Hollister Incorporated : Worldwide Shipping Solution Integration. Eugene Hulscher (Hollister Incorporated) SESSION CODE: 1520

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2 Hollister Incorporated : Worldwide Shipping Solution Integration Eugene Hulscher (Hollister Incorporated) Paul Murphy (PRECISION Software) SESSION CODE: 1520

3 LEARNING POINTS Explore methods available in SAP to integrate carrier processing Learn how Hollister successfully deployed a new shipping solution globally See video of warehouse shipping operations

4 OVERVIEW Carrier Integration The Journey Demonstration Return on Investment Best Practices Lessons Learned Q & A

5 CARRIER INTEGRATION (1) Carrier Compliance Label Tracking number generation Electronic communication

6 CARRIER INTEGRATION (2) Shipping solutions provided by Carriers Bolt-on solutions with non-sap user experience Build in SAP solutions Bolt-on Black Box solutions with SAP user experience

7 CARRIER INTEGRATION (3) Shipping solutions provided by Carriers DHL DHL SAP Purolator Purolator Ciblex Ciblex

8 CARRIER INTEGRATION (4) Bolt-on solutions with non-sap user experience TNT DHL SAP? Purolator UPS Ciblex

9 CARRIER INTEGRATION (5) Build in SAP solutions TNT DHL SAP Purolator UPS Ciblex

10 CARRIER INTEGRATION (6) Bolt-on Black Box solutions with SAP user experience TNT DHL SAP Purolator Ciblex

11 THE JOURNEY Initiate Start Execute Support Next Steps

12 THE JOURNEY - CHALLENGES DC s in North America and Europe Local carrier arrangements 25 carriers, 16 countries Truck, LTL, parcel, International, Zone-skips Need for agility Carrier Solutions & Home Grown Unreliable

13 THE JOURNEY - INITIATE See the Challenges Recognize Solutions Approval to Proceed Promote Business Case Strategy Partner with Business Persist

14 THE JOURNEY - START Project Team State Requirements Request for Proposal Compare and Rank Alternatives Negotiate Choose Solution Finalize Budget Sign Contracts

15 THE JOURNEY - EXECUTE Learn your Tools Prepare SAP Develop Interface Configure PRECISION Test Roll-out

16 THE JOURNEY - EXECUTE - LEARN TOOLS (1) PRECISION On-Site Workshop Routing Guide Rate Shopping Zone Skips Shipping Labels / Paperwork End of Day Consolidation Black Box mode

17 THE JOURNEY - EXECUTE - LEARN TOOLS (2) SAP Express Shipping Interface (XSI) Integration framework for express-ship carriers Printing labels Exchange of data Tracking VTRC Carrier codes Service codes Tracking Status codes URL s Tables (VTRKH, VTRKP)

18 THE JOURNEY - EXECUTE - PREPARE SAP (1) Standardize Shipping Processes Parcels LTL shipments Consolidated Parcel shipments

19 THE JOURNEY - EXECUTE - PREPARE SAP (2) Leverage SAP Route Determination Handling Units Shipments Partner Functions Preferred Carriers / Third Party Billing Forwarding Agent Freight Service Agent Special Process Indicator DG Master

20 THE JOURNEY - EXECUTE - PREPARE SAP (3) Leverage SAP XSI Store Tracking Numbers Store Shipment History Display Carrier Tracking Web-sites User Interface Reporting

21 THE JOURNEY - EXECUTE - PREPARE SAP (4) And of course some ABAP coding Enforce Business Rules Classify Address (Residential, Business) Interface with PRECISION Process Shipments (2) End of Day

22 THE JOURNEY - EXECUTE - DEVELOP INTERFACE (1) PRECISION in Black Box mode Web-services SAP Function Module Interface Create Shipment (for HU or Shipment) Request End of Day

23 THE JOURNEY - EXECUTE - DEVELOP INTERFACE (2) Mapping Handling Unit(s) Partner Functions Route Special Process Indicator Inco term Invoice Dangerous Goods Data Material Master Address Mapping Rule Update XSI Tables, Print Outputs

24 THE JOURNEY - EXECUTE - CONFIGURE PRECISION On-Site Workshop Document Carrier and Mode Selection Rules Set Up PRECISION Clients and Packing Locations Load Carrier Content Form Rules Routing Guide Zone Skips End of Day Vendor / Internal Resources

25 THE JOURNEY - EXECUTE - TEST Multiple Parties, Systems Hardware Variations Process Variations Use of External Systems Production/Test Interfaces Master Data Quality Relationship with Carrier

26 THE JOURNEY - EXECUTE ROLL OUT Change Management Risk Mitigation Carrier Approvals Relationship with Carrier Vendor / Internal Resources

27 THE JOURNEY - SUPPORT Vendor / Internal Resources In-house Expertise New Countries New Carriers Change Carriers New Processes On the Fly Shipment Consolidation Import Tracking Updates (PEM) Purging

28 THE JOURNEY - NEXT STEPS Perfect Order Index Reporting (POI) Freight Invoice Auditing Inbound Freight

29 DEMONSTRATION - US Print Carrier Labels

30 DEMONSTRATION - EU Print Carrier Labels

31 RETURN ON INVESTMENT Avoided Freight Expense 48% Shipment Consolidation 29% Accelerated Freight Savings 16% Reduced cost to add/maintain Carriers 7%

32 BEST PRACTICES Standardize Shipping Options/Routes Leverage SAP/XSI Functionalities Maintain Single User Interface

33 KEY LEARNINGS Buy in can take a long time Complexity grows quickly Consider impacts on use of external systems Use address mapping rules Provider s experience and relationship with your existing carrier base are very important Involve Transportation teams in support

34 Q & A

35 STAY INFORMED Follow the ASUGNews team: Tom Chris Craig

36 THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 1520 For ongoing education on this area of focus, visit Speakers addresses: Eugene Hulscher Paul Murphy Eugene.Hulscher@hollister.com pmu@qad.com