sap transportation management 9.0 for logistics service providers freight forwarders and 3pls

April, 2013

SAP Transportation Management 9.0 for Logistics Service Providers – Freight Forwarders and 3PLs

Customer

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 3 Customer

Agenda

Challenges for the Freight-Forwarding Industry

SAP Transportation Management 9.0 – What Is Unique?

SAP TM 9.0 – Unique Selling Proposition and Functional Scope

Benefits

Key Takeaways

Challenges for the Freight

Forwarding Industry


The challenge: innovation drivers in logistics

Interconnected

supply chains

More “free” IT

expected

Margin pressure

Demanding

customers

Global

economy Sustainability

Regulatory

compliance

Services

differentiation

Global fulfillment

models – source

and sell globally

Credit and fuel

“Green” supply

chains

Carbon impact

another factor in

total landed cost

Reduced fuel

consumption

through better

planning

Cargo security

and customs

Industry

standards

support for

all modes of

transport

Automated filings

Total supply

chain visibility

Connectivity and

content

Offer more

services

Increase and

defend market

share

Deliver superior,

proactive

customer service

Speed up

onboarding


Margin pressure

100%

70%

60%

50%

40%

30%

20%

10%

0%

90%

80%

LSP gross

revenue

Third-party freight

costs, duties

Staff

expenses

Other overhead

expenses

EBIT

Gross profit 20%-25%

2.5% - 4%

Key ratio < 60% of GP


Technical and functional challenges

Fragmented systems landscapes, point-to-point legacy systems for transport execution – in

many cases, different ones for each mode of transport that do not integrate with each other

properly or into financial back-end systems

Old technology that needs replacement, with experienced developers for legacy technology

becoming harder to find every year

Lack of a single software vendor for transport execution that has more than 5% of the

market – mostly midsize to small suppliers with regional or local scope and limited

innovation, development, and support capability

“Do more with the same or less” mentality – emphasis on operational efficiency, productivity

Need for network planning and cargo optimization to increase margin

Ever-increasing compliance requirements (security, customs, etc.)

Lack of end-to-end execution status visibility and proactive monitoring

SAP Transportation

Management 9.0

What Is Unique?


SAP Transportation Management (SAP TM)

application, version 9.0

Complete transportation management

solution

– International and domestic

– All modes of transportation including air freight,

covering the latest security regulations

– Compliance with international trade regulations

and dangerous goods (with SAP Global Trade

Services and SAP Environment, Health and

Safety Management applications as add-ons)

Interactive transportation and shipment

planning, collaborative tendering

Integrated logistics and fulfillment

management, transportation execution

visibility and monitoring

Comprehensive freight cost management,

integrated freight and forwarding settlement


Preconfigured TM software and services enabling

rapid deployment

SAP brings together software and services in three offerings that give you

essential transportation management functionality quickly and affordably.

Preconfigured software for:

– International and domestic transportation planning and execution

– Carrier booking for all modes of transport

– Fixed, schedule-based network models or ad hoc

freight tendering, or use both at the same time

Rapid delivery thanks to accelerators, and rapid-deployment

methodology

An affordable, well-priced solution:

fixed price for fixed scope

A clear path to your full TM system vision:

use the preconfigured scenarios as they are or as a big stepping stone

SAP TM 9.0

Unique Selling Proposition and Functional Scope


The air freight scenario is new in SAP TM 9.0, and covers:

Gateway consolidation/deconsolidation (import and

export), with automatic import file creation

Business unit consolidation (local consolidation),

with automatic import file creation

IATA direct shipments

Air cargo security for all shipment types

Back-to-back shipments and cross-trade shipments

Destination call-off

What’s new in SAP TM 9.0 for air freight?

Consignees

(Germany)

Shippers

(East Coast, USA)

Buyer’s consolidation

Part shipment handling

Co-load shipment (from the perspective of a co-loader

and a consolidator)

SOPs (standard operating procedures)

Charge management (e.g., for service products and items)

Cost distribution and order profitability for LSPs

Station of origin

Airport of

departure

(JFK)

Airport of

destination

(FRA)

Container yard

Main carriage Freight

forwarders gateway

(New York, USA)

Freight

forwarders gateway

(Frankfurt, Germany)

Station of destination


What’s new in SAP TM 9.0 for ocean freight?

With SAP TM 8.1, we already supported the export FCL and LCL process.

Newly supported processes for ocean freight with SAP TM 9.0 are:

Import handling for full container load (FCL) and less than container load (LCL)

Cost distribution and order profitability for LSPs

Standard operating procedures (SOPs)

Cross-trade shipments

Destination call-off

Consignees

(West Coast,

USA)

Shippers

(Tokyo Region/Japan)

Part shipment handling

Charge management (e.g., service products and items)

Co-load shipment (from the perspective of a co-loader and

from the perspective of a consolidator)

Station of origin

Port of loading

(Yokoham)

Port of destination

(Long Beach, USA)

Freight forwarders

gateway (CFS)

(Yokohama, Japan)

Container yard

Main carriage Freight forwarders

gateway (CFS)

(Los Angeles)

Station of destination


Port-of-destination

(Long Beach, USA)

Supported scenarios in SAP TM 9.0 –

the most complex case

With SAP TM 9.0, we support the full end-to-end intermodal air freight and ocean

freight scenario for full and less than container load.

Shippers

(Ota-Ku,

Gifu, Japan)

Forwarding

house station

(Nagoya, Tokyo)

Freight forwarders

gateway (CFS)

(Los Angeles, USA)

Freight forwarders

gateway (CFS)

(Yokohama, Japan)

Station of

destination

Consignees

(Sedona, Tusc on,

USA)

Station of

origin

Port-of-loading

(Yokohama, Japan)

LineHaul /

Feeder

Forwarding

house station

(San Diego, Phoenix)

Pickups

Deliveries

LineHaul /

Feeder


Overview of SAP TM 9.0 Supported scenarios in detail (export view)

Analytics and reporting

Event management

Automatic export/import file creation, dangerous goods and trade compliance

Standard document and output management for all modes of transport

Integration and connectivity

Customer service agent

Transportation planner

Document processing agent (with transport planning interaction)

Office management and accounting

Capacity procurement, network planning, and capacity management Order management

Carrier allocations, ocean and

air consolidation schedules

Carrier freight agreements

Conversion of schedules into

bookings, confirmation with carrier

Rates and service-level

maintenance

Capacity monitoring

Load planning

Consolidation close-out and uplift

confirmation

Document validation

Discrepancy handling

Trade compliance checks

and data validation (with SAP

Global Trade Services)

Customs export clearance and

electronic filings (e.g. AMS)

Transportation status updates

and monitoring (event

management)

MOT-specific documentation

Pre-carriage to gateway

Customer invoicing

Carrier cost settlement

Internal settlement

Customer charge and tariff

management as per industry

standards (IATA, UN, etc.)

Integration of SAP ERP

application - forwarding order,

freight booking, and freight

order settlement from SAP TM

Manual and automated

planning and dispatching

using a routing engine

Security for air and ocean

Pick up order

Prebooking with gateway and

compatibility check for special

handling requirements

Rating selection and customer

SOP assignment

All shipment types per mode

of transport (MOT)

Freight execution and monitoring

Customer billing and freight settlement


SAP TM and SAP Event Management provide (mobile) real-time

transaction visibility and help people understand, adapt, and respond

Monitor Notify

Alerts

Measure

Control

Partner performance

Simulate plan/schedule

Collaborate

Adjust


SAP TM supports performance management with

comprehensive, flexible reporting capabilities

Transportation dashboard Embedded contextual analytics

Role- and user-specific work lists Ad hoc reporting on mobile devices


External communication and connectivity Enabling effective B2B and collaborative transportation management

SAP TM

Tendering

Carrier-specific

WebUI view

E-mail / SMS RFQ

notification

Carriers for

all modes

of transport

SAP TM

Order Mgmt.

Freight / Booking

Order

B2B Freight order / booking

receipt and processing

SAP Event

Management

Web UI

Carrier event

notification

Mobile device

milestone

visibility and

event notification

SAP TM

planning

cockpit

execution

status

Partner system

Tendering collaboration

Request for quotation

Subcontracting

Freight order subcontracting

Freight booking (ocean and air)

Event tracking and monitoring

Carrier event notification

Execution milestone, event, and alert visibility

– For shippers, suppliers, carriers, consignees

Trading partner and third-party connectivity

TM enterprise services

– For GIS integration and connectivity, freight rates (SMC3),

ocean booking and schedules (INTTRA), Descartes Systems

for booking (all modes, incl. GFX for air) and for status and

event management

– Mode-specific transaction messaging

SAP

Information

Interchange

SAP TM


Easy to use, comprehensive

data access

Secured by a thorough authorization

and filter concept

Role-based access for viewing the

business process from various points

of view

Providing the right information to the right people

at the right time

Tracking ID

Status

Planned vs.

Milestones

Actual

Events

Unexpected

Manual reporting of milestones

besides A2A and B2B integration

Supports graphical document flow

and hierarchies

Benefits


SAP TM lowers your TCO

Reduced

costs

Operational

efficiency

Sustainability

and regulatory

compliance

Low TCO/

high ROI

Powerful performance monitoring and decision support

System options to plan and optimize network capacity utilization

Efficient customer and carrier freight agreement management for auto-pricing of order revenue or cost

High customer service and responsiveness

Customizable transport planning and execution process

Import file creation from shared export data

Integrated event management

Optimized load, route, and mode scheduling based on predefined network, with priority routing and constraint business rules

Security regulations for international shipping included

Integrated customs and other trade compliance management (with SAP Global Trade Services)

Comprehensive, flexible, scalable, extensive system

Standard integration to ERP, SAP Global Trade Services, and interfaces to third parties

Full documentation to faster time to value

Key Takeaways


How does the LSP “run better” with SAP TM?

Higher margin

Single integrated

platform for all modes

of transport

Business process

improvement

Return on investment

Superior service

performance

Labor productivity

Latest SAP technology

and native integration

to other SAP solutions

Unmatched innovation

capability, global

support through vast

ecosystem


What does all that mean to an LSP?

Efficiency gain – reduce order-processing costs in a low-margin business

Reduce net achieved cost for contracted capacity

Increase service performance to increase customer loyalty

Speed up onboarding of large LSP accounts that use SAP ERP as order platform

LSPs need more than an order execution platform to run their business. Lead to

cash is a complex cycle for any industry and needs the appropriate best-of-breed

tools – with integration!


Training (Learning@SAP)

Mobile applications

Core execution for LSP

(SAP TM order mgmt.

mandatory, other

modules based on needs

with separate pricing)

Finance extension

(optional – priced

by selected option)

Business partner

integration and

connectivity

(optional, priced by

selected option)

Best-of-breed

extensions

(optional, priced by

selected option)

BI/analytics – (optional,

priced by selected

option, basic BI included

with core)

Services priced based

on actual resource

utilization

Cu

sto

me

r c

olla

bo

rati

on

(Web

Po

rtal)

Business intelligence

(SAP BusinessObjects BI solutions and SAP HANA)

SAP CRM

Sales order mgmt. Purchase order mgmt.

EH&S (Environment, health & safety) – dangerous goods

packing & documentation, regulations for industries

Sustainability (e.g,. carbon emission tracking,

fuel consumption)

SAP Global Trade Services

(customs filings and extended compliance)

SAP EWM (complex third-party

warehousing)

Fin

an

ce

(F

I, C

O)

Su

pp

lie

r c

olla

bo

rati

on

(Web

po

rtal)

Connectivity and content

Consulting and implementation support

Building an LSP industry solution – modular design Lead to cash across organization and geography

SAP Event Management

SAP TM 9.0+

SAP ERP (SD) SAP ERP (MM) Revenue settlement Carrier cost settlement

sap transportation management 9.0 for logistics service providers freight forwarders and 3pls

Documents

sap ag

sap environment

sap affiliate company

sap global trade services

fulfillment management

modes of transportation

integrated freight

interactive transportation