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SAP Training
© 3M 2013. All Rights Reserved. 3M Confidential
1.4
Web-Based Training
LEX205: Transportation Management Overview
Logistics Execution
18-JUN-2013
1
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© 3M 2013. All Rights Reserved. 3M Confidential2
Online help is available from the Help menu.
Accessing Online Help on SAP
Click Help
and select
3M Help
© 3M 2013. All Rights Reserved. 3M Confidential3
� This course provides an overview of
Transportation Management (TM),
which is a part of Logistics Execution
(LEX). This course also explains the
benefits, structure and components of
TM.
� Prior to completing this training, the
following courses are required:� SAP Navigation
About this Course
© 3M 2013. All Rights Reserved. 3M Confidential4
After completing this course, you will be able to:
� Explain the LEX process area at 3M.
� Discuss the sub-processes within LEX.
� Describe Transportation Management (TM) at 3M.
� Explain the benefits of TM.
� Explain the structure of TM.
� List the various components of TM.
� Explain the integration between ECC and TM.
Course Objectives
© 3M 2013. All Rights Reserved. 3M Confidential5
Take a moment to familiarize yourself with these terms.
Terminology
Term Definition
Enterprise Resource Planning
(ERP)
The integration of systems to manage information
across an entire organization.
ERP Central Component (ECC) It is a core component of SAP that supports 3M’s
main areas of functionality. Data from ECC is
automatically transferred to GTS.
Logistics Execution (LEX) It is a major component of the Supply Chain
Management (SCM) application of SAP. It covers
the areas of Inventory Warehouse Management
(IWM), Inbound Receiving, and Outbound
Shipping.
Company Code The smallest organizational unit for which there is
an independent accounting department within
external accounting.
© 3M 2013. All Rights Reserved. 3M Confidential6
Take a moment to familiarize yourself with these terms.
Terminology (continued)
Term Definition
Global Trade Services (GTS) It is a sub-process that automates global trade
transactions, manages large numbers of business
partners and documents, and ensures that the company
is compliant with changing international legal
regulations.
Extended Warehouse
Management (EWM)
An SAP application used to manage highly complex
warehouse structures that allow for higher detail in the
location and processing of material stocks.
Transportation Management
(TM)
It supports all the activities connected with physical
transportation of goods from one location to another.
© 3M 2013. All Rights Reserved. 3M Confidential7
Take a moment to familiarize yourself with these terms.
Terminology (continued)
Term Definition
Forwarding Agent An agent who performs transportation services in return for
payment of goods, arranging carrier services and handling
customs issues.
Service Agent A Person who carries out a service – a carrier or freight
forwarder.
Direct Shipment
Option (DSO)
A tool for finding the least cost carrier, means of transport, and
mode.
Available-to-
Promise (ATP)
A process for checking the available quantities of a material.
Transportation
Request (TRQ)
A transportation requirement representing demand based on
an order (OTR) or a delivery (DTR).
© 3M 2013. All Rights Reserved. 3M Confidential8
Take a moment to familiarize yourself with these terms.
Terminology (continued)
Term Definition
Order-Based
Transportation
Requirement (OTR)
A transportation demand based on an order that was created
in an SAP ERP system. The order-based transportation
requirement can be used as a basis for transportation
planning. The OTR corresponds to a single order in SAP ERP
and cannot be edited in SAP Transportation Management
(SAP TM).
Delivery-Based
Transportation
Requirement (DTR)
A transportation demand based on a delivery created in SAP
ERP. The DTR in SAP TM corresponds to a single delivery in
SAP ERP.
Transportation
Group
Used to group products in order to drive vehicle selection.
© 3M 2013. All Rights Reserved. 3M Confidential9
Take a moment to familiarize yourself with these terms.
Terminology (continued)
Term Definition
Transportation Lane A relationship between an origin and a destination.
Transportation
Service Providers
(TSPs)
They assist in the process of transporting 3M loads.
Freight Unit (FU) A set of goods that are transported together across the entire
transportation chain. A FU can include transportation
constraints for transportation planning. It is the smallest unit
that can be transported. The transportation request data and
the FU building rules form the basis for building FUs.
Freight Request for
Quote (RFQ)
A request for a carrier quote of the cost associated with
carrying the freight.
© 3M 2013. All Rights Reserved. 3M Confidential10
Take a moment to familiarize yourself with these terms.
Terminology (continued)
Term Definition
Process Interface
(PI)
A group of operations used by other processes or services -
Brings transactions between ECC and TM.
Core Interface (CIF) A standard interface between ERP (R/3 or ECC) and SCM
APO, used to transfer Master Data and Transactional Data.
Master Data Used in a variety of business transactions in 3M TM system. It
comprises information on business partners, carriers,
organization, transportation network, product, equipment,
resources and transportation charges.
Net Weaver
Business Client
(NWBC)
A web-based front end interface for TM.
© 3M 2013. All Rights Reserved. 3M Confidential11
LEX Overview
© 3M 2013. All Rights Reserved. 3M Confidential12
After completing this module, you will be able to:
� Explain the LEX process area at 3M.
� Explain the benefits of the LEX process area to the 3M businesses.
� Discuss the sub-processes within LEX.
Module Objectives
© 3M 2013. All Rights Reserved. 3M Confidential13
Scenario: Introducing Logistics Execution
© 3M 2013. All Rights Reserved. 3M Confidential14
� Logistics relates to coordination of a
goods movement operation involving
many people, facilities, and supplies.
� The LEX process area is one of the
four main areas or capacities of
functionality in ECC.
� It is a major component of the
Supply Chain Management (SCM)
application.
Introduction to Logistics Execution
Applications
SCM
Supply Chain
Management
PLM Product Lifecycle
Management
PLM Product Lifecycle
Management
SRM Supplier
Relationship Management
SRM Supplier
Relationship Management
CRM Customer
Relationship Management
CRM Customer
Relationship Management
LEX
© 3M 2013. All Rights Reserved. 3M Confidential15
� LEX connects the SCM activities involved in procurement, order
processing, production, storage, inventory management, shipping,
and sales.
� It covers the areas of warehouse management, inbound receiving,
and outbound shipping processing.
Introduction to Logistics Execution (continued)
© 3M 2013. All Rights Reserved. 3M Confidential16
Benefits of Logistics Execution
The LEX process area offers several benefits.
Streamlined coordination of foreign trade processing
requirements procedures
Streamlined coordination of foreign trade processing
requirements procedures
Improved management of transportation
scheduling and delivery
Improved management of transportation
scheduling and delivery
Increased visibility of warehouse operations
including, inbound and outbound
activities
Increased visibility of warehouse operations
including, inbound and outbound
activities
© 3M 2013. All Rights Reserved. 3M Confidential17
Logistics Execution and other Sub-processes at 3M
LEX at 3M consists of
these three
sub-processes:
� GTS
� TM
� EWM
© 3M 2013. All Rights Reserved. 3M Confidential18
Global Trade Services
GTS automates global
trade transactions,
manages large
numbers of business
partners and
documents, and
ensures that the
company is compliant
with changing
government
regulations.
© 3M 2013. All Rights Reserved. 3M Confidential19
Extended Warehouse Management
EWM supports
planned and efficient
processing of all
logistics processes in
the warehouse. It
offers flexible and
automated support for
processing various
goods movements and
managing stocks in the
warehouse.
© 3M 2013. All Rights Reserved. 3M Confidential20
Extended Warehouse Management (continued)
The various activities in the EWM sub-process area are:
You will learn more about the EWM sub-process in the EWM Overview course, if applicable.
© 3M 2013. All Rights Reserved. 3M Confidential21
Internal Processes
Cross and Additional Processes
Monitoring and Visibility Processes and Data
Cross DockingCross DockingQuality ManagementQuality Management Yard ManagementYard Management Value Added ServicesValue Added Services Hazardous GoodsHazardous Goods
Activity PlanningActivity PlanningMaster Data
Maintenance
Master Data
Maintenance
Resource and
Labor Management
Resource and
Labor Management
Warehouse
Optimization
Warehouse
OptimizationStock InformationStock Information Activity MonitoringActivity Monitoring
Ad Hoc MovementsAd Hoc Movements
SlottingSlotting
ReplenishmentReplenishment
RearrangementRearrangement
ScrappingScrapping
Production SupplyProduction Supply
Inbound Processes
PackingPacking
Goods ReceiptGoods Receipt
PutawayPutaway
Inbound DeliveryInbound Delivery Outbound DeliveryOutbound Delivery
PickingPicking
PackingPacking
StagingStaging
LoadingLoading
Goods IssueGoods Issue
Outbound Processes
Physical InventoryPhysical Inventory
Transportation Management
TM supports all the
activities connected with
the physical
transportation of goods
from one location to
another.
© 3M 2013. All Rights Reserved. 3M Confidential22
The functions in the TM sub-process area are:
Transportation Management (continued)
� For outbound, TM begins when a sales order is created and transportation needs
are communicated to TM. It then generates and executes the freight orders based
on requirements and regulations.
� For inbound, TM begins when a purchase order is received.
© 3M 2013. All Rights Reserved. 3M Confidential23
PROPERTIES
On passing, 'Finish' button: Goes to Next SlideOn failing, 'Finish' button: Goes to Next SlideAllow user to leave quiz: After user has completed quizUser may view slides after quiz: At any timeUser may attempt quiz: Unlimited times
The key points covered in this module are:
� The LEX process area relates to the coordination of a goods
movement operation involving many people, facilities, and supplies.
� The LEX process area is a major component of the SCM application.
� The SCM activities in LEX are procurement, order processing,
production, storage, Inventory Management, shipping, and sales.
� The LEX process area offers several benefits:� Streamlined coordination of foreign trade processing requirements and
procedures
� Improved management of transportation scheduling and delivery
� Increased visibility of warehouse operations, including inbound and outbound
activities
Module Summary
© 3M 2013. All Rights Reserved. 3M Confidential25
The key points covered in this module are:
� GTS, EWM, and TM are sub-processes within LEX.
� GTS automates global trade transactions, manages large numbers of
business partners and documents, and ensures the company’s
compliance with changing international legal regulations.
� EWM manages highly complex warehouse structures that allow for
higher detail in the location and processing of material stocks.
� TM supports all the activities connected with physical transportation
of goods from one location to another.
Module Summary (continued)
© 3M 2013. All Rights Reserved. 3M Confidential26
Introduction to Transportation
Management
© 3M 2013. All Rights Reserved. 3M Confidential27
After completing this module, you will be able to:
� Describe TM at 3M.
� Explain the benefits of TM at 3M.
� Explain the structure of TM at 3M.
� List the various components of TM at 3M.
� Explain the integration between ECC and TM.
Module Objectives
© 3M 2013. All Rights Reserved. 3M Confidential28
Scenario
© 3M 2013. All Rights Reserved. 3M Confidential29
3M TM system supports all the activities connected with physical
transportation of goods from one location to another.
Activities that can be performed in 3M TM system, include:
� Plan the transportation and select carriers
� Dispatch and monitor the transportation
� Calculate the transportation charges
� Manage dangerous goods regulations
Transportation Management at 3M
© 3M 2013. All Rights Reserved. 3M Confidential30
Benefits of Transportation Management at 3M
The key benefits of TM at 3M are:
© 3M 2013. All Rights Reserved. 3M Confidential31
Determine options to
save costs and to
optimize the use of
available resources.
React to transportation
events and find
solutions to possible
deviations from the
original transportation
plan.
Create and monitor an
efficient transportation
plan.
The functions in the TM sub-process area are:
Transportation Management Process
� For outbound, TM begins when a sales order is created and transportation needs
are communicated to TM. It then generates and executes the freight orders based
on requirements and regulations.
� For inbound, TM begins when a purchase order is received.
• Sales order
• Delivery order
• Consolidates orders
• Minimizes
transportation costs
Transportation
Planning
Transportation
Planning
• Freight order
• Freight units
• Assignment optimization
Transportation
Execution
and Monitoring
Transportation
Execution
and Monitoring
• Truck, rail, and air carriers
• Improves regulation and compliance
• Shipment tendering
Freight
Settlement
Freight
Settlement
• Freight costing and billing
• Calculates and settles freight costs with greater accuracy
Order EntryOrder Entry
Order Management Transportation Management
© 3M 2013. All Rights Reserved. 3M Confidential32
The key components of TM at 3M are:
Components of Transportation Management at 3M
© 3M 2013. All Rights Reserved. 3M Confidential33
Transportation Master Data
Order Scheduling and Integration
Plan and Optimize Transportation
Transportation Execution
Rate Freight
Freight Settlement
Components of Transportation Management at 3M (continued)
The Transportation Master Data
underlies all business transactions
and contains information on the
various components of the
transportation network – business
partners, carriers, organization,
products, equipment, and tariffs.
© 3M 2013. All Rights Reserved. 3M Confidential34
Components of Transportation Management at 3M (continued)
The Order Scheduling and
Integration process starts with the creation of a SO and ends with a
scheduled date and time for order.
It automatically takes into account
requested delivery dates,
transportation relevant information,
and product requirements from
Sales Orders and Delivery Orders.
© 3M 2013. All Rights Reserved. 3M Confidential35
Components of Transportation Management at 3M (continued)
The Transportation Planning and
Optimization process supports the user in manual and automatic
transportation planning.
Transportation planning involves
organizing customer orders into valid
freight orders (shipments), which can
then be handed over to a
transportation service provider for
delivering to customers, as well as
managing dangerous goods and
vehicle incompatibilities.
© 3M 2013. All Rights Reserved. 3M Confidential36
Components of Transportation Management at 3M (continued)
The Transportation Execution
process covers the actual execution of planned transportation of Freight
Orders, shipping a product to the
customer.
The Freight Processor monitors the
freight order work list to ensure that
the ordered product reaches the
customer in a timely fashion.
© 3M 2013. All Rights Reserved. 3M Confidential37
Components of Transportation Management at 3M (continued)
The Rate Freight process describes a set of primary system activities that
are executed to determine freight
charges, for a Freight Order.
Transportation costs play an essential
role in the calculation of the price of a
product. It is important to keep these
transportation costs to a minimum so
that the price of a product remains
competitive.
© 3M 2013. All Rights Reserved. 3M Confidential38
Components of Transportation Management at 3M (continued)
Freight Settlement process is performed with suppliers or carriers by
creating a Freight Settlement
Document (FSD). This process allows
accurate discrepancy handling and
cost allocation.
Freight Settlement Creator/Maintainer
manages exceptions through TM. It
will help to mitigate the risk of
payment delays and deviations.
© 3M 2013. All Rights Reserved. 3M Confidential39
Overview of integration between ECC and TM:
� The integration of ECC and TM allows for transportation planning
and execution in TM, based on orders and deliveries created in ECC.
This allows TM to receive real-time changes to orders in ECC.
� The CIF process transfers Master Data from ECC to TM.
� The PI process transfers Transactional Data from ECC to TM.
Integration between ECC and TM
© 3M 2013. All Rights Reserved. 3M Confidential40
ECC TM
Transportation Master Data
Transportation Transaction Data
Transportation
Data from
Orders and
Deliveries
PROPERTIES
On passing, 'Finish' button: Goes to Next SlideOn failing, 'Finish' button: Goes to Next SlideAllow user to leave quiz: After user has completed quizUser may view slides after quiz: At any timeUser may attempt quiz: Unlimited times
The key points covered in this module are:
� TM supports all the activities connected with physical transportation
of goods from one location to another.
� TM at 3M offers several benefits:� Create and monitor an efficient transportation plan
� Determine options to save costs
� React to transportation events
� Find solutions if there are any deviations from the original transportation plan
� Transportation Master Data, Order Scheduling and Integration, and
Plan and Optimize Transportation are some of the components of TM
at 3M.
� TM Master data is used for a variety of business transactions in 3M.
� CIF enables master data transfers from SAP ECC to SAP TM.
Module Summary
© 3M 2013. All Rights Reserved. 3M Confidential42
The key points covered in this course are:
� The LEX process area relates to the coordination of a goods
movement operation involving many people, facilities, and supplies.
� The LEX process area is a major component of the SCM application.
� GTS, EWM, and TM are the sub-processes within LEX.
Conclusion
© 3M 2013. All Rights Reserved. 3M Confidential43
The key points covered in this course are:
� The TM system at 3M allows to perform the following activities:� Plan the transportation and select carriers
� Dispatch and monitor transportation
� Calculate transportation charges
� Manage dangerous goods regulations at 3M
� Following are some of the benefits derived from the TM system:� Create and monitor an efficient transportation plan
� Determine options to save costs
� React to transportation events
� Find solutions if there are any deviations from the original transportation plan
Conclusion (continued)
© 3M 2013. All Rights Reserved. 3M Confidential44
The key points covered in this course are:
� The various components of 3M TM are: � Transportation Master Data
� Order Scheduling and Delivery
� Plan and Optimize Transportation
� Transportation Execution
� Rate Freight
� Freight Settlement
� The TM Master data at 3M comprises information on business
partners, carriers, organization, transportation network, product,
equipment, resources, and transportation charges.
Conclusion (continued)
© 3M 2013. All Rights Reserved. 3M Confidential45
� Take a brief assessment to validate
your training in this course. You
must pass the assessment with at
least an 80% score.
� Before you start the assessment,
you can review the entire course
again, or review selected slides
using the course navigation pane.
� Once you have passed the
assessment, you will be given your
final information and verification for
the completion of this course.
Knowledge Assessment
© 3M 2013. All Rights Reserved. 3M Confidential46
PROPERTIES
On passing, 'Finish' button: Goes to SlideOn failing, 'Finish' button: Goes to SlideAllow user to leave quiz: After user has completed quizUser may view slides after quiz: At any timeUser may attempt quiz: Unlimited times
To get credit for this course, complete the Training Evaluation on the
next slide.
You Have Passed the Assessment
© 3M 2013. All Rights Reserved. 3M Confidential48
To get credit for this course:
� Complete the Training Evaluation
by clicking the Evaluation button.
� After completing the Training
Evaluation, close the Evaluation
window and navigate back to this
page.
Completing the Course Exit this
training
Important: To receive credit for this course, you must click the Exit
button in the upper right corner of this page.
© 3M 2013. All Rights Reserved. 3M Confidential49
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� To retake the Assessment now, click the Forward button below.
� To exit and retake the Assessment at another time, click Exit in the upper right corner.
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