SAP Global Trade Management

Rollout Knowledege Transfer R/3 Enterprise Release 4.7 ES 2.0 Unit 1 Introduction & Overview

Agenda

Product Positioning Business Benefit Key Capabilities Markets

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 2

What is Global Trade Management?

First and Only

Global Trade Management (GTM) is the first and only comprehensive and integrated Enterprise Solution tailored for trading companies operating worldwide.

The focus on these companies lies on the logistic brokerage of goods and services.
Procurement processes as well as sales processes included in a Trade can be mapped. SAPs Corporate Fincance Management (CFM) allows the hedging of currencies and commodities risks related to a Trade.

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 3

Global Trade Management Overview

Coordinate sales and purchasing activities for the trading business
Trading Business
Customer Risk Management Forwarder Sales Insurance Co. Supplier

Purchase

Global Trade Management

Bank

Inventory

Agent

Distribution Center 2
SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 4

Distribution Center 1

The Positioning of Global Trade Management

Global Trade Management is one of the enhancements in R/3 Enterprise Extension Set 1.10
Tuned core, optimized for performance based on release 4.7 (SAP R/3 Enterprise Core)

Extension

SAP R/3 Enterprise Core

Optional new functional enhancements

(SAP R/3 Enterprise Extensions)

SAP WEB AS

Newest version of mySAP.com Technology technologies and infrastructure enhancements (SAP Web Application Server)

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 5

Agenda

Product Positioning Business Benefit Key Capabilities Markets

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 6

Transparent Trade Process

Do you control your supply chain efficiently? A complex supply chain involves many activities in your ERP system which can be hardly related to each other. In order to control your supply chain you have to transparently see the network of relations. Can you follow your Trader's trail? Its hard to find out whether a specific deal is profitable or not if you dont see the distinct sales, purchases and expenses related to a deal.

With GTM you have full control over purchasing, sales and expenses with all subordinate documents through the Trading Contract and Trading Execution Management. This increases efficiency and control over profitability.

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 7

Transparent Trade Process

Trading Contract Management

Purchase
PO
Follow -up docs

Expenses SO

Sales

Follow -up docs

Integrates Sales, Purchase and Expenses in a single leading document

The backbone for trade integration Enhanced document flow and status management

One user interface

Easily enhancable
Built on top of standard R/3 Enterprise
SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 8

Reduced process steps

How many times is data reentered into different systems and applications? Integration deficits may arise not only between systems but as well within a system. Beside the costs your process is at risk to get out of sync whenever the business changes (deadlines, quantities, values, ) Can you detail your own business processes on your system? The acceptance of a solution depends very much on the capability to adopt to your specific business.

Within GTM Trading Execution Management you can define your own business processes and automate them whenever appropriate. This improves acceptance and reduces process step$.

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 9

Reduced process steps

Trading Execution Workbench
Sales Order Purchase Order

Goods Receipt

Goods Issue

Shipping & Invoice

Open order/ Open delivery calculation

Profitability analysis

Expense calculation and posting

Integrates the complete Trade Process across applications,including all subordinate documents Sophisticated cross appliation document flow Easily adoptable and enhancable to your business

One user interface

The process control engine for the complete Trade Process

Built on top of Trading Contract Management and standard R/3 Enterprise

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 10

Reduced unallocated costs

Do many of your trade expenses end up in one big bucket? Expenses may have a huge impact on the net profit of a deal. In cases you cant handle expenses flexible enough you may end up with one big bucket. Are your decisions related to profitability sharp enough? Expenses which are not planned and settled at the right time and not precisely allocated to the deals make it difficult to see whether a deal has been profitable.

With GTM Expense Management you can plan expenses at the earliest possible stage and judge profitability from the beginning of a deal. The clear assignment of expenses allows sharper decisions where to invest or deinvest.
SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 11

Reduced unallocated costs

Trading Expenses in the Trading Contract
Purchase
PO
Follow -up docs

Expenses

SO

Sale s
Follow -up docs

Manages both estimated and settled expenses, with flexible allocation and distribution of the expenses to deals Uses a consistent procedure and a unified cross application user interface In fact, the expense control engine

One user interface

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 12

Controlled risk
Are you under full control of the risk even if the deal changes? Risk management is fine if everything happens exactly as planned. Risk may get out of control if changes of deadlines, quantities and values incorporate manual process steps. Do you know where you stand at the end of the day? Margins are getting smaller, risks higher and accounting rules harder. If you dont have a clear picture of your risks and cant make sure that they are under control under all circumstances you may not know where you stand.

The GTM integration of logistical and financial risk management makes sure the risks are under control at the earliest possible stage. There are no risky process gaps anymore.
SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 13

Controlled risk
Currency hedging in the Trading Contract

Trading CC 01
TC Release

Treasury CC 99

Bank

Internal FX Internal FX Buy FX Mirror Sell FX

FX Planning
P/L =
P/L from logistics + P/L from FX

External FX

FX Contract

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 14

Improved reliability
Can you link a delivery promise to a pending purchase? In case you cant easily link pending purchases against sales your process is getting either complicated or too slow (assumed you have to stock and distribute thereafter). In result your responsiveness is not as good as the customer expects. Can you avoid under- /overcommitments? You may be in a dilemma when you have to promise at a very early stage but have to avoid under-/overcommitments. Undercommitments may be dangerous in volatile markets, overcommitments are disappointing your customers. With GTM Position Management you can assign distinct purchase items with distinct sales items before the goods arrive. This improves your reliability and reduces your risk.

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 15

Improved reliability
Position management in the Trading Contract Purchase
PO DL

Position Management

Sales
SO DL GI

GR

Allows a N:M links between purchases and sales at the earliest possible stage or any time later The engine for control of long / short positions (and the resulting risk)

One user interface

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Agenda

Product Positioning Business Benefit Key Capabilities Markets

SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 17

Customers Global Trade Management

GT Customer: Daewoo Corp. (Korea) Sinochem (China) Hitachi High Tech Europe (Germany) Mitsui Corp. (11 international subsidiaries) Sumitomo Corp. (Japan) Matsushita/Panasonic (Japan) Hitachi High Tech (Japan) Hitachi Business International (Japan) Barcardi (Switzerland) MacSteel (Southafrica)
SAP AG 2003, Global Trade Management (Lev. 1 Rev. 4), Speaker Name / 18

More Information
More information: SAP Service Marketplace SAPNet Contact : Harry Rapp
Business Development Manager, Global Trade Management

http://service.sap.com/GTM http://intranet.sap.com/GTM

SAP AG Tel. : +49 (0)6227 749033

mailto: Harry.Rapp@sap.com

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