RWE Power PAGE 2
Upgrading
plants
13/10/2015
100%*
Solid fuel
sales
* 100% RWE Power
RWE Power
Conventional
Power
Generation
RWE
Generation
Supply /
Distribution
Networks
Germany
RWE
Deutschland
Supply
Netherlands /
Belgium
Essent
Supply
United Kingdom
RWE npower
Central Eastern
and South
Eastern Europe
RWE East
Renewables
RWE Innogy
Trading /
Gas Midstream
RWE Supply
& Trading
Upgrading
Group
Rheinbraun
Brennstoff
GmbH
RSB
Logistik
GmbH
Solid fuel
distribution
Solid fuel
production
Large-scale power plants80.4mt
Sale
s (R
BB)Pro
du
ctio
n
9.5mt Upgrading products
Electricity by RWE Power generation
Dis
trib
uti
on
(R
SB)
Employees: 1,654Fiscal year 2014
Power plants of Upgrading operations
2.47TWh
Solid fuel market
Private customers 0.9mt
Industrial
customers 6.4mt
Σ 7.3mt
3.7mt Electricity by Upgrading
2.3mt Non-lignite products
Upgrading
RWE Power PAGE 3
Final product
* incl. direct sales
Upgrading products 2014
13,2*
raw
lignite5,05
dry
lignite
2,47electricity
3,248pulverized
in mt / twh - fiscal year 2014
1,021
compact
0,247
grained
0,175
activated
coke
ProcessingRawlignite
RWE Power PAGE 4
Why do we need SAP TM for our lignite trucks?
13/10/2015
deliveries per disponent
‘in 1000freight cost development Germany
‘per to/pal
e2015201420132012
Packed goods
Bulk goods
disposition and logistics staff
‘in FTE
Freight Settlement
Freight Purchasing
Disposition
Total
11
28
414
34
103734 810
20162015201420132012
1914
4
1619 1820
35
deliveries per year
‘in 1000total
road
rail
232237
5
258263 227
5
222
55
227232258
253
5
20162015201420132012
15,3
14,2
15,0
11,7 14,2
37,533,0
14,211,4
14,7
20162015201420132012
unplanned
planned
RWE Power PAGE 5
193.000 deliveries within Germany in 201444.000 deliveries cross-border
13/10/2015
Deliveries from Rhenisch area to customersDeliveries from RBB
profit center to profit centerDeliveries to foreign countries
RWE Power PAGE 6
Inbound, outbound and in-between: Multiple scenarios add to complexity
13/10/2015
Warehouse fitting4
Third-party order5
Inbound purchase order6
plant 1
1
13
5
2
2
6
Unplanned customer order1
Planned customer order2
Stock transfer3
plant N
warehouse A warehouse B
Supplier Customer
RWE POWER
RBB
4
1
23
4
5
6
RWE Power PAGE 7
Implementing SAP-TM: The Challenge
13/10/2015
high-performance shipping
• Around 240.000 deliveries per year
• Truck load every 7.5 minutes
transport disposition
�
settlement
�
� � � �streamline
the process ̶
but don‘t touch shipping
RWE Power PAGE 8
Project Phase I: Freight Cost Management and Freight Settlement
13/10/2015
Sales Order
Freight
Agreement
Goods Issue
Freight
Settlement Doc.
Billing Document Transp. Service
Purchase Order
Service Entry Sh.
ERS Invoice Debit Note
Delivery Note
Tra
nsp
ort
Pla
nn
ing
an
d D
isp
osit
ion
Tra
nsp
ort
Execu
tio
nan
d S
ett
lem
en
t
SAP ERP SAP TM
Freight Order
Agency Billing Doc
Delivery based
Transp. Request
Shipping
Instructions
Service Provider
Logistic
RWE Power PAGE 9
Project Phase II: Order Integration, Planning and Carrier Selection
13/10/2015
Sales Order
Freight
Agreement
Freight UnitOrder based
Transp. Request
Goods Issue
Shipping
Instructions
Freight Order
Freight Order
PlanningConsolidationCarrier Sel.
Delivery Note
Tra
nsp
ort
Pla
nn
ing
an
d D
isp
osit
ion
Tra
nsp
ort
Execu
tio
nan
d S
ett
lem
en
t
SAP ERP SAP TM
Billing Document Freight
Settlement Doc.
Transp. Service
Purchase Order
Service Entry Sh.
ERS Invoice Debit NoteAgency Billing Doc
Delivery based
Transp. Request
Service Provider
Logistic
RWE Power PAGE 10
Disposition: From single-object planning to monitoring
13/10/2015
Gut & Günstig Gmbh
Gut & Günstig Gmbh
Alles auf Lager KG
Handaufallee 17 / 21337 Lüneburg
Handaufallee 17 / 21337 Lüneburg
Eisenrampe 6 / 04668 Grimma
Completely automated processes supported by work lists�Exception alerts trigger planning validation by disposition�
RWE Power PAGE 11
Transporting bulk goods
13/10/2015
> Freight agreements based on TO
> Full truck loads
> Delivered quantity < > ordered quantity
as standard processing
> Invoicing based on carried weight
�Handling of residual order quantities as success factor
for qualified planning
RWE Power PAGE 12
Transporting palletized goods
13/10/2015
> Freight agreements based on PAL
featuring quantity dependent rebates
> Combined freight units
with several unloading points
> Delivered quantity < > ordered quantity
depending on gross weight
> Invoicing based on carried number of palettes
�The less complex the freight agreements – the easier the invoicing
RWE Power PAGE 13
Cost distribution: Yes, we can!
13/10/2015
Essential for our business
Outbound Freights:
Freight costs per material are involved in
the sales price calculation procedure.
Inbound Freights:
Legal requirement – inbound freight
costs per material need to be considered
within stock valuation as incidental
acquisition expenses.
RWE Power PAGE 14
Conquering the Agency Business
Current Assets
Operating Expense
Cost distribution by agency billing document
> SAP ERP component to forward costs between partners
> Price calculation scheme used as mapping tool:
TM charge type � price condition type � G/L account
> Profound knowledge required: price & account determination,
BAdI implementation in FSD inbound and agency billing
Weight /
Palettes
RWE Power PAGE 15
Major project milestones: 2012-2016
13/10/2015
DINAS migration planned
• Higher degree of automation for planning required
• Data integration outdated, manual interfaces block flexibility
Decision LES vs. TM
• Process Mapping
• Decision LES vs. TM � TM 8.0 gives new impulse towards TM
• Hardware sizing
• GOPA/ Novigo on board
Phase 1 –Analysis
• Migration and integration concept
• Scenario definition
Phase 2 -freight settlement
• Focus on master data management and cost distribution
• Detailed planning of migration: When do we switch? Which orders in old/new system?
Phase 3 -planning (DE)
• Road only
• 6 planning scenarios
Planning BE/FR
• Add foreign country processes
• Use synergies
Go live rail
• Freight settlement only
• No planning
further integration
• Strategic freight management
• Move to 9.3
• …?
2015 20162012 2013 2014
RWE Power PAGE 16
Business functions and interfaces: Major pitfalls to avoid
13/10/2015
Overall project expenses
‘in percentStandard processes are easily installed
Major issues:
- Third party order
- Vendor consignment
Both not part of TM 9.0
� check your specialty processes in advance!
Individual processes are expensive
Major issues:
- Individual transactions, e.g. shipping system
- Correction tool
- Required service pack & business functions in ERP system
Both not part of TM 9.0
� Be thorough in analysis of AS IS situation
� Plan (far!) ahead for required changes in the ERP system
20%
TM
customizing
80%
Integration of
existing processes
in existing environment
RWE Power PAGE 17
Best practices in a difficult project environment
13/10/2015
Project benefits
gained (+) / lost (-)
Manual
interfaces
removed
Automated
corrections
Automated
freight
settlement
Automated
planning
Freight
agreements
Server
+
-
Automation works!
80% automated planning in disposition
95% automated freight settlement & corrections
...and needs powerful hardware!
Keep freight agreements simple!