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Bjoern Bernard SAP Labs A Comprehensive Introduction to SAP Transportation Management: The Next-Generation Transportation Solution © 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 Future The Approach and Architecture Functional Scope Customer Success Roadmap – What lies ahead Product 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 Management Track and Trace RFID handling Extended Planning and Ocean Booking 2007 1987 Transportation Solution in SAP R/2 2000 Transportation Planning. & Opt. in SAP APO-TP/VS 2001 2004 2006 Nov 2008 Shipper Transportation Focus Transportation Solution in SAP R/3 1993 Nov 2009+ SAP TM 8.0 and 9.0 SAP TM 7.0 Focus Suite Integration/ Specialization SAP TM 6.0 for Shippers, FF, 3PL and LSP © SAP 2009 / 5 SAP Transportation Management Where Are We Coming From? SAP Transportation customers 5000+ customers using SAP ERP-Logistics Execution System (LES) for core logistics processes and freight payment and audit applications 150+ large enterprise accounts using SAP APO TP/VS for sophisticated transportation planning including Siemens, General Mills, BASF, International Paper, Colgate, Fujitsu-Siemens, Coors 250+ 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 orientation SAP 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 limitations However, 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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Page 1: Why We’re Here Agenda - wpc.0b0c.edgecastcdn.netwpc.0b0c.edgecastcdn.net/000B0C/pdf/616.pdf · Why We’re Here Find out how SAP Transportation Management ... & Opt. in SAP APO-TP/VS

Page

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

Tran

spor

tatio

nSo

lutio

n in

SA

P R/

2

2000

Tran

spor

tatio

n Pl

anni

ng. &

Opt

. in

SAP

APO

-TP/

VS

2001 2004 2006 Nov 2008

Shipper Transportation Focus

Tran

spor

tatio

nSo

lutio

n in

SA

P R/

3

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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