SAPTransportationManagementSolutionManagementSupplyChainManagementProvidingaLowerTotalCostofOwnershipInvestmentProtectionfromLongTermViabilityEnd-to-EndBusinessProcessEnablement“ThispresentationisapreliminaryversionandnotsubjecttoyourlicenseagreementoranyotheragreementwithSAP.Thisdocumentcontainsonlyintendedstrategies,developments,andfunctionalitiesoftheSAP®productandisnotintendedtobebindinguponSAPtoanyparticularcourseofbusiness,productstrategy,and/ordevelopment.PleasenotethatthisdocumentissubjecttochangeandmaybechangedbySAPatanytimewithoutnotice.SAPassumesnoresponsibilityforerrorsoromissionsinthisdocument.”©SAP2007/SCMRoadmapPage21.Strategicandoperationalbusinessproblemsaddressed2.WhoisthecustomerandwhyIshouldpositionSAPTM6.0?3.SAPTMoverview,differentiation,positioning,andvalue4.Informationresources(SCMRoll-outMap,demos,contacts,etc.)AgendaMacro-economicchallengesExpandingglobalizationandoutsourcingincludingcompanyacquisitionsdrivemorecomplexlogisticalrequirementsLimitedpartnerandcustomercollaborationLimitedcrossecosystemcollaborationleadingtodecreasedvisibilitytocriticallogisticalinformationIncreasedenergycosts,regulations,andinternationalpolicyconsiderationsEnergycostsvs.assetutilization,SOX,increasedsecurityregulations,regionalconflicts,drivershortages,embargos,tariffsIncreasingcustomerdemandsSmallerandmorefrequentordersforcemorecomplexdistributionchannelrequirementstomaintaincustomerloyaltyStrategicBusinessChallengesGlobalizationstretchessupplychainsandincreasesrisksYouneedtheabilitytomanageconstantchange.Pain:DisparateSystemLandscapePain:GlobalizationrequiressophisticatedLSPsupport.Pain:NoEnterprise-wideVisibilityOperationalBusinessChallengesCross-companytransparencyandcommunicationslimityourFulfillmentsuccessPain:NoSinglesystemprocessenablementPain:AntiquatedLSPITinfrastructureYouneedsolutionsdesignedaroundyourbusinessprocessesPain:SynchronizingFinanceandOperationsHRCustomerServiceBillingFinanceWarehouseTransportationPartners&CustomersPain:IncreasedWorkloadPain:ManagingEquipmentShortagesPain:LackofAutomationPain:UncontrolledFreightSpendAdaptiveCollaborationInfrastructure–EndtoEndTheBusinessSuiteSolution:SingleplatformarchitectureSolution:SingleSourceoftruthiskeytoBusinesswidevisibilitySolution:Completeend-to-endprocessesSolution:Cross-EnterpriseCollaborationviaenterpriseservicesSolution:EnterpriseSOAbyDesignIt’sachallengingenvironmentandyouneedanewgenerationapproachCustomerServiceBillingHRFinanceWarehouseTransportationSINGLEPLATFORMPartners&CustomersSolution:EmbeddedstandardcommunicationprotocolsSolution:Back-endsystemagnostic,transportationsolutions©SAP2007/SCMRoadmapPage61.Strategicandoperationalbusinessproblemsaddressed2.WhoisthecustomerandwhyIshouldpositionSAPTM6.0?3.SAPTMoverview,differentiation,positioning,andvalue4.Informationresources(SCMRoll-outMap,demos,contacts,etc.)AgendaTargetCustomersShippers–Chemical,CP,HighTech,Healthcare,Mill,Oil&Gas,Retail,WholesalezThesecompanieseithermanufactureordistributeproduct.zTheyplanthetransportationactivitiesandcontracttheexecutiontotheLSP.zTheyreceiverequestsfromtheconsumersoftheirproductsandtheypurchasetransportationservicesfromthelogisticsserviceproviders.zTheirfocusisreducingthecostoftransportation,increasingservicelevelstotheircustomers,andbettercollaboratingwiththeircarriers.LogisticsServiceProvidercompanies–3PL,4PL,CarrierszThesecompaniesmanagethetransportation(3PL,4PL)ormanagethemovement(Carrier)oftheproductfortheshipper.zTheyfocusonmaximizingprofit,managingcustomerservicelevels,andcommunicatingtoboththeshipperandconsignee.zTheyreceiveordersfromtheshippertowhichtheyselltransportationservice.TheybuytransportationservicesfromCarriers.TargetCustomerTransportationScenariosTherearemanydifferenttransportationscenarioswhichinclude:Parcelshipping–performingparcelconsolidation,rulesbasedparceltoLTLdecisionmaking,rateshoppingparcelcarriers,labeling,andoperationalmanifesting,tracking,freightcostingLTLandTLshipping–orderconsolidation,loadplanning,manualandoptimizedroutingandscheduling,carriercollaboration,appointmentscheduling,tracking,freightcostingBulkProducts–similartoLTLandTL,butwithliquidbulkmaterialssuchaschemicals,oil,andgas.Usesingleandmulti-compartmenttypeequipment,freightcosting.Breakbulkoperationsbecomemoreimportant.RailTransportation–managingthefixedroutesandcostsassociatedwithmovements,limitedsophisticatedplanningrequirements,trackingOceanShipping–containerizedandbreakbulkinternationalshipping,bookingspaceonvessels,arrangingfordomesticandinternationaldrayage,freightcostingInboundLogistics–managinginboundroutingeitherinternationallyforfinishedgoods(i.e.China)ordomesticallyfromrawmaterialorintermediatesuppliers,routing,tracking,andfreightcosting.PrivateandDedicatedfleets–managingthedispatchingofdriversandequipmentusuallyalongfixedroutesandschedules3PL–buyingandsellingtransportationserviceswhileperformingallthepreviouslylistedactivities,usuallydonotowntheirownequipmentandaremostlyservicesfocused,tracking,freightcostingandbillingCarrie