supply chain execution - uk & ireland sap users group · pdf filesap supply chain...

SAP Supply Chain Execution

Ian Scott SAP (UK) Ltd

© 2013 SAP AG. All rights reserved. 2

Supply Chain Value Map

Sales & Operations

Business Planning

Demand Driven

Supply Chain

Service Supply

Chain

Supply Chain

Monitoring

Sales & Operations

Planning

Inventory & Service Level

Optimization

Demand Management

Collaborative Response

Management

Manufacturing & Supply

Planning

Supply Chain

Execution

Transportation

Management

Warehouse

Management

Track & Trace

Service Parts Management

Supply Chain GPS

Glo

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SAP Supply Chain Execution Mission and Strategy

The World's Best Supply Chain Execution

Platform Mission

Freight Forwarder

Carriers

Shipper Consignee

Integrated Connected Best-in-class Verticalized

Communication &

Collaboration

Capacity Procurement & Network Planning

Order Management

Warehouse Execution

Freight Execution & Monitoring

Customer Billing & Freight Settlement


What is Leading Performance? Improve Effectiveness

6.0% best

Rate Reduction

Realized (% of total

spend)

On Time Delivery

Performance (%)

97% best

“Best run transportation

operations realize 100% higher

rate reduction”

“Best run transportation

operations have 11.5% higher on

time delivery performance ”

Source: SAP TMS Benchmarking 2011, based on data from over 500 SAP customers and non customers across over 20 industries


What is Leading Performance? Improve Efficiency

Transportation

Planning Cycle Time

(in hours)

Transportation Spend

(% of Revenue)

2.0 best

1.45 best

“Best run transportation operations

have 22 hours lower transportation

planning cycle time”

“Best transportation operations

have 73.5% lower transportation

spend as % of revenue”

Source: SAP TMS Benchmarking 2011, based on data from over 500 SAP customers and non customers across over 20 industries


Supply Chain Execution

Sales & Operations

Planning

Inventory & Service Level

Optimization

Demand Management

Collaborative Response

Management

Supply Chain

Execution

Transportation

Management

Warehouse

Management

Track & Trace

Supply Chain GPS

Glo

ba

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rad

e

Internally Integrated Execution Platform


Transport Management


SAP Transportation Management Overview

Tracking & Reporting

Order Mgmt. &

Freight Planning

Capacity &

Demand Planning

Freight Execution

& Monitoring

Freight

Settlement

TRANSPORTATION MANAGEMENT

Holistic Transportation Mgmt.

• Shipper & freight forwarder industries

• Large & midmarket enterprises

• Simple & complex, high volume operations

• Multi-mode, domestic & international transportation

• Inbound & outbound freight management


Transportation Management overview

Transportation Management provides the ability

to:

Manage the complete transportation life cycle from

generation of transportation requirement to final

settlement

Ensure compliance with environment and trade

regulations

Integrate logistics and fulfillment management via

transportation execution visibility and monitoring

Coordinate transportation and finance for tighter

financial control, timely budgeting and settlement

Transportation

Management

Manage Transport

Requirements

Planning and Optimizing

Freight

Booking Carriers

Tendering of Freight

Freight Settlement


Managing Transportation Requirements

Managing

Transportation

Requirements

Manage requirements whether received

electronically or manually regardless of original

source system

Receive and create transportation requirements for

orders, deliveries and returns or forwarding orders

Define different integration strategies to fit specific

business processes (by order type, customer type, etc.)

Provide visibility and traceability for lowest level

planning units


Planning and Optimizing Freight

Planning and

Optimizing Freight

Plan and optimize freight to achieve the lowest cost

solution that meets customer requirements and

constraints

Plan domestic, international or both types of freight in a

single environment

Plan across all modes whether inbound or outbound

Built-in compliance with international trade and

hazardous goods mgmt


Booking of carriers solution

Booking of carriers

Comprehensive booking functionality used in

planning and tracking scenarios. Designed to work

in both manual and automated modes.

Provide resource capacity for planning and

geographical links between locations

Integrates with planning and optimization as scenario

enrichment, while also allowing for manual assignments

Includes visibility and tracking features as well as pre-

defined visibility scenarios

Out of the box booking visibility and traceability

Standardized process orchestration aligned with

current, global EDI communication patterns by design


Tendering Freight solution

Tendering of Freight

Carrier collaboration that leverages flexible

business rules to define multiple client specific

scenarios

Flexible and highly automated process logic for carrier

communication.

Allows web-service electronic communication, email-

based tendering and provides native web access for

carrier collaboration for tendering.

Automated process control with best in class change

controller business logic

Allows simple, manual configuration and processing,

supporting alert and workflow management


Settling Freight Orders and Forwarding Orders solution

Settling of Freight

and Forwarding

Orders

Compare planned spend, revenue and volume with

actual revenue and volume

Inherit charge management from order management,

planning to settlement, allows manual overwrites,

integrates with workflow techniques for approval

processes, used for planning and optimization

Provides enhancements for invoice verification for SAP

ERP and integrates in unique and dynamic way based

on two way communication

Provides web-service based integration with SMC3 for

LTL rates


Predictably execute supply chain plan while embedding flexibility

and agility to support changes and take advantage of

opportunities

Provide end-to-end traceability and visibility to condition and

status of orders, shipments and items

Deliver integrated global inbound and outbound transportation

processes 1

2

3

Summary


Extended Warehouse Management


SAP Extended Warehouse Management

EXTENDED WAREHOUSE MANAGEMENT

Inbound Processing Outbound Processing Storage & Operations

Tracking & Reporting

Best-in-class Warehouse Mgmt.

All industries

Distribution centers & production warehouses

Simple & complex, high volume operations

Built-in optimization & automation

Industry-specific process support


Overview SAP EWM Customer & Market Status Strong customer growth and implementation momentum

Facts and figures

Over 200 active customers added in 2012

More than 500 distinct live/active customers

Productive use of SAP EWM in more than

20 countries and 24 industries

Sample customers

Live customers and live sites Customer geographical coverage

Coca-Cola

Enterprises

0

100

200

300

400

500

600

12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12

Live Sites

Live Customers

http://www.wuerth.de/web/de/awkg/index.php

http://www.daimler.com/dccom/home/de

http://www.dsg.dk/da/Pages/Forside.aspx


SAP Extended Warehouse Mgmt. A complete, integrated, best-in-class solution

Inbound Processing

Transportation Unit Processing

Goods Receipt Management & Optimization

Inbound Quality Management

Internal Routing

Outbound Processing

Outbound Planning (Route, Wave, Bin…)

Picking Optimization, Packing, Staging & Load Management

Storage & Operations

Physical Inventory

Replenishment / Rearrangement

Kit-to-Stock Management

Resource & Labour Management

Cross Docking

Yard Management

Import / Export, Dangerous Goods & Compliance

Native Technologies (RF, RFID, Voice, Material Flow System)

Analytics & Reporting

SAP Extended Warehouse Management


EWM Goods Receipt Process

Small Parts Storage

Pallet Storage

Door 1

Door 2

Door 3

1 GR-Zone

2

Quality Inspection

3

5

8

6

Repack/

Deconsolidate

4

7


EWM Goods Issue Process

Small Parts Storage

Pallet storage

Packing Work Centre

Door 2

Door 1

Door 3

PHU1

PHU2

PHU1

PHU2

GI-Zone &

Packing (2)


Advanced Wave Managment with SAP EWM Comprehensive wave planning, execution and monitoring tools

Storage &

Operations

Inbound

Processing Outbound

Processing

Wave Management Efficient workload planning & leveling

Automatic, semi-automatic & manual wave planning & release

Template-driven wave creation (wave templates with predefined completion times)

Delivery item grouping/split (according to route, pick area, packing lanes, product)

Wave milestone status tracking and monitoring

Wave 2

•Pick 10:00

•Pack 11:00

•Stage 11:30

•Load 12:00

Wave 1

•Pick 11:00

•Load 12:00

Shipment

•Departure 12:30

Delivery 100

•Item 10

•Item 20

Delivery 101

•Item 10

•Item 20

•Item 30

•Item 40


Kit-to-order & Stock: Simple Kit Structure

Brake Kit 1 PC

Brake rotor disc 2 PC

10 KIT

Item

Category

20 COMP

Material Quantity UoM

Carbon-metallic pads 4 PC 30 COMP


Labour Management with SAP EWM

Labour Management Increased warehouse productivity with labour & resource planning, visibility and reporting

Workload

Monitoring

Labour Planning

/Simulation

Labour Analytics

/ Reporting

• Short & mid-term resource

planning based on:

Planned workload

(Deliveries)

Planned work duration

(Engineered labour

standards, historical data,

route network

/ travel distances)

• Planned / executed

task monitoring

Warehouse orders, indirect

labour, physical inventory…

• RF & desktop-based task

confirmation

• Exceptions & alerts

• Task performance reporting

Employee & supervisor views

Direct & indirect labor

Planned & actual times

• Cross-warehouse / DC

comparison

• Performance transfer to HCM

Compensation / incentives

Accurate workload forecast for efficient capacity balancing

Real-time labour activity visibility for improved efficiency & timely problem

Labour Management


Slotting = Determine the optimal bin, putaway strategy and area of the warehouse for

each material based on product and packaging attributes combined with the physical

layout of the warehouse

Effects Labour Productivity, Replenishment Efficiency and maximum use of space

Slotting and Rearrangement

storage section for slow movers

storage section for fast movers (Golden Zone)

Entrance Exit

Rearrangement can then be

executed to create tasks to move

products to the optimal position


Central Warehouse Management Monitor

The warehouse monitor is a central tool for keeping warehouse managers constantly up-to-

date as to the current situation in the warehouse and to enable them to initiate appropriate

responses accordingly.

Highly customizable and extendable (Custom nodes and even complete custom monitors

possible)


Warehouse Cockpit

Intended for Supervisor and Warehouse

Manager

Monitors team performance

Monitors the performance of areas or

the whole warehouse

At-a-glance view of several key figures

enables you to react to critical situations

quickly


Cross-Docking with SAP EWM

Storage &

Operations

Inbound

Processing

Outbound

Processing

Cross-Docking Direct transfer from goods receipt to goods issue for reduced handling & storage costs

Goods Receipt Goods Issue

Planned cross-docking

Transportation cross-docking (based on route determination from defined route network)

Merchandise cross-docking (based on retail allocation for inbound delivery split across multiple retailers)

Opportunistic cross-docking

Inbound-driven (automatic check at goods receipt for suitable outbound orders/delivery items)

Outbound-driven (automatic check at wave release for suitable inbound orders / delivery items)

Push deployment (automatic demand check for incoming parts)

Pick from goods receipt (automatic customer back order check for needed parts in goods receipt)

Direct transfer to goods issue zone (without intermediate storage)


Comprehensive, Native Technology Support & Integration

Standard Mobile User Interfaces

Full set of mobile-based transactions

Flexible configuration and personalization (UI sequence, layout, content, size, color, font)

Native integration (Direct integration without 3rd party software / mapping tools)

Complete Warehouse Execution Support

Full RF/barcode execution support incl. EAN/GTIN (Receiving, moving, physical inventory, picking, packing, loading..)

Voice recognition support for picking

RFID-supported receiving and goods issue

Native integration with the latest technolgies for efficient warehousing operations

Native Technology


EWM

• Best-in-class

• Complete and

• Integrated

Warehouse management solution

Solution

History

Future

Customer

Strong customer proof points

Long history of warehouse management business, Process and IT experience

• Major SAP investment area

• Solid development roadmap


Track & Trace


1. Risk mitigation

Increased regulatory pressure

• EU General Food Law Regulation 178/2002;

• Bioterrorism Act 2002 (US)… Real-time notification of exceptions

• Manage by exception

2. Supply chain visibility

Sustain and increase customer satisfaction

• Significant challenges in an outsourced environment Reduce costs

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

• Link unplanned events to their effect on plans & schedules Transparency

• Managing across distributed processes

3. Process improvement (Analytics)

Control performance

• measure internal & partner performance – based on standards and actual

processing data

Business Drivers for an Event Management Solution


SAP Event Management

VISIBILITY &

CONTROL

SAP EM 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 analyze notify

Legacy

system


Actual events

Expected events process milestones

Event Possibilities

Unreported event

event 4

Regular event

event 1

event 1

Unexpected event

event 3

Early/Late

event

event 2

event 2


Easy to use,

comprehensive

data access

Secured by a thorough

authorization and

filter

concept

Role-based access

allows viewing the

business process from

various points of view

Manual reporting of

milestones besides A2A

and B2B integration

Providing the Right Information, to the Right People, at the

Right Time

Tracking ID

Status

Planned vs.

Milestones

Actual

Events

Unexpected


SAP-Delivered Visibility Processes –

Faster Implementations, Faster Time-to-Value

ERP

Fulfillment

Procurement

Production Malfunction

Outbound / Inbound Delivery

Transportation

Auto ID

Outbound / Inbound Delivery

Product Tracking &

Authentication (SAP OER)

Returnable Transport Item

Transportation Management

Freight/Booking Order

Freight Units

Supply Network Collab.

Responsive Replenishment

Purchase Order


Visibility Process: Order Fulfillment

Customer A

Scenario: Customer A and B order goods that are shipped by truck (LTL shipment)

Sales order created

Pick

SAP EM

Manufacturer

Deliveries for LTL shipment created w/ milestones

Customer B

Arrival Hub

Departure Hub

Arrival

POD

Carrier

Hub

Arrival

POD

Goods damaged

Delay due to breakdown

Pack

Arrival Carrier

Load

Departure Carrier


Event Management – Integrate Business and Real World

Data for Insight-to-Action

XI

SAP EM

Data tracking

Service provider (ocean,

train, road..)

Mobile

Message & alerts

Voice integration

Sensor data

RFID

Geo data

GIS providers

Backoffice - SAP or legacy


Global Trade Service


Increased Regulations Worldwide Including Trade, Environmental, Security and Product Safety

Supplier

Manufacturing Manufacturing

and HQ Customer

Customer

Supplier

Holding and distribution

operations compliant?

(21 C.F.R. 142)

10+2 filed with US Customs?

(Advanced Trade Data)

Trade preference

documentation established?

(CEFTA, NAFTA, CAFTA)

Substance registered and

threshold exceeded?

(REACH)

Facilities

inspected/registered?

(Bioterrorism Act)

Facilities

inspected/registered?

(Bioterrorism Act)

FDA prior notice filed

via ABI?

(Bioterrorism Act)

Parties screened and export licenses

obtained?

(e.g. EAR and Chemical Weapons

Convention)


You may have to deal with 25 or more different e-filing formats!!

NCTS Mandatory

in EU

New E-filing Requirements Mandates: Necessity or Opportunity?

2009 2005 2008 2010 2003 2011 2013

ICS gone live in

Australia

Mandatory e-declaration

of export in most EU

Countries

EMCS Mandatory

in EU

Paperless customs

and Trade in EU

eCustoms Initiative

launched in EU

Mandatory AES

in U.S.

Nfe regulation in

Brazil

U.S. 10+2

Enforcement

Full compliance for

24-Hours-Rule in EU


Complex Trade Processes Inefficient and Slow, Costly and Error-prone

Massive data

requirements

Time-

sensitive

declarations

Manual

partner

screenings

Costly

mistakes


Failures Are Plentiful and Costly… And Well Publicized Worldwide

Intent to violate gets 10 years on

denied parties list (July 2008) The Bureau of Industry and Security, U.S. Department of

Commerce has denied export privileges to Winter Aircraft

Products SA of Madrid for a period of 10 years. The

company was denied privileges because the BIS found

that the company had taken actions with intent to transship

aircraft part subject to the Regulations without a license.

U.S. imposes record $100 M penalty

for export control violations (March

2007)

The US Department of Justice on Tuesday slapped ITT

Corp. with a $100 million fine for shipping overseas

sensitive technology used in military night-vision goggles

that ended up in the hands of China and other countries.

The settlement will cap a five-year-investigation into how

a unit arranged to have various components made by

electronics contract manufacturers in Asia.

German company pays $50,000 U.S.

fine for sales to Cuba (January 2009) Gunnar Petzel Medizintechnik of Germany has been

issued a civil penalty of $50,000 for three violations of

the EAR.

BIS renews suspension of Balli

Group PLC’s export privileges

(March 2009) Under the Denial Order, Balli Group PLC, Blue Airways,

and Mahan Airways may not directly or indirectly participate

in or benefit in any way from any transaction subject to the

Export Administration Regulations (EAR) for 180 days. It is

also a violation of the EAR for any person to participate in a

transaction subject to the EAR involving a denied party.


Export

management

Ensure full regulatory export compliance,

generate and file customs documents,

mitigate risk

Import

management

Ensure full regulatory import compliance,

expedite customs clearance, mitigate risk

Special

customs

procedures

Save cost with seamless execution of

Customs Warehouse, Inward and Outward

Processing

Trade

preference

management

Make the most of international trade agreements

Restitution

management Take advantage of export refunds

Support for All Trade Activities With SAP BusinessObjects Global Trade Services


Reduce Cost and Risk of International Trade with

SAP BusinessObjects Global Trade Services

Accelerate trade Minimize cost

Timely insights into filing status, import/export

processes, potential compliance violations

Reduced lead time, improved working capital and

lower inventory carrying costs

Simplified trade management, and elimination of

manual errors

Maintain compliance with fluctuating global regulations

and agreements

Reduced duties and lower landed cost

Increased supply chain security and proactive risk

management

Ensure compliance

Centralized view for reduced errors and increased efficiency

Faster and easier compliance checks

Efficient compliance with e-filing mandates worldwide


Finished – Questions?

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