sap supplu chain execution solutions

LoB Sales Training: SAP Supply Chain Execution solutionsIstanbul – September 13th, 2011

Andrea Ricciarelli, EMEA Business Development Director CoE – LoB SCM

© 2011 SAP AG. All rights reserved. 2

AgendaSAP solutions for Extended Supply Chain

TIME SUBJECT

09:30 Intro and agenda

09:45 SAP Extended Warehouse Management

11:00 Break

11:15 SAP Transportation Management 8.0

12:00 Event Management & Auto - ID Enterprise



TIME SUBJECT



11:00 Break




What’s in the ‘The SCM Sales Bag’

ComplementarySAP Solutions

Supply Chain Performance Management

Product Tracking & Authentication

Rapid Deployment Solutions for SCM

xxx

Partner Solutions

Inventory Optimization

B2B Collaboration

Supply Chain Response Management

Supply Network Design

Demand Data Analytics

Advanced Planner & Optimizer

InfrastructureEvent

Managem.Auto ID Infra-

structureSAP SCM

Basis

SAP SCM Suite

Supply Network Collaboration

Extended Warehouse Management

Transportation Management

AGENDAWHY SELL SAP EXTENDED WAREHOUSE MANAGEMENTWHAT IS SAP EXTENDED WAREHOUSE MANAGEMENTHOW TO SELL SAP EXTENDED WAREHOUSE MANAGEMENT

SAP EXTENDED WAREHOUSE MANAGEMENT


Warehouse Operations, ... A Traditional Business


What keeps a Logistics Executives awake at night ?Warehouse Objectives / Demand view …

High Warehouse Productivity / Efficiency

Picking Wave Management

Replenishment

Labor Management

Integration with Material Flow Systems

Warehouse Monitor

Warehouse Analytics

RF, RFID Enablement

Warehouse Order Creation

Physical Inventory

Serial Number Support

Slotting & Rearrangement

Pick From Goods Receipt

Value Added Services

Quality Management

Yard Management

Transportation Cross Docking

Resource Management

Flexibility & Scalability

Inventory Accuracy

Better Space Utilization

Better Customer Service

Integrated Warehousing and Logistics

Warehouse Objectives IT Requirements / Functionality

Handling Resources

IT capabilities are the key to the Warehouse Management System selection process

Insufficient WarehouseTechnology

Visibility in and outof the Warehouse

Warehouse layout prohibitsHigher throughputs

Without a major overhaul

Poor best practice sharing across locations / units

Lack IT resources to support Whs.Technology initiave

% of respondents citing as among their top 3 challenges

Source: Aberdeen Group

33 %

10 % 20 % 30 % 40 % 50 %

37 %

47 %

48 %

52 %

Top Barriers to better Warehouse Performance

On-boarding new customers


Where do we come from ?SAP Solution Offering

"...only a few vendors [like SAP] could provide a solution that is integrated from the end user perspective — including a common user interface, security sign on, and master data definitionsSource: Forrester – October 16, 2007 by Patrick Connaughton and Sharyn Leaver

1975

1970 1980 1990 2000

First software systemssupport warehouseoperations Optimization

strategies

Connecting to relational databases

Wireless data transfer

EDI

ConnectingPick-by-lightsystems

First RFID

eSOA

Browser Technology /Pick by voice

R/3 Release 2.0/2.1

R/3 Release 3.0/3.1

R/3 Release 4.0

R/3 Release 4.5

R/3 Release 4.6

R/3 Release 4.7 EE1

R/3 Release 4.7 EE2

SCMEWM 5.0

SCMEWM 5.1

SCMEWM 7.0

Storage UnitsParallel Processing

IntegrationPPQMLIS

Rough Workload EstimatePickingWavesTwo Step pickingWarehouse MonitorHR Integration

DecentralWMPrototype of RF

Native RF/ SAP ConsoleHUMPacking

TRM ERP eWMXDYMVAS

SlottingRearrangementWarehouse Orders Warehouse MonitorInternal Routing

Labor MgmtMFSWH CockpitRFID Integr.Batch MgmtSerial NrCatch WeightESA

Graphical WH LayoutProduction SupplyMerchandise Distrib. XDTask Interleaving

SCMEWM 7.1

2011

Integration to LE-TRAEnhance-ments to Claims & ReturnsBOBJ Integration

Enterprise Focus Network Focus

Increased Logistics Speed

Optimized Movements

Efficient Space Utilization


WarehousingFunctional Solution Overview

Inbound Processing Storage and Operations Outbound Processing

Cor

e W

areh

ouse

Ope

ratio

ns a

nd In

vent

ory

Man

agem

ent

Receive ASN data

ASN Validation & Correction

Transporation Unit Arrival

Goods Receipt

Putaway Bin determination

Internal Routing

Slotting

Deconsolidation

Putaway

Returns / Reverse Logistics

Goods receipt optimization

Rearrangement Order deployment

Inventory Counts / Record Accuracy

Replenishment

Kit-to stock

Freight Order Management

Route Determination

Wave Management

Picking Bin Determination

Warehouse Order Creation

Transportation Cross Docking

Picking fr. Inb./ Push Deployment

Yard Management

Packaging Specification

GTS Integration

EH&S Integration

Integration to QIE

RF support for all exec.processes

Batch / Serial Number Management

RFID Enablement

Material Flow System

Warehouse Cockpit

eSOA enablement

Catch Weight

Graphical Warehouse Layout

Cro

ssPr

oces

ses

Supp

ortin

gFu

nctio

ns

Claims & Returns

Integration to Transp. (LE-TRA)

Integration to BOBJ (Dashboards)

Full SPM Landscape(CRM 5.0, ERP 2005,

SCM 5.0)

SCM 5.0 connects to 4.6C / mySAP ERP 2004

EWM 5.1 available as an add-on

To ERP 6.0

EWM 5.1is released

EWM 7.0is released

EWM 7.0 EhP 1In Ramp-up

EWM 7.0 EhP 2is planned

May 2008

July 2007

Nov 2006

Dec 2005

May 2009

Q4/2010

Work Assignment

Picking

Packing

Staging, Loading & Goods Issue

Kit-to order

Manual outbound deliveries

Production Supply

Integration to QIE

Opportunistic Cross Docking

Merchandise Distr. X-Docking

Task Interleaving

Execution Constraint

Semi-System-Guided work

SAP SCM-EWM 5.0.

SAP SCM-EWM 5.1.

SAP SCM-EWM 7.0.

SAP SCM-EWM 7.0. EhP1

Q4/2011


Functionality IM WM EWM

Manage Stock at Storage Location

Bin Management

Placement Strategies

Removal Strategies

Pick Logic – Wave Management

Replenishment

Standard Mobile RF technology

Handling / Storage Unit Management

Yard Management

Enhanced Configurable RF Technology

Task and Resource Management

Expected Goods Receipt

Value Added Services

Cross-Docking

Dynamic Cycle Counting

Unloading of Transport Units

Deconsolidation

Slotting / Rearrangement

Labor Management

Common EWM drivers over ERP WM

Better integration to Yard Management Functionality

More flexible mobile data entry processes (exception handling, …)

Warehouse Monitor as central tool and central starting point

Use of partial goods receipt in inbound processing (GR per HU)

System guided put-away with deconsolidation/fanning

Complex wave planning and outbound route structure

High volume picking and shipping

Warehouse Order Creation (optimizes processes in the warehouse by producing optimized units of work for the warehouse employees)

Broad stock/inventory view (storing of pre-picked HUs, use of staging zones, etc.)

Extensive enhancement possibilities

Slotting / Rearrangement (change bin assigned to product because of a change in activity or other characteristic)

Goods Receipt Optimization (ability to check existing inbound deliveries or create new inbound deliveries from expected goods receipts)

Conveyor automation and pick-to-light integration

Pallet managed inventories using Handling Units

Integrated labor management functionality

Etc …

Common EWM drivers over ERP WMComparison of Functionality

© SAP AG 2011. All rights reserved. /

Dansk Supermarked A/S Streamlines Operations with SAP® EWM

Challenges and Opportunities

Build a stand-alone solution to interface with legacy order system and prepare for migration to SAP®

ERP application within 2 years

Move from homegrown systems to standard system

Secure a solid and responsive IT infrastructure to support a 24x7 operation

Objectives

Implement a common solution for all distribution centers

Roll out template globally

Implementation Highlights

First rollout in Szczecin, Poland (September 2009) and the second in Århus, Denmark (January 2010)

4 more distribution centers in scope

QUICK FACTS

Dansk Supermarked A/S (a part of MaerskGroup)

Headquarters: Aarhus, Denmark Industry: Retail – supermarketProducts and services: Food and nonfood productsRevenue: €7.5 billionEmployees: More than 45,000Web site: www.dsg.dkSAP® solutions and services: SAP Extended Warehouse Management (SAP EWM) applicationImplementation partner: 2C change

Why SAP

Alignment with overall SAP implementation program

Flexibility of SAP Extended Warehouse Management application, including the design of the software and the ability to integrate with SAP ERP

Benefits

Voice-enabled picking process that increases speed and reduces picking-error rate significantly

Reduction in waste due to better management of best-before products in execution of replenishment

Better resource utilization through real-time stock overview and workforce monitoring

“SAP EWM definitely fulfills the functional requirements at the distribution centers and our ‘one IT vendor’ strategy. After the first two implementations, we experienced the benefit of having a common template that provides control and reduced effort.”Alan Jensen, IT Director, Dansk Supermarked A/S

RQ

924

9 (1

0/07

)

© SAP AG 2011. All rights reserved. /

Wollschläger Finds the Right Tool with SAP® Extended Warehouse Management


Legacy warehouse management system no longer supports business needs

High support costs

Dependency on limited number of suppliers

Objectives

Implement an integrated solution for radio frequency (RF) and automated conveyor systems

Standardize business processes

Reduce costs


First implementation of a conveyor pick system with material flow system functionality

QUICK FACTS

Wollschläger GmbH & Co. KGHeadquarters: Bochum, GermanyIndustry: Wholesale distributionProducts and services: Precision tools, welding and machining technologies, work protection, factory and office equipmentRevenue: €160 millionEmployees: 600Web site: www.wollschlaeger.deSAP® solutions and services: SAP Extended Warehouse Management (SAP EWM) applicationImplementation partner: prismat GmbH

Why SAP

SAP® software best fit for project requirements

Future-proof software and reliable partners ensure stable growth and investment security

Benefits

Scalable support for high-volume conveyor picking system handling 6,000 to 7,000 order lines per day, 1,700 daily shipments, and more than 50,000 SKUs

Automatic data replication ensures clean master data

Simplified system landscape – SAP Extended Warehouse Management application directly controls programmable logic controllers (PLCs)

“With its integrated material flow system, SAP EWM enabled us to directly connect our conveyor systems to SAP. This brings all our warehouse software into an open and flexible IT platform.”

Stefan WoerderIT ManagementWollschläger GmbH & Co. KG

RQ

XX

XX

(10/

11)

© SAP AG 2011 All rights reserved. /

SFS services AG to Roll Out SAP® EWM at Worldwide Warehouses


Build a new central warehouse

Ensure transfer of existing transaction data

Enable wave-picking management

Provide automatic control of warehouse operations

Objectives

Start to establish SAP® Extended Warehouse Management (SAP EWM) application as the common solution for all warehouses


Worldwide implementation of SAP EWM using standardized material-flow system functionality in a highly automated container system

QUICK FACTS

SFS services AGHeadquarters: Heerbrugg, SwitzerlandIndustry: Industrial machinery and componentsProducts and services: Customer-specific engineered components and innovative fastening systemsRevenue: CHF1.3 billion (€919 million)Employees: 4,300Web site: www.sfsservices.bizSAP® solutions and services: SAP Extended Warehouse Management (SAP EWM) application

Why SAP

Comprehensive support for standard warehouse processes

Single solution for both warehouse management system and material-flow system functionality

Benefits

Increased productivity

Decreased picking errors

Increased daily delivery service –warehouse is currently handling 4,500 outbound delivery positions and 1,000 inbound delivery positions per day“Since going live in our Rebstein

warehouse, we now have the full benefit of a consistent and dynamic warehouse management solution. With the success of this implementation, we will roll out SAP EWM at all our warehouses.”

Michael LeitnerHead of LogisticsSFS unimarket AG

RQ

869

2 (1

0/05

)


Why customers deploy SAP Extended Warehouse Management

Execution ExcellenceA solid and flexible platform for warehouse operationsStock and Process Transparency and optimized Warehouse operationsBetter Space UtilizationHigh Inventory AccuracyBetter Customer ServiceCustomer individual modelling of warehouses and processes

High integration with other solutionsIntegration to technical components (RFID / MFS)SAP ERP environment & External software components (Netweaver)Optimization in process execution and customer connectivity with seamless technology integration

Improve performance, better collaboration & increase visibility

Best-in-class productFor all kind of warehousesFor all industries and complexitiesScalability + Best of Breed functionality

Cost saving potentialAdded Value of Extended Warehouse Management Leverage for cost savings in logistic core processesEfficiency improvements & fast ROI through optimized logistics WH systems

SCM EWM offers strong integration with SAP SCM components, and a strong vision for the future of supply chain and operations technology. Gartner 2009


SAP Extended Warehouse Management market potential

“SAP today only captures <1% of it’s potential customers with Extended Warehouse Management”

Source: Arc Advisory Group - June 2010

“

Every SAP customer with intensive logistics operations(manufacturing & distribution

enterprises) is a potential prospect


SAP EWM Targeting and Qualifying Your Accounts

Installed SAP and Net New

Existing ERP customers

Existing ERP - LES WM customers

New customers with legacy solutions

Idea

l Opp

ortu

nity

Manufacturing & Distribution Enterprises

Consumer Products & Life SciencesRetail & WholesaleAutomotive & High TechLogistics Service ProvidersProcess Industries & Chemicals

Opp

ortu

nity

Segm

enta

tion

Reduce costs

Increase transparency

Increase flexibility

Implement customer specific warehouse strategies

Quickly onboard new customers

Better manage value added services

Strong integration with other SAP solutions

Integrated Material Flow System (MFS) for automated storage and retrieval

Reason to buy SAP EWM


SAP Extended Warehouse Management Building a Deal

Average license deal size for Extended Warehouse Management is between 150k € (medium enterprise - single warehouse).. and up to 1 M+ € (large enterprise - multi warehouse sites deployment)

Average deal cycle between 4 and 6 months

Extended Warehouse Management can become a cash cow for clients with many warehouse sites

Deal Profile and AE Opportunity

SAP Ext. Warehousing for industry <xyz>, Small / midsize / large warehouse (depending on # of line items)75k / 150k / 300k € per warehouse

SAP Material Flow System Control (material 7009528): 25k € per warehouse

SAP Extended Warehouse Management pricing


The TOP 3 drivers SAP Extended Warehouse Management

#1 More than 1700 existing SAP customers in primary industries provide a huge market potential for SAP Extended Warehouse Management

Many customers require additional capabilities and an update of their dated solutionMost customers run more than one warehouse, many even more than 10 sites

#2 ‘SAP EWM is par or superior to best-of-breed Warehouse Management Systems’**analysts (ARC) and customers (Indigo, Dansk Supermarked)

SAP has enhanced functional scope step by step and will continue to do so

Only EWM can provide the level of integration to SAP ERP out-of-the-box avoiding costly integration projects

#3 SAP’s the best choice to realize Customers’ Supply Chain Execution vision

There is no other vendor providing world-class WMS, Transportation and Event Management solutions today

Can justify customer’s investment roadmaps for the next couple of years



TIME SUBJECT



11:00 Break



AGENDAWHY SELL SAP TRANSPORTATION MANAGEMENTWHAT IS SAP TRANSPORTATION MANAGEMENTHOW TO SELL SAP TRANSPORTATION MANAGEMENT

SAP TRANSPORTATION MANAGEMENT

© 2011 SAP AG. All rights reserved.

The Transportation and Logistics MarketA Priority Investment Area for SAP & Our Customers

Transportation and Logisticsrepresents an area of major focus for...

...the global economy Global transportation spendConsumer prices & company profitabilityGlobal CO2 emissions

...our customersGlobal supply networksCustomer service Operational efficiency and cost reduction

...SAPMarket size and growth Core solution extensionStrategic investment


The Transportation & Logistics NetworkPlayers and collaboration

PLANNING, ORCHESTRATRATION, & EXECUTIONOF THE PHYSICAL STORAGE & MOVEMENT OF GOODS

CARRIERS

Collaboration

FREIGHTFORWARDER

CUSTOMEROrderManagement

FreightSettlement

Transportation Execution

Transportation Planning

Inbound Processing

Outbound Processing

Storage & Operations

SHIPPER

WAREHOUSE MANAGEMENT

TRANSPORTATION MANAGEMENT


ComprehensiveTransportationManagement

For core transportation mgmt. operationsFor shipper industries

TransportationPlanning & Execution

Stand-alone solutionInbound & outbound transportationTransportation charge engine

SAP Transportation Mgmt. combines a long history of transportation business, process and IT expertise

Shipping Planning& Optimization

Order-based planningIntegrated with ERP LE-TRA

Shipment Execution

THEmarket-leadingsolution

SAP TransportationManagement(TM 8.0)

SAP TransportationManagement(TM 6.0 & 7.0)

SAP APOTransportationPlanning / VehicleScheduling (TP/VS)

SAP ERP Logistics Execution Transportation (LE-TRA)

SAP Transportation Solution HistoryStrong, Continued Investment to Deliver THE Market-Leading Solution


The SAP Transportation Management 8.0Development focus

SAP Transportation Management 8.0

Customer Co-Innovation Deep Process Integration Order-to-CashProcure-to-PayCustoms & Compliance Mgmt.Dangerous Goods Mgmt.

Best-in-Class Functionality

CustomerNetworkSAP

Flexibility, Simplicity,& Performance

Collaboration Decision Support


SAP TM Transportation CockpitHighly flexible role & user-specific user interface

Power User (Transportation Manager) layoutwith rich UI content and functionality

Simplified Transportation Clerk layout with simplified 2 frame layout


Transportation AnalyticsComprehensive, flexible reporting capabilities

Transportation Dashboard

Adhoc Reporting on Mobile Devices

Embedded Contextual Analytics

Role & User-specific Worklists


Analytics & Reporting

Overview SAP Transportation Management 8.0 Solution coverage

Event Management

Import / Export, Dangerous Goods & Compliance

Document & Output Management

Integration & Connectivity

TransportationCharge Clerk

Transportation Planner

TransportationDispatcher

Specialist(i.e.Tendering)

OrderManagement

SAP ERP integration: Order-to-Cash, Procure-to-PayFreight OrdersForwarding OrdersFreight Bookings

Freight Settlement

Freight Agreement ManagementCharge & Tariff Mgmt.SAP ERP integration: Forwarding & Freight Order Settlement

Freight Execution & Monitoring

Logistics ExecutionTransportation Status Visibility& Monitoring

Freight Planning & Tendering

Manual & Autom. Planning & DispatchingResource & Carrier SelectionOrder TenderingOcean Booking

SAP Transportation Management


Transportation Management 8.0 Processes & ScenariosSolution Manager content delivered with SAP TM 8.0

SAP TM 8.0 ProcessesManaging Transportation RequirementsManaging Forwarding OrdersManaging Freight & BookingsPlanning Freight & Selecting CarriersTendering FreightExecuting & Monitoring FreightSettling Freight OrdersSettling Forwarding Orders

SAP TM 8.0 ScenariosDomestic Inbound TransportationInternational Inbound LogisticsOutsourced TransportationDomestic Outbound TransportationInternational Outbound TransportationLess-than-Container Load (LC)

Transportation ManagementProcesses & Scenarios

Comprehensive Documentation Processes, scenarios, configuration, customizing & implementation

SAP TM 8.0 Master Guide

SAP TM 8.0 ScenarioConfiguration Guides

SAP TM 8.0 Online Documentation

BenefitsEfficient, end-to-end processes & scenariosReduced implementation time, effort and cost


Freight Execution &Monitoring

Freight Settlement

Freight Planning &Tendering

Order Management

Order Management SAP TM 8.0 - Order Management Area Details

Integrated order processing & managementOut-of-the box integration with order-to-cash & procure-to-pay

Integrated freight settlement with ERP billing & invoicing

Comprehensive order managementForwarding, freight (land), & booking (sea & air) orders

Full document flow & order life-cycle management Centralized order data mgmt. (for planning, tendering, exec. ...)

Sales OrderPurchase OrderStock TransferDelivery

SAP TM

SAP ERP

Freight Order,Forwarding Order, Freight Booking

General & item data Subcontracting dataTransportation exec. dataOrder statusLinked documentsDangerous goods data

BenefitEfficient, end-to-end order & process management

High customer service levels & satisfaction


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 planningConstraint-based, multi-variant & mode scheduling and routing

Zero-click planning from order entry to carrier settlement

Domestic & international shipment planningIncl. ocean freight booking & customs / compliance mgmt. integration

Best-in-class, collaborative tenderingManual & automated RFQ-based & direct tendering

Multiple tendering types: direct, peer-to-peer, broadcastFlexible carrier communication (Web UI, e-mail, SMS, B2B)for Request for Quotation processing & status visibility

BenefitReduced costs & improved operational performance

Improved carrier collaboration & resource utilization


Freight Settlement


Order Management


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 managementSAP ERP integration for inbound & outbound processing

SAP EHS integration for dangerous goods handling

Integrated customs & compliance managementSAP GTS for export doc. & customs procedure processing

Transportation execution visibility & monitoringShipment visibility for customers, supplier, carriers

Integrated event mgmt. for event notification & handling

BenefitEfficient logistics & fulfillment processes

Improved execution visibility & responsiveness


Freight Settlement


Order Management


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 MemoCarrier Invoice Invoice PaymentInvoice Confirmation

Invoice Confirmation

Shipper

BenefitAccurate transportation costing

Integrated transportation management & billing


Freight Settlement


Order Management


Transportation Mgmt. Analytics / ReportingComprehensive & Flexible Reporting & Decision Support Tools

Transportation DashboardPreconfigured, graphical transportation dashboardInteractive navigation, data selection and drill-downAggregrated and drill-down KPI data for transportation costs, weight, volume(i.e. for country, time period, shipper, carrier, consignee, transp. mode, shipment locations,..)

Business Warehouse ReportingAdhoc, multi-dimensional transportation reporting & visualization Comprehensive, flexible reporting with easy, drag & drop query definition Broad set of standard transportation & ERP data for required KPI reporting (i.e. for transportation profitability, and carrier, customer, cost, load, order analysis etc.)

Embedded Transportation AnalyticsGraphical analytics embedded in transportation transactionsContextual business data & analytics for decision supportFlexible query & visualization configuration for transportation subcontracting (i.e. for carrier ranking, carrier tendering acceptance rate with bar, line, pie charts etc.)

Transportation WorklistsObject-based overview worklists for direct object/order selection & processingHighly configurable role & user-specific query definitionPredefined worklists for all transportation management processes(i.e. Transportation requirement, order, tendering, freight settlement etc. worklists)


Dangerous Goods in Transportation Mgmt. 8.0SAP EHS Integration for Safe & Complaint Transportation

Global dangerous goods complianceAccording to national & international regulationsAccording to transportation mode

Automatic/manual dangerous goods checkingFlexible DG check set-up & processingOut-of-the-box DG checks (mixed load, quantity & means of transport validity, …) Easy extensibility for customer-specific DG checks

End-to-end process support Product / item DG data included in TM orders/bookings

Dangerous goods identification for freight units

Dangerous goods checks for transportation planning(for freight unit building, vehicle scheduling & routing)Dangerous goods data in transportation documents(DG ID, classification, phrases, symbols)


Document & Output Mgmt. for TransportationComprehensive Workflow, Document & Output Capabilities

Out-of-the-box, standard transportation documents Comprehensive set of preconfigured, standard documents

Including product, export, dangerous goods & transportation data

For road, sea & air transportation Road waybill (Europe & USA), House air waybill, House sea B/LShipping manifestTransportation labelsFIATA forwarding instructions

For forwarding order managementForwarding orders, quotations and forwarding order confirmation

For freight settlementSupplier freight invoice requestCustomer freight invoice request

Full electronic document & life-cycle mgmt.Easy-to-use tools for customer-specific form creation/change

Flexible manual & automated output management Document preview and archivingTriggering of workflow, alert, print/fax/Email & B2B communication(individual or batch processing)Tracking of executed output


External Communication & ConnectivityEnabling Effective B2B & Collaborative Transportation Mgmt.

SAP TM TenderingCarrier-specific WebUI view Email / SMS RFQ Notification

SAP TM Order Mgmt.Freight / Booking Order

B2B

Freight Order / BookingReceipt & Processing

Carrier, Freight ForwarderSystem

SAP Event Mgmt. Web UICarrier Event Notification

Mobile Device Milestone Visibility& Event Notification

SAP TMExecution Status

Tendering CollaborationRequest for Quotation

SubcontractingFreight Order SubcontractingFreight Booking (Ocean / Air)

Event Tracking & MonitoringCarrier Event NotificationExecution Milestone, Event & Alert Visibility

For Shippers, Suppliers, Carriers, Consignees

Trading Partner & 3rd Party ConnectivityTM Enterprise Services

For Connectivity (SAP II), Freight Rates (SMC3), Ocean Booking, …

SAP TM

PartnerSystem


Transportation Management ArchitectureOverview TM 8.0 Technology Stack

Transportation ManagementTM 8.0

Supply Chain Mgmt. Basis SCMB 7.0 EhP1

Business SuiteBS_FND 7.02

SAP NetWeaverNW 7.02

SAP Transportation Management 8.0


Customer Benefits

ReducedCosts

OperationalEfficiency

Sustainability& Regulatory Compliance

Low TCO /High ROI

Powerful performance monitoring & decision supportFull transportation cost control & auditability Optimal, dynamic planning - mode, route, carriers, assetsEfficient freight contract, rate & carrier performance mgmt.

Comprehensive, flexible, scaleable, extensible systemInternational coverage for global deploymentStandard integration to ERP, GTS & interfaces to 3rd partyFull documentation for faster time-to-value

High customer service & responsivenessAutomated transportation planning & exec. processes Synchronized O2C, P2P with logistics & transportationEfficient asset utilization Automated B2B & web-based network collaboration

Optimized load, route and mode schedulingCompliant international transportation of dangerous goods Integrated customs & compliance management


SAP Transportation Management market potential

Transportation Management is at the Top of the Investment list to drive new efficiencies in the supply chain operations.

Source: Aberdeen – Supply Chain Cost Cutting Strategies

“

Every SAP customer with extensive logistics

operations (regional & worldwide) is a potential

prospect


SAP Transportation ManagementTargeting and Qualifying Your Accounts


Existing ERP customers with legacy or Best of Breed transportation solutions

Existing ERP LE TRA customers

New customers with legacy solutions, multiple architecturesId

eal O

ppor

tuni

ty


Consumer Products & Chemicals (Prime focus of TM8.0)Mill Products, MiningRetail, WholesaleAutomotive, High Tech, Logistics Service Providers

Opp

ortu

nity

Segm

enta

tion

To integrate logistics throughout the enterprise

To reduce freight spend by achieving more efficient truck loads and gaining better equipment utilization through consolidation opportunities

To ensure s Single Point of Information & Control for all transportation operations (Road, Ocean, Air, International, Domestic)

To increase logistics operations efficiency through automation

To enable flexibility and independence in choice of Service Providers

To establish best practice and to drive continuous improvement

Reason to buy SAP TM


SAP Transportation Management Building a Deal

“Transportation Management Solutions can save between 5 % and 25% of the annual transportation spend”

Source: The Logistics Institute at Georgia Tech

Customer are willing to pay for a Transportation Management Solutione.g. Metal & Mining company (BRA) 9.5M € (after discount) e.g. Retailer (UK)1.6M € (after discount)



Metric for SAP TRANSPORTATION MANAGEMENT is “Shipment”. The general definition of the term “Shipment” is that it represents a physical movement of goods from origin to destination

SAP Transportation Management pricing

Material Price list Item Price metric comments7011283 SAP TM Order Management & Execution 4000 EUR per 1000 Shipments Annually Mandatory

7011284 SAP TM Planning & Optimization 4000 EUR per 1000 Shipments Annually Optional

7011287 SAP TM, Domestic Freight Tendering 2000 EUR per 1000 Shipments Annually Optional

7011285 SAP TM Ocean Carrier Booking 2000 EUR per 1000 Shipments Annually Optional

7011286 SAP TM Charge Management 4000 EUR per 1000 Shipments Annually Optional


The TOP 3 drivers SAP Transportation Management

#1 Transportation Management is at the Top of the Investment list to drive new efficiencies in the supply chain operations.

To reduce freight spend by achieving more efficient truck loads and gaining better equipment utilization

“Transportation Management Solutions can save between 5 % and 25% of the annual transportation spend”

Source: The Logistics Institute at Georgia Tech

CONFIDENTIAL

#2 “TM market was flat in 2010 at $1.3 billion due to the “Great Recession”. In 2011, the TM market will begin to bounce back to exceed $1.7 billion by 2014” *ARC

EMEA 2011 market $436 million with CAGR 9,2 % (Cumulative Annual Growth Rate) - Source ARC Advisory Group

Focus on distribution intensive industries customers with complex supply chains where logistics is critical to cost management & service excellence






TIME SUBJECT



11:00 Break



AGENDAWHY SELL SAP EVENT MANAGEMENT / AUTO-ID ENTERPRISEWHAT IS SAP EVENT MANAGEMENT / AUTO-ID ENTERPRISEHOW TO SAP EVENT MANAGEMENT / AUTO-ID ENTERPRISE

SAP EVENT MANAGEMENT / AUTO-ID ENTERPRISE


Business Drivers for an Event Management Solution

Risk mitigationIncreased regulatory pressure

EU General Food Law Regulation 178/2002; Real-time notification of exceptions

Manage by exceptionSupply chain visibilitySustain and increase customer satisfaction

Significant challenges in an outsourced environmentReduce costs

Minimize uncertainties (buffer inventory, buffer times, fire-fighting…) Reduce time to action

Link unplanned events to their effect on plans & schedulesTransparency

Managing across distributed processesProcess improvement (Analytics)Control performance

measure internal & partner performance – based on standards and actual processing data


SAP Event Management

VISIBILITY & CONTROL

SAP Event Management offers visibility on processes, assets as well as performance along your entire supply chain. Extensive tracking & tracing functionalities allow process monitoring, automated exception resolution, proactive alerting as well as extensive reporting - in one single solution.

Suppliers

Subcontractors

Retailers 3 PLs

monitor adjust analyzenotify

Legacysystem


SAP Event Management: Understand, Adapt, Respond

2. notify

3. adjust

Learn

1. monitor

Collaborate

4. analyze

ADAPTIVEADAPTIVE

ControlSimulate

Plan/Schedule

Partner Performance

Alerts


Outbound/Inbound Delivery Process - Example

EWM

SAP ERP

Site 2 (Customer)

Purchase Order

Adv. ShipNotificationCust.

Order

Post Goods Issue

Create HU

Pack / Load

SAP Event Mgmt

AII

AssociateItems / Pallet / Tags

Scan IDs

Site 1 (Supplier) Pick orProduce

Issue Goods(Loading)Build HU

Event Handler for• Delivery• Handling Units

Pick / GI / ASN

SAP ERP

Receive Goods(Unloading)

Purch.Order

HUHUInb.

Deliv.Outb. Deliv.

AII

Scan IDs

Unload Post Goods Receipt

GR / POD

Auto-ID Infrastructure


Shipper Port of LA Chicago Rail Yard

Arrival/Load

Arrival

Order Execution

Booking Pick Up

Port of Tokyo

Discharge/Departure

Feeder Port

Trans-shipment

Arrival/Departure

Order Management

Consignee

SAP EventManagement

SAP NW BI /Business Objects

Reporting/Statistical Analytics

Events

Container Yard

CustomsClearance

DELAY

Dashboard

Shipment Execution Process - Example


Event Management – Integrate Business and Real World Data for Insight-to-Action

PI

SAP EM

Data Tracking

Service Provider (ocean, train, road..)

Mobile

Message & Alerts

Voice Integration

sensor data

RFID

GIS(ESRI / PTV providers)

Backoffice


Example: Truck Driver Reports Delay / Customer Checks Status

On-line updatestatus TRAFFIC


SAP EM – Technology Proven architecture for performance, availability and reliability

Scalability & PerformanceCanada Post > 1 bn Events p.a.> 2,000 Users

ArchitectureSAP EM standalone systemOut-of-the box integration to SAPIntegration to other Systems via AIISupport of industry standards

=EDIFOR, Odette, RosettaNet, …

OpennessSource code providedSupport of all major operating systemsSupport of all major databases

SecuritySingle Sign On Logging / Archiving

SAP EVENT MANAGERProcess / Event SequenceRule SetWorkflowsMaster Data

Other Systems

WMSOMS TMS

EAI (e.g. SAP PI)

Web UI Mobile Device EM Client

SAP Systems

TM EWMERP

Pres

enta

tion

Laye

rA

pplic

atio

nLa

yer

Inte

gr.

Laye

rLe

gacy

Syst

ems


Successful SAP EM Customers


SAP Event Management @ Green Cargo

Project ScopeImplementation of a Wagon / Order Tracking & Tracing Solution based on SAP Event Management (SAP EM)

Event Management Tracking HierarchyCustomer OrderRailcarContainer / Unit Load

Customer satisfaction and added valueInteraction with the customer reduces work/time/costs...Customer can easily report status/actions like ‘Free for Disposition’ or otherCustomer interaction can change objects in source systemEffort reduction due to direct communication with customer instead of Mail, Fax or Phone

QUICK FACTS

Green Cargo ABIndustry: Logistics Service ProviderBased: Solna, Sweden Revenue: € 6.2 billionEmployees: 3,050Green Cargo offers efficient green logistics with rail transports as its foundation. Road transports and various logistics services are increasingly integrated into rail solutions and are also offered as separate products.web site: www.greencargo.comImplementation partner: Leogistics

“Green Cargo will be the leading logistics company that builds on and contributes to sustainable development nationally and internationally”

Green Cargo Vision

Project Achievements and customer value

Customer Service LevelCustomers are able to see information in SAP EM, which increases customer value and transparency. Customer have the possibility to follow up their Orders, Trains, Containers...

Process control and visibilityInternal process control and improvement as well as increased visibility across different lines of businesses. Flexible Status Management / ControlPossibility to measure process lead timesAbility to optimize internal process steps

Active process management –Solution developed for rail business including:Order-based tracking- and tracing solutionTracking and reporting on multiple levels (order, wagon and container level)Status management and Alerting


SAP Event Management @ Arvato Logistics Services

Project ObjectiveTo establish a global enterprise system to support the growth of the business To deploy a system from a provider that can deliver worldwide supportTo establish high-quality, actionable management informationTo create a single source of information for all trading partners in their clients’ extended value chains

Customer Pain PointsPoor visibility to freight and shipment activity across business segments and suppliersNeed for multi-user track and trace for all trading partnersFragmented shipment data making standard reporting difficult and time consuming

QUICK FACTS

Arvato Logistics ServicesIndustry: Logistics Service ProviderBased: GermanyRevenue: € 1.1 billionEmployees: 10.500Arvato services involve not only the co-ordinated and controlled forwarding and delivery of products to the customer, but also their production, procurement, warehousing, order-entry and distribution, in addition to a complete range of financial services. web site: www.arvato-services.deImplementation partner: SAP Consulting

Business Value RealizedEstablishment of real-time access to shipment information for all trading partners in Arvato’s client trading networksEnhanced customer satisfactionEnhanced carrier management processOn-line track and traceWeb-based reporting for strategic and operational managementStrong and effective carrier management resulting in higher customer satisfaction

SAP solutionsSAP Event Management (SAP EM)SAP Business Warehouse (SAP BW)SAP R/3 for Logistics ManagementSAP R/3 for Financial Management


SAP Event Management @ BASF

Challenges and OpportunitiesLack of accurate shipping status across ocean-freight logistics networkDifficult to adjust shipments in reaction to unplanned eventsLack of open and standardized data across the ocean shipping industry, creating information gaps

Implementation HighlightsImplementation and rollout of SAP Event Management follows 6 months of using prototype from SAP ConsultingSAP Event Management now implemented worldwide Successful integration of all BASF’s maritime logistics partners

QUICK FACTS

BASF AGIndustry: ChemicalBased: Ludwisghafen, GermanyThe global chemical company BASF implemented SAP Event management application to monitor its ocean-transport supply chain and improve the transparency of its ocean-freight logistics processweb site: www.basf.comImplementation Partners: SAP consulting; SAP Hosting organization. IDS Scheer

“SAP Event Management helped us avoid damage to shipments worth millions of dollars.“

Margie Pierce, Director – NAFTA Foreign Trade and Logistics Compliance,

BASF AG

Why SAP?Real-time notification of local and global events so customer service can respond proactivelyAbility to track goods in transit

Key BenefitsAbility to meet customer delivery schedulesImproved visibility into ocean freight logistics processReal-time notification of critical events to aid proactive responseImproved reporting to identify areas for supply chain optimizationSuccessful management of ocean-freight logistics throughout disruptions of Hurricanes Katrina and Rita – maintained customer service levels and avoided damage to valuable shipments


BASF Success StorySAP EM for ocean-freight logistics process


SAP Event Management – Strengths

Track&trace a process or object instance along well-known milestones

High volume instance level processing & reliable storage (including archiving, etc.)

Web UI tailored for collaborative usage, in- and outside the company walls

Standard interfaces for B2B connectivity

Reflect relationships (hierarchy/document flow)

Monitor expected and unexpected events, detect overdue ones

Flexible rule set to trigger follow-up activities

Strong integration with and preconfigured, ready-to-use content for SAP Business Suite and extraction to SAP NW BW / SAP Business Objects tools

Tailored to processes with a medium to long runtime


Improved customer serviceIncrease visibility and efficiencyAllow for managing by exceptionReduced time to actionLess fire-fighting Tight integration between events and schedulesLess need to buffer inventory Effectively outsource non-core, or even core processesFewer lost sales and more accurate order promising Built-in benchmarks and performance indicators

Proven Value of SAP Event Management


SAP Auto ID - EnterpriseLeveraging EM within an SAP Object Event Repository

Shipping of refrigerated

productsIn transit

Monitoring Exception reporting

Cold Chain Analysis

Built upon SAP EM‘s event persistence and processing capabilities, the SAP OER (SAP Object Event Repository) is used as a central, intra- and inter-enterprise repository for serialized item lifecycle information. Further features comprise:

• Central number range management, master data and vocabulary• GS1/EPCglobal certified EPCIS repository

Example Process: Item-level Cold Chain MonitoringProduction Warehousing Distribution Sale

Production startedProduction completed

Goods receivedUnpack

Pack

Send ASN ShipReceive

Authenticate

Ship AuthenticateDispense

Receive


SAP Solutions for Auto-ID and Item Serialization

Returnabletransportitems

Promotionmanagement

Electronicpointof delivery(EPOD)

. . .Product tracking and authentication

Electronic productcode informationservice (EPCIS)-compliant

SAP OER*

Auto-ID repositoryEvent management analyticsSecurity services

Capture interface

Query interface

Trading partners

Legacy

*SAP object event repository

Processintegration (PI)


What Does SAP Provide?

DeliverySystem integration services:

value generation with RFID Physics and device expertise

= SAP Offering= Partner offering

PartnerPartner

Tags &readers

Edgeexecution

Processintegration

Enterpriseapplications

Read, write, and transmit data to systems

Manage multiple readersCleanse dataOperator workflow

Translate raw data to business execution

Enrich core functions with Auto-ID data

Decision support and execute transactions

Function

Devicemanagement

SAP ERP

SAP OERQuery interface

Capture interface

Growing list of SAP RFID Customers


SAP Event Management market potential

Companies with visibility into events, milestones and document status are much better positioned to make sound supply chain decisions and understand the related risks. Source: Aberdeen, 2009: Operating in Distributed Demand-Supply Networks - Mitigating Risks by Driving Responsiveness

“

Every SAP customer and Net New customers with multiple

IT environments and interconnected operations

with Business Partners


SAP EM Targeting and Qualifying Your Accounts


Existing ERP customers

Net new customers

With multiple IT environments and interconnected operations with Business Partners

Idea

l Opp

ortu

nity


Consumer Products & Life SciencesRetail & Wholesale DistributionDiscrete Manufacturing & High TechProcess Industries & ChemicalsLogistics Service Providers & Postal

Opp

ortu

nity

Segm

enta

tion

Improved customer service

Increase visibility and efficiency

Allow for managing by exception

Reduced time to action

Less fire-fighting

Less need to buffer inventory

Effectively outsource non-core, or even core processes

Built-in benchmarks and performance indicators

Reason to buy SAP EM


SAP Event Management Building a Deal

Average license deal size for SAP Event Management is between 100k € (medium enterprise – local / regional operations – few logistics processes)… and up to 1 M+ € (large enterprise – worldwide operations – many processes)



SAP Event Management (7010783)

volume-based metric (min. 2 blocks of 1 million processed events per year at 25k € each) plus limited professional for named users (1500€ each)

Restrictive scenario usage can furthermore be licensed via Auto-ID Enterpriseand and other industry scenarios (e.g. Transportation Management)

SAP Auto ID Enterprise (7009530)

Metric based on # of Auto-ID sites: 75000 € per Auto-ID site

SAP Event Management pricing


The TOP 3 drivers SAP Event Management

#1 Companies are looking for visibilityOperations are being outsourced, but customers still need to know what is going on

Companies are looking for ways to get better, more accurate and timely information from their supply chain for being proactive in their decisions

CONFIDENTIAL

#2 Allows your customers staying competitive in these tough timesIncreased visibility into the supply chain enables to sense and respond to changes and capitalize rapidly on opportunities.

Increased customer satisfaction by offering a common information framework that supports communication and collaboration, to better adapt to and meet customer demandsLower operational expenses due to operational efficiency

Lower costs by increased visibility into the supply chain and optimal safety stocks lead to lower inventory




Thank You!

Contact information:

Andrea RicciarelliBusiness Development Director SCM – LoB Sales EMEAmailto:[email protected]


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