Chemical Industry Transportation Management

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1 Chemical Industry Transportation Management 2013 SAP CISUG Conference October 15-16, 2013 Better Approach

2 Global Chemical Industry Trends Major Transportation Business Challenges Increasing costs driven by rising fuel prices and growing capacity constraints Supply chains being stretched globally to service new/emerging markets Missed customer commitments due to poor visibility and silo ed processes Reliance on transportation partners and fragmented information flows Growing import and export delays due to global customer requirements Growing physical security and volatile geo-political risks 2

3 Chemical Transportation Managing operational complexities of a growing transportation network while ensuring visibility and agility needed to meet global customer commitments Physical Product Complexities Inbound Logistics Outbound Logistics International Logistics 3PL & 4PL Partners Import and Export Multi-modal & Multi-stage Safety & Geo-Political Risks Process and Information Complexities Functional & Organizational Silos Silo ed Information/Technologies Regulatory Oversight / Impacts Reduced or Limited Visibility: Customer Capable-to-Promise Global Track-n-Trace Supplier Available-to-Promise Transport Capacity Scheduling 3

4 Global Logistics Platform Management of all physical product flows while providing real-time visibility into information flows for inbound, outbound, and international transportation business processes and partners Enable End-to-End Supply Chain Visibility Transportation & Warehouse Management Financial Reporting & Performance Tracking Environmental, Health, & Safety (EH&S) Regulatory Compliance (Import, Export, REACh, etc.) Mobility and Global Track-n-Trace Capabilities Event Management and Workflow Support Integrated Logistics Processes Customer Commitments, Sales Orders, Outbound Shipments Supplier Purchase Orders, Inbound Deliveries, & Receipts International Import/Export Compliance and Stock Transport Orders 4

5 SAP Transportation Management Better Partners

6 SAP Transportation Management Integration ERP Sales Order Scheduling Delivery date & ATP Scheduling Transportation planning simulation results (Feasible delivery date and quantities for sales order items) ERP Logistics Execution Delivery & shipment execution Shipment data Tendering & carrier data Warehouse planning & execution (EWM) ERP Billing & Invoicing Customer freight invoicing Forwarding settlement document (for customer billing of freight costs) Carrier/supplier freight settlement Freight settlement document (for carrier invoice verification & settlement) SAP Transportation Management ERP Order Integration TM transportation planning ERP sales & returns orders ERP purchase & returns orders ERP stock transport & returns orders ERP DG Management Dangerous goods data Dangerous goods ID Classification Phrases SAP Global Trade Services Customs procedure & approval processing Export declaration Customs status SAP Event mgmt Event notification & monitoring Transportation execution milestones Carrier event notification 6

7 SAP Supply Chain Execution Platform Overview 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 7

8 SAP Transportation Management 9.1 Rail Transportation Order-to-Cash for rail carriers Quote-to-Pay for rail shippers Strategic Freight Mgmt. Strategic Freight Procurement (buying) Quote-to-Contract (selling) Further Innovations... Transportation & Logistics Collaboration Portal Load optimization Fleet management Direct TM-EWM Integration 8

9 Strong SAP TM Momentum and Success Over 100 customers Across all regions In all transportation-relevant industries Over 50 implementation projects Productive use of SAP TM in multiple industries and sites around the globe Consumer Products, Chemicals, Automotive, High Tech, Wholesale Distribution, Logistics Service Providers, Utilities, Defense,, Strong and growing SAP and Partner Service Portfolio 9

10 Lessons Learned from the Field Better Results

11 Pre-Project Planning Education drives faster adoption of new tools and processes The value of integration is often misunderstood Team member education on basic transportation management concepts may also be required in addition to SAP TM solution training Knowledge helps to drive team member thinking beyond the basics of just a system replacement and builds confidence to make the best decisions for the business Solution optimization hinges upon creating internal change agents at the project start to support the long term vision and strategic goals 11

12 Building the Business Case for Change Define the Value Drivers and Baseline KPI s Identify specific KPI s and value driven goals for the new solution Business benefits are dependent upon establishing key targets that impact behavior and drive consistency into the processes Define the plan for quantifying the ROI at the start 12

13 Organizational Structure Alignment Roles and Responsibilities to maximize benefits and efficiency Clearly define new roles and responsibilities during the implementation of the TM solution to ensure maximum ROI of the solution capabilities Evaluate the key tasks that will occur centrally vs. decentralized to consolidate responsibilities as much as possible Consolidation and centralization of responsibilities will support optimal use of the TM solution while driving operational and cost efficiencies Be transparent and leverage organizational change management tools and techniques to drive adoption and minimize resource turnover 13

14 Standardization and Flexibility Can Co-Exist Driving Consistency at a Global, Regional, and Local Level Decision making processes that govern transportation planning must be supported by senior leadership across all business units to drive change Standardizing communication channels with global, regional, and local carriers can accelerate solution optimization opportunities Build flexibility into the solution and plan for regulatory changes, acquisitions, divestitures, and environmental factors that impact transportation planning decisions 14

15 Thank you!

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