Automating international trade through SAP GTS - … speaker... · Data transfer feeder systems – SAP GTS SAP GTS is connected to one or several feeder systems from where master

Automating international trade through SAP GTS

1

© 2011 Deloitte Belgium

Current Global Trade environment

2

Current global trade environment

3

• Revenue growth through new products and markets

• Reduce landed costs

• Just-in-time inventory management

Global Sourcing / Supply Chain

• Manage complex compliance operations

• Manage warehousing / distribution structures Tax and Trade-Aligned Supply

Chain

• Control flow of funds

• Reduce settlement times

• Enhanced reporting requirements Trade Finance

• Adapt to continually changing environments

• Increased risks, fines, and penalties

• New security programmes and requirements Trade Regulatory Compliance

• Economic downturn

• Pressure to reduce costs

• Short turnaround for customer satisfaction

Economic Pressure & Customer Demands

Drivers for adoption of a global international trade & compliance platform

• C-TPAT

• 10+2

• AES

• TSCA

• EAR/ITAR

• NAFTA

• ..

US

• MASP

• US RE-EXPORT

• AEO

• REACH

• Dangerous

Subst

• Dual use/AVV

• EFTA , PANMED

and PANEU

• …

EU

• Kyoto Protocol

• NOM

SEMARNAT

• OHSAS 18000

• …

Latin America

• China RoHS

• Air Toxics NEPM

• Air NEPM

• eFiling

• …

APAC

• CEPA

• Clean Air Act

• Toxic Subst Mgt

• …

Canada

International trade compliance is continually becoming more complex, leading to an increase in cost and

risk exposure

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Synergies between international trade requirements identified

International trade requirements

•MASP (EU),

ABI/AES (US),

AU, NZ, …

E-Filing

•AEO (EU),

CTPAT (US),

…

Security

certificates

•REACH (EU),

TSCA (US), Air

NEPM (AU),

RoHS (CN), …

Environmental

legislation

•Dual use (EU),

AVV (DE),

EAR/ITAR

(US), …

Import/Export

compliance

•Transfer

Pricing

•VAT (EU),

Intrastat (EU),

…

Other

...

Business Unit 4

Business Unit 3

Business Unit 2

Business Unit 1

Make sure synergies are identified and more importantly that compliance processes are aligned

and consistent across all areas

- 5 -


Key principles for Global trade solutions

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Key principles for Global trade solutions

Global trade solution streamline and automate processes related to following aspects:

Customs Management

Regulatory Compliance

Trade Financing & Financial

Settlement

Ocean/Air Procurement &

Contract Management

Global Trade Visibility

• Manage customs processes • Communicate electronically with authorities • Classification of goods • Produce trade related documents • Manage preferential trade schemes

• Sanctioned party list screening • Embargo checks • Import/Export license controls

• Letter of Credit management • Insurance management • PO/Invoice/BoL reconciliation • Financial settlement

• Trade contract negotiation • Contract compliance management • Freight allocation planning • Fully-calculated rates • BoL auditing

• Trade statistics • Manufacturing status • Inventory statuses • Compliance activities

Global Trade

solutions

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Key principles for global trade solution

Local, regional or global

SAAS solutions or in-house installed applications

Level of ERP integration

Customs/logistics oriented or export control/compliance oriented

Pricing model (transactional, license fee based, …)

Company history (joint ventures, mergers, …)

A global trade solution should be selected, based on the relevant differentiators and customer specific needs:

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SAP Global Trade Services as global trade solution

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SAP GTS Solution Map 1

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SAP GRC Global Trade Services - Functions

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Source: SAP

Data transfer feeder systems – SAP GTS

SAP GTS is connected to one or several feeder systems from where master data and

transactional data is transferred to the SAP GTS database

GTS uses data created in connected ERP systems.

Master data and transactional data is transferred to GTS

from the feeder system.

The feeder systems can be both SAP (ERP, SCM, SRM

or CRM) or any non-SAP systems.

No updates to documents or master data in GTS is

replicated in the feeder systems. One way transfer!

DocumentsSO, PO & Deliveries

Materials

Business

PartnersVendors & Customers

SAP R/3 system


Materials

Business


SAP R/3 system


Materials

Business


SAP R/3 system

DocumentsSO, PO & DeliveriesMaterials

Business


Non SAP

system

MaterialsBusiness



SAP GTS

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Source: SAP

SAP GTS Inbound Functionalities

ERP System

SAP GTS

Shipping notification Goods receipt Purchase order

SPL screening Embargo check Import license mgmt. IPR/FTZ/OPR

Import document LoC-compliant

printing

Import compliance precheck

Open letters of credit Import document

Product and business master data

Import number classification (HTS and so on)

Duty rate upload

3 2 1

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SAP GTS Outbound Functionalities

ERP System

SAP GTS

Product and business master data

Sales order

SPL screening Embargo check Export license mgmt. Customs Warehouse IPR/FTZ/OPR

Export document LoC-compliant

printing

Export compliance precheck

Letter of credit (LoC) check and assignment

Export number classification (CN code and

so on)

Delivery Invoice

3 2 1

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Source: SAP

Master data 2

15

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Classification Best Practice with SAP GTS

AS-IS Infrastructure Best Practice TO-BE

– Fragmented ERP systems and foreign

trade practices across business units

– Data is collected in many systems

– Relatively difficult to change

– Higher IT maintenance costs

– Difficult to standardize compliance

processes

– An enterprise-wide, trade compliance

centralized system

– Shared data

– Easy to modify process as requirements

change

– Lower IT maintenance costs

– Standardization of compliance processes

Broker

Customs

Carriers

Business systems Decentralized

Systems within

each business unit Centralized

GTS

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Classification Product Master

Classification Product Master

18

Customs Management 3

19

Customs Management General

• Customs authorities are a.o. involved in international trade processes wherever goods are given a customs approved destination or treatment by means of a customs declaration.

• The import and export process involves the filing of customs declarations in accordance with the local requirements from the country/region concerned.

• Depending on the country/region where the customs declaration will be filed, different requirements need to be met:

The operator has to file its customs declarations electronically (or paper-based for fall-back procedure)

The operator has to file its customs declarations either

Transaction based (i.e. per incoming and outgoing movement)

Periodic based (i.e. per week or month, where feasible)

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SAP ERP

- 22 -

SAP GTS

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SAP GTS

- 24 -

SAP GTS

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who relies on this publication.

SAP Global Trade Services

GTS Roadmap Planning

October 2011

Confidential

© 2011 SAP AG. All rights reserved. 27 Confidential

Legal Statement

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, and shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of this document. This limitation shall not apply in cases of intent or gross negligence.

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.

© 2011 SAP AG. All rights reserved. 28 Confidential

GTS Release Planning – Localisation for Sweden and Norway

2011 2012 2014 2013

GA: GRC 10.0

incl. GTS 10.0

GRC 10.0

Ramp-Up incl.

GTS 10.0

RTC: GTS 10.1*

GTS Legal

Change / SPxx

as req’d

Roll-In Roll-Out

Roll-In Roll-Out

Roll-In Roll-Out

Q2 2012

Export

SE*

Q3 2012

Import

SE*

Q4 2012

BWH

SE*

Q1 2013

Import

NO*

Part of GTS 10.1

SP of GTS 10.1

SP of GTS 10.1

SP of GTS 10.1

Q3 2013

Export

NO**

Q1 2014

BWH

NO**

SP of GTS 10.1 Part of GTS 10.x

* planned future functionality, included in product backlog

** planned future functionality

Thank You!

Contact information:

xx