Intel’s Utilization of SAP*s Carrier Cockpit (XSI)

Session Code: 4304

Karri L. PaiceIntel Corporation

Presentation Objectives• Awareness of how Intel is utilizing SAP* XSI

including:– express delivery company set up– carrier and tracking number assignment– carrier label printing– manifesting– communication with carrier systems (UPS and

FedEx) • Advantages of replacing a stand-alone

shipment manifesting system with native SAP* transportation execution functionality

• Challenges and key learnings of integrating SAP* XSI with decentralized WM

Agenda

• Key Terms• History/Background• Drivers for Change• The Solution• Intel’s FGDSS Overview• Key XSI functionality and enablers• Benefits• Challenges• Lessons Learned

Key Terms1. Express Ship Interface or XSI = SAP* capability

that allows for: – Carrier Cockpit set up– Label generation, manifesting, and PLD (package

level detail) upload from SAP*– Data transfer to and from an Idoc (SHPMNT04,

DELVRY03)– opportunity to track shipments from start to

finish (parcel tracking function)2. Express Carrier = small parcel carrier, e.g. UPS

and FedEx3. Freight Forwarder = LTL or generic carrier

Key Terms (cont)4. FGDSS = Intel’s Finished Goods Domestic

Shipping Solution project; intro to XSI at Intel5. Shipment = a shipment document including

one or multi DNs; all DNs must have the same tracking #

6. Tracking # = AWB #, BOL #, Pro #; can be single DN or multi DNs per tracking #

7. Transportation Execution = SAP* functionality that includes reporting capabilities, Emailing auto-ship notifications, outputs, and AWB consolidation(More information on this topic can be found in the Intel presentation ‘Intel’s Utilization of SAP’s* Transportation Functionality’ – Session 4311, Wed. 5/21)

History/Background Information

– Upgraded WMS to SAP 4.6b in 2000– Decentralized environment on 4.6c in

2002– Started looking at SAP* Transportation

Functionality in 2002 to replace…• Customized Interfaces between WM and

carrier systems• Several stand-alone or interfaced 3rd-party

transportation applications

Drivers for Change

• Transition from legacy 3rd-party WMS to WM Decentralized

• Fragmented transportation solution (many interfacing and stand-alone systems)

• EOL of existing shipment manifesting application

• Intel moving towards SAP* as common core solution

The Solution

• Replace our stand-alone shipment manifesting application with native SAP* functionality

• Integrate SAP* XSI with SAP* Transportation Functionality and Decentralized WM 4.6c

Intel’s FGDSS Overview

• In Scope – US origin shipments– Finished Goods Shipments– Express carrier shipments

• UPS domestic• Fed Ex domestic and international

– Freight forwarder domestic and international shipments

Intel’s FGDSS Overview (cont)

• Out of Scope – Non-US origin shipments– Non-finished goods– Shipper’s Export Declaration (SED) data to

carrier interfaces and Automated Export System (AES)

– Low volume shipment carriers

Key XSI Functionality & Enablers• Carrier Cockpit set up• Begin Shipping Period• Carrier Assignment• Freight Payment Term Assignment• Service Level Assignment• Tracking # Assignment• Carrier Documentation

– Labels– BOL, AWB– Manifests/Shipment summaries

• End Shipping Period• Communication with Carrier Systems

Carrier Cockpit set up (VTRC)• Some prerequisites to enabling the cockpit

functionality– Determine to what level packages will be

tracked by express delivery company (carrier)

Note: 8 = shipment levelJ = DN levelX = box level

Carrier Cockpit set up (cont)

– Configure express delivery companies– Define tracking # format and ranges (i.e. by

plant) per express delivery company– Define service levels per express delivery

company– Assign freight payment terms per express

delivery company– Assign shipper account # (i.e.by plant) per

express delivery company

Carrier Cockpit set up (cont)

• Carrier Cockpit: tracking #’s by carrier

Carrier Cockpit set up (cont)

• Carrier Cockpit: tracking #’s by carrier

Carrier Cockpit set up (cont)

• Carrier Cockpit: Service levels by carrier

Begin Shipping Period (VT01n/VT04)

• Begin a shipping period by creating a Shipment Document (VT01n for single shipment docs; VT04 for multiple shipment docs)

Carrier Assignment (VL02n)

• Carrier and tracking number assignment using the carrier cockpit and systematic triggers

– Express carrier tracking # assignment by box/package

– Freight forwarder tracking # assignment by shipment

Note: VL02n is being used for express carriersVT02n is being used for freight forwarders

Carrier Assignment (cont)

1) Assign forwarding agent (carrier) > Save

Freight Pay Terms (VL02n)

2) Assign freight pay terms >

Service Level Assignment (VL02n)

3) Assign service level > Save >

Tracking# Assignment (VL02n)

4) Save triggers tracking # assignment

Carrier Documentation

• Carrier label printing via HUPAST which uses SAP Forms* and systematic triggers/user exits– Labels print by highest level handling unit– Native and built-in error messages– Reprinting functionality, as an exception

Label Printing (HUPAST)

Carrier Labels

End of Shipping Period docs

• UPS Summary label in place of manifest• FedEx using manifest generated automatically

from FedEx server• Freight forwarders using BOL copies; no manifests

End of Shipping Period (VT02n)

• Generation of end-of-shipping-period carrier documentation using systematic triggers

Shpment completion triggers UPS summary label and FedEx upload

Shipment start triggers Goods Issue for all shipments and UPS PLD upload

Check-in triggers BOL for freight forwarders

End of Shipping Period (cont)• All DN’s for same shipping period, transportation

planning date, carrier, Ship-To party, etc. are consolidated onto one shipment document

Communication with carrier systems• UPS

– Intel built standard interface to communicate outbound• using UPS’ SPF7 guidelines• UPS has standard process for creating PLD

upload interface

– Direct connection to UPS production server• PLD upload directly to UPS at end of

shipping period• HTTPS used for data transmission

Communication with carrier systems (cont)• FedEx

– Created a middleware program to communicate with on-site FedEx Ship Manager Server

– Connection to local FedEx server • Generates carrier labels to dedicated local

printer• Initiates end-of-period upload to FedEx server• Data transmission to FedEx mainframe via

modem

• All other carriers– No special requirements– No interfaces in or out

Some Benefits

• One system vs. many allows for integrated supply chain visibility

• Standardized cross-warehouse business processes

• Transportation tasks occur earlier in the order fulfillment process providing more effective transportation execution

• Able to utilize our existing capabilities vs. investing in another system/solution

Some Challenges

• Limited industry use and limited experienced resources

• Integrating Decentralized WM with XSI • Inconsistent express carrier requirements

and standards

Some Lessons Learned

• Project was more complex than initially anticipated– limit scope to ensure the foundation is built– add incremental capabilities (i.e. new carriers,

new service levels, etc) later

• Strong relationships with carriers are essential– Drive for standard interface solutions

• Enable SED capabilities up front• Intel as 3rd party to freight forwarders

Questions

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Session Code: 4304

For further questions contact:

Karri Paice

karri.l.paice@intel.com

*SAP and other names and brands may be claimed as the property of others.