asug sap transportation management tim motter scm product management may 19 th, 2003

ASUGSAP Transportation Management

Tim MotterSCM Product Management

May 19th, 2003

SAP AG 2003, Collaborative Transportation Proposal, SAP Transportation Team

Overview & Strategy

What are our Current Solutions?

Content in SAP APO TPVS

Strategy

Agenda


Overview: History for Perspective

R/3: Execution in v3.1 – 4.6C, execution focused Shipment and Delivery documents

Logistics Execution (LES) became a stand alone Logistics solution

Fleet Maintenance in PM and Dangerous Goods Checks in EHS

Industrial Transportation is available

Freight Rating in LES

XSI created for parcel tracking

Traders Scheduler Workbench for IS Oil

Direct Store Delivery (DSD) for IS Beverage

1999: Project w/ VCI Group based on Process Industry requirements. R/3 was not considered strategic direction

Project put on-hold due to APO

2001: TPVS introduced in APO 3.0

Investigation into market for all SCM Partnered with AD Little – determined importance of partners, cross

collaboration, outsourcing, and better visibility


Overview: History for Perspective

2003: More complete SCM solutions SCM – Inventory Collaboration Hub (ICH) for cross enterprise and system

collaboration

NetWeaverTM technology for people, process, and information integration

Supply Chain Event Management (SCEM) for visibility

Supply Chain Event Management and Strategic Freight Procurement – 1st steps for next generation of Transportation

2002: More complete focus develops Wieland Schreiner presents to PISUG 2002 in the support of a future for Industrial Transportation Rail Car Management (RCM) and Freight Cost Extension (FCX) Alignment of Product Management, Development, and Marketing ASUG Transportation Influence Council created


RCM, FCX, DDS, OSEM

SAP Transportation by Version

GCDS – RCM, FCX, DDS, and OSEM

LES Transportation – Logistics Execution integration – Warehouse Management, Transportation Processing, and Foreign Trade.

APO – Transportation Planning and Vehicle Scheduling

BW – Business Warehouse for KPI and Metric information

SCEM – Supply Chain Event Management for tracking.

Industry Solutions – specific Transportation functionality such as the IS Oil - Traders Schedulers Workbench.

RCM, FCX, DDS, OSEM

SD SD

APO 4.0 - TPVS

APO 1.1 APO 1.1 APO 2.0 APO 3.0 – TPVS

IT* IT*

LES TransportationLES

Transp.

R/3 Enterprise

GCDSGCDS

LES Transportation

SCEM (SCM 4.0)

BW 2.1C - 3.0A BW 3.1CIndustry Solut.

Industry Solutions

Industry Solutions


Strategy

Vision Develop a complete TMS solution to support the inbound and outbound logistics for Shippers and Service Providers for Bulk and Packaged Goods.

Mission Consolidate and enhance the existing SAP TMS components into one comprehensive solution while creating a platform for industry specific enhancements.


NetWeaver

Business InformationWarehouse 3.0B

Core Interface (CIF)PI_BASIS 2003.1

SAP SCM 4.0 Architecture

Exchange Infrastructure 6.20

Enterprise Portal 6.0

Web ApplicationServer 6.20

One SCM system to address SCM capabilities for networking, planning, coordination and execution.

System Integration

Exchange

SQLDB

SC

M 4

.0

liveCach

e 7.4.3

liveCach

e 7.4.3

SQLDB

SC

Eve

nt

Man

agem

ent

(SA

P E

M)

Inve

nto

ry C

oll

abo

rati

on

(S

AP

IC

H)

SC

Pla

nn

ing

(S

AP

AP

O)

Man

ufa

ctu

rin

g

War

eho

use

Mg

mt.

Tra

nsp

ort

atio

n M

gm

t.


Overview & Strategy

What are our Current Solutions?

What is on the Horizon?

Strategy

Agenda


Life-Cycle processes - Solution Focus

Transportation Management is a complex set of business processes which require close collaboration, integration, and real-time visibility. Most importantly, Transportation has a direct effect on your ability to succeed in the world of Order to Cash.

Collaboration

Planning

Coordination

Execution

Tracking

1 2 3 4 5 6 7 8 9 10

OperationalTacticalStrategic


Solution Portfolio Requirements – Broad and Deep

Fleet/ShipmentMonitoring

CollaborativeShipment

Forecasting

CarrierSelection

LoadConsolidation

CollaborativeOrder

Promising

Supply Chain Event

Management

Multi-Enterprise

NetworkIntegration

StrategicCarrier

Contracting

CollaborativeTendering

TransportationAnalytics

LoadConfiguration

FreightCosting

TransportationOrder

Management

FleetManagement

AccountingForeignTrade

EH&S

Freight Exchange

Mobile Services

Expressshipments

YardManagement

CollaborativeOrder

Promising

NetworkDesign

…wherein lies the challenge



Strategic Freight Procurement for Carrier Negotiations – SDP with large Chemical manufact.

Strategic Freight Procurement Determining load based on history

data

Carrier invitation to tender

Valuate and optimize load per route/carrier based on freight conditions and quantities

Contract negotiation

Possible Results Contracts Quota Freight conditions

Sales & Shipment Forecast

Sales & Shipment History

Request for Proposal

Determine Volume

Actual Shipment

Monitor & ProcessMonitor & Process

Freight ConditionsOptimization

Freight Quantities

Contract Negotiation

Contract Nomination

Contracts

Quota

Freight Conditions

Assign CarrierAssign Carrier

Determine CarrierDetermine Carrier

1 2 3 9 10


Planning - APO: Vehicle Scheduling and Routing / Carrier Selection

For more complex routing requirements, routing and scheduling uses optimization to create shipments and their associated deliveries based on the least total cost of all orders.

Consolidates orders. Identifies the most cost efficient route. Determines the proper mode of transport. Schedules the shipments for their respective origins/destinations.

Goal: build shipments that ... Minimize the resource usage and total costs

Maximize customer satisfaction (on time delivery)

Utilize the service agent (carrier) which meets the specific selection strategy (i.e. lowest cost, priority)

Are based on modeling attributes: lanes, transportation zones, resources, locations, and hierarchies

CheckAvailability

Vehicle Sched.& Routing

Tendering

TSPSelection

WMSProcessing

Customs

TransportationExecution

ShipmentCosting

Tracking

Reporting/Analysis

TSPSettlement

Order taking

Creation ofOLTP doc‘s



Planning - LES Transportation and RCM

LES - Route Determination: basic point-to-point routing capability. Planning proposals. Individual, collective, and transportation chain shipments. No “geographic intelligence” or cost/service based optimization. Manual or “defaulted” service agent (carrier) assignment.

RCM - The Routing Guide is an alternative solution to standard route determination in SAP R/3 which allows you to create your own strategy for determining a route.

Increases number of access keys for route determination Supports multiple geographic representations Supports multiple route service agent strategies

Business Share Priority Low Cost Carrier (actual freight amount)

Tracks historical metrics and identifies usage of non-compliance service agents

CheckAvailability


Tendering

TSPSelection

WMSProcessing

Customs


ShipmentCosting

Tracking

Reporting/Analysis

TSPSettlement

Order taking




Execution & Settlement - LES Transportation

Delivery and Shipment documents – for performing WMS and TM execution.

Freight rating – costing shipments according to carrier contractual rates.

Freight accounting – accounting for transportation costs within the Enterprise to the right cost center, company code, product, ...

Carrier settlement – paying the carrier either through self-billing, evaluated receipt settlement (ERS), or manually.

Express Ship Interface (XSI) for parcel carriers. tracking. labeling. manifests.

CheckAvailability


Tendering

TSPSelection

WMSProcessing

Customs


ShipmentCosting

Tracking

Reporting/Analysis

TSPSettlement

Order taking




Execution & Settlement - Rail Car Management Features

DDS – Distance Determination Service Retrieve distance from 3rd party distance providers

FCX – Freight Costing Extension Tariff Reference Data Routing Guide Customer Freight Invoicing Inter-company Settlement of Freight Costs

RCX – Rail Fleet Management Railcar Tracking

Railcar Management Tools

Railcar Status Reporting

Detention Billing, Mileage Credits, Lease/Sub-Lease Reporting

Interface with Plant Maintenance (mySAP PLM)

OSEM – Onsite Yard Management for Railcars Scheduled Events and Tracking

CheckAvailability


Tendering

TSPSelection

WMSProcessing

Customs


ShipmentCosting

Tracking

Reporting/Analysis

TSPSettlement

Order taking




Industry Focused –

Mill Products – major customer engagements/projects to enhance transportation

Optimization

Carrier Selection and Freight

Ocean shipping

Enhancements to Core

Oil - IS: Trader’s Scheduler Workbench Inter-Enterprise planning and nomination function

Run down engine for inventory visibility

What-if analysis

Transportation Document: Catch quantity

Vehicle master – compartment level

Metering information to TSW

Movement Tickets to reflect actual goods movement (i.e., pipeline movement ticket, marine inspection report)

Alerts and financials based on goods movement


Overview & Strategy

What are our Current Solutions


Strategy

Agenda

mySAP SCM 4.0News in SAP APO TPVS

Dr. Andreas OttoProduct Manager Order Fulfillment, SAP AG


New features in SAP SCM TP/VS

Optimization: SAP Optimizer replaces ILOG Optimizer Improved Selection Options Optimization Profile ease-of-use Initial Solution for Optimizer

Manually Create Pool Shipments

Order Split

GIS Integration

Planning Returns

Changed R/3 Shipment reflected in TPVS


Usability: More selection options in Optimization Profile

Specify work packages to be optimized in one optimization run (fragments of the complete optimization problem) more detailed and more easy.

Specify according to the needs of the optimization problem.

Specify according to the needs of the dispatchers.


Order Split: Overview

Business Problem: Line item of order is larger than capacity of any available resource

Solution: TP/VS will split these large order items by creating multiple deliveries

with smaller items. Example: With SAP APO 3.1 a sales order item for 50 tons of raw

material can not be processed by TP/VS, if the largest vehicle only holds less than 50 tons.


Order Split: Process (1)

Order

Item

Large item

Delivery

Item

Item

Item

Shipment

SAP APO TP/VS

Order Split

VS

1

3

4

2

5


Order Split: Process (2)

Order

Item

Large item

SAP APO TP/VS

Order Split

1

Split Rules

Split Value

Packet Size

Large Item: 100 to

Split Value: 20 to

Packet Size: 20 to

5 Deliveries with 20 tons each.

Delivery

20 to

20 to

...

Access sequence

Access sequence: controls which Split Rule applies.Examples: lane, mode, customer, ...

2

3

4

5


GIS services

Geo-coding Input: zip code, street address Output: longitude/latitude

Routing Determine route: How to drive from Hamburg to

Frankfurt; can be controlled by parameters, like shortest route, fastest route, route without highway

Determine distance : How far from Hamburg to Frankfurt using this route (see above)

Input: location from, location to, control parameters

Output: legs, times, distances

Create map Draw a map based on supplied data; map consists

of representation of geography plus additional icons, like customers, plants, distribution centers, …

Input: geographic region to be displayed, map type, icons

Output: bitmap


GIS in SAP SCM applications

The following shows which applications (may) use GIS services.

APOR/3

Customer Master

Shipment

Location Master

Lane MasterShipments

APO 3.1:- Rough geo-coding- Street Level geo-coding if content is purchased separately

APO 4.0:same as APO 3.1; but now via IGS

APO 3.1:Aerial distance

APO 4.0:Road Based („real“ distance) via IGS – if content is purchased separatelyTransp. Planning

APO 4.0:Display Map - via IGS – only on project request,

not in standard

3rd Party:Road Based („real“ distance) – if purchased

Rough Geo-coding

(not in standard)


GIS in R/3: Geo-Coding

Geo-coding: Not in standard SAP R/3 R/3 offers no geo-coding service in standard To invoke geo-coding services, a CDP is necessary

Content is build in (geo data on rough level); content comes from the GIS provider PTV (Karlsruhe, Germany).

Geo-coding needs to be called when an address is entered during maintaining address master data.

SAP R/3 CIF SAP APO

Maintaincustomermaster

Geo-Data

Geocoding-Framework

Additional fieldsin customermaster (long/latitude)

Map fields of customer master to fields „x-pos“ and „y-pos“ in user exit

Receive customer master with correct geo-codes (no re-coding in APO if fields are filled)

Add fields for geo-codes to customer master

Call geo-coding routine per BADI


Extended GIS in R/3 (to be purchased separately)

SAP Transportation Add on: This Add on determines Rand McNally or ALK (PC Miler) distances. Distances populate the shipment stages. The Add on only supplies the ability to connect to the GIS vendors, but

not the content. Add on pricing assumes that connection to GIS vendors is established.

3rd party software to connect to GIS vendors Many R/3 users retrieve distances to populate routes and/or shipments

with transportation mileage using 3rd party software. The quality and scope of the retrieved data is mixed. Usually the software vendors only offer the coding, but not the content.


GIS in APO 3.1

Geo-coding Both the content and the coding to use this content are build in. Geo-coding is called when an address is entered during maintaining

location master data. The level of detail depends on the maintained geo-coding program in

APO customizing. The standard content (“SAP0”) comes from the GIS provider PTV

(Karlsruhe, Germany).

Distance determination: Aerial distance The distance of a lane, as used in transportation planning, can be

determined as an aerial distance (“Luftlinie”) while maintaining lanes in master data.

Map An APO model can be displayed as a map in the SC engineer. This

map is an SAP OCX, that is embedded in APO.


GIS in APO 4.0 – TP/VS

With APO 4.0, TP/VS will be able to integrate selected GIS services using a standard interface.

The interface is called IGS (Internet Graphics Server) and is part of the SAP Basis 6.20 and onwards.

Note that the APO does not come with any GIS content. It only has the ability to make use of GIS content.

The customer has to purchase the content in the form of services from external GIS vendors.

SAP APO 4.0 TP/VS

SAP Basis 6.20

IGS

PTV ESRI

... ...

3rd party GIS server –external

3rd party GIS server –local

SAP …

3rd Party GISProviders


GIS in APO 4.0 – TP/VS: Architectural concept

SAP APO 4.0 TP/VS

SAP Basis 6.20

IGS

PTV ESRI

... ...

3rd party GIS server –external

3rd party GIS server –local

Plug in: To be maintained by GIS vendor

Application implemented againstuniform interface; GIS providernot transparent to application

SAP …


Overview & Strategy

What are our Current Solutions


Strategy

Agenda


Main developments in 4.0 and 4.1

SCM 4.1 (ASUG Result) Carrier allocations on

location level Multiple Hub-Assignments Control planning

via preset carrier via preset mode via “Ship-with” via INCO terms via “Material Aval. Date” via “Delivery Windows” and

“Pick-up Windows”

SCM 4.0 GIS Integration Order Split SAP Optimizer Plan Returns Manual Pool Planning Optimization Profile

* 4.1: suggested.


Product Strategy Proposal

3.1 4.0 4.1 5.0

3.1

4.0

4.1

5.0

Release

Grow functionality over time.

• 4.0 and 4.1 set• 5.0 pending

asug sap transportation management tim motter scm product management may 19 th, 2003

Documents

osem sap transportation

sap transportation team

transportation processing

generation of transportation

sap scm

sap ag

transportation scem

apo transportation planning