SAP TM: İŞ DÜNYASI, IT ODAKLI DEĞİŞİME KARŞI

SAP FORUM İSTANBUL 2014SAP Transportation Management:

Bussines vs IT driven ChangeDr. Osman Bayraktar / Chris Schwab

Novigo

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2

Purpose

Experience & Challenges with SAP TM Implementation projects

SAP TM Implementation: A benefits driven approach

Bussiness vs. IT driven

Change

Ayırıcı SayfaBaşlık (Eğer gerekiyorsa)


Who is Novigo - Background

Enterprise Transformation Management

Monitor

& Realize Benefits

SAP Transportation Management

Continuous

improvement Process

Management Information System

& Business Analytics

Coach Beneficiary

Develop People & Leadership

Novigo formally known as GOPA IT

Consultants Inc.

- Focused on SAP SCM/TM since

2008 (first mover)

- Most SAP TM Engagements &

Implementations worldwide

- 100 % Track Record of successful

Projects


Who is Novigo

Enterprise Transformation Management

Evaluate & Examine

Current StateRedesign & Develop

Change Enabler

Monitor

& Realize Benefits

Business Readiness

Enable Organization & People

Communication

Stakeholder Management

Process Management

Continuous

improvement Process

Management Information System

& Business Analytics

Coach Beneficiary

Develop People & Leadership

Risk Management

Benefits Driven Business Case

Change Management / Leadership Development

Process Management / IT Consulting /

Project Management / Quality Management / Risk Management

Novigo

Best Practice

Approach

Why are we now Novigo?

- IT Systems Integrator to

a SAP Enterprise Transformation

Consultancy with a new

end-to-end Approach

- Global set up

- SAP TM talent pool

SAP Transportation Management


Locations & Regional Coverage

San Francisco Madrid

Walldorf

Bangalore

MiamiIstanbul


Engagements for SAP TM Demos, POCs & Implementations

Hig

h

Te

ch

LS

PO

il &

G

as,

En

erg

y

Ch

em

ica

lC

P /

Fo

od

Oth

er


Novigo – Timeline of TM projects

Benefits driven implementation approach


IT vs. Business driven change

Business IT ApplicationC H A N G E

IT or business driven change rarely occurs in isolation of other

components of an organization

Idea. Lets get on

with this: It is time

critical

This is leading

edge IT

Solution: We

need it

.

.

.

.

.

.

.


Designing program architecture

IT Application

.

.

.

.

.

.

.

Infrastructure

.

.

What facilities are

required to

support the

change?

This is leading

edge IT

Solution: We

need it



Business

Idea. Lets get on


critical



IT Application

.

.

.

.

.

.

.

Business Benefits

.

.

.

.

.

Infrastructure

.

.

What facilities are

required to

support the

change?

What are the

precise benefits

we are seeking?

This is leading

edge IT

Solution: We

need it



Business

Idea. Lets get on


critical



IT Application

.

.

.

.

.

.

.

Business Benefits

.

.

.

.

.

Process

.

.

.

.

.

.

Infrastructure

.

.

What facilities are

required to

support the

change?

What are the

precise benefits

we are seeking?

Which parts of

the organization

will be involved

in delivering the

benefits?

This is leading

edge IT

Solution: We

need it



Business

Idea. Lets get on


critical


Program architecture

IT Application

.

.

.

.

Business Benefits Process Projects

.

.

.

.

.

Infrastructure

.

.

What facilities are

required to

support the

change?

What are the

precise benefits

we are seeking?

What are the

required

projects to

improve the

process?

Which parts of

the organization

will be involved

in delivering the

benefits?

This is leading

edge IT

Solution: We

need it



Business

Idea. Lets get on


critical

*Based on concept from Cranfield University

.

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Business benefits foundation for business case

IT ApplicationBusiness Benefits Process Projects Infrastructure

What facilities are

required to

support the

change?

What are the

precise benefits

we are seeking?

What are the

required

projects to

improve the

process?

Which parts of

the organization

will be involved

in delivering the

benefits?

This is leading

edge IT

Solution: We

need it

Business

Idea. Lets get on


critical

Risk

Dependency

Cost benefit calculation

Organisational implications

Resource requirements

Owner

Stakeholder issues


Benefits driven program architecture

System Environment

SAP Implemented

Process

quantified benefits

future state Changecurrent state

Transport processes are

not connected across BU

Diverse IT system with

Different data models

Reporting & Analytics:

No standard KPI, disparate

data source

Increase X-BU

collaboration

Harmonies IT landscape

Role based KPI

Reduce manual

workload

Improve resource

utilization

Lower TCO in IT

Increase process

standardization

Transparency over SCE

Inbound freight

Reporting & Analytics

Vendor Portal

Managing transportation

requirements

Rate & Contract

Management

Planning freights &

Selection carriers

Freight payment

Track and trace

SAP ECC EHP

7

PI

TM 9.1

Model Client:

Lack of visibility

(Inbound)

Lack of economies of scale:

Freight rates

Monitor SCE

Improve negotiation

power

Lower freight rates

KPI based decision

making

Outbound freight

Transportation planning

GEO coding

SAP BW

EM

Organization/Process

Management

People


TM Components and Processes

OM - Order Management/Integration

PL - Planning

CS – Carrier Selection

TEND – Tendering and Collaboration

FP – Freight Audit and Pay

EXEC - Execution and Printing

T&T – Track and Trace

REP - Reporting


Quantitative Benefits (Project Example)

Common Issues in Transportation (Quantitative)

Freight

Spent

Model selection is not optimized Mode shift opportunities are not identified

Carrier selection is not optimizedAllocation and Business Shared are not

integrated

Rate and Pricing model are not optimal Difficulty to maintain consistent freight rates

Asset

Utilization

Last minute cancelled ordersNo Change Control Process to handle order

changes

Lack of visibility to combine loads Lack of interactive user interface in Planning

Product is not ready to loadOrder integration needs to be combined with

Delivery integration

Inaccurate product volume calculationLegacy system has its own set of material

characteristics

Outdated Legacy

Systems

Custom Interface is required Interface needs update to work with ECC

Legacy system usually not future proofSystem lacks innovation and continuous

improvement.

On-time

Performance

Operating hours are not consideredOperating hours are not maintained or being

used as a constraint during planning

Delivery windows are not consideredDelivery windows are not maintained or being

used as a constraint during planning

Headcount in

Logistics Area

Reduction of Paper based process Automate handling of Order Changes

Exception based transportation planning Bring Routing Guide online


PL - Planning






REP - Reporting

PL

CS

TEND

T&TFP EXE

C

CS

OM PL

PL

OM PL

OM RE

P

OM

RE

PTENDPLOM CS

FP

PL

PLOM

PLOM TENDCS


Qualitative Benefits – (Project Example)

Common Issues in Transportation (Qualitative)

Customer

Service

Customers are somehow restricted to order changes

No Change Control Process to handle order changes

Expedite Service not available Order Integration and Automation in Planning

are not optimal.

Early or late deliveriesOperation hours and delivery windows are not

respected

Carrier

Relationship

Fail to meet the committed capacitySystem does not support carrier allocation to

capture the consumed capacity

Limited communication to phone or fax System does not support the modern technology

such as EDI, XML, SMS

Carrier shows up with no shipmentProduct is not available / Last minute cancelled

orders / Not-executable shipments

“Offline” processing

(Spreadsheet)

Shipment Routing could be labor intensive and error prone.

Routing guides are maintained in Excel

Manual and Slow carrier selection based on email communication

Automatic carrier selection/tendering with allocation integration is not available

Data

Redundancy

Master Data (Customer, material) maintained separately in ERP and Legacy system

Transactional Data (Deliveries, shipments) maintained separately in ERP and Legacy system

Visibility in Transportation

ProcessesNo visibility once the shipment left the facility

Lack of tracking tool (e.g. EM) to capture transportation events.


PL - Planning






REP - Reporting

PL

PL

PL

PL

PL

PL

OM

OM

OM

OM

OM

CS

CS

TEN

D

TEN

D

T&T


Key take aways

IT or business driven change rarely occurs in isolation of other components of

an organization

High quality business cases: complete, realistic, and accurate

Better engagement with the business: communication and empathy

From project delivery to benefits realization: No “surprises”

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Teşekkürler

İletişim Bilgileri:

Dr. Osman Bayraktar

Vice President

Global Head of Enterprise Transformation & Management Consulting

O: + 1 (650) 249 3206 - M: +1 (650) 576 6030 - F: +1 (650) 521 5633

[email protected]; www.novigo.com

Novigo - 247 N. San Mateo Drive - San Mateo, CA 94401 – USA

Chris Schwab

Principal Consultant

SAP SCM

M: +49 (0) 160 96931695

[email protected] - www.novigo.com

Novigo GmbH - Altrottstr. 31 - 69190 Walldorf – Germany

applewebdata://16FDD531-7AE5-41B6-9CD7-BAD2F6B5E55D/[email protected]

http://www.novigo.com/

Technology

SAP TM: İŞ DÜNYASI, IT ODAKLI DEĞİŞİME KARŞI