Solutions for the Next-Generation Cargo Company

Industry Executive Overview

Cargo Transportation and Logistics

Solutions for the Next-Generation Cargo Company

Executive

Summary

SAP Solutions SAP Innovations References Contact Us

© 2013 SAP AG

© 2013 SAP AG 2 / 37

The Pursuit of Profitable Services

Transportation and logistics service providers (LSPs) live in an incredibly dynamic

world of evolving markets, shifting customer demands, and rising competition.

To survive and thrive, you need to be flexible, informed, and cost-efficient.

This industry is all about people and processes – and it’s your ability to execute across these areas

that drives your profitability. To stay ahead you need to empower your people and enhance your

processes with information – so that all parts of your operation can work together to deliver more

profitable services.

For carriers, transportation asset management (locomotives, trucks, aircraft, and rail track) is an

area ripe for improvement. Through better management of spare parts and more effective

maintenance scheduling you can realize dramatic cost savings. Fuel impacts transportation costs

and can force changes in your operation. This means you need process flexibility and business

insight to make informed decisions that contain costs. And for contract logistics, the ability to tailor

and support the warehouse needs of your target industries requires flexibility and sophisticated

process support to deliver advanced services such as batch management, serialization, and catch

weight.

All of this is why SAP gives you the end-to-end process support and 360-degree visibility you need

to drive down costs and improve decision making in today’s demanding business world.

Executive

Summary


Information and the Path

to Growth

Market Situation

Transformation Through

Technology Innovation

Business Priorities

SAP Innovations

© 2013 SAP AG 3 / 37

Information visibility is the key to sustainable growth.

Improve Asset Management

You can maximize the value of your vehicles and equipment with a holistic, cradle-to-grave view

of assets – one that extends from finance and maintenance to operations. The result is better

availability, lower costs, and improved utilization.

Implement an End-to-End Lead-to-Cash Process

By integrating the entire order lifecycle, you can gain a 360-degree view of the customer through-

out the organization. The result is fewer disputes and improved days sales outstanding (DSO).

Transform Your IT Platform

Expensive to maintain and update, old systems impede profitability. To compete, you need to

modernize your IT systems. The result is increased information visibility and better collaboration

across business units, partners, and customers.

Information and the Path to Growth

With processes supported by flexible software end to end, you can improve

information visibility. This can help you maximize asset value, improve customer

service, and achieve profitable growth.


to Growth

Market Situation



Business Priorities

SAP Innovations

Executive

Summary


© 2013 SAP AG 4 / 37

Best-run transportation and logistics companies execute customer orders as

promised at the lowest cost. This is done by leveraging people, processes, and

information assets in smart ways to improve visibility, efficiency, and performance.

Best-Run Transportation and Logistics

Understanding the value drivers for each of these priorities is key to executing as a

best-run transportation company.

Asset Management

Operations

Sales and Marketing, Customer Service

People and Talent

Finance

Procurement

IT Management

Technology Solutions


to Growth

Market Situation



Business Priorities

SAP Innovations

Executive

Summary


© 2013 SAP AG 5 / 37


to Growth

Market Situation



Business Priorities

SAP Innovations

Executive

Summary


For over 40 years, SAP’s innovations have helped companies transform and achieve the goals

they never thought possible – making more informed decisions and innovating to lead in new

markets. SAP enables the real-time enterprise, empowers new experiences, and unwires the

business.

Enable the Real-Time Enterprise

SAP’s integrated, real-time analytical, predictive, and in-memory database solutions improve the

business value of your information and optimize business outcomes.

Empower New Experiences

The SAP software solutions allow you to deliver simple, elegant, real-time applications rapidly

across any device, with the superior consumer-grade experience users have come to expect.

Unwire the Business

Connect with your customers, partners, and employees efficiently and securely with a market-

leading mobile platform and device management technologies from SAP.

Business Transformation Through Technology

Innovation

Revenue growth and profit are no longer sufficient benchmarks for success. In

today’s economy, companies need to stand out in crowded and highly competitive

markets. The pace of business is relentless, where today’s innovation becomes

tomorrow’s status quo. Organizations that embrace technology can transform to

gain a significant advantage rapidly over the competition.

© 2013 SAP AG 6 / 37

SAP Innovations

Successful businesses use technology to drive business performance. It all starts

with an IT platform strategy that improves and integrates your processes and data,

enables real-time analytics and visibility, and minimizes IT costs.

Because LSPs depend on the constant flow of information, analytics can play a critical role in

ensuring business success. But in an information-rich environment – the challenge is about

utilizing data it in a cost-effective manner. Fortunately, breakthrough solutions such as the SAP

HANA platform can help by unlocking your data and the enabling deep, real-time insight you need

to run your business.

Enterprise mobility is important as well. Though not exactly new to LSPs, the evolution of mobile

tools and increased mobile platform maturity make it easier to extend your processes and

information to all employees, customers, and business partners at a lower cost.

Finally, many LSPs are increasingly interested in cloud-based solutions to drive down costs. Given

the right business area, you can extend your IT platform investment relatively easily using the

cloud option.


to Growth

Market Situation



Business Priorities

SAP Innovations

Executive

Summary


© 2013 SAP AG 7 / 37

The path to profitable growth.

Transportation and Logistics Value Map

Asset Management

SAP Solutions

Operations

People and Talent

Sales, Marketing and Service

Finance

IT Management

Procurement


Asset Management

Rolling Stock and Linear Asset Management

Real Estate Lifecycle Management

Sales and Marketing/Customer

Service

Marketing Management

Key Account and Territory Management

Quotes and Contract Management

Sales Force Support

Operations

Warehouse Management

Transportation Management and Operations

Fuel Management

People and

Talent Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning and

Analytics

Finance Financial Performance

Management

Accounting and Financial

Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and

Compliance Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice to

Pay

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Customer Service

Executive

Summary


Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration

© 2013 SAP AG 8 / 37

As a logistics service provider, you know the costs associ-

ated with your assets. Realizing cost efficiencies requires

you to holistically manage these assets in a way that

ensures the continuous handling and flow of goods.

Asset Management

Your customers want the goods delivered on

time at the lowest cost. You want to meet these

demands in the most cost-effective way possible.

Vital to this equation is the ability to manage

your transportation assets to maximize returns,

improve overall equipment effectiveness, and

minimize risks.

This requires a consolidated approach that

enables real-time visibility into asset performance

– with powerful analytics to optimize asset

usage, cut costs, and enhance environment,

health, and safety performance.

Such a consolidated approach helps drive

holistic asset planning, building, and

commissioning processes. It increases uptime,

reduces process variability, and helps you react

faster to process disruptions to satisfy more

customers. And it helps you integrate,

automate, and unify all maintenance-related

data, processes, and reporting for holistic asset

operations and maintenance. 10% Lower planned maintenance

budget versus actual cost

variance for firms where

enterprise asset management

is core component of strategy

Source: SAP Performance

Benchmarking

Priorities

Asset Management

SAP Solutions

SAP Solutions

Executive

Summary


https://valuemanagement.sap.com/disclaimer/

© 2013 SAP AG 9 / 37

Benefits

Improved asset performance

Lower spare parts costs

Better planning

Greater employee productivity

Fewer safety incidents

More accurate analysis insights

Asset Management

Higher asset productivity where

maintenance is streamlined

by automation of monitoring,

notification, and problem

resolution processes


Benchmarking

Streamline operational performance by maximizing asset utilization.

Run operations, reduce costs, and proactively manage the entire lifecycle of your

assets, ensuring availability when and where needed they’re needed most.

Rolling Stock and Linear

Asset Management

Optimize asset performance and utilization to improve the profitability

of your organization.

Real Estate Lifecycle

Management Improve real estate portfolio transparency and investment decisions.

13%

Priorities

Asset Management

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 10 / 37

For today’s LSPs, information is as vital as the shipment.

That information comes from processes, but processes

that worked in the past can stand in the way today. More

than ever, you need tools that work across end-to-end

operations.

Operations

Historically, most software vendors of manufac-

turing and retailing software did not include

specific functionality in their applications for

logistics service providers. As a result, many

LSPs developed their own applications –

leading to a lack of standardization that has

been compounded by mergers and acquisi-

tions. This has left many LSPs with operating

environments comprised of heterogeneous

applications that are costly to maintain, are

difficult to modify, and fail to integrate across

operational silos.

The fact is, information technology plays a

strategic role for today’s LSPs, who now need

to consider the business processes and infor-

mation requirements of their employees and

customers. To enable growth, LSPs need to

develop and execute plans that lead them

toward the promise of a single business

process platform. 11% Lower transportation spend

for organizations that

collaborate with contractors

and suppliers to get visibility

into supply situation


Benchmarking

Priorities

Operations

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 11 / 37

Benefits

Plan and orchestrate transportation processes

Ensure services sold are delivered as designed

Ensure timely payment for services

Understand profitability at the order level

Gain insight into orders, goods, and processes

Reduce costs

Operations

Higher shipments delivered

per load planner when

graphic summary reports can

be aggregated into role-based

portals for business users


Benchmarking

Take your business to the next level with next-generation technology.

Increase operational efficiency and improve customer satisfaction by enhancing

processes while expanding service offerings to drive higher margins.

Warehouse Management Improve warehouse processes with best-of-breed transportation and logistics

solutions.

Transportation

Management and

Operations

Streamline and automate transportation tendering, execution, tracking, and

settlement processes for cargo transport and logistics.

Fuel Management

Integrate and gain greater control of fuel processes for hedge strategies, procure-

ment, index tracking, invoice verification, inventory, reconciliation, and risk

management. 46%

Priorities

Operations

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 12 / 37

Success starts and ends with the customer. Easier said

than done in the service-intensive LSP industry, where

meeting customer demand requires timely, accurate

information and precision in service delivery. New

approaches are needed.


To meet the demands of global logistics

networks, reduce costs, and improve overall

inventory management, LSPs are taking a page

from the manufacturing playbook. The first idea

is a renewed focus on the customer. Siloed

operations that manage contracts, customer

orders, pricing, and bill collection in disconnected

systems are out. To achieve 360-degree

customer visibility, the new approach puts the

customer in the middle – defining processes

and services that work in an end-to-end fashion

with and around the customer.

The second approach emphasizes service

products – with a goal to minimize disconnects

between what the business designs and sells

and how it is delivered. Here, the company

specifies how it performs tasks based on what

has been sold. This helps increase efficiency

by minimizing the variance between what is

sold and what actually happens operationally. 25% Higher rate reduction realized

where there is ability to

structure and codify freight

charge agreement terms with

customers


Benchmarking

Priorities


SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 13 / 37

Benefits

Improved responsiveness to market needs

Reduced customer disputes and rework

Enhanced reporting and analytics

Improved, real-time decision making

Integrated end-to-end customer view

Greater visibility


Organizations have a 360-

degree view of customers

to optimize interactions in

marketing


Benchmarking

Obtain a 360-degree view of the customer.

Define and align your services across the enterprise to make service activities

visible internally while incorporating the customer. This improves performance and

drives higher rates of customer satisfaction.

Marketing Management Align business strategy and service products with carrier operations for

targeted customer segments.

Key Account and

Territory Management Organize sales markets and map employee relationships to accounts.

Quotes and Contract

Management

Automate contract renewals and manage price and service negotiations and

approvals.

Sales Force Support Coordinate sales activities, analyze customers and territories, and send alerts

for customer shipments.

Customer Service Identify issues proactively through alerts, manage customer interactions across

channels, resolve disputes, address freight claims, and streamline collections.

16%

Priorities


SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 14 / 37

Talent is a true competitive advantage today and critical

when aligning business strategy and execution. Best-run

organizations achieve profitable growth by leveraging

their talent and out-innovating the competition.

People and Talent

For organizational growth and an agile

response to business change, organizations

must give people the knowledge and

technology to facilitate innovation. They must

also move into new markets, adapting to local

practices and recruiting the right local talent. In

addition, they must retain new talent acquired

through mergers and acquisitions.

Organizations that quickly respond with the

right talent in the right places will have a unique

advantage in the marketplace.

32% Less employee turnover by

using analysis of workforce

data to design, implement,

and monitor workforce

optimization strategies


Benchmarking

Priorities

People and Talent

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 15 / 37

Benefits

Align people to business strategies

Reduce turnover

Streamline the hire and onboarding processes

Improve productivity and engagement

Provide real-time insight into business needs

Connect better to a distributed workforce

People and Talent

Lower costs for HR organiza-

tions with a high degree of

internal integration compared

to organizations with a

fragmented HR environment


Benchmarking

The new world of work.

Enable growth and stability by providing choice in the delivery of HR processes and

services. Couple global reach, integration, and real-time insight with mobile-device

support to drive greater value, increase employee and customer satisfaction, and

improve business performance.

Core Human Resources

and Payroll

Consolidate HR and payroll processes on a global platform for better workforce

data and legal compliance.

Talent Management Improve alignment, increase productivity, and accelerate results by identifying,

developing, motivating, and retaining talent.

Time and Attendance

Management

Streamline time management to enhance resource effectiveness and improve

visibility and control regarding labor costs.

Workforce Planning and

Analytics

Identify and analyze talent gaps and streamline workforce planning, recruitment,

and retention for efficient and effective management of workforce demand and

supply.

38%

Priorities

People and Talent

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 16 / 37

For LSPs, finance is the lifeblood of operations. From

revenue and costs to profitability and compliance – every

facet of the best-run transportation and logistics enterprise

requires input, transparency, and oversight from finance.

Finance

Know your business across all business units

and geographic dimensions. Assess and

manage key factors that impact cost and

profitability. Gain the insight needed to take

the right action at the right time and to adjust

course as conditions change.

Plan and operate to meet service-level

expectations. Respond to complex and variable

global, regional, and local requirements.

Achieve and maintain the highest possible

safety and compliance standards.

Reduce operating costs and know your exact

cash position at all times. Make better treasury

decisions based on solid liquidity planning.

Mitigate financial risks associated with market

fluctuations and provide transparency to all key

business functions.

Across all of these imperatives, winning

performance requires actionable insight from

financial systems and processes that are

consistent, transparent, scalable, compliant,

and cost-effective.

37% Lower cycle time for forecasts

when standardized planning

models ensure consistency

and comparability of

submitted results


Benchmarking

Priorities

Finance

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 17 / 37

Benefits

Real-time insight into business performance

Optimized cash and liquidity management

Reduced bad debts and days sales

outstanding

Shorter time to close and reduced process cost

Finance

Lower overdue accounts

receivable for organizations

where A/R system

automatically matches

payments with A/R balances

through electronic interfaces


Benchmarking

Strengthen operations through financial performance.

Enable a comprehensive, real-time view of enterprise performance – both

operational and financial – while mitigating risk and managing compliance.

Financial Performance

Management

Define, execute, and measure the impact of financial decisions on business

strategy.

Accounting and Financial

Close

Close books and create financial statements at the entity and corporate level

according to IFRS and local legal requirements.

Treasury and Financial

Risk Management Know your cash position, and take action to improve your investments.

Collaborative Finance

Operations

Define and drive strategy, model costs, improve financial forecasting, and

analyze massive amounts of data.

Enterprise Risk and

Compliance Management Ensure regulatory compliance and effective risk management.

24%

Priorities

Finance

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 18 / 37

While companies often focus on revenue, procurement

savings can increase profits about five times more. The

key to maximizing procurement’s success in this critical

role is to deliver consistent quality, savings, and

compliance over time.

Procurement Excellence

Procurement leaders set a baseline for success

by implementing best practices, excelling in

category expertise, and working with key stake-

holders on cost control programs.

While savings is always a priority, new

objectives have emerged as well. Procurement

must manage supplier risk and performance,

improve process efficiency, drive innovation,

and ensure sustainability practices.

You need solutions that give you the tools to

cut costs as well as add value, supporting

processes, including spend analysis, sourcing,

contract management, operational procure-

ment, supplier information management, and

risk and performance management – available

both on premise and in the cloud.

These tools, when coupled with an unparalleled

collaborative business network, drive real-time

insight and efficiency that can only be delivered

through the power of “many.”

60% Higher average annual

savings for organizations with

high maturity and leadership

in procurement strategy


Benchmarking

Priorities

Procurement

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 19 / 37

Benefits

Optimize spend under management

Increase average annual savings

Decrease FTE per billion in spend

Drive innovation with suppliers

Reduce cost and risk with faster turnaround

Procurement Excellence

Lower FTE per billion in

spending for companies

conducting electronic supplier

collaboration on a network


Benchmarking

Drive sustainable savings while supporting innovation.

Ensure best practices in the source-to-pay process, on-premise or in the cloud,

while leveraging the power of network collaboration for efficiency and insights.

Supplier Discovery and

Lifecycle Management

Find new suppliers through Ariba Network, and manage these relationships

through supplier management solutions.

Strategic Sourcing and

Contracting

Identify and act on sourcing opportunities, and create favorable, low-risk supply

contracts.

Procurement and Order

Collaboration

Realize savings with compliant, user-friendly self-service procurement and

collaborate on Ariba Network to make transactions more efficient.

Collaborative Invoice

to Pay

Drive invoice automation and exception management with available dynamic

discounting on Ariba Network. 76%

Priorities

Procurement

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 20 / 37

Business enterprises should forge a strategic business

partnership with their IT organizations by aligning goals.

Business-oriented IT management is all about maximizing

efficiency and responsiveness by running IT like a

business.

IT Management: Run IT Like a Business

Lines of business want to ascertain the value of

their IT investment. IT organizations no longer

decide alone which IT projects to fund.

The challenge is that IT management is often

seen as just running the technical landscape.

To become more relevant to an enterprise, IT

needs to reposition itself to run like a business.

SAP offers an integrated portfolio of solutions

to do just that. New technologies like mobile,

in-memory, and cloud computing generate

value to a business in an unprecedented way.

To benefit from these new technologies, IT

needs to manage them effectively. By lever-

aging SAP solutions that follow proven best

practices, everyone from CIOs and CEOs to

managers and employees can tap into and help

ensure efficiency, continuity, and responsiveness

– making IT more strategic to the business.

2x More projects completed on

or ahead of time by top IT

management performers


Benchmarking

Priorities

IT Management

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 21 / 37

Benefits

Better alignment of IT and business strategy

Shorter IT delivery and business cycles

Lower IT management costs

Reduced system upgrade and operation costs

Lower cost of risk mitigation

Less downtime for critical business systems

IT Management: Run IT Like a Business

More projects delivered within

or below budget by IT

management top performers


Benchmarking

Evaluate and control risk and ensure flexibility and scale. Control and

optimize costs while maximizing strategic value.

Ensure business continuity, drive efficiency, lower costs, and increase IT respon-

siveness to business objectives – all with IT management solutions designed for

businesses of any size.

Application Lifecycle Management

Use best practices, methods, and services based on IT Infrastructure Library (ITIL) to manage the application lifecycle.

IT Infrastructure Management

Monitor all network assets to drive an integrated infrastructure and application lifecycle.

IT Portfolio and Project Management

Align the portfolio and manage projects to drive innovation.

IT Service Management Align service-desk operations with service-level agreements using ITIL best practices to resolve incidents fast.

IT Strategy and Governance

Use a coherent set of policies and processes to ensure security and map risks and compliance activities to business impact.

1.9x

Priorities

IT Management

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 22 / 37

To drive business transformation, organizations must

leverage the value of real-time information, empower new

developer and user experiences, and unwire their

businesses to better engage with customers, partners,

and employees.


As users become savvier their needs escalate.

They expect real-time insights, predictive

analysis, and real-time access to mobile appli-

cations. All of this must seamlessly integrate

with their favorite social platforms. And the

number of users expecting access is growing.

At the same time, data volumes are exploding,

while the window to capitalize on opportunities

is shrinking. Users must be empowered with

applications that deliver real-time information –

and developers must have a platform they can

use to innovate faster than ever before.

Today’s challenges are complex – but

innovative technology solutions can make the

difference between surviving and thriving.

Winning organizations will improve the value of

real-time information, deliver new developer

and user experiences, and use mobile

technology to better engage with customers,

partners, and employees.

Priorities


SAP Solutions

SAP Solutions

Executive

Summary


“Cloud, social networking,

mobility and the strategic use

of information are the four

forces that combine to create

a new era of computing and

new opportunities for

business.”

Source: Gartner, “SAP Is Driving

Analytics, Cloud and Mobility in the

Nexus of Forces,” Donald Feinberg,

August 24, 2012

4

© 2013 SAP AG 23 / 37

Benefits

Operate your business in real time

Reduce time to value and speed innovation

Turn data into an enterprise asset

Unwire the business to innovate engagement


Technologies to drive change and help your business thrive.

SAP enables the real-time enterprise, empowers new experiences, and unwires

the business.

Analytics Increase the value of data with real-time, predictive analytics; business intelligence;

and performance and risk management.

Data Management Zero in on the right information, and manage data with scalability, trust, and

performance.

Application Development

and Integration

Develop applications and innovation rapidly in a mobile, always-on world of

collaborative business networks for secure, cloud-scale applications.

Enterprise Mobility Unwire your employees, customers, and partners.

Consumer Experience Increase productivity and competitiveness with real-time, consumer-grade

software.

SAP HANA Platform Streamline applications, analytics, planning, and predictive and sentiment analysis

with in-memory technology.

Priorities


SAP Solutions

SAP Solutions

Executive

Summary


“Through 2015, organizations

integrating high-value, di-

verse, new information types

and sources into a coherent

information management

infrastructure will outperform

their industry peers financially

by more than 20%.”

Source: Gartner, “Hype Cycle for

Information Infrastructure, 2012,”

Michael Blechar, July 31, 2012

20%

© 2013 SAP AG 24 / 37

When it comes to technology innovation, one of the hottest areas of focus today for LSPs is

enterprise mobility. SAP customers see it as an opportunity to leverage the breadth of their

SAP solution landscapes to drive efficiencies and innovation even further.

Cloud technology is important, too. In areas such as human resources and business networks,

LSPs need flexibility with services that can scale and adapt quickly. This is where cloud technology

can act as a beneficial complement to traditional business systems.

Finally, data management and access demands intense interest – especially for LSP companies

where information is king. Just a few years ago, sophisticated data analysis required tools that only

IT specialists could use. Today, these are being replaced by information-rich yet easy-to-use

business analytics tools.

For the last 40 years, SAP has always led in the area of technology innovation – and today you

can benefit from a new generation of technology that will enable you to better understand and

serve the needs of your customers.

In the LSP industry, information about the shipment is as

important as the shipment itself. To improve performance

while keeping costs down, you need the right technology

to put that information at the fingertips of your employees

and your customers – anywhere, anytime.

SAP Innovations

75% Of companies believe that

the cloud will amplify other

technology megatrends,

such as enterprise mobility,

Big Data, and analytics


Benchmarking

Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Executive

Summary



© 2013 SAP AG 25 / 37

Asset Management

Predictive analysis of data from connected equipment results in up-to-date scheduling information

in maintenance operations and reaction to unplanned disruptions to increase asset utilization and

improve service-level agreements and proactive customer notifications.

Operations

Real-time decision support using impact and what-if analysis helps optimize outcomes, for

example, profitability. Accelerate reporting on large volumes of supply chain data, for example,

real-time stock insight and inventory monitoring.


Easy identification of profitable customers to adjust targeted service offerings. Precision marketing

to personalize every interaction with the customer. Near-real-time monitoring and reporting on

marketing performance. Real-time monitoring of service operations, service levels, and field

resource utilization, including predictive analysis on sensor data from connected assets and

equipment.

SAP Business Suite powered by SAP HANA enables

cargo and freight transportation and logistics providers to

be first to market with services to maximize profit and

asset utilization, and to achieve optimal customer service.

SAP Business Suite Powered by SAP HANA

Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Executive

Summary


© 2013 SAP AG 26 / 37

Asset Management

Utilize asset information with sophisticated algorithms to predict maintenance needs. This helps

you reduce spare parts inventory while maintaining and improving asset availability.

Operations

Collect, store, manage, and analyze large volumes of service event data to prioritize and respond

proactively.

Sales and Marketing

Analyze granular data faster for better-than-ever understanding of business performance to drive

new revenue-generating initiatives.

The unprecedented availability of operational data offers

significant opportunities for LSPs to run their businesses

like never before. With the SAP HANA platform, your

company can benefit from “Big Data” to drive landslide

competition.

SAP HANA

48% Of organizations foresee a

need for having predictive

modeling and complex

optimization techniques on

Big Data analysis


Benchmarking

Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Executive

Summary



© 2013 SAP AG 27 / 37

Asset Management

Enable field workers and technicians to be productive at the point of service (inspections and work

orders), whether in the field or in the shops, connected or disconnected. Monitor assets, facilities,

and infrastructure to ensure asset availability as well as corporate and regulatory compliance.

Operations

Empower operations managers to monitor KPIs and status across performance dimensions and

enable flexible and timely access to deliveries, purchase orders, and invoices.

Sales and Marketing

Equip sales and executives with instant access to order status information, account review

meetings, and order history.

Connecting, interacting, and engaging with consumers

anytime, anywhere, and empowering marketing, sales,

and operations teams with convenient, real-time visibility

into market dynamics.

Mobile

24% Higher operating margins

where enterprise mobility is

embedded in all business

processes


Benchmarking

Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Executive

Summary



© 2013 SAP AG 28 / 37

Asset Management

Use analytic solutions to model and optimize all aspects of asset management – including

root-cause analysis for identifying causal factors and leading indicators, predictive maintenance

to ensure higher availability, and integrated maintenance decision support to ensure peak

performance.

Operations

Measure the key drivers of operational efficiency and effectiveness, and create accountability for

services compliance.


Equip sales and service teams with instant access to order status information, customer visits,

contribution levels, order analysis, and incidents.

Providing up-to-the-minute visibility of key performance

indicators across every facet of business operations –

with real-time monitoring, root-cause analysis, risk

mitigation, predictive modeling, and optimization.

Analytics

26% Higher inventory turns with

warehouse analytics software

from SAP


Benchmarking

Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Executive

Summary



© 2013 SAP AG 29 / 37

Asset Management

Connect to your suppliers anywhere at any time from any application or device to source key

materials and parts.

Sales and Marketing

Build a nimble and flexible sales organization, manage accounts, enable team collaboration, and

monitor sales results with flexible and low-TCO sales execution.

Use a cloud-based approach to building and maintaining business networks that reduce costs for

collaborating with customers and business partners.

Fast and flexible deployment of critical and complementary

solutions is the essential aspect of on demand. Best-run

companies are starting to deploy cloud solutions in certain

areas to extend IT investments while reducing total costs.

Cloud

75% Of companies believe that

the cloud will amplify other

technology megatrends,

such as enterprise mobility,

Big Data, and analytics


Benchmarking

Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Executive

Summary



© 2013 SAP AG 30 / 37

9 of the Top 10 railways companies run SAP.

Our customers courier more than 50% of the world’s packages.

Best-Run Customers

Artoni

Best-Run Customers

Cargojet

Why SAP?

Executive

Summary


http://www.emtmadrid.es/Home.aspx

© 2013 SAP AG 31 / 37

SAP co-innovates with leading transportation and logistics companies.

Models range from direct one-on-one engagements to established SAP user

groups.

Customer Co-Innovation

SAP Railways User Group (“SUGRail”)

The strategic goals of SUGRail are: 1) to provide rail companies with a means to share their

experiences, and 2) to work directly with SAP and affiliate partners to provide input as well as

collaborate on solutions and best practices in an effort to better meet rail industry needs.

Artoni

Best-Run Customers

Cargojet

Why SAP?

Executive

Summary


© 2013 SAP AG 32 / 37

“The SAP solutions helped us realize a 10% savings on the cost of goods

transported. In addition, our warehouse worker productivity increased by

30%, as measured in hours spent per 100 kilos transported.”

Norberto Delendati, Organization and IT Director, Artoni

Artoni is a family business that processes more than

700,000 shipments per month. Headquartered in Northern Italy,

Artoni employs about 600 direct employees and 3,000 sub-

contractors and has an annual revenue of €217 million.

Artoni decided to reengineer its business processes and replace its

legacy system with transportation and warehouse management solutions

from SAP to transform itself from a regional transportation provider to an

international logistics company. As a result, Artoni managed to boost its

operational efficiencies and cut cost.

Key Benefits

Reduced CO2 emissions through optimized transportation routes

Increased operational efficiencies

Reduced operational costs through closer planning between logistics

and transportation

30% Increase in productivity (ratio between 100 kilos transported and hours worked)

20% Reduction in storage space for goods to be transported

10% Reduction in cost per 100 kilos transported

Artoni

Best-Run Customers

Cargojet

Why SAP?

Executive

Summary


© 2013 SAP AG 33 / 37

“At Cargojet we wanted a single system that could grow with the

company, and our philosophy is why interface when you can integrate?”

Anju Virmani, Chief Information Officer, Cargojet Income Fund

Cargojet: Soaring to New Heights with Greater Financial

Visibility.

Operating nearly 12,000 flights a year with consistent on-time reliability,

Canada’s Cargojet Income Fund helped the firm replace an aging legacy

system with the SAP ERP Financials solution to support future strong

growth. As a result, Cargojet has reduced financial closing times,

accelerated report generation, and gained greater visibility and control

over its financial information.

Key Benefits

Improved visibility and control of costs

Increased efficiency with automation of finance processes

Improved decision making with flexible reporting and drill-down

functionality

Increased productivity in finance group

Improved employee satisfaction with new opportunities to build

skill sets

-50% Time to close books

-50% Time, and less, to create new financial reports

-10% And less for audit

costs

Artoni

Best-Run Customers

Cargojet

Why SAP?

Executive

Summary


© 2013 SAP AG 34 / 37

SAP solutions for the cargo transportation and logistics industry enable profitable,

differentiated services by leveraging the latest in technology innovations and

industry best practices.

Tightly Integrated Business Solutions

SAP offers the most comprehensive portfolio of solutions for the LSP industry, enabling companies

to focus on the customer.

Leveraging Key Breakthrough Innovations

The SAP solution portfolio is based on the industry‘s most innovative technology foundation

including the SAP HANA platform, mobile solutions, analytics, and cloud solutions.

Enabling Business Transformation

Leading LSPs are evolving their strategies from logistics execution to integrated supply chain

process management with SAP.

40 Years of Delivering Value

SAP is known for value, innovation, and performance. You depend on SAP to help run your

business. Your customers do, too. And when you speak the same language as your customers,

business is easier and more profitable.

Why SAP?

Artoni

Best-Run Customers

Cargojet

Why SAP?

Executive

Summary


© 2013 SAP AG 35 / 37

The best-run logistics service providers organizations rely on SAP.

Why SAP?

63% of the world’s transaction revenue touches an SAP software system.

SAP customers report 80% lower customer churn with mobile-enabled sales teams.

SAP customers experience 3 times higher operating margins for organizations with the highest degree

of mobile access to enterprise applications.

SAP customers have 40% higher employee productivity where mobile access is provided to employees

across all levels.

SAP Mobile Platform reliably delivers 1.8 billion text messages worldwide every day.

SAP HANA can increase analysis speed by more than 10,000 times, comparable to walking from

California to New York in 6 minutes.

SAP enables 68% greater ability to use Big Data with a well-defined, enterprise-wide, high-

performance analytics strategy.

79% of the SAP customers are small to midsize businesses using SAP software to solve business

problems.

Cloud solutions from SAP provide the freedom for 17 million people to work from anywhere.

Artoni

Best-Run Customers

Cargojet

Why SAP?

Executive

Summary


© 2013 SAP AG 36 / 37

Benchmark Your Performance

Position your organization for dominance in this new economy with the business performance

benchmarking program from SAP – available free to SAP customers and select prospects. The

SAP benchmarking program has helped more than 3,000 organizations assess their strengths,

uncover areas for improvement, and identify best practices and IT strategies that generate clear,

tangible value – not someday, but today.

Go Live in Weeks

Here’s the fastest way to run your business better: our rapid-deployment solutions. In one

package, you get everything you need to be up and running quickly – including preconfigured

software and implementation services – in just weeks. With a defined scope and predictable costs,

there are no surprises.

Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It

lets members help one another solve problems, learn, and invent new ways to get things done –

faster. Find out how to connect with people, content, and resources.

Find Out More About How Your Organization Can

Become Best-Run

Visit valuemanagement.sap.com >>

Visit sap.com/solutions/rds >>

Visit scn.sap.com >>

Executive

Summary


https://websmp105.sap-ag.de/solutionpackages

https://valuemanagement.sap.com/

http://www1.sap.com/solutions/rds

http://www.sdn.sap.com/irj/scn

Industry Executive Overview

Cargo Transportation and Logistics

Visit us:

http://scn.sap.com/community/transportation-and-

logistics

http://logisticsviewpoints.com/

www.linkedin.com/groups?gid=4366195&mostPopula

r=&trk=tyah

www.linkedin.com/groups/SAP-MRO-Aviation-

Railway-Professional-

2795461?gid=2795461&mostPopular=&trk=tyah

Executive

Summary


© 2013 SAP AG

CMP 23275 (13/02)

http://scn.sap.com/community/transportation-and-logistics






http://logisticsviewpoints.com/

http://www.linkedin.com/groups?gid=4366195&mostPopular=&trk=tyah

http://www.linkedin.com/groups?gid=4366195&mostPopular=&trk=tyah

http://www.linkedin.com/groups/SAP-MRO-Aviation-Railway-Professional-2795461?gid=2795461&mostPopular=&trk=tyah











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