SAP's Supply Chain Execution Strategy & Roadmap. Transportation & Logistics Development, SAP AG January, 2013

SAP's Supply Chain Execution Strategy & Roadmap Transportation & Logistics Development, SAP AG January, 2013

SAP Customers are Producing. 86% Of sport shoes worldwide 70% Of chocolate worldwide 50% Of branded jeans worldwide...and all of this has to be transported & stored 9 Mio. Tons of cheese 72% Of beer production worldwide 77.000 Cars per day 2013 SAP AG. All rights reserved. 2

Supply Chain Execution is a Challenging Environment Customer Service Costs Efficiency Visibility Vendor Consignee Global trade Multi-modal Compliance Sustainability 2013 SAP AG. All rights reserved. 3

SAP is Investing strongly in Supply Chain Execution SAP Strategic Investment Areas Banking Retail Consumer Discrete Process Services Utilities Public Healthcare Finance Marketing, Sales & Service Multi Channel E-- Care Supply Chain Manufacturing Product Development Banking Platform Retail Platform Demand Driven Supply Chain Transportation & Logistics Sourcing to Pay Operations O2C Offer to Cash Human Resources Energy Management Enabling Technologies Application Life-Cycle Management Business Process Orchestration Enterprise Information Management 2013 SAP AG. All rights reserved. 4

Warehousing & Transportation has Evolved Significantly Transportation Management Warehouse Management Holistic transportation management Integrated order management Domestic, international, in/outbound shipment Multi-mode, multi-stage freight mgmt. Global rate & charge management. High performance warehouse execution Built-in optimization & automation Industry-specific process support World-class analytics Deep SAP Business Suite integration. 2013 SAP AG. All rights reserved. 5

Yet in Business the Silos often Remain Capacity & Demand Planning TRANSPORTATION MANAGEMENT Order Mgmt. & Freight Planning Freight Execution & Monitoring Freight Settlement Optimal delivery / pick-up planning! Warehouse loading point capacity? Optimal Wave & Load Planning! Transp. plan / delivery consolidation? Accurate shipment visibility & invoicing! Actual load / goods issue? Efficient dock appointment scheduling! Planned delivery / pick-up times? Inbound Processing Storage & Operations Outbound Processing WAREHOUSE MANAGEMENT 2013 SAP AG. All rights reserved. 6

The Market is Looking to a New Paradigm Integrated Supply Chain Execution Capacity & Demand Planning Order Mgmt. & Freight Planning Warehouse Execution Freight Execution & Monitoring Freight Settlement Tracking Integrated planning, orchestration, execution, & tracking of the physical movement of goods 2013 SAP AG. All rights reserved. 7

With Global Network Collaboration & Communication Contracts Orders / bookings Dock appointments Tenders / Quotations Freight Forwarder Import / Export Customs Invoices Vendor Consignee Integrated Supply Chain Execution Demand Carriers Rates Schedules Shipping Status & Events ASN / Way Bills / Handling Units 2013 SAP AG. All rights reserved. 8

SAP Supply Chain Execution Mission and Strategy Mission The World's Best Supply Chain Execution Platform Best-in-class Verticalized Integrated Connected Freight Forwarder Import / Export Customs Vendor Supply Chain Execution Platform Consignee Carriers 2013 SAP AG. All rights reserved. 9

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 2013 SAP AG. All rights reserved. 10

SAP Supply Chain Execution Platform Comprehensive Transportation Mgmt. Multi-mode Domestic, international, inbound & outbound transportation Shipper & freight forwarder processes Best-in-class Warehouse Mgmt. All industries Distribution centers & production warehouses Simple & complex, high volume warehouse operations Holistic Track & Trace Process & logistics execution milestone tracking In-transit visibility of goods & assets Event & exception management Supply Chain Execution Platform SAP Transportation Management SAP Extended Warehouse Mgmt. SAP Event Management (Track & Trace) 2013 SAP AG. All rights reserved. 11

SAP Supply Chain Execution Platform Highlights Best-in-class functionality Deep process integration Powerful decision support Capacity & Demand Planning Order Mgmt. & Freight Planning Warehouse Execution Freight Execution & Monitoring Freight Settlement Tracking Flexibile & scaleable Native technology integration Rapid Deployment Solutions 2013 SAP AG. All rights reserved. 12

Analyst Validation SAP is #1 #1 in the overall TMS market #1 in the TMS software category #1 in transportation planning & execution #1 TMS vendor in EMEA #1 TMS vendor to Tier 1 customers SAP is #1 #1 in the software WMS market SAP EWM has gained strong traction in the marketplace due to its robust functionality, interoperability with the SAP suite of solutions, and the large existing SAP installed base of potential customers. Transportation Management Systems Worldwide Outlook 2011-2016 Steve Banker, Clint Reiser, ARC Report May, 2012 Warehouse Management Systems Worldwide Outlook 2011-2016 Steve Banker, Clint Reiser, ARC Report August, 2012 2013 SAP AG. All rights reserved. 13

SAP Transportation Management Coverage TRANSPORTATION MANAGEMENT Capacity & Demand Planning Order Mgmt. & Freight Planning Freight Execution & Monitoring Freight Settlement Tracking & Reporting Carrier schedule mgmt. Carrier freight agreement mgmt. Charge, rate, service level mgmt. Capacity mgmt. Pre-bookings Transportation requirement mgmt. Manual & automated planning & dispatching Dangerous goods mgmt. Routing, resource & carrier selection Freight/forwarding order & booking mgmt. Service products Order tendering Standard Operating Procedures EWM integration for warehouse execution Capacity monitoring Execution monitoring & event tracking Transportation print documents Transportation charge calculation Profitability analysis (FF) Freight/Forwarding Order & Booking Settlement Trade regulation compliance (via GTS) Cargo management 2013 SAP AG. All rights reserved. 14

SAP Extended Warehouse Management EXTENDED WAREHOUSE MANAGEMENT Inbound Processing Transportation Unit Processing Goods Receipt Mgmt. & Optimization Inbound Quality Management Internal Routing Storage & Operations Physical Inventory Replenishment / Rearrangement Kit-to-Stock Management Analytics & Reporting Resource & Labor Management Cross Docking Yard Management Outbound Processing Outbound Planning (Route, Wave, Bin ) Picking Optimization, Packing, Staging & Load Management Import / Export, Dangerous Goods & Compliance Native Technologies (RF, RFID, Voice, Material Flow System) TCI / TCO Reduction, Optimization Tools 2013 SAP AG. All rights reserved. 15

SAP Supply Chain Execution Innovation Roadmap 2011 2012 2013 2014 Shippers Retail Freight Forwarders Rail & Truck Carriers Contract Logistics Other Carriers Warehousing, Transportation & Event Management HANA, Mobile Analytics Integration, Connectivity TCO / TCI 2013 SAP AG. All rights reserved. 16

Innovation Focus for Core Supply Chain Execution Areas 2011 2012 2013 2014, 2015, Core TM processes for shippers Core TM processes for freight forwarders EWM returns & claims mgmt. Migration tools (ERP WM > EWM) Advanced costing, settlement & charge mgmt. Dock appointment scheduling (DAS) Supply chain execution platform Enhanced Event Management 2013 SAP AG. All rights reserved. 17

2012 Innovations for Transportation Management Positioning of SAP TM Release 9.0 2012 Transportation Mgmt. 9.0 The "official" SAP TM Release for Freight Forwarders Enhanced SAP TM Release for Shippers 2013 SAP AG. All rights reserved. 18

SAP Transportation Management 9.0 Innovations Core transportation processes for freight forwarders 2012 Transportation Mgmt. Innovations for Freight Forwarders Ocean & airfreight management Service products & items Freight forwarder-specific documents Transportation cost allocation & freight settlement Content for dangerous goods database Transportation Planner Capacity Procurement & Network Planning Customer Service Agent Order Management Document Processing Agent Freight Execution & Monitoring Office Management & Accounting Customer Billing & Freight Settlement 2013 SAP AG. All rights reserved. 19

Comprehensive, Multi-mode, Multi-Stage Freight Mgmt. Shipper 1 Pickups Linehaul Airport / Port of Departure Main Carriage Airport / Port of Destination Consignee 1 Shipper 2 Station of Origin Export Gateway/ Container Freight Station Import Gateway / Container Freight Station Station of Destination Consignee 2 2013 SAP AG. All rights reserved. 20

SAP Transportation Management 9.0 Innovations General Innovations for Shippers & Freight Fowarders 2012 Transportation Mgmt. Innovations for both Shippers & Freight Forwarders Ocean freight management (Sailing schedules, and ocean bookings) Superior manual transportation planning Event management enhancements (Container tracking) Integrated document flow (ERP-TM) (TM data visibility in sales, purchase and delivery orders) SAP TM / EWM integration (via ERP) Transportation cost distribution Master data cockpit (For freight agreement mgmt. and freight rates; quick transportation cost quote) Additional TM analytics and reports 2013 SAP AG. All rights reserved. 21

SAP Extended Warehouse Management 9.0 Innovations 2012 Warehouse Mgmt. EWM - TM Integration (via ERP) Order or delivery-based planning and execution Warehouse execution & transportation costs Cancellation Scenario Dock Appointment Scheduling Dock planning & workload scheduling Carrier appointment planning Un/load execution monitoring & control EWM Solution Round-offs Analytics dashboards: Cross-distribution center; Top 15 KPIs Stock-specific unit of measure 2013 SAP AG. All rights reserved. 22

SAP TM & EWM Integration (via ERP) Supported Integration Scenarios Order and delivery-based planning and execution Warehouse execution & freight settlement Shipment cancellation SAP Enterprise Resource Planning Customer order Delivery Shipment SAP Transportation Management SAP Extended Warehouse Management Transportation Planning Freight Order Mgmt. Freight Settlement Picking, Packing, Staging Loading Goods Issue 2013 SAP AG. All rights reserved. 23

SAP Event Management 9.0 Innovations 2012 Event Management Main Topics Usability New, flexible, personlized UI's (fields, columns, time zones, icons) Drag & drop Map visualization Visual Business map integration Event location visibility Enhanced transportation execution tracking Booking-based container tracking Enhanced shipment tracking (across different org. units via Master/Bill of Lading) Standard Operating Procedures (SOP) instructions Dynamic URL's (i.e. to other/external system for master data, events ) 2013 SAP AG. All rights reserved. 24

Innovation Focus for Core Supply Chain Execution Areas 2011 2012 2013 2014, 2015, Core TM processes for shippers EWM returns & claims mgmt. Migration tools (ERP WM > EWM) Core TM processes for freight forwarders Advanced costing, settlement & charge mgmt. Dock appointment scheduling (DAS) Supply chain execution platform Rail order-to-cash SCE platform II Strategic freight management Fleet management Parcel mgmt. Retail enhancements Transportation & Logistics collaboration portal Hub handling Contract, opportunity & service mgmt. Advanced warehouse optimization Dock Appointment Scheduling II 2013 SAP AG. All rights reserved. 25

SAP Supply Chain Execution Release Plan (RTC*) 2012 2013 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Extended Warehouse Mgmt. Transportation Management EWM 9.0 TM 9.0 EWM 9.1 TM 9.1 Event Management Track & Trace EM 9.0 EM 9.1 T&T? * RTC= Release-To-Customer 2013 SAP AG. All rights reserved. 26

SAP T&L Development Strategy for Supporting Cross-topics HANA, Mobile, TCO

SAP Strategy for Supporting Areas Mobile SAP HANA Integration/Connectivity TCI / TCO Ecosystem enablement Standard SAP mobile solutions SAP HANA-powered analytics SAP HANA-powered functionality End-to-end process integration Out-of-the-box connectivity Supply Chain Execution Platform Rapid Deployment Solutions SAP in-memory computing SAP HANA SAP Supply Chain Execution Platform SAP Transportation Management SAP Extended Warehouse Mgmt. SAP Event Management (Track & Trace) 2013 SAP AG. All rights reserved. 28

Supply Chain Execution Platform HANA Innovations SAP in-memory computing SAP HANA Supply Chain Execution Platform SAP Transport. Management SAP Extended Warehouse Mgmt. SAP Event Management (Track & Trace) SAP HANA-Powered / Optimization Areas Supply chain tracking Transportation planning Workforce Demand Planning 2013 SAP AG. All rights reserved. 29

Mobile Focus for T&L 9.1 Solutions Ecosystem Enablement Mobile infrastructure enablement Solution consumption simplification SAP Transportation Mgmt., SAP Event Mgmt. Mobile Innovation New applications TM Notifier (solution extension and porting to iphone) Dock Appointment Scheduling (example app.) (Carrier appointment re/scheduling) New technology integration Voice control, HTML5 2013 SAP AG. All rights reserved. 30

TCO/TCI Strategy for Transportation & Logistics TCO / TCI Supply Chain Execution Platform Delivery Rapid Deployment Solutions Supply Chain Execution Platform Synchronized TM/EWM/EM delivery SCE Suite implementation in 1 instance Out-of-the box SCE process integration SAP Supply Chain Execution SAP Transportation Management SAP Event Management SAP Warehouse Management Rapid Deployment Solutions Predefined implementation service Enablement content (guides & sample data) Preconfigured processes Software RDS for SAP Extended Warehouse Mgmt. RDS for Domestic Freight Tendering RDS for Domestic Transportation Planning EWM Baseline for cross industries SAP Event Management TM for Ocean Carrier Booking 2013 SAP AG. All rights reserved. 31

Wrap-Up

Our customers are running "better" with SAP solutions for transportation and logistics 10% decrease in cost of goods transported 30% increase in warehouse productivity 50% reduction in distribution branches via cost-effective transportation 34% ongoing labor cost reduction Near zero customer-complaint rate 20 warehouses live using the same template 2013 SAP AG. All rights reserved. 33

SAP is Building the Platform for the SCE Network Freight Forwarder Import / Export Customs Vendor Strategic & Major SAP Investment Strong SAP-Customer Innovation Solid, growing market momentum Consignee Carriers 2013 SAP AG. All rights reserved. 34

Thank you

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