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Bjoern BernardSAP Labs
A Comprehensive Introduction toSAP Transportation Management:The Next-Generation TransportationSolution
© SAP 2009 / 2
Why We’re Here
Find out how SAP Transportation Management (SAP TM) can help you overcome past functional limitations in SAP R/3 or SAP ERP for managing logistics
Evaluate SAP TM as an overall transportation planning, dispatching, execution, freight charge, and order management tool
Understand the overall document flow within SAP TM and what enhancements SAP TM 7.0 provides in regards to that document flow
Find out about the comprehensive roadmap of SAP TM beyond 2009
© SAP 2009 / 3
SAP TM – Past, Present, and FutureThe Approach and ArchitectureFunctional ScopeCustomer SuccessRoadmap – What lies aheadProduct Demonstration
Agenda
© SAP 2009 / 4
SAP: A Comprehensive Roadmap Providing a Comprehensive Solution for Two Worlds
Freight Forwarder/3PL/LSP Transportation Focus
Extending the Scope of our Transportation Solution
Event ManagementTrack and
Trace
RFIDhandling
ExtendedPlanning
and OceanBooking
20071987
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nSo
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SA
P R/
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. in
SAP
APO
-TP/
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2001 2004 2006 Nov 2008
Shipper Transportation Focus
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1993 Nov 2009+
SAP TM8.0 and 9.0
SAP TM 7.0 Focus SuiteIntegration/
Specialization
SAP TM 6.0 for Shippers,
FF, 3PL and LSP
© SAP 2009 / 5
SAP Transportation ManagementWhere Are We Coming From?
SAP Transportation customers5000+ customers using SAP ERP-Logistics Execution System (LES) for core logistics processes and freight payment and audit applications150+ large enterprise accounts using SAP APO TP/VS for sophisticated transportation planning including Siemens, General Mills, BASF, International Paper, Colgate, Fujitsu-Siemens, Coors250+ customers using SAP Event Management to track and trace domestic and international logistics scenarios including Whirlpool, Microsoft, Nike, Arvato Services, British American Tobacco
Why invest in new solution SAP TM?Most marketable TMS solutions were designed in the early 90s and do not scale to today’s global logistics environments, lack integration to order systems, and are not designed for service orientationSAP TM provides the architecture and platform for logistics processes for decades to come, allowing customers to grow their business processes and develop strategic logistics partnerships
Platform – is TM all new?No, TM delivers a new platform and architecture to address past limitationsHowever, TM reuses a number of well-proven components from a functional perspective to deliver end-to-end processes from day one (TP/VS planning algorithms, Event Management, ERP FI-CO)
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© SAP 2009 / 6
SAP Transportation ManagementPresent and Future
Deliver SAP TM in yearly cyclesSAP TM 6.0 is available and in Ramp-Up (09/2008)SAP TM 7.0 (joint Business Suite Ramp-Up, 11/2008)SAP TM 8.0 planned for Q4 2009SAP TM 9.0 already in Product Definition Phase
Solution RoadmapLargest 5-year investment segment in SCM – Strengthen SAP Business Suite Approach– Offer integrated end-to-end processes and scenarios– Complete Business Suite integration – apply SAP value scenarios and theme approach– Deliver Best in Class Business Solutions for Transportation
VisionDeploy an integrated, market leading End-to-End TMS and Fulfillment SolutionFocus in Execution on Best Performance, OpennessIntegrate with de-Facto Standards and major Logistics Partners for all modes– Rail, Ocean, LTL, Parcel, Air... (e.g., SMC³, DHL, FedEx, GT Nexus, INTTRA …)
© SAP 2009 / 7
SAP TM – Past, Present, and FutureThe Approach and ArchitectureFunctional ScopeCustomer SuccessRoadmap – What lies aheadProduct Demonstration
Agenda
Combined order quotation, receipt, and confirmation, transportation planning/dispatching, transportation execution, tracking, and freight charge management in one system.SOA by design enables loosely coupled and extensible applications Standard (message-based) communication based on international standards, e.g., EDIFACTMulti-back-end support, packaged SAP ERP integration as well as flexible deployment options (centralized/stand-alone or decentralized)Supports all modes and means of transport (sea, air, land, train)
Combined inbound and outbound transportation both logistically and financiallyCapability to adapt plan after execution of transportation activities has startedDelta planning, i.e., ability to plan new transportation demands into existing shipments without re-planning everythingBuild-in Real-World-Awareness for global visibility
Higher transparency on profitability on both the buying and selling sideLean master data needs (e.g., working of product codes instead of material masters)Split organizational responsibilities - multiple groups can manage individual legsTendering will support peer-to-peer, broadcast, and open tendering
Shipper focus
Generic benefits and advantages
Logistic Service Provider focus
SAP TM – Key Benefits SAP TM System LandscapeSAP TM has open interfaces to any back-end system
SAP TM 6.0 Server
RDBMS
SAP Event Management 5.1
SAP SCM Basis 5.1
SAP TMOptimizer
SAP NetWeaver 7.0
Geocoding
SAPGUI 7.1NW Business Client V2.0
TM Optimizer Server
Web BrowserMS IE 6/7
Possible customer implementations:Web serviceDirect IntegrationEDI FACTANSI X.12Other/Proprietary Formats
ExchangeInfrastructure
Map
ping
Map
ping
Tech
nolo
gy A
dopt
ion
Tech
nolo
gy A
dopt
ion
Rou
ting
Rou
ting
Possible customer implementations:Web ServiceDirect IntegrationEDIPhone/Fax
SAP ERP Logistics Financials
Master data
SAP TM 6.0
3rd PartyLegacy
SAP APO Transportation
PlanningVehicle
Scheduling
Front end
Application Database Server
© SAP 2009 / 10
SAP TM – Past, Present, and FutureThe Approach and ArchitectureFunctional ScopeCustomer SuccessRoadmap – What lies aheadProduct Demonstration
Agenda
© SAP 2009 / 11
Transportation Platform for Growth and Flexibility
ERP (Order Mgmt, Material Mgmt, Production, Logistics Execution,
Warehouse Management, Finance and Costing, Rail Car Management, Human Resource Mgmt, Asset Maintenance)
SAP NetWeaver
others
Dock DoorScheduling
ContainerManagement
Chartering Leasing
Rail yardManagement
FunctionalEnrichment
GTS
SAP Applications
Analytics
StrategicFreight Mgmt.
TransportationActivities
TransportationPlanning and
DispatchTransportation
Execution
Carrier Communication
TransportationCharge
Management
Order Management
Processes supported by Standard SoftwarePossible FutureComposite Applications
Event Management
Supply ChainEWM
CarrierCollaboration
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© SAP 2009 / 12
SAP TM Planning – Solution OverviewSAP TM Document Structure
RequestManage-
ment
RequestManage-
ment
Trans-portationPlanning
Trans-portationPlanning
ExecutionExecution
BillingBilling
Shipment RequestShipment Request
Freight Unit BuilderFreight Unit Builder
Shipment OrderShipment Order
Supplier FreightInvoice Request
Supplier FreightInvoice Request
Freight UnitFreight Unit
Freight AgreementFreight Agreement
ActivityActivity
TenderingTendering
Customer Freight Invoice Request
Customer Freight Invoice Request
Accounting DocumentAccounting Document
Freight UnitFreight Unit Freight UnitFreight Unit
TariffTariff
TCCSTCCS
RateRate
ScaleScale
Optimizer/PlanningOptimizer/PlanningCapacityCapacity
Request to transport goods from a location to another location
Units of freight to be moved throught networkBasic element for planning
Result of planning, consolidation of freight units on a vehicle, booked capacity or scheduled means of transport
Subcontracting document for carriers to execute shipment legs
Tendering of subcontracted load: peer-2-peer, broadcast, open tenders
Manual or optimizer supported load building and planning (intermodal)
Customer invoice for sold transportation services
FI/CO, Internal settlement
Invoice for subcontratced or internal transportation services
TourTourBooking OrderBooking Order ShipmentShipment Bill of lading
Transportation Charge Management
Dispatching and Execution
Request Management
Sub-contracting
Sub-contracting
© SAP 2009 / 13
SAP TM – Past, Present, and FutureThe Approach and ArchitectureFunctional ScopeCustomer SuccessRoadmap – What lies aheadProduct Demonstration
Agenda
© SAP 2009 / 14
Major investment where SAP TM will build the backbone of an order-to-invoice processCustom development will add crew management as well as crew and locomotive operationsCN is already a reference on SAP LES, SAP CRM, and FinancialsSAPPHIRE 2008 Webcast available at www.sap.com/community/events/2008_05_SAPPHIRE_US/solutions.epx
Canadian National – Railway Panalpina – LSP
SAP Transportation Management – Customer Success
Replacing freight forwarding applications for ocean and air freight businesses“A marked improvement has been achieved through SAP’s TMS solution”…“…in addition, TM’s standardized communication interfaces mean that we can connect up to systems belonging to our customers and companies”…Panalpina Press Release available at www.panalpina.com/www/global/en/media_news/news/news_archiv_2/08_05_13.html
© SAP 2009 / 15
SAP TM used to tender full-truckload to preferred carrier base via Web portal technologySales order integration via standard SAP TM interfaceGoal to achieve full route compliance, avoid truck arrivals without dock availability, and streamline of payment process3-month planned implementation timeframe
Leveraging SAP TM as a decision support tool between LTL and parcel ratesLTL execution in SAP TM, parcel execution in third party
Government Agency driving pilot activities for central transportation management activities across all modes of transportation including sea and air cargo
Electronics Solution Company
Steel Trading company CP Supplier of Beverage Cans
Public Sector Europe
SAP Transportation Management – Customer Success – Shippers
Partnership with GT Nexus to model global end-to-end shipping scenarios, starting at booking, B/L, freight calculation, tracking and tracing of container movesEDIFACT based Web-service collaboration to ocean carriers via GT Nexus platform
Project to transition from SAP APO TP/VS to SAP TMBroader roll-out of SAP TM standardized best-practices in all regionsLand and marine mode of transport in focus
Oil and Gas Company Chemical Company
Use of SAP TM in Global Trading business for 2 unitsMarketing and Distribution:
Arrange purchase and sell of material, and arrange transportation (mostly break-bulk)
Recycling:Export FOB and Inbound Transportation Planning for Scrap material
© SAP 2009 / 16
Operations in non-asset based third-party logistics and intermodal freight transportation servicesHas been driving an early pilot with the SAP Center-of-Excellence to implement SAP TM for an order-to-cash processBest practice approach will streamline major workstreams throughout the organizationReuters article available at: www.reuters.com/article/pressRelease/idUS110256+28-May-2008+BW20080528
Pacer International - Intermodal
SAP Transportation Management – Customer Success
© SAP 2009 / 17
SAP TM – Past, Present, and FutureThe Approach and ArchitectureFunctional ScopeCustomer SuccessRoadmap – What lies aheadProduct Demonstration
Agenda
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© SAP 2009 / 18
Roadmap – Content 2008 TM 7.0
SAP TM 8.0Complete Business Suite Integration, Specialization
SAP TM 8.0Complete Business Suite Integration, Specialization
SAP TM 7.0Business Suite Integration, Operations, Financials, Connect
SAP TM 7.0Business Suite Integration, Operations, Financials, Connect
SAP TM 6.0Core Solution –Operations and Innovation
SAP TM 6.0Core Solution –Operations and Innovation
2007 2008 2009Business Suite Integration
Compliance and Process automation for Customs and Global Trade integration (SAP GTS for Exports)Intercompany and Intracompany Billing (SAP FI/CO)Profit Sharing and Invoicing enhancements (SAP FI/CO)Completion of SAP ERP warehouse management integration via delivery services (SAP ERP EHP4)Hazardous material handling based on best practices for chemical industry (SAP EH&S)
Partner IntegrationIntegration of SMC³ – Rating, Lead Time information services based on Enterprise SOA (i.e., Czarlite, Yellow, ABF Tariffs …)Enhanced partnership with GT Nexus based on EDIFACT based Enterprise Services
SimplificationMode-Specific Order Management User InterfacesProcess Usability – Graphical Navigation along processesImproved master data maintenance for schedules Customer Fact Sheet
Workflow ManagementProcess Monitoring – cascade decision, monitor events, analyze key processesEvent Driven Collaboration – increased visibility scenariosAnalytics support with Business Objects, an SAP company
© SAP 2009 / 19
SAP TM Document Structure –7.0 Enhancements
Add existing Shipment Request to Freight Request
Mode Specific Order Entry(air, ocean, land, intermodal)
Customer Fact Sheet
Dynamic Selection Criteria in POWL
Free field in business objects SRQ, SO, BO
Open table entry for items
Graphical Document Flow
Alternative Identifiers for locations
Generic Enhancements
GTS Integration(Export Scenario)
Create ETA from PTA
Tendering Template as Master Data
Integration to external rating engines (SMC3, LTL)
Manual Planning: Add stops based on 1-time ship to’s
Individual routing of freight units of one SRQ
Detailed cost information during planning
Maintain loading sequence via Planning UI
Inter-/Intra Company cost and revenue distribution Printing of Invoice RequestCheck Valid Freight Agreement
and Tariff for SRQ and SO
Multi Resources (aka external resources)
Schedules without resources, additional data
Workflows for transportation requests and orders
© SAP 2009 / 20
Roadmap – Content 2009 TM 8.0
2007 2008 2009ERP Order Integration
Integration of sales, purchase and stock-transfer order processes reducing planning lead timeWarehouse Execution PO call off and delivery triggerWeb Service Publish
Global Available-to-PromiseCompletion of order-entry integration tying material availability dates to transportation capacity
Driver PlanningWorking/driving time constraints in transportation planning (Scheduling, Optimization)Provide time recording for driversHR integration (bidirectional): e.g., planned working time, actual working timeTake into account driver incompatibility to resources, goods, and geography
Map Integration and map-based planningIntegration of ActiveX GEOMAP component
Standard GIS connectivity, interfacesMap24 integration (3rd party product by Mapsolute acquired by Navteq)
POWLs (Personal Object Worklist) with geographical viewIntroduction of map-based planning concepts
SAP TM 8.0Complete Business Suite Integration, Specialization
SAP TM 8.0Complete Business Suite Integration, Specialization
SAP TM 7.0Business Suite Integration, Operations, Financials, Connect
SAP TM 7.0Business Suite Integration, Operations, Financials, Connect
SAP TM 6.0Core Solution –Operations and Innovation
SAP TM 6.0Core Solution –Operations and Innovation
© SAP 2009 / 21
SAP TM – Past, Present, and FutureThe Approach and ArchitectureFunctional ScopeCustomer SuccessRoadmap – What lies aheadProduct Demonstration
Agenda
© SAP 2009 / 22
SAP TM 7.0
© SAP 2009 / 23
Resources
SAP TM White Paper www12.sap.com/usa/solutions/business-suite/scm/index.epx
Transportation Management Read White Paper
United Nations Instruction Messagewww.unece.org/trade/untdid/d03a/trmd/iftmin_c.htm
SAP Transportation Management (SAP TM)http://help.sap.com
SAP Business Suite SAP Supply Chain Management SAP Transportation Management
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© SAP 2009 / 24
7 Key Points to Take Home
Transportation Management is a central element of an effective logistics and fulfillment networkSAP TM is SAP’s next-generation Transportation Management systemSAP Transportation Management combines order quotation, receipt, and confirmation, transportation planning/dispatching, transportation execution, tracking, and freight charge management in one system
© SAP 2009 / 25
7 Key Points to Take Home (cont.)
SAP TM 7.0 delivers a variety of enhancements in regards to the overall document flow in TMSAP TM has a comprehensive roadmap beyond 2009Ramp-up for SAP TM 7.0 started November 21, 2001General Availability planned for the end of Q2/2008
© SAP 2009 / 26© SAP 2007-2008 / 26
Your Turn!
How to contact me:Bjoern Bernard
[email protected]© SAP 2009 / 27
Copyright 2009 SAP AGAll rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet™, Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages
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