Excellence through Supply Chain Convergence

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Excellence through

Supply Chain Convergence


November, 2012

©
2011 SAP AG. All rights reserved.

2

Legal Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without
the permission of SAP. This presentation is not subject to your license agreement or any other service or
subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this
document or any related presentation, or to develop or release any functionality mentioned therein. This
document, or any related presentation and SAP's strategy and possible future developments, products
and/or platforms directions and functionality are all subject to change and may be changed by SAP at any
time for any reason without notice. The information on this document is not a commitment, promise or legal
obligation to deliver any material, code or functionality. 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. This document is for informational purposes and may not be
incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except
if such damages were caused by SAP intentionally or grossly negligent.

All forward
-
looking statements are subject to various risks and uncertainties that could cause actual results
to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward
-
looking statements, which speak only as of their dates, and they should not be relied upon in making
purchasing decisions.

©
2011 SAP AG. All rights reserved.

3

SAP Customers
are Producing….

Of sport shoes

worldwide

86
%

Of chocol ate

worl dwi de

70
%

Of branded j eans

worl dwi de

50%

Cars per day

77,000

Tons of cheese

9 Mio.

Of beer
producti on worl dwi de

72
%

...and all of this is moved through our customers supply chains

©
2011 SAP AG. All rights reserved.

4

The Transportation and Logistics Market

A priority investment area for SAP & our customers

Transportation and Logistics (T&L)

represents an area of major focus for...

...the global economy


Global transportation spend


Consumer prices & company profitability


Global CO2 emissions

...our customers


Global supply networks


Customer service


Operational efficiency and cost reduction

...SAP


T&L market size and growth


Core solution extension


Strategic investment

©
2011 SAP AG. All rights reserved.

5

Transportation & Logistics Challenges

Top Executive Issues


How
can I manage my logistics network in a holistic fashion?


How can I minimize the risk factors throughout my supply chain?


How can I reduce my operational costs and better understand
transportation costs at the customer level?


How can I ensure best possible usage of my assets?


How do I ensure high customer service levels and
responsiveness to unexpected supply chain events?


How do I ensure I am compliant with all the varying regulations
and compliance
policies
?

©
2011 SAP AG. All rights reserved.

6

What does this mean for your business?

Top
Operations/LOB issues


Where and do I manage freight contracts?


How can I make intelligent freight rate decisions on a
daily basis while considering customer service and
capacity constraints at the same time?


How do I improve carrier relationships while driving
down freight costs at the same time?


How do I enable customer facing personnel to make
critical customer service decisions without disregarding
transportation cost factors (e.g. expediting)?


How can I monitor on
-
time performance of carriers at
customer locations?


Can I take better charge of inbound transportation
processes?

©
2011 SAP AG. All rights reserved.

7

What does this mean for your IT department?

Top
IT issues


How do I control an IT infrastructure that has grown
above and beyond just a single ERP system


Can I leverage a universal platform for my mission
critical business applications?


What is my strategy to integrate carriers and logistics
service providers into my business strategies?


How can I reduce the number of interfaces between
ERP, supply chain and transportation management
systems?


How can I serve the business’ desire for supply chain
convergence?


What is the Total Cost of Ownership when deploying
best
-
of
-
breed versus SAP out of the box TMS systems?


©
2011 SAP AG. All rights reserved.

8

SAP Transportation & Logistics Coverage

Processes
, p
layers and collaboration

Planning, orchestration, and execution

of the physical movement of goods

Shipper

Customer

Freight Forwarder

Carriers

Order

Management


Transportation
Execution

Transportation
Planning

Inbound

Processing

Outbound
Processing

Storage &
Operations

WAREHOUSE MANAGEMENT

TRANSPORTATION MANAGEMENT

Freight

Settlement


©
2011 SAP AG. All rights reserved.

9

Supply Chain Execution…

…A complex process and c
hallenging environment

Costs

Customer Service

Efficiency

Visibility

Multi
-
modal

Global trade

Compliance

Sustainability

Shipper

Consignee

Planning, orchestration, and
execution

of the physical movement of
goods

©
2011 SAP AG. All rights reserved.

10

Supply Chain Execution

…with a global network of players / service providers

C

Freight Forwarder

Carriers

Communication &
Collaboration

Shipper

Consignee

Rates

Schedules

Orders / bookings

Demand

Invoices

Dock appointments

Tenders / Quotations

Print /electronic documents

Contracts

Events

©
2011 SAP AG. All rights reserved.

11

SAP Supply Chain Execution
Mission and Strategy

The

World's Best
Supply Chain Execution
Platform

Mission

Freight Forwarder

Carriers

Shipper

Consignee

Integrated

Connected

Best
-
in
-
class

Verticalized

Communication &
Collaboration

Capacity
Procurement &
Network Planning

Order

Management

Warehouse

Execution

Freight

Execution &
Monitoring

Customer
Billing & Freight
Settlement

©
2011 SAP AG. All rights reserved.

12

SAP
Transportation & Logistics

Our mission and strategy

The
MARKET LEADER
in Supply Chain Execution

The
THOUGHT LEADER
in Supply Chain Convergence

Mission

SUPPLY

CHAIN

EXECUTION

LEADERSHIP

Best
-
in Class Solution


Best
-
in class functionality


Complete, comprehensive

solution


Integrated & Connected

Processes


Intra & inter
-
enterprise solution


End
-
to
-
end process integration


Out
-
of
-
the box connectivity

Verticalized Offering


Industry
-
specific

functionality


Multi
-
industry offering


©
2011 SAP AG. All rights reserved.

13

Supply Chain Execution (SCE)

Sense and respond through an adaptive fulfillment network


TM, WM, Order Mgt, Finance, ATP,
Event Mgt, GTM all need to share data
and

functionality


Native integration reduces integration
implementation time and maintenance


Business Network EM not just TM only
visibility


Advanced order mgt / TM functionality
allowing earlier load /carrier planning
and handling of order changes



Track &
Trace

Extended

Warehouse Mgmt

Transportation

Mgmt

Global

Trade Mgmt

©
2011 SAP AG. All rights reserved.

14

Aligning stakeholders to enable Logistics and Fulfilment
Management

Effective Logistics and Fulfillment Management requires alignment
between several stakeholders with differing objectives

How do I achieve
holistic visibility to
orchestrate
alignment across
the network to
increase customer
service and
minimize costs?






Revenue


Customer
Service Levels


Costs

VP of Supply
Chain

Outbound
Freight
Management

How do I ensure
high customer
service levels
maximizing
warehouse
throughput and
minimizing
transportation
spend?





Delivery Service
Levels


Customer Claims /
Month


Transportation
Costs

Logistics

Inbound
Freight
Management

How do I obtain
upstream visibility
to optimally
manage incoming
freight, spend,
and streamline
downstream
operations?





On Time Arrival


Carrier /
Supplier
Performance


Transportation
Costs

Logistics

Storage and
Fulfillment







Inventory Turns


Inventory
Accuracy


Inventory
Holding Costs

Distribution

How do I maximize
asset utilization,
minimize costs,
and respond to
changes still
ensuring the
“perfect order”?

Customer
Commitment

How do I ensure
a realistic
promise in light of
increasing
customer
demands, shorter
lead times and
reduced
inventory?





Revenue


Customer
Service Levels


Cost to Serve


Sales

Global Trade
Management

How do I ensure
compliance with
always changing
requirements when
importing and
exporting goods,
while keeping cost
and duties to a
minimum?




Landed Cost


Customs
Clearance Cycle
Time


Filing Accuracy

Logistics

©
2011 SAP AG. All rights reserved.

15

VP of Supply
Chain

Outbound
Freight
Management

Manage customer
deliveries within
customer
constraints while
utilizing assets

Logistics

Inbound
Freight
Management

Improved visibility
and planning to
choose the
optimum cost and
manage supply
risk

Logistics

Storage and
Fulfillment

Distribution

Streamline
warehouse
processes and
material flow right
from yard to shelf

Customer
Commitment

Order
Management
based on available
and projected
inventory and end
-
to
-
end order to
cash process
support

Sales

Global Trade
Management

Achieve
compliance
throughout inbound
and outbound
processes


Logistics

Accurate
customer orders
and deliveries
help
exceed
target service
levels
, drive
volume,
and
reduce cost
-
to
-
serve


Upstream
visibility drives
carrier
performance
and
reduces
inbound
transport costs


Better planning
and optimized
transports help
reduce
transport
mileage and
costs


Maximize
asset utilization
and reduce
warehousing
costs


Reduce risks
of non
-
compliance in
global trade

Logistics and Fulfillment Management

Highlights and Benefits

©
2011 SAP AG. All rights reserved.

16

Extended Warehouse Management


Best
-
in
-
class warehouse management
solution designed to run all storage
and fulfillment processes


Automated support for processing any
goods movements and for managing
stocks


Provides labor management, slotting,
advanced optimization techniques and
flexible connectivity to automation
equipments


©
2011 SAP AG. All rights reserved.

17

Transportation Management


Complete transportation management
solution


International and domestic


All modes of transportation


Built
-
in compliance with international
trade and hazardous goods mgmt


Interactive transportation and
shipment planning, collaborative
tendering


Integrated logistics and fulfillment
management, transportation execution
visibility and monitoring


Comprehensive freight cost
management, Integrated freight and
forwarding settlement


©
2011 SAP AG. All rights reserved.

18

Global Trade Services


Automate risk management,
compliance and monitoring activities,
and minimize the associated cost and
effort required


Proactively prevent risk events and
compliance violations from occurring


Create value by incorporating risk and
compliance into strategy, planning and
operational execution




©
2011 SAP AG. All rights reserved.

19

Track & Trace


Compliance with directives


Improved operational efficiency


Reduced safety stocks




©
2011 SAP AG. All rights reserved.

20

Why an Integrated Platform Works…

Integration



Deliver integrated storage, fulfillment and global inbound and
outbound transportation processes

Efficiency



Predictably execute supply chain plan while embedding flexibility and
agility to support changes and take advantage of opportunities

Transparency



Provide end
-
to
-
end traceability and visibility to condition and
status of orders, shipments, and items

©
2011 SAP AG. All rights reserved.

21

How SAP can work with Descartes

© SAP
2007 /
Page
21

©
2011 SAP AG. All rights reserved.

22

Strong industry focus ensures delivery of a best
-
in
-
class transportation
management solution (for both shipper and LSP industries)

Summary

&
W
rap
-
up

Transportation and logistics is a major focus area for SAP

SAP Transportation & Logistics has a solid plan defined to achieve supply
chain convergence and transportation network coverage

SAP is working in close collaboration with customers and partners
throughout the entire development life
-
cycle

SAP Transportation & Logistics follows a model that allows for fast, quality
solution delivery

Thank You!


Bill King

Director


Transportation Management Solutions

T +1.202.725.9511

bill.king@sap.com

www.sap.com