Visibility in Transportation Management with SAP Event Management. SAP Business Transformation Services October 2011 internal

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1 Visibility in Transportation Management with SAP Event Management SAP Business Transformation Services October 2011 internal

2 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 forwardlooking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions SAP AG. All rights reserved. 2

3 AGENDA 1. Overview of SAP TM 8.0 Scenarios 2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios 3. Implementation of TM-EM Visibility Processes Prerequisites and Basics Configuration Required for all Scenarios Scenario Specific Configuration 4. Enhancing the Standard Visibility Processes Retail Customer Example

4 SAP Transportation Management Scenarios Predefined, Best Practice Transportation Scenarios with SAP TM 8.0 Scenario Overview Integrated, end-to-end transportation scenarios Predefined, best practice processes & configuration Scenarios Covered Domestic Inbound Transportation International Inbound Logistics Domestic Outbound Transportation International Outbound Transportation Outsourced Transportation Scenario Deliverables (in Solution Manager) Scenario Description Scenario & Process Component List Configuration Guide (incl. Scenario Master Data) Customer / Partner Benefits Reduced implementation time, effort and cost Efficient, lower cost operations 2011 SAP AG. All rights reserved. 4

5 Domestic Inbound Transportation Inbound shipment processing for purchased goods from domestic suppliers with integrated shipper transportation planning and logistics service provider execution Vendor 1 (Plant Hamm, DE) Vendor 1 (Plant Lippstadt, DE) Multi pick-up Consignee 1 (Plant Dingolfing, DE) Vendor 2 (Plant Dortmund,DE) Vendor 1 (Plant Lüdenscheid, DE) Main carriage with multi-drop Direct main carriage Vendor 2 (Sindelfingen, DE) Consignee 1 (Plant Munich, DE) Land-based main carriage via truck with multi-pick for full truck load transportation and multi-drop delivery to consignee plants Inbound delivery Direct, land-based transportation via truck from supplier to consignee plants Inbound delivery 2011 SAP AG. All rights reserved. 5

6 Domestic Inbound Transportation Scenario & Process Details Material Planner Transportation Planner Transportation Service Provider / Carrier Warehouse Manager Transportation Charge Clerk Purchase Order Processing Transportation Requirement Processing Freight Planning & Carrier Selection Freight Execution & Monitoring Inbound processing Freight Settlement Purchase order creation (in SAP ERP) Vendor determination via purchasing contracts Goods supplier deviating from vendor Order-based transportation requirement creation (in SAP TM) Automatically created based on purchase order Freight unit creation Automatically created according to building rules Delivery-based transportation requirement creation Automatically created based on later inbound delivery Manual / automated transportation planning Optimizer planning (Multi-pick, multidrop scheduling & routing) Freight order creation Automatic carrier selection and assignment based on transportation lanes Document sending Event message reporting (in SAP EM) Loading / unloading of freight order freight units Arrival & departure confirmation Unplanned event tracking & alerting Focus of EM visibility processes Advanced Shipping Notification (ASN) (in SAP ERP) Receipt of ASN from supplier, processed as inbound delivery SAP TM update for transportation request triggering Goods receipt processing Posting to stock Proof of delivery (POD) sending to vendor Transportation Charge Calculation According to freight agreements Haulage charges dependent on weight & distance Supplier Freight Invoice Request (SFIR) processing Create & transfer freight settlement document to SAP ERP Freight settlement (in SAP ERP) Carrier invoice entry Invoice verification & payment Evaluated Receipt Plan / actual update Settlement (ERS) 2011 SAP AG. All rights reserved. 6

7 International Inbound Logistics International, intermodal transportation management for purchased goods from overseas vendors with integrated purchase order, transportation and invoice management Vendor 1 (Mainland China) Port-of- Loading (Shanghai, China) Port-of- Discharge (Hamburg, Germany) Consignee (Ludwigshafen, Germany) Main Carriage On-carriage Pre-carriage Vendor 2 (Mainland China) Packing of purchased material in container Direct pre-carriage via truck from vendors to port-of-loading Main carriage via scheduled vessel from China to Germany On-carriage via scheduled train from Hamburg to Ludwigshafen Inbound delivery 2011 SAP AG. All rights reserved. 7

8 Domestic Outbound Transportation North America Scenario & Process Details Domestic outbound transportation management with automatic planning optimization and carrier selection, as well as tendering, dispatching, and freight settlement Truckload Planning Consignee 17 (Provo, UT, USA) Less-than-Truckload Planning Shipper Plant Warehouse/ Distribution Center (Chicago, IL, USA) Consignee 07 (Evansville, IN USA) Consignee 08 (Louisville, KY USA) Consignee 09 (Carrolton, KY USA) Intermodal Planning Consignee 10 (Los Angeles, CA USA) Packing of material in boxes. Material grouping & staging per trip. Truckload shipment direct to customer Truck transportation to local railhead Multi-drop transportation to customers via LTL carrier Rail transportation to nearest destination railhead Truck transportation to customer 2011 SAP AG. All rights reserved. 8

9 International Outbound Transportation Full Container Transportation - from forwarding order processing, ocean carrier booking, freight planning, execution & tracking to order settlement Shipper (Newark, USA) Shipper Warehouse (Transp. Division) (Newark, USA) Port-of- Loading (Newark, USA) Main Carriage Port-of- Discharge (Rotterdam, Holland) Consignee (Düsseldorf,Germany) Drop-off carriage Final delivery Material packing at shipper location in 3 containers (20 foot standard dry containers) and delivery to the transportation division s warehouse Drop-off carriage via fixed trucking company to port-ofloading Main carriage ocean transportation via ocean liner (Free On Board (FOB)) using pre-booked freight capacity Final delivery via truck from port-of-destination and delivery to consignee Goods delivery at consignee (with proof of delivery) 2011 SAP AG. All rights reserved. 9

10 Outsourced Transportation Outsourced transportation process management - with shipper transportation planning and 3rd party shipment execution and event monitoring Shipper Plant (Chicago,USA) Carriage Customer (Bellevue, USA) Packing of sold material in boxes Full truck load transportation via 3 rd party carrier to customer location Delivery to Customer 2011 SAP AG. All rights reserved. 10

11 AGENDA 1. Overview of SAP TM 8.0 Scenarios 2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios 3. Implementation of TM-EM Visibility Processes Prerequisites and Basics Configuration Required for all Scenarios Scenario Specific Configuration 4. Enhancing the Standard Visibility Processes Retail Customer Example

12 Visibility Processes for Transportation Management Pain Points Transportation operations is an area in which transparency is crucial, especially in those cases where lengthy transportation times have to be considered, like for example when shipping overseas. To ensure customer satisfaction, it is more than ever important to keep full control of what is going on, although parts of the business process may run outside your company's realm, managed by an advanced external Transportation Management system. Solution Details Visibility Processes for Transportation Management offer preconfigured, out-of-the box content for transportation operations, supporting you in tracking relevant activities in- and outside your company walls. You can monitor different processes and business documents, like freight units and freight orders. Depending on your role, you can chose different layouts for the user interface such as shipper and consignee, which results in a comprehensive and easy to understand view on transportation operations SAP AG. All rights reserved. 12

13 Mapping of TM Scenarios to EM Visibility Processes TM 8.0 Scenarios International Inbound Logistics Domestic Outbound Transportation International Outbound Transportation Outsourced Transportation General TM-EM Visibility Process (Only different settings in TM on freight unit, freight order or booking order level) Domestic Inbound Transportation Additonal EM settings (exemplary for all scenarios) 2011 SAP AG. All rights reserved. 13

14 SAP EM Visibility Process for TM Tracked Objects and Events FREIGHT UNIT Scheduled Loading Begin Loading End Departure Arrival Unloading Begin Unloading End Damage Arrival Unloading Begin Unloading End FREIGHT ORDER, BOOKING ORDER Loading Begin 1 Loading End Proof of Pickup Departure Clear Customs Arrival Unloading End Proof of Delivery Delay Legend: = expected event = unexpected event 2011 SAP AG. All rights reserved. Internal 14

15 SAP EM Visibility Process for TM Tracked Objects and Events Event Handler Type Expected Events Unexpected Events Event Event Code Event Event Code Freight Unit Scheduled SCHEDULED Damage DAMAGE (ODT20_FU) Loading Begin LOAD_BEGIN Delay Freight Unit DELAYED_FU Loading End LOAD_END Cancel CANCEL Departure DEPARTURE Block for Execution BLOCK_FOR_EXEC Arrival at Destination ARRIV_DEST Unblock for Execution UNBLOCK_FOR_EXEC Unloading Begin Unloading End UNLOAD_BEGIN UNLOAD_END Freight Order, Freight Booking (ODT20_TO) Loading Begin LOAD_BEGIN Delay DELAYED Loading End LOAD_END Cancel CANCEL Proof of Pickup POPU Block for Execution BLOCK_FOR_EXEC Departure DEPARTURE Unblock for Execution UNBLOCK_FOR_EXEC Clear customs Arrival at Destination Unloading Begin Unloading End Proof of Delivery CLEAR_CUSTOMS ARRIV_DEST UNLOAD_BEGIN UNLOAD_END POD 2011 SAP AG. All rights reserved. 15

16 SAP EM Visibility Process for TM Parameters and Statuses System Parameters: Consignee (Internal) Destination Location (External) Destination Location (Internal) Ordering Party (Internal) Requested Delivery Date Requested Pick-Up Date Sales Organization Shipper (Internal) Source Location (External) Source Location (Internal) Transportation Order Category Transportation Order ID Transportation Order Root Key Transportation Service Provider Control and Info Parameters: Assigned Freight Units Booking Order ID Capacity Check Block Consignee Customer Return ID Customs Block Customer Order ID Dangerous Goods Block Set Delayed Event Delivery ID Estimated Delay Date Estimated Delay Time Estimated Delay Timezone Freight Order ID Statuses: Transportation Status Delivery Status Block Status Comprehensive set of parameters and statuses included in visibility process SAP AG. All rights reserved. 16

17 SAP EM Visibility Process for TM Rule Sets EM rule sets for freight order / booking order and freight unit: If event code = xyz Set status in EM Send data to TM (activity = TM_MAINTAIN_EXEC_INF) If event code = CANCEL Deactivate event handler If event code = DELAY Send data to TM (including estimated new expected date and time of the next expected event) Create Alert TM follow-up actions: In TM the execution status of the freight order, booking order or freight unit is updated according to the event that has been sent to TM from EM. For example, when the last expected event is reported from EM, the system sets the status of the corresponding freight orders to executed. The update within TM is done via a so-called determination logic in BOPF SAP AG. All rights reserved. 17

18 Tracking Information is Available Seamlessly in SAP TM from Event Management 2011 SAP AG. All rights reserved. 18

19 Tracking Information is Available Seamlessly in SAP TM from Event Management 2011 SAP AG. All rights reserved. 19

20 AGENDA 1. Overview of SAP TM 8.0 Scenarios 2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios 3. Implementation of TM-EM Visibility Processes Prerequisites and Basics Configuration Required for all Scenarios Scenario Specific Configuration 4. Enhancing the Standard Visibility Processes Retail Customer Example

21 Prerequisites Required applications, releases and business function The following applications and releases are required: SAP TM 8.0 SAP enhancement package 1 for SAP Event Management 7.0 with Support Package 3 In EM you must activate the business function SCM_EM_TMCONTENT01 Go to transaction code: SFW5 Activate the business function 2011 SAP AG. All rights reserved. 21

22 Basics TM Architecture Business Object Processing Framework Business Object Model A Business Object is a representation of a type of uniquely identifiable business entities described by a structural model and an internal process model (e.g. a freight order). TM 8.0 BO model consists of two main business objects: Transportation Request (TRQ) Transportation Order (TOR) All tracked objects (freight unit, freight order and booking order) use the same business object TOR in TM. Nodes: A Node is a semantically related set of attributes of a business object. Nodes can be used to define and structure your business object. The most relevant nodes for EM are: ROOT STOP ITEM_TR EXECUTIONINFORMATION 2011 SAP AG. All rights reserved. 22

23 Basics TM Architecture Business Object Processing Framework BOPF TEST UI (transaction /BOBF/TEST_UI) Expected event data is read from EM 2011 SAP AG. All rights reserved. 23

24 Basics TM Architecture Business Object Processing Framework The communication to EM is triggered via the Post Processing Framework in Output Management of TM. The Post Processing Frameworks triggers: External communication such as printouts, faxes, and s with a print preview option Alerts Workflow Business-to-business (B2B) and application-to-application (A2A) communication BI data upload Events to an Event Management system on the basis of decisions or in response to business events 2011 SAP AG. All rights reserved. 24

25 Basics Three Sets of Event Codes Events in TM: Event Types in EM application interface of TM: Internal Event Codes in EM: 2011 SAP AG. All rights reserved. 25

26 AGENDA 1. Overview of SAP TM 8.0 Scenarios 2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios 3. Implementation of TM-EM Visibility Processes Prerequisites and Basics Configuration Required for all Scenarios Scenario Specific Configuration 4. Enhancing the Standard Visibility Processes Retail Customer Example

27 Configuration Required for all Scenarios Customizing in TM: Setting up connection between TM and EM: maintain the output management adapter Defining execution relevance on FU-type or FO-type level Customizing in EM application interface: Standard EM settings Customizing in EM: Standard EM settings For detailed information on the required configuration see Integration Guide SAP TM with EM (link) SAP AG. All rights reserved. 27

28 Configuration Required for all Scenarios Setting Up Connection Between SAP TM and SAP Event Management You use this procedure to enable the communication between TM and EM by maintaining the output management adapter for the business object TOR. 1. In Customizing for SAP TM, choose Cross-Application Components Processes and Tools for Enterprise Applications Reusable Objects and Functions for BOPF Environment PPF Adapter for Output Management Maintain Output Management Adapter Settings. 2. Choose the dialog structure Direct Output Agents (w/o PPF & w/o History). 3. Select the entry with the following data: Business object: /SCMTMS/TOR Node: ROOT Agent name: SEND_EM_DATA_FROM_TOR 4. Choose Details. 5. Select the Enable checkbox SAP AG. All rights reserved. 28

29 Configuration Required for all Scenarios Settings on Freight Unit, Freight Order, and Booking Order Type Level Define Event Settings in the FO Type Define Event Settings in the FU Type 2011 SAP AG. All rights reserved. 29

30 AGENDA 1. Overview of SAP TM 8.0 Scenarios 2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios 3. Implementation of TM-EM Visibility Processes Prerequisites and Basics Configuration Required for all Scenarios Scenario Specific Configuration 4. Enhancing the Standard Visibility Processes Retail Customer Example

31 Scenario Specific Configuration Domestic Inbound Transportation Business Purpose: Demonstrating how to enhance existing visibility processes with additonal events only by configuration and no development effort. Required Configuration: Customizing in TM: Defining events in TM for business documents Customizing in EM application interface: non Customizing in EM: Defining new internal event codes Define rule sets Define new event handler type Define condition for event handler type (same application object type as other scenarios, different transportation execution organization in TM) Define new profile for expected events (new DIT internal event codes are being generated from existing standard event codes (e.g. LOAD_BEGIN) Defining Authorization Profiles Defining Web Interface Transactions, new configured fields and new user profiles See configuration guide for domestic inbound transportation (link) SAP AG. All rights reserved. 31

32 Scenario Specific Configuration Domestic Inbound Transportation Defining additional Events in TM: In Customizing for SAP TM, choose Transportation Management Integration Tracking and Tracing of Processes and Documents Define Transportation Activities for Tracking and Tracing Choose the Event for Business Document view from the structure on the left. Create the following new entries: 2011 SAP AG. All rights reserved. 32

33 Scenario Specific Configuration Domestic Inbound Transportation Defining additional Events in EM: In Customizing for EM choose Event Handlers and Event Handler Data Codes Event Codes Define Internal Event Codes and Internal Event Code Groups. Choose the Internal Event Codes view from the tree structure. Create the following entries: 2011 SAP AG. All rights reserved. 33

34 AGENDA 1. Overview of SAP TM 8.0 Scenarios 2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios 3. Implementation of TM-EM Visibility Processes Prerequisites and Basics Configuration Required for all Scenarios Scenario Specific Configuration 4. Enhancing the Standard Visibility Processes Retail Customer Example

35 Enhancing the Standard Visibility Processes Customer example of a leading German Retailer Enhancing EM rule set for event DELAY: Automatic calculation of consequences of a delay For which of the customers of a multi-drop tour can the agreed time slot not be met? Retail Store 4 Retail Store 3 Retail Store 2 Distribution Center Retail Store 1 The project was delivered as a CDP SAP AG. All rights reserved. 35

36 Enhancing the Standard Visibility Processes Customer example of a leading German Retailer Enhancing rule set for event DELAY: Automatic calculation of consequences of a delay For which of the customers of a multi-drop tour can the agreed time slot not be met? Next location of the tour Duration of the delay If the time slot of a specific retail store cannot be met, an alert for the store manager is triggered automatically. The store manager is being informed about the newly calculated time of arrival of the goods at his store. The project was delivered as a CDP SAP AG. All rights reserved. 36

37 2011 SAP AG. All rights reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iseries, pseries, xseries, zseries, eserver, z/vm, z/os, i5/os, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, ianywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. 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. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages SAP AG. All rights reserved. 37

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