How NIBCO leveraged a template-based approach to deploy SAP TM 9.0 as a ramp-up customer in 19 weeks Steve Miller, NIBCO Bjorn Bernard, Novigo

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1 Orange County Convention Center Orlando, Florida June 3-5, 2014 How NIBCO leveraged a template-based approach to deploy SAP TM 9.0 as a ramp-up customer in 19 weeks Steve Miller, NIBCO Bjorn Bernard, Novigo

2 Agenda Part 1: Introduction of Novigo s Instant TM How customers can benefit from this accelerated implementation methodology Part 2: How NIBCO leveraged a template-based approach to deploy SAP TM 9.0 as a ramp-up customer in 19 weeks

3 Agenda Part 1: Introduction of Novigo s Instant TM How customers can benefit from this accelerated implementation methodology Part 2: How NIBCO leveraged a template-based approach to deploy SAP TM 9.0 as a ramp-up customer in 19 weeks

4 Novigo Company Overview Novigo is formerly known as GOPA IT Consultants Focused on SAP SCM and SAP TM since SAP TM is core focus area Evolved over time from an IT Systems Integrator to a SAP Business Transformation Consultancy Operating in the U.S., Germany, Spain and India

5 What is Instant TM? Instant TM is a pre-configured, flexible SAP Transportation Management Template Solution enabling significant project acceleration while reducing cost and risk Instant TM can be used for end-2-end project implementations and/or Proof-of-Concepts/Evaluations It consists of Preconfigured SAP TM 8.0 / 8.1 / 9.0 / 9.1 System Template Scenarios Project Accelerators (Documentation, Project Templates SAP TM Training Material) Implementation Methodology = ASAP with Novigo Model Based Design Iterative Approach leveraging TM System Prototyping for significant Acceleration

6 Instant TM support many use cases High Tech Instant TM template Use Cases Consumer/ Food Chemical Oil & Gas, Energy End-to-end System Landscape Pre-configured SAP TM standard features Pre-configured Transport Scenarios Third-Party Solution Integration Accelerated Implementation POC or Feasibility Study System Demo Innovation Logistics Industry Project Deliverables & Accelerators Model-Based Design Methodology Third-Party Integration Others Training

7 Specific Content of the SAP TM Template (Selection) A lot of pre-configured content has been accumulated in the template over time Transport Scenarios Special Functions Industry flavors Outbound LTL/TL Change Controller rule sets Consumer Packaging Multi-Stop and Rush Orders BRF+ carrier rotations Food Distribution Domestic and Int. Inbound Batch characteristics integration Steel Manufacturing Pool and Hub Distribution Geocoding and SMC3 integration International Forwarding International Export Cost Savings Visibility Discrete Manufacturing Stock-Transfer Orders Mass Uploads of orders Chemicals LSP scenarios Maps and Visual Business Consumer Electronics Parcel Shipping Enhanced Unit of Measure handling Rail Shipping Pre-Paid versus Collect UI enhancements Wholesale Distribution Backhaul Processing Private Fleet handling Retail

8 Proof-of-Concepts (POC) based on Instant TM Approach POC provides low risk opportunity: Instant TM landscape as basis Novigo hosts the system, remote access possible Dedicated consultants support 4-12 weeks depending on scope High flexibility to structure the POC in scope, team & cost can go into project with eyes wide open regarding scope, implementation cost, change management opportunities, impacts to organization, as well as benefits coming out of the project Source: Actual Instant TM customer after an 8 week POC on received benefits Benefits Customers benefit in various ways Test Driving minimizes investment risk Knowledge Transfer effect Blueprint Accelerator reduces time and effort Identify Gaps early and effectively What does it take? Skin in the game Executive buy-in to enter a learning mode A fixed budget Attention by a limited amount of resources (2-3 FTE, stakeholders, some part-time) A willingness to see the bigger picture

9 Model-Based Design and Blueprint How model-based design applies a hands-on approach to classic blueprint activities that are typically paper-based Release Model Configuration TM Template System (TM, ECC, PI) Clone System TM Solution Model Migration TM Development & Production System Iterations

10 Template-Based Implementation How does a template-based implementation work? Starting in a pre-configured and hosted SAP TM landscape, the Blueprint activity is highly prototypical versus theoretical Users and stakeholders will be able to visualize the final result of the implementation after only a few weeks Benefits of this approach Early User Acceptance Don t wait for the testing phase to show the systems to the end users Avoid Scope Creep The capabilities of the system become obvious much earlier in the project Boost confidence of the project team Talk more confidently about TM to your business counterparts More timely delivery of project goals Early user acceptance will avoid unwelcome surprises later on in project

11 Key Points to Take Home The Instant TM template is a flexible platform that serves multiple purposes POCs are a great way to test-drive SAP TM The template contains many elements, including transport scenarios, special features, and industry flavors Template-based implementations have proven to shorten implementation cycles Model-Based Design is the core idea of the template-based implementation End users are the primary beneficiary of Model-Based Design

12 Agenda Part 1: Introduction of Novigo s Instant TM How customers can benefit from this accelerated implementation methodology Part 2: How NIBCO leveraged a template-based approach to deploy SAP TM 9.0 as a ramp-up customer in 19 weeks

13 Learning Points Business drivers and SAP landscape How a short duration TM project might be accomplished Project results and business benefits Challenges and recommendations

14 NIBCO Company Overview Leading provider of valves, fittings and flow control products Founded in 1904, family owned Headquartered in Elkhart, Indiana More than 2,400 employees worldwide

15 Business Drivers Supporting TM Project Cost savings Grow the business Looking for ways to do more with less Accommodate increased demand Quality, efficiency, process improvement Transport planning only done opportunistically with manual tools like Excel Customer satisfaction Needed method to centrally store freight rates to support carrier selection (key customer requirement)

16 SAP Landscape at NIBCO ERP Financials Sales and Distribution Materials Management Warehouse Management HR/Payroll Production Planning Business Warehouse Transportation Management Business Objects and analytics and optimization Advanced Planning and Optimization (APO)

17 TM Project Highlights Leveraged Novigo s pre-configured Instant TM template for quick implementation 19 week implementation end-to-end from Project Kick- Off to 1 st pilot Go-Live! 2 final pilot sites launched within 9 weeks of first go-live 3 additional NIBCO implemented go-lives over 3 month period Successful integration of ALK Technologies and SMC 3 partner solutions for geocoding and LTL rates

18 NIBCO Processes Supported by TM Order Management Delivery Based Planning Planning & Optimization Road Transport: FTL, LTL, Parcel and Multi-Stop shipments Manual planning in collect scenario Carrier Selection based on freight cost, priority, customer specific rules (BRF+) Execution & Monitoring TM creates ERP shipments and adds custom specific fields for printing and ASN purposes that are sent from ERP Process Integration PI for TM-ERP integration PC*Miler for geocoding SMC 3 RateWare XL for LTL rating

19 Project Background - Scope Utilize SAP Transportation Management Load Planning Mode Selection Carrier Selection Domestic Outbound 3 pilot sites 4 general rollout sites Interfaces Geographic Information System (GIS) Less than Truckload (LTL) rates

20 Why Use a Template Approach? Faster implementation Leverage previously developed content Expertise in newer technologies Knowledge Transfer Reusability Basic configuration does not change Existing set-ups are a reference for future deployments

21 Transportation: Before SAP Using LE shipments in ECC (VT01N, VT04) Manual activities to determine mode of shipment Manual activities to determine transportation partners spreadsheet driven No consistent processes throughout organization

22 Transportation: With SAP TM Work list planning Load planning based on destination location Mode selection based on site-specific weight breaks Carrier selection based on cost LTL rates accessed through SMC 3 service Truckload rates maintained in TMS Routing guides based on customer preferences Incompatibilities as needed

23 Project Team Internal (5) Business SME s Part-time (2) Developers Part-time (2) Basis & PI Part-time (1) BSA/Project Manager Full-time External (3) Functional consultants 2 Full-time/1 Part-time (1) Architect Part-time (1) Developer Part-time (1) PI Part-time

24 SAP TM Project Timeline

25 25 SAP TM at NIBCO: Key Business Benefits Increased business by 1.7% Additional volume shipped over previous year Reduced freight spend 1.3% Efficient carrier selection & multi-stop shipment creation Reduced hundredweight cost by 3% Shipment planning 2 hours down to 15 minutes User acceptance and satisfaction

26 SAP TM Key Learnings: Technical Scope project so most (if not all) business scenarios covered in smallest footprint. Verify all components are installed / activated ECC business functions ECC-SE Core Interface (CIF) might require applying notes Address creation language Note Product Freight Group missing Note Make sure all interfaces are sufficiently stress tested

27 SAP TM Key Learnings: Business Ensure business processes at multiple sites are consistent Senior Management Buy in Implementation partner is key

28 What is Next? Stock Transfer Orders Tendering EWM Event Management Mobile

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30 THANK YOU THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 4102 For ongoing education on this area of focus, visit