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Visibility in Transportation Management with SAP Event Management SAP Business Transformation Services October 2011 internal

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Page 1: TM and Event Management

Visibility in Transportation Management with SAP Event ManagementSAP Business Transformation ServicesOctober 2011

internal

Page 2: TM and Event Management

© 2011 SAP AG. All rights reserved. 2

Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and/or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Page 3: TM and Event Management

AGENDA1. Overview of SAP TM 8.0 Scenarios2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios3. Implementation of TM-EM Visibility Processes

• Prerequisites and Basics• Configuration Required for all Scenarios• Scenario Specific Configuration

4. Enhancing the Standard Visibility Processes – Retail Customer Example

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© 2011 SAP AG. All rights reserved. 4

SAP Transportation Management ScenariosPredefined, Best Practice Transportation Scenarios with SAP TM 8.0

Scenario OverviewIntegrated, end-to-end transportation scenariosPredefined, best practice processes & configuration

Scenarios CoveredDomestic Inbound TransportationInternational Inbound LogisticsDomestic Outbound TransportationInternational Outbound TransportationOutsourced Transportation

Scenario Deliverables (in Solution Manager)

Scenario DescriptionScenario & Process Component ListConfiguration Guide (incl. Scenario Master Data)

Customer / Partner BenefitsReduced implementation time, effort and costEfficient, lower cost operations

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© 2011 SAP AG. All rights reserved. 5

Domestic Inbound Transportation

Inbound shipment processing for purchased goods from domestic suppliers –with integrated shipper transportation planning and logistics service provider execution

Vendor 1(Plant Lippstadt, DE)

Land-based main carriage via truck with multi-pick for full truck load transportation and multi-drop delivery to consignee plants

Inbound delivery

Vendor 1(Plant Hamm, DE)

Vendor 2(Plant Dortmund,DE)

Vendor 1(Plant Lüdenscheid, DE)

Vendor 2(Sindelfingen, DE)

Consignee 1(Plant Dingolfing, DE)

Consignee 1(Plant Munich, DE)

Multi pick-up

Direct main carriage

Direct, land-based transportation via truck from supplier to consignee plants Inbound delivery

Main carriage with multi-drop

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© 2011 SAP AG. All rights reserved. 6

Domestic Inbound Transportation Scenario & Process Details

Purchase order creation (in SAP ERP)Vendor determination via purchasing contractsGoods supplier deviating from vendor

Manual / automated transportation planningOptimizer planning (Multi-pick, multi-drop scheduling & routing) Freight order creationAutomatic carrier selection and assignment based on transportation lanes

Document sending

Event message reporting (in SAP EM)Loading / unloading of freight order freight unitsArrival & departure confirmationUnplanned event tracking & alerting

Advanced Shipping Notification (ASN)(in SAP ERP) Receipt of ASN from supplier, processed as inbound deliverySAP TM update for transportation request triggering

Goods receipt processingPosting to stock Proof of delivery (POD) sending to vendor

Purchase Order

Processing

Transportation Requirement Processing

Freight Planning& Carrier Selection

Freight Execution & Monitoring

Inbound processing

Freight Settlement

WarehouseManager

TransportationCharge Clerk

Order-based transportation requirement creation(in SAP TM)Automatically created based on purchase order

Freight unit creationAutomatically created according to building rules

Delivery-based transportation requirement creationAutomatically created based on later inbound deliveryPlan / actual update

MaterialPlanner

Transportation Planner

Transportation ServiceProvider / Carrier

Transportation Charge CalculationAccording to freight agreementsHaulage charges dependent on weight& distance

Supplier Freight Invoice Request (SFIR) processingCreate & transfer freight settlement document to SAP ERP

Freight settlement (in SAP ERP)Carrier invoice entry Invoice verification & paymentEvaluated Receipt Settlement (ERS)

Focus of EM visibility processes

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© 2011 SAP AG. All rights reserved. 7

International Inbound Logistics

International, intermodal transportation management for purchased goods fromoverseas vendors with integrated purchase order, transportation and invoice management

Vendor 1(Mainland China)

Vendor 2(Mainland China)

Port-of-Loading(Shanghai, China)

Port-of-Discharge(Hamburg, Germany)

Pre-carriage

Main Carriage On-carriage

Consignee (Ludwigshafen,Germany)

Packing of purchased material in container

Direct pre-carriage via truck from vendors to port-of-loading

Main carriage via scheduled vessel from China to Germany

On-carriage via scheduled train from Hamburg to Ludwigshafen

Inbound delivery

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© 2011 SAP AG. All rights reserved. 8

Domestic Outbound Transportation North America – Scenario & Process Details

Domestic outbound transportation management with automatic planning optimization and carrier selection, as well as tendering, dispatching, and freight settlement

Multi-drop transportation to customers via LTL carrier

ShipperPlant Warehouse/DistributionCenter(Chicago, IL, USA)

Packing of material in boxes. Material grouping & staging per trip.

Truckload shipment direct to customer

Consignee 17(Provo, UT, USA)

Truckload Planning

Less-than-Truckload Planning

Consignee 09(Carrolton, KYUSA)

Intermodal Planning

Consignee 10(Los Angeles, CAUSA)

Consignee 07(Evansville, INUSA) Consignee 08

(Louisville, KYUSA)

Rail transportation to nearest destination railhead

Truck transportationto local railhead

Truck transportationto customer

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© 2011 SAP AG. All rights reserved. 9

Final delivery

International Outbound Transportation

Full Container Transportation - from forwarding order processing, ocean carrier booking, freight planning, execution & tracking to order settlement

Drop-off carriage via fixed trucking company to port-of-loading

Final delivery via truck from port-of-destination and delivery to consignee

Material packing at shipper location in 3 containers (20 foot standard dry containers) and delivery to the transportation division’s warehouse

Main carriage ocean transportation via ocean liner (Free On Board (FOB)) using pre-booked freight capacity

Shipper(Newark, USA)

Drop-offcarriage

Port-of-Discharge(Rotterdam, Holland)

Main Carriage

Consignee(Düsseldorf,Germany)

Shipper Warehouse (Transp. Division)(Newark, USA)

Port-of-Loading(Newark, USA)

Goods delivery at consignee (with proof of delivery)

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© 2011 SAP AG. All rights reserved. 10

Outsourced Transportation

Outsourced transportation process management - with shipper transportationplanning and 3rd party shipment execution and event monitoring

Packing of sold material in boxes

Full truck load transportation via 3rd party carrier to customer location Delivery toCustomer

Shipper Plant (Chicago,USA)

Customer(Bellevue, USA)

Carriage

Page 11: TM and Event Management

AGENDA1. Overview of SAP TM 8.0 Scenarios2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios3. Implementation of TM-EM Visibility Processes

• Prerequisites and Basics• Configuration Required for all Scenarios• Scenario Specific Configuration

4. Enhancing the Standard Visibility Processes – Retail Customer Example

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© 2011 SAP AG. All rights reserved. 12

Visibility Processes for Transportation Management

• Visibility Processes for Transportation Management offer preconfigured, out-of-the box content for transportation operations, supporting you in tracking relevant activities in- and outside your company walls. You can monitor different processes and business documents, like freight units and freight orders. Depending on your role, you can chose different layouts for the user interface such as shipper and consignee, which results in a comprehensive and easy to understand view on transportation operations.

• Transportation operations is an area in which transparency is crucial, especially in those cases where lengthy transportation times have to be considered, like for example when shipping overseas. To ensure customer satisfaction, it is more than ever important to keep full control of what is going on, although parts of the business process may run outside your company's realm, managed by an advanced external Transportation Management system.

Solution Details

Pain Points

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Mapping of TM Scenarios to EM Visibility Processes

TM 8.0 Scenarios

International Inbound Logistics

Domestic Outbound Transportation

International Outbound Transportation

Outsourced Transportation

Domestic Inbound Transportation

General TM-EM Visibility Process(Only different settings in TM on freight unit, freight order or bookingorder level)

Additonal EM settings(exemplary for all scenarios)

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SAP EM Visibility Process for TMTracked Objects and Events

1 3 854

Scheduled Departure Arrival Unloading BeginArrivalFREIGHT UNIT

2

Loading Begin

Loading End Damage

Legend: = unexpected event= expected event

FREIGHT ORDER, BOOKING ORDER

6

Unloading Begin

7

Unloading End

2 743 8 9

Departure Arrival Unloading End

Proof of Delivery

1

Loading Begin

Loading End Delay

5 6

11

Proof of Pickup

Clear Customs

Unloading End

9 10

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Event Handler Type Expected Events Unexpected EventsEvent Event Code Event Event Code

Freight Unit

(ODT20_FU)

Scheduled SCHEDULED Damage DAMAGE

Loading Begin LOAD_BEGIN Delay Freight Unit DELAYED_FU

Loading End LOAD_END Cancel CANCEL

Departure DEPARTURE Block for Execution BLOCK_FOR_EXEC

Arrival at Destination ARRIV_DEST Unblock for Execution UNBLOCK_FOR_EXEC

Unloading Begin UNLOAD_BEGIN

Unloading End UNLOAD_END

Freight Order,Freight Booking

(ODT20_TO)

Loading Begin LOAD_BEGIN Delay DELAYED

Loading End LOAD_END Cancel CANCEL

Proof of Pickup POPU Block for Execution BLOCK_FOR_EXEC

Departure DEPARTURE Unblock for Execution UNBLOCK_FOR_EXEC

Clear customs CLEAR_CUSTOMS

Arrival at Destination ARRIV_DEST

Unloading Begin UNLOAD_BEGIN

Unloading End UNLOAD_END

Proof of Delivery POD

SAP EM Visibility Process for TMTracked Objects and Events

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SAP EM Visibility Process for TMParameters and Statuses

System Parameters:• Consignee (Internal)• Destination Location (External)• Destination Location (Internal)• Ordering Party (Internal)• Requested Delivery Date• Requested Pick-Up Date• Sales Organization• Shipper (Internal)• Source Location (External)• Source Location (Internal)• Transportation Order Category• Transportation Order ID• Transportation Order Root Key• Transportation Service Provider

Control and Info Parameters:• Assigned Freight Units• Booking Order ID• Capacity Check Block• Consignee• Customer Return ID• Customs Block• Customer Order ID• Dangerous Goods Block Set• Delayed Event• Delivery ID• Estimated Delay Date• Estimated Delay Time• Estimated Delay Timezone• Freight Order ID• …

Comprehensive set of parameters and statusesincluded in visibility process.

Statuses:• Transportation Status• Delivery Status• Block Status

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© 2011 SAP AG. All rights reserved. 17

SAP EM Visibility Process for TMRule Sets

EM rule sets for freight order / booking order and freight unit:• If event code = xyz

• Set status in EM• Send data to TM (activity = TM_MAINTAIN_EXEC_INF)

• If event code = CANCEL• Deactivate event handler

• If event code = DELAY• Send data to TM (including estimated new expected date and time of the next expected event)• Create Alert

TM follow-up actions:In TM the execution status of the freight order, booking order or freight unit is updated according to the event that has been sent to TM from EM.For example, when the last expected event is reported from EM, the system sets the status of the corresponding freight orders to ‘executed’.

The update within TM is done via a so-called ‘determination logic’ in BOPF.

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Tracking Information is Available Seamlessly in SAP TM from Event Management

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© 2011 SAP AG. All rights reserved. 19

Tracking Information is Available Seamlessly in SAP TM from Event Management

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AGENDA1. Overview of SAP TM 8.0 Scenarios2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios3. Implementation of TM-EM Visibility Processes

• Prerequisites and Basics• Configuration Required for all Scenarios• Scenario Specific Configuration

4. Enhancing the Standard Visibility Processes – Retail Customer Example

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© 2011 SAP AG. All rights reserved. 21

PrerequisitesRequired applications, releases and business function

The following applications and releases are required: • SAP TM 8.0 • SAP enhancement package 1 for SAP Event Management 7.0 with Support Package 3

In EM you must activate the business function SCM_EM_TMCONTENT01• Go to transaction code: SFW5• Activate the business function

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BasicsTM Architecture – Business Object Processing Framework

Business Object Model A Business Object is a representation of a type of uniquely identifiable business entities described by a structural model and an internal process model (e.g. a freight order).

TM 8.0 BO model consists of two main business objects:

• “Transportation Request” (TRQ)

• “Transportation Order” (TOR)

Nodes: A Node is a semantically related set of attributes of a business object. Nodes can be used to define and structure your business object.The most relevant nodes for EM are:

• ROOT• STOP• ITEM_TR• EXECUTIONINFORMATION

All tracked objects (freight unit, freight order and booking order) use the same business object TOR in TM.

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BasicsTM Architecture – Business Object Processing Framework

BOPF TEST UI (transaction /BOBF/TEST_UI)

Expected event data is read from EM

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The communication to EM is triggered via the Post Processing Framework in Output Management of TM.

The Post Processing Frameworks triggers:• External communication such as printouts, faxes, and e-mails with a print preview option • Alerts• Workflow • Business-to-business (B2B) and application-to-application (A2A) communication • BI data upload• Events to an Event Management system on the basis of decisions or in response to

business events

BasicsTM Architecture – Business Object Processing Framework

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Events in TM:

BasicsThree Sets of Event Codes

Event Types in EM application interface of TM:

Internal Event Codes in EM:

Page 26: TM and Event Management

AGENDA1. Overview of SAP TM 8.0 Scenarios2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios3. Implementation of TM-EM Visibility Processes

• Prerequisites and Basics• Configuration Required for all Scenarios• Scenario Specific Configuration

4. Enhancing the Standard Visibility Processes – Retail Customer Example

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© 2011 SAP AG. All rights reserved. 27

Configuration Required for all Scenarios

• Customizing in TM: • Setting up connection between TM and EM: maintain the output management adapter • Defining execution relevance on FU-type or FO-type level

• Customizing in EM application interface:• Standard EM settings

• Customizing in EM:• Standard EM settings

For detailed information on the required configuration see „Integration Guide SAP TM with EM“ (link).

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Configuration Required for all ScenariosSetting Up Connection Between SAP TM and SAP Event Management

You use this procedure to enable the communication between TM and EM by maintaining the output management adapter for the business object ‘TOR’.

1. In Customizing for SAP TM, choose Cross-Application Components Processes and Tools forEnterprise Applications Reusable Objects and Functions for BOPF Environment PPF Adapter for Output Management Maintain Output Management Adapter Settings .

2. Choose the dialog structure Direct Output Agents (w/o PPF & w/o History). 3. Select the entry with the following data:

• Business object: /SCMTMS/TOR • Node: ROOT • Agent name: SEND_EM_DATA_FROM_TOR

4. Choose Details. 5. Select the Enable checkbox.

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Configuration Required for all Scenarios Settings on Freight Unit, Freight Order, and Booking Order Type Level

Define Event Settings in the FU Type Define Event Settings in the FO Type

Page 30: TM and Event Management

AGENDA1. Overview of SAP TM 8.0 Scenarios2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios3. Implementation of TM-EM Visibility Processes

• Prerequisites and Basics• Configuration Required for all Scenarios• Scenario Specific Configuration

4. Enhancing the Standard Visibility Processes – Retail Customer Example

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© 2011 SAP AG. All rights reserved. 31

Scenario Specific ConfigurationDomestic Inbound Transportation

Business Purpose:Demonstrating how to enhance existing visibility processes with additonal events only by configurationand no development effort.

Required Configuration:• Customizing in TM:

• Defining events in TM for business documents• Customizing in EM application interface:

• non• Customizing in EM:

• Defining new internal event codes• Define rule sets• Define new event handler type • Define condition for event handler type (same application object type as other scenarios, different

transportation execution organization in TM)• Define new profile for expected events (new DIT internal event codes are being generated from

existing standard event codes (e.g. LOAD_BEGIN)• Defining Authorization Profiles• Defining Web Interface Transactions, new configured fields and new user profiles

See configuration guide for domestic inbound transportation (link).

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Scenario Specific ConfigurationDomestic Inbound Transportation

Defining additional Events in TM:• In Customizing for SAP TM, choose Transportation Management Integration Tracking and

Tracing of Processes and Documents Define Transportation Activities for Tracking and Tracing• Choose the Event for Business Document view from the structure on the left. • Create the following new entries:

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Scenario Specific ConfigurationDomestic Inbound Transportation

Defining additional Events in EM:• In Customizing for EM choose Event Handlers and Event Handler Data Codes Event

Codes Define Internal Event Codes and Internal Event Code Groups. • Choose the Internal Event Codes view from the tree structure. • Create the following entries:

Page 34: TM and Event Management

AGENDA1. Overview of SAP TM 8.0 Scenarios2. SAP EM Visibility Processes for Tracking of SAP TM Scenarios3. Implementation of TM-EM Visibility Processes

• Prerequisites and Basics• Configuration Required for all Scenarios• Scenario Specific Configuration

4. Enhancing the Standard Visibility Processes – Retail Customer Example

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Enhancing EM rule set for event DELAY:Automatic calculation of consequences of a delay

For which of the customers of a multi-drop tour can the agreed time slot not be met?

Retail Store 1

Enhancing the Standard Visibility ProcessesCustomer example of a leading German Retailer

Retail Store 2

Retail Store 3Retail Store 4

Distribution Center

The project was delivered as a CDP.

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Enhancing rule set for event DELAY:Automatic calculation of consequences of a delay

For which of the customers of a multi-drop tour can the agreed time slot not be met?

Next location of the tourDuration of the delay

Enhancing the Standard Visibility ProcessesCustomer example of a leading German Retailer

If the time slot of a specific retail store cannot be met, an alert for the store manager is triggered automatically. The store manager is being informed about the newly calculated time of arrival of the goods at his store.

The project was delivered as a CDP.

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