Logistics and Fulfillment Excellence

Solution in Detail

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Consumer Products

Logistics and Fulfillment Excellence

Executive Summary Solution Overview Contact Us

© 2013 SAP AG or an SAP affiliate company.

All rights reserved. 2 / 23

Deliver the Perfect Order

Delivering the perfect order is a balancing

act between customer service and the cost

of delivering that level of customer service.

Without aligned distribution and fulfillment

processes, the best plan will not generate

the expected benefits.

Overall, inefficient global supply chains lead

to poor inventory and asset utilization, which

affects customer service negatively. In the

face of continuous and accelerated change

in the business environment, executives must

find ways to contend with shifting pressures

that threaten their competitiveness and

profitable growth.

Increasing product and network complexity is

leading to supply and demand volatility and

greater risk. Perfect-order fulfillment requires

the support of various transportation modes on

a global, regional, and local basis, while still

ensuring compliant and sustainable operations.

Logistics and order fulfillment addresses the

challenge of efficient supply chain execution,

improving customer service levels while

reducing the cost of operations in the supply

chain network.

On-time delivery performance

reported by top-quartile

companies

Source: SAP Performance

Benchmarking

In a world populated by knowledgeable, demanding consumers, enterprises in the

consumer products industry face increasingly aggressive competitors and shrinking

margins. It is a business imperative to deliver the “perfect order” every time, and to

make a profit doing it.

A Global Logistics Solution

The Fulfillment Challenge

SAP Innovations

Keeping Operations in Tune


98%

https://valuemanagement.sap.com/disclaimer/



By integrating global logistics and fulfillment

processes, consumer products companies

can orchestrate and optimize supply chain

activities, from planning to order fulfillment,

across the supply chain network.

Consumer goods companies that implement

integrated storage and advanced warehousing,

fulfillment, and global transportation processes

can achieve increased customer satisfaction

and lower operational costs, including

increased utilization of assets, such as

warehouse space.

By managing supply chain business processes

based on events, expected and unexpected,

consumer products enterprises can get real-time

insights into problems like delayed shipments

or cancelled orders. These insights come

via alerts through various mediums, including

e-mail and mobile devices.

Companies in the consumer products industry

can also create solutions for complete

management and tracking of batch and

serialized products throughout the extended

supply chain. This can include complete

product genealogy and tracking of products

moved through outside business partners.

Orchestrate a Global Logistics Network

Use logistics to improve operations and please customers.




SAP Innovations


http://youtu.be/KdF5BeODKiU



Operating better means optimizing transportation activities, warehouse productivity,

and using operational assets more efficiently. The result is reduced logistics costs

and fast, accurate customer service – more “perfect orders.” The SAP Transportation

Management (SAP TM) and SAP Extended Warehouse Management (SAP EWM)

applications enable the end-to-end, efficient fulfillment and coordination of supply

chain execution.

Operate Better, Please Your Consumers

Orchestrate supply chain activities across the supply network

Improve processes with advanced warehousing and transportation processes using real-time

alerts and exception management

Increase visibility of the complete transportation management lifecycle

Improve efficiency by automating traditional warehouse and distribution operations

30% Less outbound expediting

with a consistent set of

metrics for transportation

performance, costs, and

productivity


Benchmarking




SAP Innovations





Database and technology solutions, including

those powered by the SAP HANA platform,

enable you to monitor high volumes of data.

For example, with the SAP Demand Signal

Management application, internal and external

demand signals can be monitored in real time.

This includes orders, shipments, syndicated

data, point of sale, loyalty, and social data.

When combined with SAP Predictive Analysis

software, business users can enrich analytics,

enable predictive forecasting, and spot

exceptions to mitigate demand and supply risk.

Analytical solutions enable advanced modeling

and decision making throughout every aspect

of the responsive supply network, from

assessing current downstream demand to

predictive monitoring and insight.

Mobile solutions provide always-on access to

status reporting and exceptions, better decision

making, and improved collaboration.

Cloud-based solutions can be implemented

quickly and provide a low-risk way to minimize

the IT footprint while unlocking immediate

access to analysis, performing new levels of

business partner collaboration, and aligning

supply chain information with other

key stakeholders.

SAP Innovations

SAP solutions for logistics and order fulfillment require technology innovations

that enable real-time response to market dynamics with always-on, anywhere

access. It is information on demand – low-cost, low-risk, and highly scalable.




SAP Innovations




What, When, Where for “Perfect Orders”

Transportation Management

Manage transportation costs and provide visibility to logistics processes while

efficiently and flexibly fulfilling all transportation business goals.

Warehouse Management

Enable superior customer satisfaction levels by delivering the perfect order while

improving warehouse efficiency with automated processes.

Track and Trace

Achieve transparency and traceability across processes and systems, from raw

material to the point of consumption.


Solution Overview

Transportation

Management

Track and Trace

Warehouse

Management

Why SAP?

Logistics and

Order Excellence



Logistics and order fulfillment

includes management of

warehouse and transportation

systems as well as visibility to

the status of materials and

assets.

Logistics and Fulfillment Excellence


Solution Overview

Transportation

Management

Track and Trace

Warehouse

Management

Why SAP?

Logistics and

Order Excellence

Transportation Management Track and Trace Warehouse Management

Transportation Requirements

Management Fulfillment Visibility Order Processing

Freight Planning and Optimization Procurement Visibility Copacking and Value-Added

Services

Freight Tendering Goods and Assets in Transit Dock and Door Management

Carrier Booking Item Serialization and Product

Traceability Cross-Docking

Freight Order

Forwarding and Settlement Product Genealogy Labor Management



The ability to receive and handle orders is

essential to the entire business.

The SAP TM application helps consumer

goods enterprises receive order-based or

delivery-based transportation requirements,

either manually or electronically. It then

helps to confirm orders, plan and execute

them, and communicate order status back

to business partners.

The application also supports change manage-

ment based on business rules to help ensure a

closed-loop communication cycle. Centralization

of transportation requirements management

reduces redundant tasks, enabling consumer

products companies to focus on value-added

activities.

Transportation management supports

the complete freight lifecycle with

functionality to manage transportation

requirements, optimize freight, book

carriers, tender freight, settle, and

forward orders.

Transportation Management

12% Lower transportation spend

(% of revenue) where

transportation planning is

aligned with supply chain

network planning


Benchmarking

Capabilities

Transportation

Management

Benefits

SAP Innovations

Solution Overview





SAP TM provides functionality to receive order

information from multiple sources electronically

through standard open interfaces or integration

with the SAP ERP application, or created

manually in SAP TM.

The application supports process differentiation

and orchestration control for different business

purposes. It also supports order types, such

as quotations, sales and purchase orders,

returns, and stock transfers for tight sales,

procurement, and replenishment integration

or manual order management. With SAP ERP

integration, the application helps to manage

freight unit determination and delivery proposal

creation.

SAP TM also aids in consignment traceability

and visibility for order status and history with

proactive alert and event processing.

It also supports high-volume requirements

management with dynamic change manage-

ment capabilities controlled by business rules.

14% Lower outbound shipments

expedited when dynamically

replanned with real-time

integration to the sales order

system


Benchmarking

Manage Transportation Holistically

Solution Overview


Capabilities

Transportation

Management

Benefits

SAP Innovations




SAP TM supports a cohesive requirements

management process that integrates order

processing with order-to-cash and order-to-

pay processes, providing early visibility into

requirements for planning purposes.

The ability to have early visibility and to plan

your transportation loads based on sales will

lead to significant cost savings, thanks to early

contracting of transportation services.

Centralization of transportation requirements

management reduces redundant tasks, enabling

consumer goods companies to focus on value-

added activities.

Knowing the status of orders all the time also

streamlines communication with business

partners.

SAP Transportation Management

provides a robust framework to manage

high-volume transportation requirements

holistically, start to stop, with best-in-

class user experience and dynamic

requirements integration with source

systems.

Streamline High-Volume Transportation Requirements

Management

22% Lower transportation FTEs

(per million of spend)

where shipment plans are

automatically optimized


Benchmarking

Solution Overview


Transportation

Management

Capabilities

Benefits

SAP Innovations




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image #

here

Database and technology solutions from

SAP enable users to maintain and gain deep

visibility into large volumes of transportation

order data for state-of-the-art analysis. This

helps to maintain product, business partner,

document references, and relevant cost and

legal information, which is essential for the

order management process.

Innovations for Transportation Management

Analytics solutions from SAP help enable

transparency and provide transportation-order

volume, trade lane and execution-related key

performance indicators, and strategic freight

management data to cover every aspect of

the transportation process.

46% More shipments delivered

per load when user portals

display summary-level reports


Benchmarking

Solution Overview

State-of-the-art tools and standardized,

open interfaces for easy communication

with other applications, functions, and

users.


Transportation

Management

Capabilities

Benefits

SAP Innovations




SAP EWM provides a best-in-class solution

by combining the functionality of a complete,

comprehensive solution with business process

and technical integration to support all

enterprise processes using out-of-the-box

connectivity.

SAP EWM offers functionality specifically

designed for the consumer products industry –

ready to meet the most demanding warehousing

needs – enhanced with state-of-the art analytics

and technologies, providing the ability to directly

control warehouse automation, as well as the

execution of business processes on mobile and

voice activated devices.

Improve warehouse efficiency, optimize

operations, and sharpen the organiza-

tion’s competitive edge – with end-to-

end automated processes and tighter

controls.


48% Lower customer-order cycle

time where picking, packing,

and shipping are automated


Benchmarking

Capabilities


Benefits

SAP Innovations

Solution Overview





SAP EWM helps you optimize the entire

warehousing and distribution process. The

software makes information available as early

as preadvice from suppliers, and supports

automatic planning.

With SAP EWM, you can get visibility from

check-in to scheduling dock doors, optimized

storage combined with quality inspection tools,

value-added services, slotting, and various

cross-docking methods.

Wave management, advanced order bundling,

and “cartonization” provide an optimal picking

and outbound process, including options for

packaging, value-added services, staging,

and loading – complete to departure from yard

or dock and door management. Internal

processes, such as replenishment of pick areas

and physical inventory, are supported – with

numerous and flexible options.

Finally, extensive reporting, alerting, and

management tools, as well as a comprehensive

labor management component, help make all

processes transparent.

6% Higher number of orders

shipped on time when

warehouse operations are

integrated with extended

supply chain


Benchmarking

Orchestrate, from Inbound to Outbound

Solution Overview


Capabilities


Benefits

SAP Innovations




SAP EWM brings the physical process of

warehousing and distribution into a software

system in real time. This provides the benefit

of incorporating best practices and company-

specific logistics rules into immediately opti-

mized instructions for warehouse personnel.

Furthermore, as part of an integrated business

suite, SAP EWM can provide information to

help consumer products enterprises make

decisions to optimize processes with information

not traditionally accessible in a stand-alone

warehousing system. This includes global

trade, track and trace, and transportation

information. Point solutions cannot provide

such diverse capabilities.

Additionally, SAP EWM shares the same

master data and data structures with other

solutions – creating “one version of the truth”

for logistics and other key areas for the

extended enterprise.

Model all warehousing processes in a

single system, automate optimization

processes, and provide visibility and

alerting for the complete warehousing

process with extended warehouse

management.

Optimization, Visibility, Control, and Management Tools

28% Fewer stock outs (as % of

sales order line items) with

real-time, enterprise-wide

inventory visibility


Benchmarking

Solution Overview


Capabilities


Benefits

SAP Innovations




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image #

here

SAP EWM helps simplify a company’s tech-

nology landscape. Using the same underlying

technology used in the SAP ERP application,

maintenance, authorization, and the technical

landscape itself are simpler.

End users gain a unified experience, and tight

integration with SAP Business Suite applica-

SAP extends proven technology to

logistics processes, and cutting-edge

innovation creates even more

opportunities.

Innovations for Warehouse Management

tions means significantly less internal support.

Deployment options give optimum flexibility for

upgrade and high availability.

With cutting-edge technology incorporated

into applications powered by SAP HANA,

SAP EWM can provide extraordinary real-time

predictive and analytical capabilities in

warehousing.

5% Higher order fill rate when

warehouse data and reports

are shared with third-party

service providers


Benchmarking

Solution Overview


Capabilities


Benefits

SAP Innovations




Traceability provides a core capability to

orchestrate consumer goods to market

effectively and efficiently. Only a few solution

offerings provide the integrated traceability

needed to cross company and system

boundaries in a global environment.

Complete supply chain traceability includes

visibility into all movement of consumer goods

and assets, with support at the appropriate

level of detail and without regard to system

or company boundaries.

Track and trace capabilities provide

transparency and traceability across

processes and systems – from raw

material to the point of consumption.

Track and Trace

67% Of companies do not have a

system to generate alerts

when stored or required

shipment milestones are not

met


Benchmarking

Capabilities

Track and Trace

Benefits

SAP Innovations

Solution Overview





SAP software provides innovative tools that

allow a business to track consumer products –

from raw material to the point of consumption.

They allow visibility of consumer goods from

start to finish, and they track compliance with

process monitoring.

Effective tracking of supply and distribution

enables efficient and proactive compliance

with directives and regulations, avoiding costly

reactive fixes and excess inventory buffers,

improving operational efficiency, and ultimately

helping to improve consumer service and to

protect your consumers and brand.

Capabilities specific to the consumer products

industry provide process and product transpar-

ency and traceability that help protect consumers

and minimize risks.

Track and trace software from SAP keeps

the focus on the consumer while improving

operational efficiency. It supports batch,

serialized item, and product-and-part trace-

ability; visibility of consumer goods in transit;

and traceability for process monitoring and

compliance.

42% Lower time-to-shipment status

when system stores expected

lead times and generates an

alert if lead time is not met


Benchmarking

Enabling Traceability and Visibility

Solution Overview


Capabilities

Track and Trace

Benefits

SAP Innovations




Improve consumer sentiment with better order

and product tracking.

Mitigate risk by orchestrating easier recalls

and management by exception.

Improve compliance with end-to-end

transparency.

Reduce revenue loss on stock-outs.

Improve on-time delivery with partner data.

Improve inventory accuracy with more data

granularity.

Improve operations by process automation.

Effective compliance, improved opera-

tional efficiency, and reduced safety

stocks all help improve customer ser-

vice and ultimately protect consumers

and brand in today’s globalized

economy.

Consumer-Focused Track and Trace

for Efficient Operations

38% Lower time to provide

shipment status when higher

maturity of transportation

execution and visibility exist


Benchmarking

Solution Overview


Capabilities

Track and Trace

Benefits

SAP Innovations




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image #

here

Applications powered by SAP HANA enable

business professionals to monitor high volumes

of data in real time to enrich analytics and find

exceptions.

Intuitive Web user interfaces simplify user action.

Secure business-to-business com-munication

enables automation of large transaction volumes.

An advanced business-rules engine supports

management by exception.

SAP solutions leverage innovations to

enable fast response, real-time visibility,

and always-on access to information.

Innovations in Technology, Analytics, and Always-On

Mobility

Analytics solutions enable advanced trans-

parency and optimization throughout the

business partner network.

Mobile solutions give the mobile workforce

always-on access to status, reporting,

exceptions, and alerts.

Solution Overview


Capabilities

Track and Trace

Benefits

SAP Innovations




Logistics and Fulfillment Excellence Value Map

Logistics and order fulfillment

includes management of

warehouse and transportation

systems as well as visibility to

the status of materials and

assets.


Solution Overview

Transportation

Management

Track and Trace

Warehouse

Management

Why SAP?

Supply Chain GPS

Sales and

Operations Planning

Supply Chain

Scenario Planning

Inventory and Service-

Level Optimization

Demand Management Manufacturing and

Supply Planning

Collaborative Response

Management

Transportation

Management Track and Trace

Warehouse

Management

Service Parts

Management

Supply Chain

Monitoring

Service

Supply Chain

Sales and

Operations

Business Planning

Demand-Driven

Supply Chain

Logistics and

Order Fulfillment

Logistics and

Order Excellence



Why SAP?

SAP solutions help consumer products enterprises achieve superior consumer

satisfaction levels by delivering the perfect order – complete, accurate, on time –

reducing overall logistics costs and improving efficiency, readiness, and agility.

Predictably execute supply chain plans while embedding flexibility and agility to support

changes and take advantage of opportunities, for example:

Benefit from a global logistics and fulfillment solution that orchestrates processes from planning

and storage to order fulfillment and distribution.

Meet regulatory compliance with best-of-breed capabilities tightly integrated with financial,

international trade, and environmental, health, and safety processes.

Reduce logistics costs by using best-in-class logistics and fulfillment capabilities from SAP

integrated with the supporting financial processes.

Gain logistics efficiency, readiness, and agility by operating, orchestrating, monitoring, and

improving logistics processes continuously across an extended supply network.


Solution Overview

Transportation

Management

Track and Trace

Warehouse

Management

Why SAP?

Logistics and

Order Excellence





Benchmark Your Performance

Position your organization for dominance in this new economy with the business performance

benchmarking program from SAP – available free to SAP customers and select prospects.

The SAP benchmarking program has helped more than 3,000 organizations assess their

strengths, uncover areas for improvement, and identify best practices and IT strategies that

generate clear, tangible value – not someday, but today.

Go Live in Weeks

Here’s the fastest way to run your business better: our rapid-deployment solutions. In one

package, you get everything you need to be up and running quickly – including preconfigured

software and implementation services – in just weeks. With a defined scope and predictable

costs, there are no surprises.

Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work.

It lets members help one another solve problems, learn, and invent new ways to get things

done – faster. Find out how to connect with people, content, and resources.

Find Out More About How Your Organization Can

Become Best-Run

Visit valuemanagement.sap.com >>

Visit sap.com/solutions/rds >>

Visit scn.sap.com >>

https://websmp105.sap-ag.de/solutionpackages

https://valuemanagement.sap.com/

http://www1.sap.com/solutions/rds

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Solution in Detail


Consumer Products Executive Summary Solution Overview Contact Us

CMP 26068 (13/07)

www54.sap.com/industries/consumer.html

www.facebook.com/SAPConsumerProducts

https://twitter.com/SAP_CP

www.linkedin.com/groups?gid=4168249&trk=hb_side_g

http://scn.sap.com/community/consumer-products

http://www54.sap.com/industries/consumer.html

http://www.facebook.com/SAPConsumerProducts

http://www.twitter.com/SAP_CP

http://www.linkedin.com/groups?gid=4168249&trk=hb_side_g





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