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Nothing Can Stop A Runner
how a leader sport goods retailer can achieve the operational excellence running the leader software in enterprise applications
All characters and corporations or establishments appearing in this work are fictitious. Any resemblance to real persons, living or dead, or other real-life entities, past or present, is purely coincidental.
Andrea RicciarelliRunnerSupply Chain SpecialistSAP
The Race of Logistics powered by
Agenda powered by
The Warm Up: Challenges and Goals
Agenda powered by
The Warm Up: Challenges and Goals
The Run: Operational Excellence powered by SAP
Agenda powered by The Race of Logistics powered by
The Warm Up: Challenges and Goals
The Run: Operational Excellence powered by SAP
The Finish Line: Key Takeaways
AmbitionCreate excitement and make sport’s pleasure and well-being accessible to everyone
AmbitionCreate excitement and make sport’s pleasure and well-being accessible to everyone
Strategic Vision• Enable International Growth• Accelerate Innovation • Improve Value / Cost ratio of
product range
Ambition Strategic Vision
Operational Excellence a Key Milestone
Cost Visibility Efficiency
Where are you today?
Large amounts of maverick spend
6.66%8.3%
2012 2013
Transportation spend (as % of revenue)
Low Transportation Spend Under
Management %
Where are you today?
Missing Sales Opportunities€€€
Large amounts of maverick spend
6.66%8.3%
2012 2013
Transportation spend (as % of revenue)
Low Transportation Spend Under
Management %
Where are you today?
?Limited Stock in Transit
visibility
???
Store
Store
Inefficient & Inconsistent Logistics Process
Store
Store
DC
DC
Employee
Employee
Missing Sales Opportunities€€€ Delays Affect the
Perception of Service Quality
(Manual & Error Prone)
Large amounts of maverick spend
6.66%8.3%
2012 2013
Transportation spend (as % of revenue)
Low Transportation Spend Under
Management %
Where are you today?
?Limited Stock in Transit
visibility
???
Store
Store
?Limited Stock in Transit
visibility
???
Store
Store
Inefficient & Inconsistent Logistics Process
Store
Store
DC
DC
Employee
Employee
Missing Sales Opportunities€€€ Delays Affect the
Perception of Service Quality
(Manual & Error Prone)
Large amounts of maverick spend
6.66%8.3%
2012 2013
Transportation spend (as % of revenue)
Low Transportation Spend Under
Management %
Increase Transportation Spend Under Management %
Reduce Expediting Costs
7.35%
2013
Transportation spend (as % of revenue)
2014
Where do you want to be?
?Limited Stock in Transit
visibility
???
Store
Store
Complete Stock in Transit visibility
Store
Store
Inefficient & Inconsistent Logistics Process
Store
Store
DC
DC
Employee
Employee
Missing Sales Opportunities€€€ Delays Affect the
Perception of Service Quality
(Manual & Error Prone)
Large amounts of maverick spend
6.66%8.3%
2012 2013
Transportation spend (as % of revenue)
Low Transportation Spend Under
Management %
Increase Transportation Spend Under Management %
Reduce Expediting Costs
7.35%
2013
Transportation spend (as % of revenue)
2014
Where do you want to be?
Meeting Sales Opportunities
€€€
?Limited Stock in Transit
visibility
???
Store
Store
Complete Stock in Transit visibility
Store
Store
Inefficient & Inconsistent Logistics Process
Store
Store
DC
DC
Employee
Employee
Missing Sales Opportunities€€€ Delays Affect the
Perception of Service Quality
(Manual & Error Prone)
Large amounts of maverick spend
6.66%8.3%
2012 2013
Transportation spend (as % of revenue)
Low Transportation Spend Under
Management %
Integrated Logistics
Store
Store
DC
DC
Employee
Employee
Decrease Delays Serving the Perfect Order(Automated & Simplified)
Increase Transportation Spend Under Management %
Reduce Expediting Costs
7.35%
2013
Transportation spend (as % of revenue)
2014
Where do you want to be?
Meeting Sales Opportunities
€€€
The Finish Line: Key Takeaways
The Warm Up: Challenges and Goals
The Run: Operational Excellence powered by SAP
Lauratransportation planner
Sara warehouse shipping
clerk
warehouse worker
Rocco
truck driver Gino
warehouse worker
Rocco Laura
transportation planner
Operational Excellence powered by SAP
Operational Excellence powered by SAPLaur
a
The StepsTransportation Planner1. Check Transportation
Requirements2. Assign Freight Units to
Freights Orders3. Assign Carrier to Cargo4. Set Cargo Ready For Loading
0. Delivery Creation in SAP ERP
0. Delivery Creation in SAP ERP
1. Check Transportation Requirements
Laura
Transp.on
Planner
2. Assign Freight Units to Freights Orders
Laura
Transp.on
Planner
Laura
Transp.on
Planner2. Assign Freight Units to Freights Orders
3. Assign Carrier to Cargo
Laura
Transp.on
Planner
4. Set Cargo Ready For Loading
Laura
Transp.on
Planner
Operational Excellence powered by SAPLaur
a
Benefit1. Optimize Transportation
Planning2. Achieve high transparency
on the execution of transportation plans
3. Remove manual error
Operational Excellence powered by SAPLaur
a
Benefit1. Optimize Transportation
Planning2. Achieve high transparency
on the execution of transportation plans
3. Remove manual error
12% Lower Transportation Spend (% of revenue) when transportation planning is aligned with supply chain network planning
Operational Excellence powered by SAPLaur
a
Delays Affect the Perception of Service
Quality (Manual & Error Prone)
Low Transportation Spend Under
Management %
Missing Sales Opportunities€€€
Benefit1. Optimize Transportation
Planning2. Achieve high transparency
on the execution of transportation plans
3. Remove manual error
12% Lower Transportation Spend (% of revenue) when transportation planning is alignedwith supply chain network planning
Operational Excellence powered by SAPLaur
a
Decrease Delays Serving the Perfect Order(Automated & Simplified)
Increase Transportation Spend Under
Management %
Benefit1. Optimize Transportation
Planning2. Achieve high transparency
on the execution of transportation plans
3. Remove manual error
12% Lower Transportation Spend (% of revenue) when transportation planning is alignedwith supply chain network planning
Laura
Transportation Planner
Sara
Warehouse Shipping
Clerk
The StepsWarehouse Shipping Clerk 1. Check Assigned Deliveries in
Shipping Cockpit 2. Release Wave for the
Transportation Unit3. Check Wave status on
Warehouse Monitor
Sara
Operational Excellence powered by SAP
1. Check Assigned Deliveries in Shipping Cockpit
Sara
Wareh.se Shipping
Clerk
2. Release Wave for the Transportation Unit
Sara
Wareh.se Shipping
Clerk
2. Release Wave for the Transportation Unit
Sara
Wareh.se Shipping
Clerk
3. Check Wave status on Warehouse Monitor
Sara
Wareh.se Shipping
Clerk
3. Check Wave status on Warehouse Monitor
Sara
Wareh.se Shipping
Clerk
3. Check Wave status on Warehouse Monitor
Sara
Wareh.se Shipping
Clerk
Sara
Benefit1. Greater Transparency for
Stock and Processes2. Better Resource
Management
Operational Excellence powered by SAP
Sara
Benefit1. Greater Transparency for
Stock and Processes2. Better Resource
Management
27% Lower Order Fulfillment cycle time10% Reduction in Picking Time and Cost
Operational Excellence powered by SAP
Sara
Benefit1. Greater Transparency for
Stock and Processes2. Better Resource
Management
27% Lower Order Fulfillment cycle time10% Reduction in Picking Time and Cost
Operational Excellence powered by SAP
Delays Affect the Perception of Service
Quality (Manual & Error Prone)
Low Transportation Spend Under
Management %
Missing Sales Opportunities€€€
Sara
Benefit1. Greater Transparency for
Stock and Processes2. Better Resource
Management
27% Lower Order Fulfillment cycle time10% Reduction in Picking Time and Cost
Operational Excellence powered by SAP
Decrease Delays Serving the Perfect
Order(Automated &
Simplified)
Meeting Sales Opportunities€€€
Fork lift driver Rocco got on his mobile device the
loading tasks. Rocco scans the door ID that uniquely
identifies the truck as it is docked to the door
The truck to pick up the shipment arrives in the
warehouse.
Unfortunately one of the two planned pallets doesn’t fit
any more on the truck. Rocco is forced to finish
loading before having loaded all planned pallets on the
truck
This deviation from the plan is depicted in Sara
shipping cockpit as yellow triangle that tells her that
there is a deviation.
Transportation Management gets accurate information on transportation unit loads and
therefore is able to do precise transportation
charge calculation and performs correct invoice
verification with the truck carrier based on actual
transportation execution
The StepsTransportation Planner1. Check Freight Order Actual
Status2. Pallet left back in the
warehouse “new to be planned”
Laur
aOperational Excellence powered by SAP
1. Check Freight Order status2. Pallet “new to be planned”
Laura
Transp.on
Planner
1. Check Freight Order status2. Pallet “new to be planned”
Laura
Transp.on
Planner
1. Check Freight Order status2. Pallet “new to be planned”
Laura
Transp.on
Planner
Laur
aOperational Excellence powered by SAP
Benefit1. Creating delivery visibility2. Real-Time updates on
Transportation Unit loads 3. Precise Transportation Charge
Calculation4. Correct Carrier Invoice Verification
based on Actual Transportation execution
Laur
aOperational Excellence powered by SAP
Benefit1. Creating delivery visibility2. Real-Time updates on
Transportation Unit loads 3. Precise Transportation Charge
Calculation4. Correct Carrier Invoice Verification
based on Actual Transportation execution
• 20% Transportation Savings Capture• Robust Transportation Spend Control and Governance
Laur
aOperational Excellence powered by SAP
Delays Affect the Perception of Service
Quality (Manual & Error Prone)
Low Transportation Spend Under
Management %
Missing Sales Opportunities€€€
Benefit1. Creating delivery visibility2. Real-Time updates on
Transportation Unit loads 3. Precise Transportation Charge
Calculation4. Correct Carrier Invoice Verification
based on Actual Transportation execution
• 20% Transportation Savings Capture• Robust Transportation Spend Control and Governance
Benefit1. Creating delivery visibility2. Real-Time updates on
Transportation Unit loads 3. Precise Transportation Charge
Calculation4. Correct Carrier Invoice Verification
based on Actual Transportation execution
Laur
a
• 20% Transportation Savings Capture• Robust Transportation Spend Control and Governance
Operational Excellence powered by SAP
Decrease Delays Serving the Perfect
Order(Automated &
Simplified)
Increase Transportation Spend Under Management
%
Meeting Sales Opportunities€€€
The Finish Line: Key Takeaways
The Warm Up: Challenges and Goals
The Run: Operational Excellence powered by SAP
Integrated Logistics
Store
Store
DC
DC
Employee
Employee
Complete Stock in Transit visibility
Decrease Delays Serving the Perfect Order(Automated & Simplified)
Increase Transportation Spend Under
Management %
Reduce Expediting Costs
7.35%
2013
Transportation spend (as % of revenue)
2014
Where do you want to be?
Meeting Sales Opportunities
€€€
Integrated Logistics
Store
Store
DC
DC
Employee
Employee
Complete Stock in Transit visibility
Decrease Delays Serving the Perfect Order(Automated & Simplified)
Increase Transportation Spend Under
Management %
Reduce Expediting Costs
7.35%
2013
Transportation spend (as % of revenue)
2014
Operational Excellence powered by SAP
Meeting Sales Opportunities
€€€
Nothing Can Stop A Runner powered by
Thank You!