sap wm
DESCRIPTION
SAP WMTRANSCRIPT
Section Divider Slide (Arial Narrow 24 pts)© 2009 Perot Systems
Corporation. All rights reserved. All registered trademarks are the
property of their respective owners.
May 13, 2009
Bruce Rishel, CSCP
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
3rd party logistics scope
Capability
Overall assessment
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Warehousing
Receiving
Storage
Picking
Packing
Shipping
Domestic
International
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Key Strategy Drivers
Reduce 3rd party software costs
Common processes and tools, one logistics system, one set of processes across sites
Flexibility
Quickly meet business transformation goals
Rapid rollout of new or closure of unneeded warehouses
Visibility
“See” inventory across the supply chain
Vendor independence
Cost
Along with Customer delivery accuracy and delivery quality, cost will always be a key driver. Benchmarking shows costs at a good % or revenue, but year on year double digit savings are the realistic target.
Flexible footprint cost
The drive is to increase the % of Logistics costs that are variable and a key element of this is the Warehouse footprint which is fixed and variable.
New operating requirements in developing Countries
Extension of the supply chain to new countries (Asia, Eastern Europe, Africa and South America)
New regulations, partners and conditions in developing countries (WEEE, EUED for example)
Business transformation goals
Supplier partnership on value engineering projects underway with CM’s which will included the full delivered cost.
Extension of a Global supply chain, with the drive to source global supply from low cost regions.
More business moving on to SAP
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Focus on core business
Free up capital move from fixed to variable cost model
Warehouses
Administration shared across clients
Why Use A 3PL
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Interfaces to 3PLs
Multiple points of potential failure / balance on hand discrepancies
Overhead means it is difficult to react quickly to changing market conditions
Lack of visibility – information stored in different systems / updates not instantaneous
Dependency - “Locked-in” to the 3PL provider because of difficulty interfacing to a new provider
3PL Disadvantages – IT Focus
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
SAP Soft-ware
Purchase Order
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
SAP Software Logistics Benefits
Reduce number of SOX monitoring places vs. 3PL WMS
Stronger negotiating position with 3PL’s – cost reduction if they can reduce their IT support costs
No more 3PL “lock in”
One common platform
SAP upgrades easier as have removed the interfaces that needed testing
Remove a 30 of the SAP interfaces and costs to maintain them
Reduce the 14 plus applications used to support Logistics
Reduce the points of failure
No system dependencies
Simplify the supply chain
All data is in one systems and consistent
More accessible to a larger number of people
Provide a solution that can be quickly deployed any where in the globe for any type of warehouse
For project warehouse 4 months down to 4 weeks
For LOCs 6 months down to 6 to 8 weeks
Cost avoidance
Future solution
monitoring SAP and 3PL WMS to insure 2 systems are in sync
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
SAP Soft-ware
Carriers
(FedEx
UPS
TNT)
Shipment (via XSI)
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
3PL
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
SAP Software
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
3PLs with SAP Software
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Early Concerns
Is SAP software appropriate for a 3PL environment
Can we run operations on “standard” SAP software – how much customization?
Deployment strategy
3PL impact
Will dictating the WMS be a deterrent to 3PLs doing business with us in the future
Realization
*
© 2009 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Capability
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Capability Review – External Analysis
Gartner Magic Quadrant Comparison
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Gartner “Magic Quadrant” key findings
WMS is the most modified part of the supply chain
WMS market is going through consolidation
SAP EWM application has a strong track record
SAP software has a strong integration to overall supply chain
Capability Review – External Analysis
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Systems Deployment Comparison
Deployment of 3PL WMS
Major testing of interfaces
Infrastructure
SAP Software Logistics
Activities to deploy
Minor configuration changes from copied warehouse
User ID’s set up and role allocation
Minor testing of SAP software changes
Interfaces to Carriers
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Strengths Weakness
Opportunities Threats
SWOT Analysis – SAP Software Logistics
Fully integrated with SAP software Reduced interface costs & simpler architecture Reduced 3PL costs Single IT support team Drive standard security policies Logistics supply chain, order & shipment status information integral part of toolset
Enhancements may be limited to SAP software release schedule Requires secure access to client’s network from warehouses Testing for non-logistics upgrades
Removes 3PL dependency for operations & IT services Numerous SAP user groups to understand how other SAP users manage inventory in 3PL environment New warehouse could be deployed in 2 – 4 weeks Easier to drive common process & standards Easier to change 3PL providers
*
© 2009 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Deployment
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Deployment Scope
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Pilot Sites
3PL Site Volumes
Based on # of outbound deliveries for 3PL sites May to July 2008
Post- Pilot Sites
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Footprint
Forms
Custom RF transactions
Nortel Corporate Presentation
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Footprint – Newer SAP Software Functionalities
Dynamic cycle counting
Pre-picked handling units
Does not require extensive handling unit configuration
Facilitates receiving by package in downstream sites
Required new OSS Note: 1287760
XSI for carrier integrations
Single outbound interface to TNT
Nortel Corporate Presentation
-in case there is just one bin on the inventory document:
increment of the inventory version is done
-in case there are several bins on the inventory document:
no increment of the inventory version;
the count results of the bins which were counted with difference
are initialized, the count results of the bins which were counted
without difference are not changed;
a recount is necessary for the bins counted with difference, the
bins counted without difference don't need to be recounted.
During LM59:
-IF still open TOs in the bin : nothing is done.
-IF NO more open TO, the document is activated and a recount must be
performed by the user (here, the difference will be posted).
1287760 Summary
Symptom
A delivery is picked in a non-HUM storage location. However, Pick&Pack is activated in WM which means an HU is updated to the delivery after TO confirmation. If the stock was 'pre-picked' in advance then it can be put back into the warehouse using LT0B.
It is possible then to change the packaging material in the HU
assigned to the delivery. HUGENERAL 108 is issued to say the HU cannot
be changed but actually it is possible as the packaging material field
is open for input.
*
© 2009 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Realization & 3PL Impact
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
SAP Software Logistics Pilot Review
BACKGROUND
Two sites deployed
Approximately 29% of shipping volume transferred to SAP software as part of pilot
Pilot Goals
Pilot Results
Improved visibility to warehouse info by whole supply chain
Visibility to pick/pack status as well as packing details
Shorten transaction time
Removal of interfaces
Pilot sites had no service impact
*
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
IT
Hardware savings - no need for hardware to support 3PL WMS
3PL WMS software license fees
B2B integration maintenance cost
Personnel reductions
IT support
Cost Reductions
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Minimal disruption during transition
Stock balances accurate; no reconciliation required
Picking and shipment requests are triggered from SAP software dates directly. No additional emails.
Warehouse visibility to order managers eliminates many potential questions
Forms processing and re-processing simple to perform
Access to SAP software (for both terminals and RF) uses managed access through the firewall; authentication which is secure, robust and easy to install
Client Operations View
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Transition of warehouse staff to SAP software process using RF terminals was issue free; training and ongoing support was ‘at the right’ level.
The SAP logistics tools are seen as having the same level of functionality, and implementation did not reduce warehouse efficiency.
Operations is intuitive.
Response time and issue resolution is good.
Dates are triggered from SAP software dates directly. No additional manual instructions or emails are required.
Warehouse Operations View
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Take Home Thoughts
Combining 3PL logistics with SAP software can provide the benefits of each solution to an organization
Template methodology speeds implementations and standardizes processes
Significant cost reductions can be realized by using SAP software at your 3PLs
*
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Proprietary and confidential. © 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Thank you.
Contact Information:
Bruce Rishel
(214) 215-5743
May 13, 2009
Bruce Rishel, CSCP
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
3rd party logistics scope
Capability
Overall assessment
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Warehousing
Receiving
Storage
Picking
Packing
Shipping
Domestic
International
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Key Strategy Drivers
Reduce 3rd party software costs
Common processes and tools, one logistics system, one set of processes across sites
Flexibility
Quickly meet business transformation goals
Rapid rollout of new or closure of unneeded warehouses
Visibility
“See” inventory across the supply chain
Vendor independence
Cost
Along with Customer delivery accuracy and delivery quality, cost will always be a key driver. Benchmarking shows costs at a good % or revenue, but year on year double digit savings are the realistic target.
Flexible footprint cost
The drive is to increase the % of Logistics costs that are variable and a key element of this is the Warehouse footprint which is fixed and variable.
New operating requirements in developing Countries
Extension of the supply chain to new countries (Asia, Eastern Europe, Africa and South America)
New regulations, partners and conditions in developing countries (WEEE, EUED for example)
Business transformation goals
Supplier partnership on value engineering projects underway with CM’s which will included the full delivered cost.
Extension of a Global supply chain, with the drive to source global supply from low cost regions.
More business moving on to SAP
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Focus on core business
Free up capital move from fixed to variable cost model
Warehouses
Administration shared across clients
Why Use A 3PL
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Interfaces to 3PLs
Multiple points of potential failure / balance on hand discrepancies
Overhead means it is difficult to react quickly to changing market conditions
Lack of visibility – information stored in different systems / updates not instantaneous
Dependency - “Locked-in” to the 3PL provider because of difficulty interfacing to a new provider
3PL Disadvantages – IT Focus
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
SAP Soft-ware
Purchase Order
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
SAP Software Logistics Benefits
Reduce number of SOX monitoring places vs. 3PL WMS
Stronger negotiating position with 3PL’s – cost reduction if they can reduce their IT support costs
No more 3PL “lock in”
One common platform
SAP upgrades easier as have removed the interfaces that needed testing
Remove a 30 of the SAP interfaces and costs to maintain them
Reduce the 14 plus applications used to support Logistics
Reduce the points of failure
No system dependencies
Simplify the supply chain
All data is in one systems and consistent
More accessible to a larger number of people
Provide a solution that can be quickly deployed any where in the globe for any type of warehouse
For project warehouse 4 months down to 4 weeks
For LOCs 6 months down to 6 to 8 weeks
Cost avoidance
Future solution
monitoring SAP and 3PL WMS to insure 2 systems are in sync
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
SAP Soft-ware
Carriers
(FedEx
UPS
TNT)
Shipment (via XSI)
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
3PL
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
SAP Software
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
3PLs with SAP Software
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Early Concerns
Is SAP software appropriate for a 3PL environment
Can we run operations on “standard” SAP software – how much customization?
Deployment strategy
3PL impact
Will dictating the WMS be a deterrent to 3PLs doing business with us in the future
Realization
*
© 2009 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Capability
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Capability Review – External Analysis
Gartner Magic Quadrant Comparison
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Gartner “Magic Quadrant” key findings
WMS is the most modified part of the supply chain
WMS market is going through consolidation
SAP EWM application has a strong track record
SAP software has a strong integration to overall supply chain
Capability Review – External Analysis
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Systems Deployment Comparison
Deployment of 3PL WMS
Major testing of interfaces
Infrastructure
SAP Software Logistics
Activities to deploy
Minor configuration changes from copied warehouse
User ID’s set up and role allocation
Minor testing of SAP software changes
Interfaces to Carriers
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Strengths Weakness
Opportunities Threats
SWOT Analysis – SAP Software Logistics
Fully integrated with SAP software Reduced interface costs & simpler architecture Reduced 3PL costs Single IT support team Drive standard security policies Logistics supply chain, order & shipment status information integral part of toolset
Enhancements may be limited to SAP software release schedule Requires secure access to client’s network from warehouses Testing for non-logistics upgrades
Removes 3PL dependency for operations & IT services Numerous SAP user groups to understand how other SAP users manage inventory in 3PL environment New warehouse could be deployed in 2 – 4 weeks Easier to drive common process & standards Easier to change 3PL providers
*
© 2009 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Deployment
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Deployment Scope
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Pilot Sites
3PL Site Volumes
Based on # of outbound deliveries for 3PL sites May to July 2008
Post- Pilot Sites
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Footprint
Forms
Custom RF transactions
Nortel Corporate Presentation
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Footprint – Newer SAP Software Functionalities
Dynamic cycle counting
Pre-picked handling units
Does not require extensive handling unit configuration
Facilitates receiving by package in downstream sites
Required new OSS Note: 1287760
XSI for carrier integrations
Single outbound interface to TNT
Nortel Corporate Presentation
-in case there is just one bin on the inventory document:
increment of the inventory version is done
-in case there are several bins on the inventory document:
no increment of the inventory version;
the count results of the bins which were counted with difference
are initialized, the count results of the bins which were counted
without difference are not changed;
a recount is necessary for the bins counted with difference, the
bins counted without difference don't need to be recounted.
During LM59:
-IF still open TOs in the bin : nothing is done.
-IF NO more open TO, the document is activated and a recount must be
performed by the user (here, the difference will be posted).
1287760 Summary
Symptom
A delivery is picked in a non-HUM storage location. However, Pick&Pack is activated in WM which means an HU is updated to the delivery after TO confirmation. If the stock was 'pre-picked' in advance then it can be put back into the warehouse using LT0B.
It is possible then to change the packaging material in the HU
assigned to the delivery. HUGENERAL 108 is issued to say the HU cannot
be changed but actually it is possible as the packaging material field
is open for input.
*
© 2009 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Realization & 3PL Impact
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
SAP Software Logistics Pilot Review
BACKGROUND
Two sites deployed
Approximately 29% of shipping volume transferred to SAP software as part of pilot
Pilot Goals
Pilot Results
Improved visibility to warehouse info by whole supply chain
Visibility to pick/pack status as well as packing details
Shorten transaction time
Removal of interfaces
Pilot sites had no service impact
*
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
IT
Hardware savings - no need for hardware to support 3PL WMS
3PL WMS software license fees
B2B integration maintenance cost
Personnel reductions
IT support
Cost Reductions
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Minimal disruption during transition
Stock balances accurate; no reconciliation required
Picking and shipment requests are triggered from SAP software dates directly. No additional emails.
Warehouse visibility to order managers eliminates many potential questions
Forms processing and re-processing simple to perform
Access to SAP software (for both terminals and RF) uses managed access through the firewall; authentication which is secure, robust and easy to install
Client Operations View
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Transition of warehouse staff to SAP software process using RF terminals was issue free; training and ongoing support was ‘at the right’ level.
The SAP logistics tools are seen as having the same level of functionality, and implementation did not reduce warehouse efficiency.
Operations is intuitive.
Response time and issue resolution is good.
Dates are triggered from SAP software dates directly. No additional manual instructions or emails are required.
Warehouse Operations View
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Take Home Thoughts
Combining 3PL logistics with SAP software can provide the benefits of each solution to an organization
Template methodology speeds implementations and standardizes processes
Significant cost reductions can be realized by using SAP software at your 3PLs
*
*
© 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Proprietary and confidential. © 2006 Perot Systems Corporation. All rights reserved. All registered trademarks are the property of their respective owners.
Thank you.
Contact Information:
Bruce Rishel
(214) 215-5743