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Transport and Freight Managemement
Digital logistics in thyssenkrupp with SAP Transportation management/ Project overview
Moscow, 10.10.2019
thyssenkrupp Materials Services | Supply Chain ManagementThomas Rücker | Head of Transport & Freight Management
thyssenkrupp Materials Services MX | SCM
thyssenkruppBusiness Area Materials ServicesFiscal year 2017/18 : 14 Mrd. € revenue330 Mio € freight costsabout 40,0 Mrd. € revenue (total tk group)
about 1,7 Mrd € freight costs (total tk group)
CT
MX
ET
SE
IS
thyssenkrupp Materials Services MX | SCM
Our expertise:
materials, raw materials, logistics, IT and Services
Business modelMaterials Services
Mill Services
Raw Materials
Trader between productionprocessing and construction
thyssenkrupp Materials Services MX | SCM
Warehousing
Services
Production
Trading
13,7Mrd. €
• Materials trading• Material prefabrication• Warehouse Management• Supply Chain
Management• Other services
Customer oriented trading- und service organisation
• Materials• Raw Materials
• Stainless
thyssenkrupp Materials Services MX | SCM
Distribution
Efficient
Warehouse, Transport andLogistics systems
CentralRegional
local
Logistic and IT Excellence:Worldwide greatest SAP ERP System deliver the Basis for efficient processesOne SAP Template für Materials Serviceswith 8.000 user
thyssenkrupp Materials Services MX | SCM
Basic supply chain processesTransport environment
Order Management
Customer Order entry
Warehousing
Transport Demand
Customer
Order finalisation
Supply chain processes
IT solution
TransportTransport
Execution
thyssenkrupp Materials Services MX | SCM
Basic supply chain processesCarrier structure
TransportManagementCarrier structureRail, Truck, ship
thyssenkrupp Materials Services MX | SCM
Timeline
Additional Requirements
Paperwork from TM
Transport variants
Adaptation Credit Note
Advice
AdditionalWorkshop tkP
NUM Readiness
MobileDevice
Loading ControlPart I
Access Rights Concept
Loading ControlPart II
28.01. 13.02.14.02. 20.02.31.01.
19.02. 21.02. 26.02.05.03. 30.05.
WorkshopUSA
WorkshopEastern Europe
tbd.
tbd.
Actual project work for Digital Transport Order Management DTOM
thyssenkrupp Materials Services MX | SCM
Digitalization & HarmonizationCost Reduction
Motivation for Digital Transport Order Management
ONE tool supports
TWO strategies
as part of the overall transport and freight
strategy9
thyssenkrupp Materials Services MX | SCM
Digital Transport Order Management as “Enabler”, to counter the freight market trend.
60 000
65 000
70 000
75 000
80 000
85 000
90 000
95 000
100 000
105 000
FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22
Frei
ghtv
olum
ein
T€
FY
Avoiding transport costs
by3% p.a.
Price trendfreight market
ø 6% p.a.
Phase IIincl. implementationTransport Analytics
Increase of productivity in
transport processes and more efficient
freight capacity purchasing
• Productivity increase in transport network
• Productivity increase in process
• More efficient freightcapacity purchasing
• Continually supplierimprovement like CIP
• Strong domestic economy
• High freight capacity demand
• Shortage of driver
Actualtransport cost increase
+9,2%
+7,8%
Forecast
Actual Freight Cost Increase Requires OptimizationFreight cost trend of OU Materials Germany with forecast
thyssenkrupp Materials Services MX | SCM
Starting point for TM decisionDifferent landscape in systems
Evolution of systemsERP 1
BI
TP 1
TP 2
TP 3
TP 4
TP 5
ERP 2ERP 3
thyssenkrupp Materials Services MX | SCM
Main decision driver for SAP-TMManaging complex IT-infrastructure and widespread physical logistic locations within supplier and customer networks
Information processing Logistic network
Standardization in IT, physical processes and future technologies
thyssenkrupp Materials Services MX | SCM
thyssenkrupp SAP-TM entry: Digital Transport Order Management to optimize business processWhat does it mean in general? Where are the/ your business needs?
Mobile transport order
GPS Tracking: rail, trucking
X-GC network operation
Route & trip optimisation
Dispatching
time slots
tendering-platformsselfbilling
Transport order EDIDigital
Transport Order
Management
Digital transport ordermanagement impacts basic
transport process
Geographical planning
thyssenkrupp Materials Services MX | SCM
- Evaluation planneddelivery time
- Material availability
- Evaluation deliveryarea
- Loading point
- Capacity check
TransportDemands
SalesOrders
Sales
B2B
Online Shop
Distribution Channel Fullfilment Transportation
Transport-execution
Interface/ dispatching/
transportplanning
ColaborationPortal
- Geographik transport planning
- Route & Trip opimization
Mobile DeviceLoading control
SAP ERP SAP TM
- Loading papers- Mobiles
Payment process
Basic data
- Digitaler Proof ofdelivery
- Billing/ invoices- Self Billing
- Ad hoc order placement Spediteur
Interface toexternal Systems
tk first solution set up
Tool&methods
Transport Analytics
Daten
- Data transmission
dataprocessing
Update Update
- Stratgic freicht procurement
- Dispatching
thyssenkrupp Materials Services MX | SCM
View on TMMobile application, visual transport planning and trailer yard management
thyssenkrupp Materials Services MX | SCM
View on TMRail planning options over stage planning
Freight Unit Stages
Freight Unit Stages
Freight Unit Stages
Freight Unit Stages
Freight Unit Stages
Wagon Unit
Wagon Unit
total traintotal customerorder
thyssenkrupp Materials Services MX | SCM
Target environmentSimplify complex environment and having one integrated TMS
ERPTM
BI
HANA
SAPCloud
AZURE
EDI
Colaboration
portal
TP 1TP 2
TP 3XX
thyssenkrupp Materials Services MX | SCM
Lesson learned TMCost, budget and targets
SAP-TM standardapplication
What you customizeyou will get!
What you are programmingyou will have additionally!
What you are buying overSAP-TM add ons
you do not have toprogram!
thyssenkrupp Materials Services MX | SCM
Outlook technical strategic development
thyssenkrupp Materials Services MX | SCM
thyssenkrupp
MX stainlessplant, Italy
AST
thank youfor attention