispatcher
Specialist(i.e.Tendering)
© 2011 SAP AG. All rights reserved. 10
TransportationCharge Clerk
Transportation Planner
TransportationDispatcher
Specialist(Tendering)
Freight Execution &Monitoring
Freight Settlement
Freight Planning &Tendering
Order Management
Order Management SAP TM 8.0 - Order Management Area Details
■ Integrated order processing & management
Out-of-the box integration with order-to-cash & procure-to-pay
Integrated freight settlement with ERP billing & invoicing
■ Comprehensive order management
Forwarding, freight (land), & booking (sea & air) orders
■ Full document flow & order life-cycle management
Centralized order data mgmt. (for planning, tendering, exec. ...)
Sales Order
Purchase Order
Stock Transfer
Delivery
SAP TM
SAP ERP
Freight Order,Forwarding
Order, Freight Booking
General & item data Subcontracting data Transportation exec. data Order status Linked documents Dangerous goods data
Benefit
Efficient, end-to-end order & process management
High customer service levels & satisfaction
© 2011 SAP AG. All rights reserved. 11
Freight Planning & Tendering Overview SAP TM 8.0 - Freight Planning & Tendering Area Details
■ Advanced, interactive transportation planning Flexible, configurable transportation planning cockpit
Drag & drop, graphical capabilities (map integration)
■ Manual / automatic transportation optimizer planning Constraint-based, multi-variant & mode scheduling and routing
Zero-click planning from order entry to carrier settlement
■ Domestic & international shipment planning Incl. ocean freight booking & customs / compliance mgmt. integration
■ Best-in-class, collaborative tendering Manual & automated RFQ-based & direct tendering
Multiple tendering types: direct, peer-to-peer, broadcast
Flexible carrier communication (Web UI, e-mail, SMS, B2B) for RFQ / tendering processing & visibility
Benefit
Reduced costs & improved operational performance
Improved carrier collaboration & resource utilization
TransportationCharge Clerk
Transportation Planner
TransportationDispatcher
Specialist(Tendering)
Freight Execution &Monitoring
Freight Settlement
Freight Planning &Tendering
Order Management
© 2011 SAP AG. All rights reserved. 13
Freight Execution & Monitoring OverviewSAP TM 8.0 - Freight Execution & Monitoring Area Details
■ Comprehensive transportation document mgmt.
■ Document creation, printing, status management
(Bill of ladings (Road, Sea, Air), labels, forwarding instructions... )
■ Integrated logistics & fulfillment management
SAP ERP integration for inbound & outbound processing
SAP EHS integration for dangerous goods handling
■ Integrated customs & compliance management
SAP GTS for export doc. & customs procedure processing
■ Transportation execution visibility & monitoring
Shipment visibility for customers, supplier, carriers
Integrated event mgmt. for event notification & handling
Benefit
Efficient logistics & fulfillment processes
Improved execution visibility & responsiveness
TransportationCharge Clerk
Transportation Planner
TransportationDispatcher
Specialist(Tendering)
Freight Execution &Monitoring
Freight Settlement
Freight Planning &Tendering
Order Management
© 2011 SAP AG. All rights reserved. 14
Freight Settlement OverviewSAP TM 8.0 - Freight Settlement Area Details
■ Comprehensive Freight Cost Mgmt.
Instant costing & dynamic rating
Advanced, flexible charge calculation
■ Integrated Freight & Forwarding Settlement
SAP ERP financials integration
Partial invoicing & billing
Full document flow / life-cycle management
Customer
CarrierSAP TM (Freight Settlement) SAP ERP (Financials)
Forward-ing Order
Forwarding SettlementDocument
Customer Invoice
Freight Order
FreightSettlementDocument
Credit Memo Carrier Invoice Invoice Payment Invoice Confirmation
Invoice Confirmation
Shipper
Benefit
Accurate transportation costing
Integrated transportation management & billing
TransportationCharge Clerk
Transportation Planner
TransportationDispatcher
Specialist(Tendering)
Freight Execution &Monitoring
Freight Settlement
Freight Planning &Tendering
Order Management
© 2011 SAP AG. All rights reserved. 15
Transportation Mgmt. Processes and ScenariosSolution Manager Content Delivered with SAP TM 8.0
SAP TM 8.0 Processes
■ Managing Transportation Requirements
■ Managing Forwarding Orders
■ Managing Freight & Bookings
■ Planning Freight & Selecting Carriers
■ Tendering Freight
■ Executing & Monitoring Freight
■ Settling Freight Orders
■ Settling Forwarding Orders
SAP TM 8.0 Scenarios
■ Domestic Inbound Transportation
■ International Inbound Logistics
■ Outsourced Transportation
■ Domestic Outbound Transportation
■ International Outbound Transportation
Transportation Management
Processes & Scenarios
Comprehensive Documentation Process, scenario, configuration, customizing & implementation
SAP TM 8.0 Master Guide
SAP TM 8.0 Scenario
Configuration Guides
SAP TM 8.0 Online Documentation
Benefit
Efficient, end-to-end processes & scenarios
Reduced implementation time, effort and cost
© 2011 SAP AG. All rights reserved. 16
International Inbound Logistics Scenario Example
International, intermodal transportation management for purchased goods from
overseas vendors with integrated purchase order, transportation and invoice management
Vendor 1(Mainland China)
Vendor 2(Mainland China)
Port-of-
Loading(Shanghai, China)
Port-of-
Discharge(Hamburg, Germany)
Pre-carriage
Main Carriage On-carriage
Consignee (Ludwigshafen,Germany)
Packing of purchased material in container
Direct pre-carriage via truck from vendors to port-of-loading
Main carriage via scheduled vessel from China to Germany
On-carriage via scheduled train from Hamburg to Ludwigshafen
Inbound delivery
© 2011 SAP AG. All rights reserved. 17
Planned Innovations for Transportation Management
Key Needs Key Innovations
• A complete solution for the Transportation and Logistics industries • Core Processes for Freight
Forwarders
• End-to-end process enablement • SCE Process Integration
• Optimized delivery synchronization for multi-consignment orders
• Need for better asset utilization and higher load density, less empty trucks, cost
savings for transportation
• Rapid time-to-value
• Transportation Planning
enhancements
• TP RDS
• Reduce expense of setting up load tendering relationships
• Improve visibility in shipping scenarios
• Collaborative Freight
Tendering RDS
• Improve visibility to in transit ocean shipments
• Reduce expense of setting up integration with ocean carriers
• Ocean Booking RDS
© 2011 SAP AG. All rights reserved. 19
Selected TM Clients
© 2011 SAP AG. All rights reserved. 20
ChemicalsConsumer Products Consumer Products
Company:Chemicals company specializing in silicone-based
materials
Implementation:SAP TM 7.0
ca. 50 sites with 300 shipping points
Goal: Efficient, accurate transportation settlement and
invoicing
Implementation Scope:Transportation charge management, with extensive
charge calculation, invoice creation and verification
Shipment creation in SAP ERP.
Charge calculation with carrier verification & freight
settlement in TM. Automated invoicing in SAP ERP.
Company:Consumer packaging for beverage, personal care,
healthcare, food
Implementation:SAP TM 6.0
Goal: Complete automation of the
tendering process (subcontracting)
Implementation Scope:Transportation optimization -
freight unit building, truck planning, carrier selection.
Sales order processing in SAP ERP.
Transportation planning in SAP TM. Logistics
execution in SAP LES
(ERP-Logistic Execution System).
Company:World leading company for food and
beverages, health & performance nutrition
Implementation:SAP TM 8.0
Goal: A common transportation mgmt. system to
eliminate legacy TM systems. Transportation
spend reduction & operational efficiency
increase.
Implementation Scope:Full TM implementation across freight order
mgmt., transportation planning & carrier
selection, tendering, subcontracting and freight
settlement.
Selected Transportation Management ProjectsSAP Transportation Management 6.0, 7.0 & 8.0
Dow Corning Uses SAP®
TM to Reduce
Product Costing Workload
Challenges and Opportunities
Understanding margin impacts
Fragmented business processes in all
areas related to freight cost documentation
and allocation
Contracts not maintained in a common
format or centralized system, leading to
dated and invalid freight contracts
No verification with the actual contract and
the invoice generated
No reporting functionalities around freight
costs
Objectives
Visibility into freight costs down to the
material level
Implementation Highlights
First 6 sites implemented in only 8 months
QUICK FACTS
Dow Corning Corporation
Headquarters: Midland, Michigan
Industry: Chemicals
Products and services: Silicones and high -purity
silicon
Revenue: US$5.1 billion (2009)
Employees: 10,000
Web site: www.dowcorning.com
SAP® solutions and services: SAP® Transportation
Management (SAP TM) application
Why SAP
SAP® TM is an integrated solution that
requires synergy from rate negotiation to
invoice processing.
SAP TM is built to attempt to meet the
dynamic needs of the global transportation
environment.
SAP TM touches multiple functions.
Benefits
Ability to proactively ensure accurate rates
prior to shipping rather than reacting to
rate changes found during invoice receipt
70% reduction in product costing workload
Real-time cost allocation to appropriate
lines of business
Ability to make fully informed business
decisions
Ability to streamline business processes
that will have impact beyond freight
costing
“SAP has provided us with world-class
support during the implementation of
SAP TM. We really appreciate SAP’s
focus on customer service during this
project.”
Shruti Bahadur
Project Leader
Dow Corning Corporation
RQ
8966 (
10/0
7)
© 2011 SAP AG. All rights reserved. 23
SAP brings together software and services in 3 offerings that
give you essential transportation management functionality quickly and affordably
Preconfigured software: either
1. domestic transportation planning
2. ocean carrier booking
3. domestic freight tendering
Rapid delivery thanks to accelerators, and RDS
methodology
An affordable, well-priced solution:
fixed-price for fixed scope
Clear path to your full TMS vision: use the pre-configured
scenarios as they are or as a big stepping stone
Preconfigured TM Software & Services Enabling Rapid Deployment
Solution At-a-Glance
The SAP Transportation Management rapid-deployment solution for
domestic transportation planning
Business Requirement Solution Target Market
What is my pain?
Need to reduce transportation expense
Lack of control in transportation decisions
Limited visibility of customer requirements in transportation decision making
Lack of transparency to carrier equipment availability
What are my needs?
Shipping demand creation
Pass and process demand changes
Optimized planning and carrier selection
Synchronization of transportation planning and execution
What will excite me?
Quick ROI: The RDS is designed to reduce the implementation timeframe in order to speed up the availability of the solution for productive use as well as reduce TCO for the customer.
Leverage customers initial investment in SAP while allowing to expand solution footprint in future.
Removes the complexity of integration, maintenance and cost.
Business KPI’s
Lower transportation cost
Increased resource utilization
Greater on-time performance
Better customer satisfaction
Solution DescriptionThe rapid-deployment solution addresses maximizing transportation
efficiencies which result in greater control of transportation operations and
costs while managing customer delivery satisfaction.
Business Processes Order consolidation – consolidation of orders going to a similar
geographical area which results in a lower cost per unit.
Routing and scheduling – comparing various modes and methods of
transportation while considering the service level and customer
scheduling requested.
Carrier selection – effectively selecting the right business partner based
on strategies including cost, priority, and business share.
Technical Components
SAP Transportation Management 8.0SAP ECC 6.0
General Availability Planned for Q3/2011
Industry
Manufacturing, packaged goods, and process industries
Companies dealing with LTL/FTL opportunities or combining outbound orders to reduce transportation cost.
Type of Customer/Prerequisite
Installed base SAP ECC 6.0
New customers in TM that want to streamline domestic transportation planning
Target Geography Global
Roadmap Growth Potential SAP TM for broader scope: intermodal planning, tendering, as well
as tracking and tracing with SAP EM
Ready to run „SAP Transportation Management rapid-deployment solution for domestic transportation planning “ is an essential
transportation package with fixed scope, predefined services at a predictable price with the flexibility for future extension.
Solution At-a-Glance
The SAP Transportation Management rapid-deployment solution for
ocean carrier booking
Business Requirement Solution Target Market
What is my pain?
Slow an inefficient collaboration with ocean carriers
Excessive cost due to inefficient container utilization and expedited transportation need
High integration cost to ocean carrier platforms
Missing visibility into long transportation legs
What are my needs?
Quick connectivity to ocean carriers
Higher productivity and flexibility in managing & monitoring ocean bookings and container tracking
What will excite me? Extension of pure SAP functionality to connectivity providers like SAP
Partner Crossgate and ocean e-commerce platform provider GT Nexus.
Lower TCO avoiding custom development while delivering standard integration to industry platforms (GT Nexus, INTTRA)
Business KPI’s
Easy access to the most important ocean carrier platform
Visibility into ocean transportation status
Lower transportation cost
Solution DescriptionThe rapid-deployment solution is to address the long lasting trend of
globalization, outsourced manufacturing and the resulting increase in global
transportation over ocean waters, especially in form of containerized goods.
Business Processes Booking of Ocean Vessel Capacity
Reserve capacity with carriers
Pre Booking possible
Receive Booking Confirmations
ERP Integration and Enabling of the freight unit allocation to bookings
Shipping Instructions
Mapping of the following Enterprise Services to Crossgate and/or GT
Nexus
Pre-Configured Output Management / Electronic Transmission
Ocean Visibility
Ocean specific Master Data elements (ISO Codes, Location
Identifiers)
Event Management to track Container Movements & BOL access
Technical Components
SAP Transportation Management 8.0SAP ERP 6.0SAP Event Management 7.01SAP Information Interchange by Crossgate
General Availability Planned for Q2/2011
Industry
Shipper companies who manufacture goods (CP, Automotive, Chem, Discrete MFG, etc) or retailers with international transportation requirements.
Type of Customer/Prerequisite
New customers in TM that want to streamline ocean shipping processes
Any R/3 or SAP ERP customer that is using Logistic Execution System (LES) and has the desire/need to steamline/manage ocean shipping processes.
Target Geography Global
Roadmap Growth Potential SAP TM for broader scope: planning (land, air, rail, multi-modal),
execution/freight charging etc
Ready to run „SAP Transportation Management rapid-deployment solution for ocean carrier booking“ is an essential transportation
package with fixed scope, predefined services at a predictable price with the flexibility for future extension.
Solution At-a-Glance
The SAP Transportation Management rapid-deployment solution for
domestic freight tendering
Business Requirement Solution Target Market
What is my pain?
Lengthy process of carrier collaboration for shipment and load tendering
Tendering results contradict strategic or tactical company goals
Reduction of ongoing cost for using 3rd party tendering platforms
What are my needs?
Quick and easy collaboration with carriers
Carrier collaboration follows predefined rules and can be adapted flexibly
Onboarding of new carriers as „plug&play“
What will excite me?
Quick ROI: The RDS is designed to reduce the implementation timeframe in order to increase the solution readiness as well as reduce TCO for the customer.
Out of the box integration between ERP and TM.
Offers potential replacement of legacy or competitive applicationsreducing maintenance.
Carrier connectivity via SAP Information Interchange (powered by CrossGate)
Business KPI’s
Reduced cost for outsourced transportation services
Efficiency and speed in tendering process
Transparency of tendering status
Solution DescriptionThe rapid-deployment solution extends ERP based transportation execution
with superior carrier collaboration for shipment and load tendering including
electronic connectivity to carriers.
Business Processes TM: managing transportation requirements
Optional: carrier selection as part of planning
Tendering freight (communicate shipments to carriers)
Carrier collaboration
Execution and monitoring freight (Transportation Execution, Freight Costing, ERS, Invoice Verification)
Technical Components
SAP Transportation Management 8.0SAP ECC 6.0SAP Information Interchange (powered by CrossGate)
General Availability Planned for Q3/2011
Industry
Manufacturing industries, especially CPG & Chemical, or other packaged good shippers.
Companies dealing with LTL/FTL opportunities or combining inbound/outbound orders to reduce transportation cost.
Type of Customer/Prerequisite
Net New Customers
Installed Base
Target Geography Global
Roadmap Growth Potential SAP TM for broader scope: full blown transportation planning,
ocean carrier booking, tracking and tracing with SAP EM
Ready to run „SAP Transportation Management rapid-deployment solution for domestic freight tendering“ is an essential transportation
package with fixed scope, predefined services at a predictable price with the flexibility for future extension.
Thank You!
Contact information:
Andres Botero
Senior Director, Supply Chain Execution
© 2011 SAP AG. All rights reserved. 28
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