Woodgrain Millwork Builds Their Success with

SAP Transportation Management (TM) 9.0

Connie Moylan - C.I.O., Woodgrain Millwork

Joyce Swanke - Sr. Industry Principal, SAP America
 LEARNING POINTS

Why SAP & TM 9.0 at Woodgrain?

TM 9.0 Functionality Implemented
Anticipated ROI
Lessons Learned
Whats Next? TM Roadmap Overview
 ABOUT WOODGRAIN MILLWORK

Privately-held, family-owned business founded in 1954

Manufactures, sells and distributes a diverse line of
millwork products (doors, windows, mouldings, and
other specialty wood products)
Integrated supply chain of both international and
domestic locations (20 locations worldwide)
Rapid growth fueled by acquisitions over many years,
resulting in multiple, legacy systems to integrate and
maintain
 WHY SAP & TM 9.0?

Woodgrains State of I.T. before SAP

Many strategic initiatives at Woodgrain Millwork could not be
effectively executed upon with current systems
Large number of unique applications across multiple business
units, resulting in:
High, On-Going Total Cost of Ownership
Integration Complexity inhibiting the ability of I.T. to
deliver the required business functionality in a timely
manner
Multiple systems at end-of-life, forcing investment in costly
upgrades and integrations and introducing risk to business
continuity
 WHY SAP & TM 9.0?

Why decision to implement SAP ECC 6.0 & TM 9.0?

Robust functionality to meet diverse set of requirements and

enable execution of business strategy
Provide a platform for growth and reduce the risk to business
continuitythe system can become a catalyst rather than
hindrance
Lower long-term TCO through elimination of many legacy
systems and multiple integrations
ROI opportunities identified in every business unit and
functional area
 WHY SAP & TM 9.0?

Why SAP Transportation Management 9.0?

Robust Integration to SAP ECC

Advantage over other 3rd party Transportation Management products that
are difficult to seamlessly integrate to Order Management when frequent
order updates and changes occur to meet customer demands

Significant opportunity to reduce supply chain costs in the area

of Transportation Management
SAP TM 9.0 greatly exceeds capabilities of current systems and processes
 WHY SAP & TM 9.0?

Why SAP Transportation Management 9.0?

Provides functionality required by Woodgrain to execute on
multiple methods of sourcing and delivery to customers

Out-of Warehouse
Cross-Dock
Direct Ship
Inter-company
Vendor consigned
Customer consigned
3rd-party Warehouse
3PL service
Customer and Vendor returns
International (next phase)
 About our TM 9.0 Implementation

Began TM 9.0 Ramp-up program in late November, 2012

TM is one piece of a full-scale ERP implementation at 7

Distribution locations, which includes: SD, MM, WM, PP

Scheduled go-live is May 6, 2013

Implementation Partner is BestXperts

 TM 9.0 Functionality Implemented

Order Integration
SAP ERP integration: Order-to-Cash, Procure-to-Pay
Freight Orders
TM Sales Order Scheduling

Freight Planning
Manual & Automated (Optimizer) Planning & Dispatching
Routing, Resource & Carrier Selection
GIS integration via NAVTEQ
 TM 9.0 Functionality Implemented

Freight Execution & Monitoring

Logistics Execution
Transportation Status Visibility & Monitoring
Capacity Monitoring

Document & Output Management

VICS Bill of Lading
Shipping Manifest

Integration & Connectivity (via SAP PI)

UPS Worldship
Airclic Proof of Delivery
XataNet GPS System
 ANTICIPATED ROI

Minimum of 15% reduction in freight spend

Use of in-house optimizer versus external vendor
Reduction in overall supply chain and inventory carrying
costs
Better visibility and more timely decision-making to make
adjustments as product moves through the external and
internal supply chain
Effectively manage increases in volume with the same or
smaller number of transportation planner resources less
manual intervention
Increased service level to customers
Better integration between order entry and transportation
planning via TM Sales Order Scheduling
 LESSONS LEARNED

Implementing TM requires a wide range of skill sets

ERP
SD
MM
LE
PI
ABAP OO Object oriented
SAP TM

TM uses some of the newest technology that is tough

to learn quickly
BRF Plus, Business objects framework
Post Processing framework
Floorplan Manager UI
 LESSONS LEARNED

Volume testing of the optimizer is key

Advise using PI from the start

It is possible to do a point-to-point but does not give you the
increase in message monitoring and visibility

Check for new OSS notes (now called SAP Notes) and
optimizer updates frequently

"I have not failed 10,000 times. I have successfully

found 10,000 ways that will not work.
-Thomas A. Edison
 SAP TM ROADMAP

Whats Next?
Transportation Management
Roadmap Overview
 Overview Transportation &
Logistics Investment Areas

2011 2012 2013 2014

Shippers Freight Rail Other
Forwarders Carriers Carriers

Retail Logistics
Service Prov.

Warehousing, Transportation & Event Management

HANA, Mobile

Analytics

Integration, Connectivity

Total Cost of Ownership (TCO)

 HANA Strategy for
Transportation & Logistics

Instant data analysis & decision support

HANA
Accelerated supply chain execution

SAP HANA-Powered Analytics SAP HANA-Powered SCE

HANA-optimization areas
Dashboards
Reports Supply chain tracking
Transportation planning
Warehouse workforce planning

Supply Chain Execution
SAP HANA

SAP in- SAP Business SAP Transport. SAP Extended

memory
computing Warehouse Management Warehouse Mgmt.

SAP Event Management

Supply Chain Execution
SAP Transport. SAP Extended SAP HANA SAP in-
Management Warehouse Mgmt. memory
computing

SAP Event Management

 Mobile Strategy for
Transportation & Logistics

Standard SAP mobile solutions

Mobile
Ecosystem enablement

SAP Mobile Architecture Ecosystem

Sybase Unwired Platform Enablement
For SAP & Partner mobile solutions Mobile infrastructure enablement
SAP Standard Mobile Solutions T&L solution consumption
Intra-enterprise solutions for warehousing simplification
Iternet Transaction server (ITS) -based applications
including picking, packing, put-away (RF, RFID, pick-by- Mobile Innovation
voice) New applications
Inter-enterprise solutions for transportation Door Appointment Scheduling
TM Tendering, TM Notifier . (Carrier appointment
SAP mobile analytics (SAP BW goes mobile) re/scheduling)
TM Notifier on iPhone
New technology integration
Voice control, HTML5
 TCO Strategy for
Transportation & Logistics

Supply Chain Execution Platform Delivery

Total Cost of Ownership Rapid Deployment Solutions

Supply Chain Execution Platform SAP Supply Chain Execution

Synchronized TM/EWM/EM delivery SAP Supply Chain
SAP Transportation SAP Warehouse
Management Management
SCE Suite implementation in single instance Execution Suite
SAP Event Management
Out-of-the box SCE process integration

Rapid Deployment Solutions RDS for SAP Extended Warehouse Mgmt.

Predefined implementation service
Enablement content (guides & sample data)
Preconfigured processes
Software
RDS for Domestic Freight Tendering
RDS for Domestic Transportation Planning
EWM Baseline for cross industries
SAP Event Management
TM for Ocean Carrier Booking (planned)
 KEY LEARNINGS

SAP selected to reduce Total Cost of Ownership (TCO)

. . . And to reduce integration complexity

Why SAP Transportation Management 9.0?

. . . Reduce costs

Whats Next?
. . . For SAP TM and Woodgrain Millwork!
 QUESTION & ANSWER

Question & Answer

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