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Supply Chain Management 2012

DECIDE BETTER, COLLABORATE BETTER, OPERATE BETTER

Andrea Ricciarelli
Business Development Director EMEA
LoB Supply Chain Management

Supply Chain Challenges


DECIDE BETTER, OPERATE BETTER, COLLABORATE BETTER

ORDER
FULFILLMENT
INTEGRATED
SUPPLY
RESPONSE
DEMAND
DEMAN
PLANNING
D

Fluctuating Demand
Inconsistent Response

Supply Delays
Sustainable Execution
Full
Truck
Loads
ValueSupply
Added
Services
Traceability
Product
Chain
Financial
Plans
In-house
Production
Outsourcing,
Suppliers
Customer
Satisfaction
Strategies,
Priorities,
StorePortfolio
Social
Networks
Smart
Phones
Strategies Rules

2012 SAP AG. All rights reserved.

Increased Supply Chain


Risk

Days or
Weeks

Personal
Productivity

DECIDE BETTER

COLLABORATE
BETTER

Functional
Efficiencies

OPERATE BETTER

Instant or Real
Real-time

Business
Networks &
Communities

Complexity

Business Strategies

How can SAP help Supply Chain


Professionals..

Flexible E2E
Processes

Business Value

2012 SAP AG. All rights reserved.

The 5 Elements of the New Supply Chain


DECIDE BETTER, OPERATE BETTER, COLLABORATE BETTER

Integrated Sales and Operations Planning

Demand
Management

Collaborative
Response
Management

Manufacturing
and Supply
Planning

Supply Chain Execution

2012 SAP AG. All rights reserved.

Evolution

More Innovation
with SAP Supply Chain Management

Breakthrough

Preview

SAP Sales & Operations Planning


powered by SAP HANA
SAP Advanced Planner & Optimizer

SAP Demand Signal


Management
powered by SAP
HANA:

Integrated Sales and Operations Planning

Demand
Management

Response
Management

Manufacturing &
Supply Planning

Supply Chain Execution

SAP Advanced
Planning and
Optimization
with SAP HANA

SAP Supply Network Collaboration

SAP Transportation Management

SAP Response Management (ICON)

SAP Global Batch Traceability

SAP Enterprise Inventory


Optimization (SmartOps)

SAP Extended Warehouse


Management

2012 SAP AG. All rights reserved.

Roadmap Outlook for 2012

2015

Q1

Q2

Q3

SAP SCM 7.02

SAP Sales &


Operations
Planning

Supply Chain
Execution
Release
(TM 9.0, EWM
9.0 & EM 9.0)

(general availability)

powered by
SAP HANA

2020

Q4

SAP Demand
Signal
Management
powered by
SAP HANA

Rapid Deployment Solutions


SAP BusinessObjects Supply
Chain Performance Management

Migration from warehouse


management to SAP Extended
Warehouse Management

Ocean carrier booking

Advanced production scheduling

Order tracking and exception


management with SAP Event
Management

Sales and Operations Planning


(HANA)

2012 SAP AG. All rights reserved.

SAP Supply Chain Execution Platform Strategy

Integrated Sales and Operations Planning

Demand
Management

Collaborative
Response
Management

Manufacturing
and Supply
Planning

Supply Chain Execution

2012 SAP AG. All rights reserved.

SAP Customers are Producing.

86%

Of sport shoes
worldwide

9 Mio.
Tons of cheese

70%

50%

Of chocolate
worldwide

Of branded jeans
worldwide

72%

77.000

Of beer production worldwide

Cars per day

...and all of this has to be transported & stored


2012 SAP AG. All rights reserved.

SAP Customers Invest in Transportation & Warehousing for

Reduced costs

Increased efficiency
& productivity

Better service
levels

Greater visibility
& decision support

Process automation
and scaleability

Compliance and
sustainability

2012 SAP AG. All rights reserved.

SAP Transportation and Logistics Mission and Strategy

Mission

The World's Best Supply Chain Execution Solution


The Thought Leader in Supply Chain Convergence

Supply
Chain
Execution
Leadership

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10

SAP Supply Chain Execution Platform Strategy

SAP ERP

Order-to-Cash
Procure-to-Pay
Dangerous Goods Mgmt.

SAP GTS

Customs & compliance mgmt.

Supply Chain Execution Platform


SAP Transport.
Management

SAP Extended
Warehouse Mgmt.

SAP Event Management (Track & Trace)

Supply Chain Execution Platform


Synchronized solution delivery
SCE Suite implementation in 1 instance
Out-of-the box SCE integration

2012 SAP AG. All rights reserved.

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SAP Solutions for


Transportation and Warehousing
SAP Transportation Management
SAP Extended Warehouse Management

SAP Transportation & Logistics Coverage


Processes, players and collaboration

Planning, orchestration, and execution


of the physical movement of goods
Freight Forwarder

Shipper

Consignee

TRANSPORTATION MANAGEMENT

Order
Management

Transportation
Planning

Transportation
Execution

Freight
Settlement

WAREHOUSE MANAGEMENT
Inbound
Storage &
Outbound
Processing
Operations
Processing

Carriers
2012 SAP AG. All rights reserved.

13

SAP Transportation & Warehousing History


A long history of business, process, and IT expertise

SAP R/3
Warehouse Mgmt.
(SAP R/3 2.04.7)

Goods storage

Logistics execution
1993

1994

SAP Supply Chain Management (SAP SCM)


SAP Extended Warehouse Management (EWM)
SAP EWM 5.0 5.1

SAP EWM 7.0-7.01

SAP EWM 7.02

Distribution
center logistics

Advanced
warehouse mgmt.

Best-in-class
warehouse mgmt.

2000

SAP R/3

SAP APO

Logistics Exec.
Transportation

Transportation
Planning / Vehicle
Scheduling (TP/VS)
Shipping planning
& optimization

(LE-TRA)

Shipment
execution

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2007

2011

SAP Transportation
Management (TM)
SAP TM 8.0-8.1

Comprehensive
transportation
management
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SAP Transportation Management (SAP TM)


Comprehensive transportation management for shipper industries

2011
Transportation Mgmt.

Comprehensive Transportation Mgmt.

Domestic inbound transportation


International inbound logistics
Outsourced transportation
Domestic outbound transportation
International outbound transportation

Transportation
Planner

Specialist
(i.e.Tendering)

Transportation
Dispatcher

Transportation
Charge Clerk

Order
Management

Freight Planning
& Tendering

Freight Execution
& Monitoring

Freight
Settlement

2012 SAP AG. All rights reserved.

15

SAP Extended Warehouse Management


Best-in-class warehouse managment

2011
Warehouse Mgmt.

Best-in-class Warehouse Management


All industries
Distribution centers &
production warehouses
Simple & complex, high volume
warehouse operations

Inbound
Processing

2012 SAP AG. All rights reserved.

Storage &
Operations

Outbound
Processing

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SAP Development Focus for


Transportation and Warehousing
Roadmap overview (2011-2015)

Overview 2012 Innovations

SAP Strategy: Innovate on a Stable Core

mobile

core

cloud

in memory

2012 SAP AG. All rights reserved.

18

Overview Transportation & Logistics Investment Areas

2011

2012

2013

2014

Shippers

Freight
Forwarders

Rail
Carriers

Other
Carriers

Retail

Logistics
Service Prov.

Warehousing, Transportation & Event Management


HANA, Mobile

Analytics
Integration, Connectivity

TCO / TCI
2012 SAP AG. All rights reserved.

19

T&L Core Investment Focus 2013 and Beyond


2011

2012

2013

2014

Shippers

Freight
Forwarders

Rail Carriers

Other
Carriers
Logistics
Service Prov.

Retail

Warehousing, Transportation & Event Management


Core TM
Core TM
processes
processes for
for shippers
freight forwarders
EWM returns
Advanced costing,
& claims mgmt.
settlement &
charge mgmt.
Migration tools
(ERP WM >
Dock appointment
EWM)
scheduling
Supply chain
execution platform
2012 SAP AG. All rights reserved.

Order-to-cash for rail carriers


Parcel management
T&L collaboration portal
Fleet management & tracking
Dock Appointment Scheduling II
Hub handling
Contract, opportunity & service management
Strategic freight procurement
Advanced warehouse optimization

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Overview Transportation & Logistics Investment Areas

2011

2012

2013

2014

Shippers

Freight
Forwarders

Rail
Carriers

Other
Carriers

Retail

Logistics
Service Prov.

Warehousing, Transportation & Event Management


HANA, Mobile

Analytics
Integration, Connectivity

TCO / TCI
2012 SAP AG. All rights reserved.

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HANA Strategy for Transportation & Logistics


Instant data analysis & decision support

HANA

Accelerated supply chain execution

SAP HANA-Powered Analytics

SAP HANA-Powered SCE

Dashboards
Reports

HANA-optimization areas

SAP HANA

SAP inmemory
computing

Supply chain tracking


Transportation planning
Warehouse workforce planning

SAP Business
Warehouse

Supply Chain Execution


SAP Transport.
Management

SAP Extended
Warehouse Mgmt.

SAP Event Management


2012 SAP AG. All rights reserved.

Supply Chain Execution


SAP Transport.
Management

SAP Extended
Warehouse Mgmt.

SAP Event Management

SAP HANA

SAP inmemory
computing

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Mobile Strategy for Transportation & Logistics


Mobile
SAP Mobile Architecture
Sybase Unwired Platform

Standard SAP mobile solutions

Ecosystem enablement

Ecosystem
Enablement

SAP Standard Mobile Solutions

Mobile infrastructure
enablement

Intra-enterprise solutions for warehousing

Mobile Innovation

For SAP & Partner mobile solutions

Iternet Transaction server (ITS) -based applications including


picking, packing, put-away (RF, RFID, pick-by-voice)

New applications

Door Appointment Scheduling


(Carrier appointment re/scheduling)

TM Notifier on iPhone

Inter-enterprise solutions for transportation

TM Tendering, TM Notifier .

SAP mobile analytics (SAP BW goes mobile)

New technology integration

2012 SAP AG. All rights reserved.

Voice control, HTML5

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Reporting & Analytics for Transportation & Logistics


Comprehensive, flexible, instant
reporting & decision support

Role/User-Specific
Worklists

Embedded,
Contextual Analytics

SAP Business
Warehouse

Adhoc Reporting/
Queries

SAP inmemory
computing

Graphical
Dashboards

SAP HANA

Analytics

SAP Supply Chain Execution Suite


2012 SAP AG. All rights reserved.

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Integration & Connectivity Strategy for T&L

Integration, Connectivity
A2A: Deep, native integration

SAP Business Suite


Web Services, CIF

SAP Supply Chain


Execution Suite

End-to-end process integration

Out-of-the-box connectivity
B2B: Out-of-the-box applications & tools
Mobile Applications
Sybase Unwired Platform

Business
Partners
Carriers

Carrier WebUIs

Logistics Services
Providers

Web Services

Logistics portals/
hubs

Web Services

SAP Information
Interchange

Transport
associations

Web Services

3rd Party Software


Graphical Information Systems
Vehical Space Optimization, ..
2012 SAP AG. All rights reserved.

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TCO/TCI Strategy for Transportation & Logistics

TCO / TCI

Supply Chain Execution Platform Delivery

Rapid Deployment Solutions

Supply Chain Execution Platform


Synchronized TM/EWM/EM delivery

SCE Suite implementation in 1 instance


Out-of-the box SCE process integration

Rapid Deployment Solutions


Predefined implementation service
Enablement content (guides & sample data)
Preconfigured processes
Software

2012 SAP AG. All rights reserved.

SAP Supply Chain Execution


SAP Transportation
SAP Warehouse
SAP
Supply Chain
Management
Management
Execution
Suite
SAP Event Management

RDS for SAP Extended Warehouse Mgmt.

RDS for Domestic Freight Tendering


RDS for Domestic Transportation Planning
EWM Baseline for cross industries

SAP Event Management


TM for Ocean Carrier Booking (planned)

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SAP T&L Release Plan


Release-To-Customer Delivery Plans

2010
Q4

Extended
Warehouse Mgmt.
Transportation
Management

EWM
7.01
TM
8.0

2011
Q1

2012
Q2

Q3

Q4
EWM
7.02
TM
8.1

Q1

Q2

Q3
EWM
9.0
TM
9.0

Supply Chain
Execution Platform
Synchronized delivery
First TM/EWM
integration (via ERP)
2012 SAP AG. All rights reserved.

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Our customers are running "better" with SAP solutions for


transportation and logistics

10% decrease in cost of goods transported


30% increase in warehouse productivity

50% reduction in distribution branches


via cost-effective transportation

34% ongoing labor cost reduction


Near zero customer-complaint rate
20
2012 SAP AG. All rights reserved.

warehouses live using the same template


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Wrap-Up

Large Market Demand & Growth


High transportation & logistics spend

Priority customer investment area


Strong SAP customer growth

Major SAP Investment


SAP strategic innovation area
Solid development roadmap
Strong service & ecosystem investment

Strong, Growing SAP & Customer Success

2012 SAP AG. All rights reserved.

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SAP can help you to .

2012 SAP AG. All rights reserved.

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Thank You!
Contact information:
Andrea Ricciarelli
Business Development Director EMEA LoB Supply Chain Management
andrea.ricciarelli@sap.com
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