sap transportation management 8.0

SAP Transportation ManagementAndres Botero, Solution Marketing

May 15-19, 2011

© 2011 SAP AG. All rights reserved. 2

SAP Transporation Management

The SAP Transportation Management solution allows companies to holistically manage and optimize their

transpiration spend across the logistics and distribution process, maintaining high levels of customer

satisfaction while achieving profitability and asset utilization goals .

• SAP TM 8.0 is the fruit of over 20 years of SAP continuous investment in the area of Transportation

Management

• SAP TM 8.0 is the 3rd release of a TMS product by SAP –an evolution of prior transportation and

event management solutions- and brings to bear all the learnings and experience accumulated in

this area LES - TPVS

TM 6.0

TM 7.0

TM 8.0

• Over 3,000+ customers rely today on SAP software to manage their transportation needs

• Can be used stand-alone but derives the most benefit when used in conjunction with SAP ECC 6.0

• SAP TM 8.0 addresses the needs of Shippers (Chemical, CPG, Auto, Mills…) and serves as a

foundation for LSPs and Retail customers


Transportation Management - Players and Collaboration

SHIPPER CUSTOMER

FREIGHT

FORWARDER

CARRIERS

Goods Delivery

Collaboration

PLANNING, ORCHESTRATION, & EXECUTION

OF THE PHYSICAL MOVEMENT OF GOODS


Shipper /

Supplier

Outbound

Shipper /

Retailer

Inbound

Carrier /

Transportation

Provider

Goods Order

Goods Delivery

Goods Receipt

Customer Billing

Freight

Forwarder

Order Mgmt.Transport. Planning

Transport. Execution

Freight Costing & Billing

Truck Carriage

Ocean VoyageCarriage

AirCarriage

RailCarriage

The Logistics & Transportation Network

High Process and Network Complexity


Coverage:

Comprehensive

transportation mgmt.

For core operations

For shipper industries & foundation for freight forwarders

Focus:

Usability & configurability

Performance & process

simplification

Customer & SAP TCO

Coverage:

Integrated transportation

planning & execution

Stand-alone solution

Inbound & outbound transp.

Central transportation charge

engine

Limitations:

TCO

Restricted availability

SAP Transportation Mgmt. combines a long history of

transportation business, process and IT expertise

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

Coverage: Shipping planning & optimization

Order-based planning

Integrated with

ERP LE-TRA

Limitations:

No combined in-/outbound

movements ….

Coverage:

Shipment execution

Limitations:

No shipments combining

in/outbound movements

Delivery-based only

No transportation capacity

planning

THE

market-

leading

solution

Transportation Management

(TM 8.0)


(TM 6.0 & 7.0)

APO – Transport.

Planning/ Vehicle

Scheduling (TP/VS)

ERP - Logistics Exec.

Transportation

(LE-TRA)


The SAP Transportation Management Solution

Highlights and Differentiators

Customer Co-Innovated Deep Process Integration

Order-to-Cash

Procure-to-Pay

Customs & Compliance Mgmt.

Dangerous Goods Mgmt.

Best-in-Class Functionality

Customer

Influencer

Group

SAP

Flexible Mobile & Web Collaboration

Intelligent


SAP Transportation Management Analytics

SAP TM Dashboard

SAP TM Analytics


Analytics & Reporting

Overview SAP Transportation Management 8.0

Solution Coverage

OrderManagement

FreightPlanning &Tendering

Freight Execution &Monitoring

Freight Settlement

Event Management

Import / Export, Dangerous Goods & Compliance

Document & Output Management

Integration & Connectivity

TransportationCharge Clerk

Transportation Planner

TransportationDispatcher

Specialist(i.e.Tendering)

SAP TRANSPORTATION MGMT. 8.0


Analytics & Reporting

Overview SAP Transportation Management 8.0

Solution Coverage

OrderManagement

FreightPlanning &Tendering


Freight Settlement

SAP ERP integration - Order-to-Cash, Procure-to-Pay

Freight Orders

Forwarding Orders

Freight Bookings

Logistics Execution

Transportation Status Visibility& Monitoring

Freight Agreement Management

Charge & Tariff Management

Forwarding Order Settlement

Freight Order Settlement

Event Management

Import / Export, Dangerous Goods & Compliance

Document & Output Management

Integration & Connectivity

Manual & Autom. Planning & Dispatching

Resource & Carrier Selection

Carrier Tendering

Ocean Booking




Specialist(i.e.Tendering)





Specialist(Tendering)


Freight Settlement

Freight Planning &Tendering

Order Management

Order Management SAP TM 8.0 - Order Management Area Details

■ Integrated order processing & management

Out-of-the box integration with order-to-cash & procure-to-pay

Integrated freight settlement with ERP billing & invoicing

■ Comprehensive order management

Forwarding, freight (land), & booking (sea & air) orders

■ Full document flow & order life-cycle management

Centralized order data mgmt. (for planning, tendering, exec. ...)

Sales Order

Purchase Order

Stock Transfer

Delivery

SAP TM

SAP ERP

Freight Order,Forwarding

Order, Freight Booking

General & item data Subcontracting data Transportation exec. data Order status Linked documents Dangerous goods data

Benefit

Efficient, 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 planning Constraint-based, multi-variant & mode scheduling and routing

Zero-click planning from order entry to carrier settlement

■ Domestic & international shipment planning Incl. ocean freight booking & customs / compliance mgmt. integration

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

Multiple tendering types: direct, peer-to-peer, broadcast

Flexible carrier communication (Web UI, e-mail, SMS, B2B) for RFQ / tendering processing & visibility

Benefit

Reduced 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 management

SAP ERP integration for inbound & outbound processing

SAP EHS integration for dangerous goods handling

■ Integrated customs & compliance management

SAP GTS for export doc. & customs procedure processing

■ Transportation execution visibility & monitoring

Shipment visibility for customers, supplier, carriers

Integrated event mgmt. for event notification & handling

Benefit

Efficient 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 Memo Carrier Invoice Invoice Payment Invoice Confirmation

Invoice Confirmation

Shipper

Benefit

Accurate transportation costing

Integrated transportation management & billing






Freight Settlement


Order Management


Transportation Mgmt. Processes and ScenariosSolution Manager Content Delivered with SAP TM 8.0

SAP TM 8.0 Processes

■ Managing Transportation Requirements

■ Managing Forwarding Orders

■ Managing Freight & Bookings

■ Planning Freight & Selecting Carriers

■ Tendering Freight

■ Executing & Monitoring Freight

■ Settling Freight Orders

■ Settling Forwarding Orders

SAP TM 8.0 Scenarios

■ Domestic Inbound Transportation

■ International Inbound Logistics

■ Outsourced Transportation

■ Domestic Outbound Transportation

■ International Outbound Transportation


Processes & Scenarios

Comprehensive Documentation Process, scenario, configuration, customizing & implementation

SAP TM 8.0 Master Guide

SAP TM 8.0 Scenario

Configuration Guides

SAP TM 8.0 Online Documentation

Benefit

Efficient, end-to-end processes & scenarios

Reduced implementation time, effort and cost


International Inbound Logistics Scenario Example

International, intermodal transportation management for purchased goods from

overseas vendors with integrated purchase order, transportation and invoice management

Vendor 1(Mainland China)

Vendor 2(Mainland China)

Port-of-

Loading(Shanghai, China)

Port-of-

Discharge(Hamburg, Germany)

Pre-carriage

Main Carriage On-carriage

Consignee (Ludwigshafen,Germany)

Packing of purchased material in container

Direct pre-carriage via truck from vendors to port-of-loading

Main carriage via scheduled vessel from China to Germany

On-carriage via scheduled train from Hamburg to Ludwigshafen

Inbound delivery


Planned Innovations for Transportation Management

Key Needs Key Innovations

• A complete solution for the Transportation and Logistics industries • Core Processes for Freight

Forwarders

• End-to-end process enablement • SCE Process Integration

• Optimized delivery synchronization for multi-consignment orders

• Need for better asset utilization and higher load density, less empty trucks, cost

savings for transportation

• Rapid time-to-value

• Transportation Planning

enhancements

• TP RDS

• Reduce expense of setting up load tendering relationships

• Improve visibility in shipping scenarios

• Collaborative Freight

Tendering RDS

• Improve visibility to in transit ocean shipments

• Reduce expense of setting up integration with ocean carriers

• Ocean Booking RDS


Selected TM Clients

http://www.artonilogistica.com/

http://www.galiform.com/

http://www.jabil.com/

http://www.haworth.com/en-us

http://www.panalpina.com/www/global/en/home.html


ChemicalsConsumer Products Consumer Products

Company:Chemicals company specializing in silicone-based

materials

Implementation:SAP TM 7.0

ca. 50 sites with 300 shipping points

Goal: Efficient, accurate transportation settlement and

invoicing

Implementation Scope:Transportation charge management, with extensive

charge calculation, invoice creation and verification

Shipment creation in SAP ERP.

Charge calculation with carrier verification & freight

settlement in TM. Automated invoicing in SAP ERP.

Company:Consumer packaging for beverage, personal care,

healthcare, food


Goal: Complete automation of the

tendering process (subcontracting)

Implementation Scope:Transportation optimization -

freight unit building, truck planning, carrier selection.

Sales order processing in SAP ERP.

Transportation planning in SAP TM. Logistics

execution in SAP LES

(ERP-Logistic Execution System).

Company:World leading company for food and

beverages, health & performance nutrition


Goal: A common transportation mgmt. system to

eliminate legacy TM systems. Transportation

spend reduction & operational efficiency

increase.

Implementation Scope:Full TM implementation across freight order

mgmt., transportation planning & carrier

selection, tendering, subcontracting and freight

settlement.

Selected Transportation Management ProjectsSAP Transportation Management 6.0, 7.0 & 8.0

Dow Corning Uses SAP®

TM to Reduce

Product Costing Workload

Challenges and Opportunities

Understanding margin impacts

Fragmented business processes in all

areas related to freight cost documentation

and allocation

Contracts not maintained in a common

format or centralized system, leading to

dated and invalid freight contracts

No verification with the actual contract and

the invoice generated

No reporting functionalities around freight

costs

Objectives

Visibility into freight costs down to the

material level

Implementation Highlights

First 6 sites implemented in only 8 months

QUICK FACTS

Dow Corning Corporation

Headquarters: Midland, Michigan

Industry: Chemicals

Products and services: Silicones and high -purity

silicon

Revenue: US$5.1 billion (2009)

Employees: 10,000

Web site: www.dowcorning.com

SAP® solutions and services: SAP® Transportation

Management (SAP TM) application

Why SAP

SAP® TM is an integrated solution that

requires synergy from rate negotiation to

invoice processing.

SAP TM is built to attempt to meet the

dynamic needs of the global transportation

environment.

SAP TM touches multiple functions.

Benefits

Ability to proactively ensure accurate rates

prior to shipping rather than reacting to

rate changes found during invoice receipt

70% reduction in product costing workload

Real-time cost allocation to appropriate

lines of business

Ability to make fully informed business

decisions

Ability to streamline business processes

that will have impact beyond freight

costing

“SAP has provided us with world-class

support during the implementation of

SAP TM. We really appreciate SAP’s

focus on customer service during this

project.”

Shruti Bahadur

Project Leader

Dow Corning Corporation

RQ

8966 (

10/0

7)


SAP brings together software and services in 3 offerings that

give you essential transportation management functionality quickly and affordably

Preconfigured software: either

1. domestic transportation planning

2. ocean carrier booking

3. domestic freight tendering

Rapid delivery thanks to accelerators, and RDS

methodology

An affordable, well-priced solution:

fixed-price for fixed scope

Clear path to your full TMS vision: use the pre-configured

scenarios as they are or as a big stepping stone

Preconfigured TM Software & Services Enabling Rapid Deployment

Solution At-a-Glance

The SAP Transportation Management rapid-deployment solution for

domestic transportation planning

Business Requirement Solution Target Market

What is my pain?

Need to reduce transportation expense

Lack of control in transportation decisions

Limited visibility of customer requirements in transportation decision making

Lack of transparency to carrier equipment availability

What are my needs?

Shipping demand creation

Pass and process demand changes

Optimized planning and carrier selection

Synchronization of transportation planning and execution

What will excite me?

Quick ROI: The RDS is designed to reduce the implementation timeframe in order to speed up the availability of the solution for productive use as well as reduce TCO for the customer.

Leverage customers initial investment in SAP while allowing to expand solution footprint in future.

Removes the complexity of integration, maintenance and cost.

Business KPI’s

Lower transportation cost

Increased resource utilization

Greater on-time performance

Better customer satisfaction

Solution DescriptionThe rapid-deployment solution addresses maximizing transportation

efficiencies which result in greater control of transportation operations and

costs while managing customer delivery satisfaction.

Business Processes Order consolidation – consolidation of orders going to a similar

geographical area which results in a lower cost per unit.

Routing and scheduling – comparing various modes and methods of

transportation while considering the service level and customer

scheduling requested.

Carrier selection – effectively selecting the right business partner based

on strategies including cost, priority, and business share.

Technical Components

SAP Transportation Management 8.0SAP ECC 6.0

General Availability Planned for Q3/2011

Industry

Manufacturing, packaged goods, and process industries

Companies dealing with LTL/FTL opportunities or combining outbound orders to reduce transportation cost.

Type of Customer/Prerequisite

Installed base SAP ECC 6.0

New customers in TM that want to streamline domestic transportation planning

Target Geography Global

Roadmap Growth Potential SAP TM for broader scope: intermodal planning, tendering, as well

as tracking and tracing with SAP EM

SAP [email protected]

Ready to run „SAP Transportation Management rapid-deployment solution for domestic transportation planning “ is an essential

transportation package with fixed scope, predefined services at a predictable price with the flexibility for future extension.



ocean carrier booking


What is my pain?

Slow an inefficient collaboration with ocean carriers

Excessive cost due to inefficient container utilization and expedited transportation need

High integration cost to ocean carrier platforms

Missing visibility into long transportation legs

What are my needs?

Quick connectivity to ocean carriers

Higher productivity and flexibility in managing & monitoring ocean bookings and container tracking

What will excite me? Extension of pure SAP functionality to connectivity providers like SAP

Partner Crossgate and ocean e-commerce platform provider GT Nexus.

Lower TCO avoiding custom development while delivering standard integration to industry platforms (GT Nexus, INTTRA)

Business KPI’s

Easy access to the most important ocean carrier platform

Visibility into ocean transportation status

Lower transportation cost

Solution DescriptionThe rapid-deployment solution is to address the long lasting trend of

globalization, outsourced manufacturing and the resulting increase in global

transportation over ocean waters, especially in form of containerized goods.

Business Processes Booking of Ocean Vessel Capacity

Reserve capacity with carriers

Pre Booking possible

Receive Booking Confirmations

ERP Integration and Enabling of the freight unit allocation to bookings

Shipping Instructions

Mapping of the following Enterprise Services to Crossgate and/or GT

Nexus

Pre-Configured Output Management / Electronic Transmission

Ocean Visibility

Ocean specific Master Data elements (ISO Codes, Location

Identifiers)

Event Management to track Container Movements & BOL access


SAP Transportation Management 8.0SAP ERP 6.0SAP Event Management 7.01SAP Information Interchange by Crossgate


Industry

Shipper companies who manufacture goods (CP, Automotive, Chem, Discrete MFG, etc) or retailers with international transportation requirements.


New customers in TM that want to streamline ocean shipping processes

Any R/3 or SAP ERP customer that is using Logistic Execution System (LES) and has the desire/need to steamline/manage ocean shipping processes.


Roadmap Growth Potential SAP TM for broader scope: planning (land, air, rail, multi-modal),

execution/freight charging etc


Ready to run „SAP Transportation Management rapid-deployment solution for ocean carrier booking“ is an essential transportation

package with fixed scope, predefined services at a predictable price with the flexibility for future extension.



domestic freight tendering


What is my pain?

Lengthy process of carrier collaboration for shipment and load tendering

Tendering results contradict strategic or tactical company goals

Reduction of ongoing cost for using 3rd party tendering platforms

What are my needs?

Quick and easy collaboration with carriers

Carrier collaboration follows predefined rules and can be adapted flexibly

Onboarding of new carriers as „plug&play“

What will excite me?

Quick ROI: The RDS is designed to reduce the implementation timeframe in order to increase the solution readiness as well as reduce TCO for the customer.

Out of the box integration between ERP and TM.

Offers potential replacement of legacy or competitive applicationsreducing maintenance.

Carrier connectivity via SAP Information Interchange (powered by CrossGate)

Business KPI’s

Reduced cost for outsourced transportation services

Efficiency and speed in tendering process

Transparency of tendering status

Solution DescriptionThe rapid-deployment solution extends ERP based transportation execution

with superior carrier collaboration for shipment and load tendering including

electronic connectivity to carriers.

Business Processes TM: managing transportation requirements

Optional: carrier selection as part of planning

Tendering freight (communicate shipments to carriers)

Carrier collaboration

Execution and monitoring freight (Transportation Execution, Freight Costing, ERS, Invoice Verification)


SAP Transportation Management 8.0SAP ECC 6.0SAP Information Interchange (powered by CrossGate)


Industry

Manufacturing industries, especially CPG & Chemical, or other packaged good shippers.

Companies dealing with LTL/FTL opportunities or combining inbound/outbound orders to reduce transportation cost.


Net New Customers

Installed Base


Roadmap Growth Potential SAP TM for broader scope: full blown transportation planning,

ocean carrier booking, tracking and tracing with SAP EM


Ready to run „SAP Transportation Management rapid-deployment solution for domestic freight tendering“ is an essential transportation

package with fixed scope, predefined services at a predictable price with the flexibility for future extension.

Thank You!

Contact information:

Andres Botero

Senior Director, Supply Chain Execution

[email protected]

mailto:[email protected]


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