supply chain transportation sap
TRANSCRIPT
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Promote Business Growth byStreamlining Transportation Man
May 19, 2016
Tyler Roorda, TM Business Process Owner, Woodgrain Millwork
Anton Kamaukhov, VP of Application Delivery, XpertMinds
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Why SAP Transportation Management at Woodgrain
How and what we implemented Lessons Learned
Business Benefits
Future use of SAP
AGENDA
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Privately-held, family-owned business founded in 1954
Third generation of ownership
Woodgrain has a diverse supply chain Vertically Integrated Tree to Trim( Raw lumber to finished product)
Manufactures, sells, distributes diverse line of millwork products
doors, windows, mouldings, and other specialty wood products
Integrated supply chain international and domestic
20 locations worldwide
Woodgrain Millwork, Windsor Windows & Doors, Monarch Windows, Ashworth Patio Doors
Distribution
Each location managed their own transportation
Rapid growth fueled by acquisitions over many years, resulting in multiple legacy sys
and maintain
ABOUT WOODGRAIN
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Robust functionality to meet diverse set of requirements and en
execution of business strategy Multiple sourcing and delivery methods
Frequent shipment pooling and cross-docking
Provide a platform for growth, reduce risk to business continui
system can become a catalyst rather than hindrance
Lower long-term TCO through elimination of many legacy syste
multiple integrations ROI opportunities identified in every business unit, functional a
WHY SAP TM 9.0?
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Integration to SAP ECC Advantage over 3rd party products that are difficult to seamlessly integrate to O
Management when frequent order updates and changes occur to meet custom
TM Sales Order Scheduling
Significant opportunity to reduce supply chain costs in the area
Transportation Management SAP TM 9.0 greatly exceeds capabilities of current systems and processes
Bring the entire organization together under one transportation group thus inc
transportation consolidation and eliminating duplication
Supports multiple methods of sourcing and delivery
to customers Out-of Warehouse
Cross-Dock
Direct Ship
Inter-company
Vendor consigned
WHY SAP TM 9.0? (CONTINUED)
3rd-party Warehouse
3PL service
Customer and Vendor returns
International (next phase)
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Internal fleet of 50 trucks and 100 trailers
Minor use of external carriers as well
Shipping within 13 states in the US Multi-stop
Functionality highlights: TM Order Scheduling
Use of calendar resources for better alignment with Field Service Rep. schedules
DOT regulations mapped via Scheduling Constraints
Optimization of loads and sequencing SAP ECC Warehouse Management integration
Integration with 3rd party software
for proof of delivery and fleet tracking
GIS integration with Nokia HERE
3rd party application
SHIPPER SCENARIO
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Internal fleet Centrally plan routes for 7 different distribution centers in the US
35 50 Freight Orders per day Each truck has an average of 10 to 15 stops
500 to 1,000 Sales orders/Deliveries per day
LTL/CPU shipments 5 to 10 LTL shipments per day (mostly automated)
70 to 100 UPS shipments per day (one-time customers; automated)
1 to 5 customer pick-ups per day (automated)
External Carrier shipments Full truck load across multiple zones
2 to 5 per day
External 3rd party shipments
DAILY VOLUME OF ACTIVITY MANAGED IN TM
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No limitations on what type of ECC deliveries can be pla
a single TM freight order
Customer sales
Customer returns
Vendor purchases
Vendor returns
Stock transfers
Subcontracting
Transportation cross-docking
SUPPORT FOR ALL TYPES OF ECC SCENARIOS
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Ties into ATP check
Runs a simulation oorder optimization in
TM ORDER SCHEDULING
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TM OPTIMIZER
S O S G G O
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Visibi
hand
(pack
TM
Autom
creat
shipm
TM frorder
loadin
SAP WAREHOUSE MANAGEMENT INTEGRATION
GIS INTEGRATION WITH NOKIA HERE
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Geocoding
Geo-routing
Map display
GIS INTEGRATION WITH NOKIA HERE
3RD PARTY SYSTEMS INTEGRATION
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Proof of Delivery system(Airclic)
Fleet tracking system (Xatanet)
UPS labeling (UPS Worldship)
Integrated through SAP PI
using standard SAP TM XML messages
3RD PARTY SYSTEMS INTEGRATION
LTL PARCEL POST AND CUSTOMER PICK UP
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Automated creation of 1 freight order per
1 outbound delivery Bypassing freight unit building rule
No manual planning and route optimization involved
Automatic carrier determination
LTL, PARCEL POST AND CUSTOMER PICK-UP
ADDITIONAL FUNCTIONALITY USED
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Freight Execution & Monitoring
Transportation Status Visibility & Monitoring Capacity Monitoring
Document & Output Management
VICS Bill of Lading (Inter-industry Commerce Std.)
Shipping Manifest
Shipping Confirmation
Turn-by-turn Directions
Transportation Packet
ADDITIONAL FUNCTIONALITY USED
SAP TM PHASE 2
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Millwork Manufacturing Implementation
5 diverse manufacturing locations
95% of shipments with external carriers
Shipping to all states in the continental US and Canada
420 truckloads per month
SAP TM PHASE 2
ADDITIONAL SAP TM FUNCTIONALITY
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Freight Agreements
Carrier Tendering
Freight Settlement
International Transportation
Continued Centralization of Transportation Managem
across Woodgrain
Advanced Analytics
ADDITIONAL SAP TM FUNCTIONALITY
IMPLEMENTED FOR MILLWORK MFG
LESSONS LEARNED
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Implementing TM requires a wide range of skill sets ERP - SD, MM, LE
PI
ABAP OO Object oriented
SAP TM
TM uses some of the newest technology BRFplus
Business Objects Framework
Post Processing Framework
Floorplan Manager UI
Volume testing of the optimizer is key
Utilize SAP PI to integrate SAP ECC with SAP TM, if you already havin place. Otherwise, consider using point-to-point (WSRM) integratio
LESSONS LEARNED
WHATS NEXT FOR SAP TM
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Upgrade
9.3 this summer
Gantt chart planning
Load planning
Fully implement forwarding orders
Fully implement International shipments Proof of Delivery
WHAT S NEXT FOR SAP TM
AT WOODGRAIN?
BUSINESS BENEFITS & ROI
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Reduction in overall supply chain and inventory carrying costs Better visibility and more timely decision-making to make adjustments as product
through the external and internal supply chain
Effectively manage increases in volume with the same or smaller number of transplanner resources less manual intervention
Enables critical business processes that give competitive advantage Robust integration between all information and processes. Example: Woodgrain
orders up to 3pm to load that night and make a delivery the next morning
User interface enables employee usability Usability supports strong end user acceptance and use
Flexibility speeds adoption of new business processes with minimal training
Increased service level to customers Integration between order entry and transportation planning via TM Sales Order S
Anticipate a minimum of 15% reduction in freight spending across all Centralized planning; freight consolidation (leverage network wide volume)
BUSINESS BENEFITS & ROI
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Thank You!