sap billing for logistics industry

SAP BRIM for Logistics Industry Enabling Revenue Management Innovation

Executive Overview Presentation

Isabelle ROUSSIN

© 2013 SAP AG. All rights reserved. 2

© 2013 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.

The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or

warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group

products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing

herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in

Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

http://www.sap.com/corporate-en/legal/copyright/index.epx




Market Drivers Solution Overview Scenarios Benefits

What are the Main

Challenges Influencing

Your Business?



250% Increase in 4 years between 2004

and 2008 on the barrel of petrol

Fluctuating Economic Environment

INDUSTRY CONSOLIDATION

REGULATION ON SECURITY

VARIABLE COSTS Several studies have clearly

shown that a majority of

companies expects logistics costs

to rise. One cited reason is the

increasing complexity of the

supply chain into which more and

more value-creation activities are

being shifted. Other reasons

include external factors like rising

fuel costs, tolls and new security

regulations in the international

supply chain

DHL web site

“” GLOBALIZATION

DEREGULATION



Innovation in managing a worldwide forwarding organization

Improved transparency

Improved end-to-end process control from quote to cash and pickup to delivery

Increased productivity

Global standardization of processes and products including pricing and invoicing capabilities

Improved customer intimacy and service

Customer profile driven invoicing and efficient financial customer care

Innovating on customer financial management

End-to-end process integration with service standardization

Billing automation

End-to-end product pricing and costing with service configuration

… Driving Needs for Innovation in Business Model

New Forwarding Environment



80%+ Of cost for maintaining status quo

Reducing Enterprise Costs

Reliability should be a key

performance indicator for all

carriers. Today, 10% of all our

shipments are more than two

days late, (…). Guaranteed

reliability will allow us to drive

down costs

Eivind Kolding, CEO

HETEROGENEOUS IT LANDSCAPE

HOMEGROWN

DECENTRALIZED SYSTEMS

HIGH QUALITY OF SERVICE

“”



… Driving Needs for Streamlining the IT Process

Defining a common back office with convergence of revenue streams

Freight revenue

Accessorial charges

Value-added service charges

Efficient dispute and revenue recognition

Collection / Reimbursement

Chargeable Items & Charge-related Events

Convergent Charging

Finance

Rating

Event Management Product, Contract & Tariffs

Financial Customer Care

Convergent Invoicing

Rating

Product, Contract & Tariffs

Rating

Event Management



Retaining Empowered Customers

HYPER, DIGITALLY CONNECTED

SOCIALLY NETWORKED

BETTER INFORMED

EXPECT IMMEDIATE, PERSONALIZED RESPONSE

For a company to be

successful, the ability to react

promptly to customer requests

is becoming increasingly

important

As the architect of modern

value chains, logistics provides

tailored concepts that help

optimize product development

and order processing times as

well as companies’ reaction

times

DHL Web site

“”



… Driving Needs for Addressing Segment of One

Simplify Business Interactions while Meeting Real Time Expectations

Real Time

Insight for True

customer 360°

view

1:1 customer

engagement

Real Time Execution

for context sensitive

offerings



Closed Loop between

Business Need and IT

Constraints



From Business Challenges To Technical Needs

Innovative Pricing & Bundles

Commission Partners

Pricing,

Rating &

Charging

Collect

&Pay

Bill &

Invoice &

Settle

Customer

& Partner

Financial

Care

Analytics

Consume to Cash Analytics

Consolidate Billings

Manage Efficiently

Credit & Collection

Customize Invoices

Analyze Customer

Usage

Convergent

Mediation



From Business Process to Features

Price, Rate & Charge

Manage Receivables & Payables

Bill & Invoice &

Settle

Customer & Partner Financial

Care Analytics

Deliver Service

Order Offer &

Contract Mgmt.

CRM Operational

Platform Consume To Cash Analytics

O2C

Pro

cess

The Order To Cash Business Process for Posts

Execute efficiently Price profitably

Invoice as

customer requests Recognize

revenue correctly

Prevent company from

monetary leakage

Ben

efi

ts

Collect & Manage credits

Analyze

Customer Usage

SAP CC SAP ERP (FI-CAx based)

SAP CRM

SAP Sales / Service

SAP SCEM

RDS CUA

RDS

SA

P B

RIM

SAP Mediation

SAP TM

Billing & Revenue Innovation Management Solution supporting O2C Process

Get the business

Convergent

Charging

Convergent

Invoicing

Receivables

Management

& Payment

Handling

Credit &

Collections

Management

Financial Customer

Care & Dispute

Management

Mail delivery,

Logistic Execution,

Event Mgt. /

Mediation

Order Management,

Contact Center,

Marketing

Customer

Usage

Analytics Featu

res

The Corresponding Features



SAP Solutions for O2C link process across departments

Convergent

Charging

Convergent

Invoicing

Receivables

Management

& Payment

Handling

Credit &

Collections

Management

Financial Customer

Care & Dispute

Management

Order Management,

Contact Center,

Marketing

SAP CC SAP CI SAP CFM SAP CRM

Strategy & Service

Marketing

& Call Center Pricing

Design

Offer

Design

Financial

Customer

Care

Dispute

Mgmt

Billing Operations Accounting Collections Customer Care

Sales Contract

Creation

Credit

Scoring

Finance Manage

Receivables

& Payables

Run

Collections

Book

Revenue &

Costs

Prepaid

Refill

Billing Price and

Rate Events

Manage

Subscription

Account

Manage

Billing

Account

Invoicing &

Payment

Statements

Mediate

Usage

Operations Deliver

Service



Awarded DigitalRoute is the 2011

Stratecast Global CSP Billing

Mediation Competitive

Strategy Innovation Award

Winner

SAP Convergent Mediation

Integrate new and old systems

more simpler

Collection of multiple data streams

Ensure data quality

Error detection, with de-duplication

Transform raw data in usable

information

Data enrichment in real time

Standardize Data format

across platforms

Translate protocols and formats to create

new unified data format



“” The flexibility and speed at

which we could create and

modify price plans was

second to none. It is so user

friendly that now even non-

technical financial managers

are able to introduce new

tariffs.

Raphaël Bichon, Project

Manager SFR

SAP Convergent Charging

Easy to Use

Visual design of charging models with

complex discounts, surcharges,

apportionment, quotations of cost of shipping

Service-agnostic, proven

Rapid time to market

Support for multi-sided partner-centric

models

Support prepaid, postpaid and hybrid

charging

High Performance

Calculate prices and charges for hundreds of

thousands of transactions per second for

hundreds of millions of customers



Multi-Sided Partner Settlement

28% decrease in IT expenditures

as a percentage of revenue

with a consolidated single

solution and platform

landscape

Source: SAP Performance

Benchmarking

Handle flexible partner contract terms

Use the same pricing engine to define these contracts

Interlink customer pricing with partner

revenue share

Better manage the profitability of your business models

Tailor your offers to partners

Allow special incentives to most valuable partners



Consolidate multiple upstream

systems for a single view of the

customer’s account

Flexible invoice aggregation & presentation

Configurable invoice discounting

Integrate seamlessly with accounts receivable

and payable for interest calculation,

adjustments, etc.

Handle both customer invoicing and production

of payment statements for partners in a single

solution

Transactional journey by journey financial view

Scalable Solution

High volume capabilities

32% decrease in errors when

A/R and billing are

integrated so open items

are generated at the

same time as the bill

Source: SAP

Performance

Benchmarking

SAP Convergent Invoicing



74% Decrease in billing and

collections cost as

percentage of revenue

with optimized collections

and dispute handling


Benchmarking

SAP Customer Financial Management

Automation & Optimization

Automate routine tasks

Optimize efficient cash collection

through segmented strategies

Transparency On Revenue

Monitor an up-to-date picture of

customer payment behavior

Comply to accounting standards

Customer Satisfaction

Immediate access to customer

contracts & payment instruments &

accounts



SAP Convergent Charging and Invoicing scale massively

A series of benchmark tests were run in Q4 2011 in IBM Labs in Montpellier,

France, to measure the massive scalability of SAP Convergent Charging & SAP

Convergent Invoicing on IBM platforms.

773,000

2.8 B

events / sec

events / hour subscribers 200 M

Market Leading Results

SAP Convergent Charging

100,000

1175

billable items

invoices/sec subscribers

50 M

SAP Convergent Invoicing



Rapid Deployment Solution for Billing with Best Practices

* Reduction assumes

100% fit to baseline

content scope.

Leveraging Pre-

configured

Baseline

Up to a possible 40% time and effort reduction

compared to a traditional project with same scope*

Blueprint - up to 50%, Savings

• Best Practice processes modeled

and described

Realization - up to 50%, Savings

• Best Practices processes already

configured and documented

• Delta implementation built on-top of

existing best practices

Testing- up to 30%, Savings

• Test Case Template supplied

0 10 20 30 40 50 60 70 80 90 100

Standard Prep Business Blueprint Realization Testing Go-live

Start Deploy Run



Efficient Revenue Management: increase customer

satisfaction and improve financial performance with a converged

view of customer accounts, receivables, payables and disputes.

Deployment Flexibility: deploy a complete, integrated

customer care and next gen billing system, or choose to deploy

in smaller implementable steps for targeted incremental value.

Don’t reinvent the Billing Wheel!

Business Agility: launch new pricing, charging and billing

models more flexible and faster: open up new revenue stream,

personalize your B2B offerings and get to know your customers 1

2

3

Summary



Explore Different

Scenarios



B2B Billing: Delighting your Enterprise Customers

25% lower DSO when key metrics

can be analyzed across

customer, order, region, and

product line


Benchmarking

Tailor to each specific enterprise customer

Manage complex enterprise agreements

Customize offerings while retaining manageability of product

catalog

Define credit pooling across multiple enterprise employees, seats

and devices

Handle more dedicated billing capacities

Automate billing and discounting for SLAs and tiered plans

Customize invoicing breakdowns corresponding to customer

hierarchies

Converge all services onto a single bill



DPD Post Use Case

DPD is the international network and

world class brand of GeoPost Group, a

100% subsidiary of La Poste Group and

majority shareholder of DPD.

GeoPost, a B to B parcel specialist,

caters for more than 230 countries on

behalf of over 300,000 clients. Today,

the GeoPost Group boasts 1st rank

positioning in France and 3rd rank in

Europe with an annual turnover of

around 3.292 billion Euros in 2008.

Customer Business Issues solved

• Optimizing the billing process, reducing the number of systems

involved (45 systems)

• Cost reduction by automating processes ( redundant customer

data, partial manual handling)

• Introduce E-Billing

Why SAP BRIM - Benefits

• Major cost savings due to standardized, automated processes

• Convergent invoices and E-Billing have positive effect on

customer satisfaction

• Harmonized pricing

Solution

• SAP Convergent Invoicing

• SAP Customer Financial Management

At first, replacing DPD’s proprietary billing application with the SAP for Telecommunications solution portfolio seemed

to be an unusual move . On second thought, DPD realized how appropriate it was. Telecommunication companies use

the same basis for billing as DPD: services used. Suddenly, the switch seemed perfect, with SAP Consulting

customizing the industrial solution portfolio to the specific shipping needs of DP “”

0,25-0,5% Increase of revenue growth



Develop Customer

Experience and New

Areas of Growth



BRIM Performance

KPI Industry Benchmark Improvement Potential

Time to implement new

pricing offers

Price/performance for

rating (TPS per CPU core)

Days sales outstanding

(DSO)

launch in hours

not weeks

150%

20%

1 day 90 days

30

days

470 5 400

2 140

0 90 days

54

days



© 2013 SAP AG. All rights reserved. 27 Internal

… Acquiring new business and keep existing

one

… Efficiently execute services according to

SLAs, including purchasing

… Price services in a way to be profitable

… Invoice services the way the customer

expects or demands SLAs

… Recognize revenue in line with to legal

regulations

… Deal with short and non-payments, credit

issues, and disputes in an efficient way

imagine Let’s Work on Your Future Together

Thank you

Isabelle ROUSSIN

VP Solution Management Next Gen Billing

Transportation, Logistics, Postal, Utilities

Mail: [email protected]


© 2013 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.

The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or

warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group

products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing

herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in

Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.


