an up-to-date guide to the latest sap solutions that...

An Up-to-Date Guide to the Latest SAP Solutions That Support End-to-End

Logistics, Order Fulfillment, and Supply Chain Integrity

Markus Rosemann

SAP SE

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1

In This Session

Attend this session to get a firsthand look at SAP's full portfolio of logistics and order fulfilment

solutions and its vision for supply chain execution convergence in 2016 and beyond

You will:

Get an overview of new capabilities delivered in the latest transportation management and warehouse

management solutions from SAP

Grasp how SAP solutions for logistics networks extend the portfolio with comprehensive capabilities for

increased visibility

Step through real-world examples of how your counterparts are leveraging functionality from SAP to drive overall

business value through logistics excellence


Agenda

Business Challenges

Logistics & Order Fulfillment: End-to-End Business Solutions

Demo

Roadmap and Outlook

Wrap-Up

Business Challenges


Desig

n

Resp

on

d

Sharing Economy Business Network

End-to-End

Visibility

Resource Scarcity Sustainability

Individualized Products Industry 4.0

Customer Centricity Omni-Channel Customers &

Markets

Suppliers &

Logistics

Products &

Assets

People &

Resources

Digital Transformation in Extended Supply Chain


Desig

n

Resp

on

d

End-to-End

Visibility

Customers &

Markets

Suppliers &

Logistics

Products &

Assets

People &

Resources

Sharing Economy • Supply chain convergence • Real-time track and trace • Shared services and company

logistics

Resource Scarcity • Fast and effective

onboarding of employees • Constraint-based

optimization to logistics • Process standardization

and platform

Individualized Products • Connected logistics • Simplified material flow • Value added services, kitting

and digital content

Customer Centricity • Differentiation through planning and

response management • Goods fulfillment evolution to omni-

channel business • Flexibility and speed

Digital Transformation in Logistics

Digital Core • Integrated logistics to

financials, order-to-cash and procure-to-pay


Internet of Things in the Warehouse Examples

Automation is still increasing

SCM World: only 6% increase labor investment

Decentralized logic and increased flexibility

Picking robots and 3D printing

Higher visibility

Real-time location systems in and around the

warehouse

Scalable performance

Higher number of returns and larger warehouses

Worker support

Augmented reality, pick by voice, pick by light


Individualization of Products in the Warehouse

Individualization requires

smarter warehouses

Personalize through value

added services, kitting and

digital content

Simplify material flow for

manufacturing warehouses

Shift responsibilities to shared

service and service providers

CONTROL TOWER

INFORMATION

Information value add Digital content Specialized instructions

CUSTOMISATION

Kitting Displays/promotions Custom configurations

MECHANISATION

Light manufacturing/

assembly Pack/label innovations Quality/test Inspection

Source: The Smart DC, SCM World 2014

Logistics & Order Fulfillment Warehouse Management

Transportation Management

Logistics Network

Track & Trace

Networked Logistics Hub


Logistics and Order Fulfillment Efficient, global, holistic solution

• All industries

• Distribution centers & production warehouses

• Simple & complex/high volume operations

• Shippers, freight forwarders, 3PLs, carriers

• Holistic, multi-mode, multi-stage freight mgmt.

• Domestic, international, in/outbound shipment

Capacity &

Demand Planning

Tracking & Reporting

Freight Execution

& Monitoring

Freight

Settlement

Order Mgmt. &

Freight Planning Warehouse

Execution

Strategic Freight Mgmt. & Contract Lifecycle Mgmt.

TRANSPORTATION MGMT. WAREHOUSE MGMT.


Connected Logistics & Order Fulfillment

Connected

Warehouse

Management

Warehouse Automation

Material Flow Automation

Hands-Free Operations

Connected

Transportation

Management

Adaptive Planning

Real-Time Tracking

Smart Load Builder

Connected

Track & Trace

In-transit Geo Tracking

Condition Monitoring

Lifecycle Tracking

Connected

Logistics Network

Logistics Hub Network

Transparency

Communication


Supply Chain Execution Platform as Foundation

• Standardization

• Automation

• Optimization

• Integration

• Verticalization

• Globalization

Core

Supply Chain Execution Platform

Track & Trace

Warehouse

Management

Transportation

Management

SAP HANA Platform

Agility Efficiency Visibility Speed

Internet of Things

Devices

Big Data

Cloud

Business Networks

Social Networks

People

Digital Economy


SAP Extended Warehouse Management Optimize warehouse and distribution operations

Integration in the overall SAP

Logistics Solution

Flexible Modelling of warehouses

and processes

Integration

Optimization

48% Lower customer order

cycle time 6% More orders shipped on time Efficient Labor Allocation Reduced Operational Expenses

Typical results

Organizations adopting warehouse management systems experience benefits such as

Source: SAP Performance Benchmarking

Value-Added

Services

Stock and Process Transparency


Overview of SAP Extended Warehouse Management A complete and integrated solution

Labor management

Cross-docking

Compliance

Native technologies

Implementation tools

Transit warehousing

Analytics

Transportation unit processing

Goods receipt management

and optimization

Inbound quality management

Yard management

Inbound

processing

Physical inventory

Replenishment and

rearrangement

Kit-to-stock management

Warehouse Billing

Storage &

operations

Outbound planning

(route, wave, bin, cartonization)

Picking optimization, packing,

staging, and

load management

Value-added services

Outbound

processing


• Outbound Planning (Route, Wave, Bin…)

• Picking Optimization, Packing, Staging & Load Management

• Physical Inventory

• Replenishment / Rearrangement

• Kit-to-Stock Management

• Value Added Services (VAS)

• Transit Warehouse

• Warehouse Billing

• Transportation Unit Processing

• Goods Receipt Management & Optimization

• Inbound Quality Management

• Internal Routing

Inbound Processing

Outbound Processing

Storage & Operations

• Better use of manpower

• Facilitate cross-docking

• Streamline receiving and dock management

• Optimize inventory placement in the warehouse by flexible putaway strategies

• Improve inbound inventory visibility

Business Benefits

SAP Extended Warehouse Management Functional Coverage





• Slotting

• Replenishment/Rearrangement




• Warehouse Billing





Inbound Processing

Outbound Processing


• Track every unit down to the lowest level of detail

• Continuously manage inventory balances

• Eliminate/reduce effort for annual physical counts

• Eliminate inefficient movement and redundant effort

• Improve facility utilization

Business Benefits

SAP Extended Warehouse Management Storage and Operations


Warehouse Billing Supported Scenarios

Scenario 1

Warehouse activities performed by LSP EWM controlled by LSP

Scenario 2

Shipper Scenario: EWM controlled by client of the

LSP


Value-Added Services

• Kit-to-Order

• Customer-specific services (labels, price tags, accessories, docs.)

• Packaging


• Kit-to-Stock

• Repacking

Loading

Putaway


Flexible support of customer-specific requirements for high

customer service

Seamless integration with internal routing

Value-added service time & material reporting

Inbound Process Outbound Process

Inbound

Processing Outbound

Processing


SAP Extended Warehouse Management





• Replenishment / Rearrangement







Inbound Processing

Outbound Processing


• Greater inventory accuracy and availability

• Reduce picking, shipping and billing errors

• Higher customer service levels due to high efficiency and accuracy

• Shorten order turn around times

• Provide value-added services quickly

• Take advantage of cross-dock opportunities

Business Benefits

SAP Extended Warehouse Management Outbound Processing


Order Allocation

Route Determination

Wave Management

Stock removal Strategies

Picking bin determination

Pick path

Work planning optimization

Outbound

Processing

Preparation & Picking Loading & Goods-Issue

Cross-Docking

Packing

Cartonization

Kit-to-Order

Palletization

Printing

Pick-Point

Paper-, RF & Voice-based picking

Picking Execution

Picking & Packing

Export compliance checking

Transportation unit handling

Yard management

RF-Loading

Printing

Work center

Consolidation &

Staging

Loading &

Goods-Issue

MFS / PLC

SAP Extended Warehouse Management Outbound Processing (cont.)


Ernsting’s Family Fashion Retailer with more then 1.500 shops

Two Main Distribution Centers in

Germany

• High bay with 32,000 pallet spots

• Small parts with 123,000 Carton spots

• Racks, floor space, pick carts, shopping carts

Maximum of 800,000 delivery items on a single day

Key Processes

• PULL: Shop orders (NOS items)

• PUSH: New collection to shops

• E-Commerce:

• DC to customer

• DC to shop, pick-up at shop


Customer Example: Ernsting’s Family

../../../../Videos/SAP_Ernstings_Eng_160317_720p.mp4


SAP Transportation Management Improve asset utilization, customer satisfaction, & reduce transportation cost

Analyze and monitor shipment data

and correlate with business

information to prevent shipment

delays

Consolidate freight and optimize

equipment while considering

constraints to reduce cost and meet

service level

Monitor

Analyze

Utilize

7.7% Lower freight spend 16% Lower outbound expediting costs 77% Shorter average trailer turn 13 % Less Invoice Errors

Typical results

Organizations adopting transportation management system experience benefits such as

Source: SAP Performance Benchmarking

Audit

Advanced charge calculations

increase error-free carrier invoices


SAP Transportation Management Overview

Tracking & Reporting

Order Mgmt. &

Freight Planning

Capacity &

Demand Planning

Freight Execution

& Monitoring

Freight

Settlement

TRANSPORTATION MANAGEMENT

Holistic Transportation Management

• Shipper & freight forwarder industries

• Large & midmarket enterprises

• Domestic & international transportation

• Inbound & outbound freight management

• Simple & complex, high volume operations


• SAP ERP Order/Delivery Integration

• Order/Booking Management

• Personal Worklists

• Schedule mgmt.

Transportation Execution

Transportation Planning

Order Management

Freight Settlement Analytics

• Efficient end-to-end order & process management

• Dynamically generated, optimized routing proposals based on business rules – extra freight cost avoidance and better customer service

Business Benefits

SAP Transportation Management Order Management


ERP

Others

Manual

Freight Unit

SAP TM

Transportation

Requirement

Freight Order

Freight Booking

Freight

Settlement

EH&S

Ou

t-Of-T

he

-Bo

x In

teg

ratio

n

Tra

nsp

ort

atio

n R

eq

uir

em

en

t C

rea

tio

n

CRM

GTS

EM

EWM

ERP

EDI Email

Collaboration

Portal

SAP Transportation Management Order Integration




• Personal Worklist

• Schedule mgmt.

• Manual & Automated Planning & Dispatching

• Routing, Resource & Carrier Selection

• Order Tendering

• Dangerous goods management

• Planning of Parcels



Order Management


• Improved resource utilization and carrier selection reduces transportation costs

• Handle huge volume of data by automated planning process

• Combine decentralized, local business views to identify synergies

• On-time delivery

Business Benefits

SAP Transportation Management Transportation Planning


• Visibility on usage and availability of your own fleet (trucks, trailers) and handling resource utilization

• Interactive resource-based planning by drag and drop (at freight unit level) with context determination

• Real-time planning in the cockpit by adjusting plan based on reported events

• Gantt chart and map integrate geographical and time perspective

Freight Planning with Gantt Chart Manual Planning and interplay with map


SAP Transportation Management Flexible/Collaborative Carrier selection and Freight Tendering

Rules-based

Carrier Determination • Freight agreements

• Costs

• Lane Allocations

• Business share

Multi-variant Tendering • Peer-to-Peer RFQ

• Broadcast RFQ

• Direct freight order

assignment

Flexible

Collaboration • B2B, Web-based UI, Portal, Email, SMS communication

• Authorization-based RFQ data viewing & processing

• Real-time tendering process, status monitor & dynamic change controller


SAP Transportation Resource Planning Integrated with SAP TM

TRP is a FBS solution with TM

for movable asset management

- Integrated with ECC

Visibility of container fleet from TM

transactional and master data

Container change history tracking and

KPI monitoring

Planning of container supply and

demand based on stock and planned

movements in TM

Simulation of empty repositioning and

repositioning avoidance based on TM

transportation network and rates

Management of container pickup and

return

Business Value • Improvement of utilization of

transportation resources

• Reduction of both resources and cost

• Leverage service reliability due to

advanced determination of availability

• Improvement of transparency on

operations


SAP Yard Logistics Integrated with SAP TM

The SAP Yard Logistics application simplifies truck, container, and rail yard management.

A graphical layout enables monitoring and visualization of the yard’s actual situation. Intuitive user interfaces (UIs) ease

decision making, and support for mobile users cuts down on paper-based processes.

Built-in billing functionality and integration capabilities round out this efficient approach to yard management

SAP Enterprise Resource Planning Customer Orders

Outbound Deliveries

Supply Chain Execution Platform

SAP Transportation

Management

SAP Extended Warehouse

Management

SAP Yard Logistics

Visibility

Planning, execution and settlement in

one central system

Flexibility and standalone capabilities

Integration in existing business processes

Technical integration capabilities (mobile

device, RFID, scales, barriers, other

systems, etc.)

Easy and intuitive user interface

Planning Check-In Process

Execution Check-Out

Process





• Schedule mgmt.

• EWM integration for warehouse execution

• Logistics Execution

• Execution monitoring & event tracking

• Capacity Monitoring

• Transportation print documents

• Trade regulation compliance (via GTS)

• Freight Agreement Management

• Charge & Tariff Mgmt.

• SAP ERP integration: Freight Settlement

• Transportation charge calculation



• Order Tendering





Order Management


• Accurate transportation costing

• Integrated transportation management & billing

• Reduced invoice inaccuracy

Business Benefits

SAP Transportation Management Freight Settlement


Group Company Logistics

Enables the logistics org to centrally receive

invoices from carriers and share logistics

costs with group companies

• Consolidation – Higher volume better rates

• Complete Transportation demand visibility –

centralized operations

• Shipment tracking and tracing –

Standardization across the companies

Embedding focused Divisions/Legal entities

to focus on these activities

Internal Transportation Services can carry out logistics services for the company

Business Unit 1

Business Unit 2

Physical

goods

Consolidated

goods

Logistics Dept.

Carrier

Invoice

Invoice

Physical

goods


Customer Example: Rheinbraun Brennstoff

../../../../Videos/SAP_Rheinbraun_Brennstoff_Eng_151123_720p.mp4





• Schedule mgmt.

• EWM integration for warehouse execution

• Logistics Execution

• Execution monitoring & event tracking

• Capacity Monitoring

• Transportation print documents

• Trade regulation compliance (via GTS)

• Freight Agreement Management

• Charge & Tariff Mgmt.

• SAP ERP integration: Freight Settlement

• Transportation charge calculation



• Order Tendering





Order Management

Freight Settlement

• HANA dashboards

• Landed Cost Analysis

• Flexible business warehouse cost reporting

Analytics

• Real-time data- and fact-based driven decision making

• Fast insights and reduced data complexity

Business Benefits

SAP Transportation Management Analytics


Deliver the best-possible carrier

services with improved freight

contracting, holistic partner

collaboration and transparency.

Less transportation spend

Where forecasts are dynamic and updated

frequently

Fewer unplanned costs

Through visibility into in-transit and network-wide

inventory

20%

9%

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Logistics Network

Strategic Freight Management Forecast and assess future transportation

requirements. Request bids and negotiate

contracts with carriers

Item Serialization and Product

Traceability Automate business processes using auto-ID

technologies and provide full visibility into the

condition and whereabouts of serialized

products

Sense and Respond to

Logistics Insights Connect all logistics network participants to

track goods and assets in transit across the

entire supply chain


Enable efficient collaboration between logistics business partners with the help of

the SAP Transportation Management Collaboration Portal

Key Features

Manage collaborative business processes

between shippers and their carriers/Logistics

Service Providers (LSPs), as well as between

LSPs and their carriers:

Strategic freight procurement

Freight tendering

Shipping status and events

Self-billing, invoice submission and

dispute management

complexity:

one-stop shop

for business

partners

efficiency in

collaboration


Track Process Execution and Goods/Assets in-Transit, and manage by

exception with SAP Event Management

Key Features

Capture business events and

check against milestones

Tight integration with other SAP

solutions

Notify stakeholders & adjust

the business process

Real-time reporting and analysis

for insight-into-action

fire-fighting

costs and

safety buffers

customer

satisfaction and

efficiencies


Customer Example:

DeLaval achieves greater Supply Chain Transparency

“We managed […] to substantially improve

our OTIF deliveries.” Christian Wreth, Project Manager of Supply Chain

Development, DeLaval GmbH

SAP Event Management at DeLaval

• Operating in more than 100 markets worldwide,

supplying around half of all milking systems.

• Around 50,000 milking products – everything

from a milking stool to a robot controlled milking

carousel.

• The transparency of the company’s complex

supply chains is crucial in delivering a high level

of service

• www.youtube.com/watch?v=tfpqgiAEiWM

../../../../Videos/SAP_DeLaval_Eng_160317_720p.mp4

http://www.youtube.com/watch?v=tfpqgiAEiWM


Optimize not only the silos, but across the ecosystem – with real-time

transparency via SAP Networked Logistics Hub

Key Features

Capture and monitor geo

location of transportation units

Geo fences for automatic and

manual notifications

Role-based access and

functionalities

Communication with direct and

indirect business partners

Hub

Operator

Site / Terminal Operator

Driver

Logistics Service Provider

Parking Space

Operator

Telematics Data │ Map Visualization │ Traffic Information │ Hub Sensor Data …

e.g. by T-Systems

infrastructure

utilization,

efficiency

and goods

throughput

waiting times,

emissions and

environmental

impact


Hamburg Port Authority – steering course for the connected port of the future

with SAP

Networked

Logistics Hub

Prepared for

2x increase in

cargo handling

5 minutes driving saved

per truck and

tour

www.youtube.com/watch?v=zKZDgsni0Y4


Automate processes via Auto-ID & comply to serialized product directives with

SAP Auto-ID Infrastructure and SAP Object Event Repository, or SAP Advanced Track & Trace for

Pharmaceuticals

Key Features

RFID/Auto-ID Enabled Business

Processes

Capture serial numbers from

production, distribution, …

GS1 EPCIS support

Monitor serialized product

lifecycle events and processes

Advanced analytics, authority

reporting

efficiency and

compliance

readiness

handling errors

and inventory

Pharma

OEM

Contract

manufacturers

LSP

Regulatory

authorities

Wholesaler

Pharmaceuticals

Other industries/scenarios

Process automation (e.g., in warehouse)

Lifecycle tracking

Exception management


Vision: Cloud-Based Business Networks From point-to-point logistics connectivity to Business Network connectivity & collaboration

Shipper Order

Customer Delivery

Carriers Customs

Freight Forwarders

Managed

Services

On-Demand

Business Processes

Shared

Content


Increased Visibility: Smart Business

Identification and valuation of

operational business and providing

cost and revenue-based information

in real time

• Increase data-driven decision making

• Powerful predefined KPIs for managers and

end users with the ability to navigate into details

• Single source of immediate insight instead of

multiple, long running transactions and reports


Integrating and Connecting Logistics

Logistics platform

Warehouse Management, Transportation

Management and Track and Trace converged on

one platform

SAP S/4HANA Supply Chain

Logistics seamlessly integrated to financials, order-to-

cash and procure-to-pay

Logistics network

Orchestration of collaboration between logistics

partners, and track and trace in the internet of things

Warehouse

Management

Transportation

Management

Mobile-Enabled Experience

SAP HANA Platform

Track & Trace

Real-time insights

and control Optimization Connected

Roadmap and Outlook


SAP Supply Chain Execution Innovation Focus

TODAY PLANNED FUTURE

Cloud

E-Commerce/Retail

• Customer returns (E-Commerce)

• Manual driver planning

• Transit warehouse enhancements

• Deeper SCE integration

• Direct EWM-PLC communication

• Batch on plant level traceability

• Logistics business networks & IOT

• New Fiori UIs

• Enhanced TCO/Performance

• E-Commerce & retail enhancements

• Enhanced logistics business network collaboration & integration

• IoT/Industry 4.0

• Lean warehousing (cloud)

• Integrated SCP & SCE

• EWM integration with load & pallet optimization

• Mid-term transportation planning

• Real-time strategic planning & simulation

LSPs

TCO/Simplicity


• Warehouse billing

• Group company logistics

• Customs & security filing

• Pallet building optimization

• ERP scheduling agreement integration

• S/4 HANA integration

• SAP Yard Logistics integration

• Transportation Resource Planning (TRP) integration

LSPs

Transit Warehouses

Resources


Solution Explorer – Efficient Logistics and Order Fulfillment

SAP Community Network http://scn.sap.com/community/scm/transportation-management/

http://scn.sap.com/community/scm/event-management/

http://scn.sap.com/community/extended-warehouse-management/

http://scn.sap.com/community/internet-of-things

Landing pages http://go.sap.com/solution/lob/supply-chain/transportation-management.html http://go.sap.com/product/scm/event-management.html

http://go.sap.com/product/scm/extended-warehouse-management.html

www.sap.com/iot

Application Help http://help.sap.com/tm93

http://help.sap.com/em92

http://help.sap.com/ewm93

http://help.sap.com/scl

More Information on Logistics and Order Fulfillment

https://solutionexplorer.sap.com/solexp/ui/vlm/default/vlm/default-lob-99/default-bpr-259?lobs=default-lob-99

https://solutionexplorer.sap.com/solexp/ui/vlm/default/vlm/default-lob-99/default-bpr-259?lobs=default-lob-99

http://scn.sap.com/community/scm/transportation-management/
























http://go.sap.com/solution/lob/supply-chain/transportation-management.html





http://go.sap.com/product/scm/event-management.html








http://www.sap.com/iot

http://help.sap.com/tm93

http://help.sap.com/em92

http://help.sap.com/ewm93




7 Key Points to Take Home

• Logistics and Order Fulfillment aims at planning, orchestration, and execution of the

physical movement of goods

• Key end-to-end processes are Transportation Management, Warehouse Management,

and Logistics Network

• SAP enables efficient logistics processes across all participants of the value chain:

Shippers, Freight Forwarders, Carriers, and Consignees

• Best-in-class functionality paired with business integration allows cost-effective operations

• Increased customer service and improved asset utilization are key drivers of value

• Tracking and tracing of products, assets, and business processes creates high visibility

and ensures real-time integrity and compliance

• Convergence of separate business areas breaks up silos


Thank you

Contact information:

Markus Rosemann

VP Logistics, Extended Supply Chain

[email protected]



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