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Solution in Detail
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Consumer Products
Logistics and Fulfillment Excellence
Executive Summary Solution Overview Contact Us
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Deliver the Perfect Order
Delivering the perfect order is a balancing
act between customer service and the cost
of delivering that level of customer service.
Without aligned distribution and fulfillment
processes, the best plan will not generate
the expected benefits.
Overall, inefficient global supply chains lead
to poor inventory and asset utilization, which
affects customer service negatively. In the
face of continuous and accelerated change
in the business environment, executives must
find ways to contend with shifting pressures
that threaten their competitiveness and
profitable growth.
Increasing product and network complexity is
leading to supply and demand volatility and
greater risk. Perfect-order fulfillment requires
the support of various transportation modes on
a global, regional, and local basis, while still
ensuring compliant and sustainable operations.
Logistics and order fulfillment addresses the
challenge of efficient supply chain execution,
improving customer service levels while
reducing the cost of operations in the supply
chain network.
On-time delivery performance
reported by top-quartile
companies
Source: SAP Performance
Benchmarking
In a world populated by knowledgeable, demanding consumers, enterprises in the
consumer products industry face increasingly aggressive competitors and shrinking
margins. It is a business imperative to deliver the “perfect order” every time, and to
make a profit doing it.
A Global Logistics Solution
The Fulfillment Challenge
SAP Innovations
Keeping Operations in Tune
Executive Summary Solution Overview Contact Us
98%
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By integrating global logistics and fulfillment
processes, consumer products companies
can orchestrate and optimize supply chain
activities, from planning to order fulfillment,
across the supply chain network.
Consumer goods companies that implement
integrated storage and advanced warehousing,
fulfillment, and global transportation processes
can achieve increased customer satisfaction
and lower operational costs, including
increased utilization of assets, such as
warehouse space.
By managing supply chain business processes
based on events, expected and unexpected,
consumer products enterprises can get real-time
insights into problems like delayed shipments
or cancelled orders. These insights come
via alerts through various mediums, including
e-mail and mobile devices.
Companies in the consumer products industry
can also create solutions for complete
management and tracking of batch and
serialized products throughout the extended
supply chain. This can include complete
product genealogy and tracking of products
moved through outside business partners.
Orchestrate a Global Logistics Network
Use logistics to improve operations and please customers.
Executive Summary Solution Overview Contact Us
A Global Logistics Solution
The Fulfillment Challenge
SAP Innovations
Keeping Operations in Tune
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Operating better means optimizing transportation activities, warehouse productivity,
and using operational assets more efficiently. The result is reduced logistics costs
and fast, accurate customer service – more “perfect orders.” The SAP Transportation
Management (SAP TM) and SAP Extended Warehouse Management (SAP EWM)
applications enable the end-to-end, efficient fulfillment and coordination of supply
chain execution.
Operate Better, Please Your Consumers
Orchestrate supply chain activities across the supply network
Improve processes with advanced warehousing and transportation processes using real-time
alerts and exception management
Increase visibility of the complete transportation management lifecycle
Improve efficiency by automating traditional warehouse and distribution operations
30% Less outbound expediting
with a consistent set of
metrics for transportation
performance, costs, and
productivity
Source: SAP Performance
Benchmarking
Executive Summary Solution Overview Contact Us
A Global Logistics Solution
The Fulfillment Challenge
SAP Innovations
Keeping Operations in Tune
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Database and technology solutions, including
those powered by the SAP HANA platform,
enable you to monitor high volumes of data.
For example, with the SAP Demand Signal
Management application, internal and external
demand signals can be monitored in real time.
This includes orders, shipments, syndicated
data, point of sale, loyalty, and social data.
When combined with SAP Predictive Analysis
software, business users can enrich analytics,
enable predictive forecasting, and spot
exceptions to mitigate demand and supply risk.
Analytical solutions enable advanced modeling
and decision making throughout every aspect
of the responsive supply network, from
assessing current downstream demand to
predictive monitoring and insight.
Mobile solutions provide always-on access to
status reporting and exceptions, better decision
making, and improved collaboration.
Cloud-based solutions can be implemented
quickly and provide a low-risk way to minimize
the IT footprint while unlocking immediate
access to analysis, performing new levels of
business partner collaboration, and aligning
supply chain information with other
key stakeholders.
SAP Innovations
SAP solutions for logistics and order fulfillment require technology innovations
that enable real-time response to market dynamics with always-on, anywhere
access. It is information on demand – low-cost, low-risk, and highly scalable.
Executive Summary Solution Overview Contact Us
A Global Logistics Solution
The Fulfillment Challenge
SAP Innovations
Keeping Operations in Tune
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What, When, Where for “Perfect Orders”
Transportation Management
Manage transportation costs and provide visibility to logistics processes while
efficiently and flexibly fulfilling all transportation business goals.
Warehouse Management
Enable superior customer satisfaction levels by delivering the perfect order while
improving warehouse efficiency with automated processes.
Track and Trace
Achieve transparency and traceability across processes and systems, from raw
material to the point of consumption.
Executive Summary Solution Overview Contact Us
Solution Overview
Transportation
Management
Track and Trace
Warehouse
Management
Why SAP?
Logistics and
Order Excellence
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Logistics and order fulfillment
includes management of
warehouse and transportation
systems as well as visibility to
the status of materials and
assets.
Logistics and Fulfillment Excellence
Executive Summary Solution Overview Contact Us
Solution Overview
Transportation
Management
Track and Trace
Warehouse
Management
Why SAP?
Logistics and
Order Excellence
Transportation Management Track and Trace Warehouse Management
Transportation Requirements
Management Fulfillment Visibility Order Processing
Freight Planning and Optimization Procurement Visibility Copacking and Value-Added
Services
Freight Tendering Goods and Assets in Transit Dock and Door Management
Carrier Booking Item Serialization and Product
Traceability Cross-Docking
Freight Order
Forwarding and Settlement Product Genealogy Labor Management
© 2013 SAP AG or an SAP affiliate company.
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The ability to receive and handle orders is
essential to the entire business.
The SAP TM application helps consumer
goods enterprises receive order-based or
delivery-based transportation requirements,
either manually or electronically. It then
helps to confirm orders, plan and execute
them, and communicate order status back
to business partners.
The application also supports change manage-
ment based on business rules to help ensure a
closed-loop communication cycle. Centralization
of transportation requirements management
reduces redundant tasks, enabling consumer
products companies to focus on value-added
activities.
Transportation management supports
the complete freight lifecycle with
functionality to manage transportation
requirements, optimize freight, book
carriers, tender freight, settle, and
forward orders.
Transportation Management
12% Lower transportation spend
(% of revenue) where
transportation planning is
aligned with supply chain
network planning
Source: SAP Performance
Benchmarking
Capabilities
Transportation
Management
Benefits
SAP Innovations
Solution Overview
Executive Summary Solution Overview Contact Us
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SAP TM provides functionality to receive order
information from multiple sources electronically
through standard open interfaces or integration
with the SAP ERP application, or created
manually in SAP TM.
The application supports process differentiation
and orchestration control for different business
purposes. It also supports order types, such
as quotations, sales and purchase orders,
returns, and stock transfers for tight sales,
procurement, and replenishment integration
or manual order management. With SAP ERP
integration, the application helps to manage
freight unit determination and delivery proposal
creation.
SAP TM also aids in consignment traceability
and visibility for order status and history with
proactive alert and event processing.
It also supports high-volume requirements
management with dynamic change manage-
ment capabilities controlled by business rules.
14% Lower outbound shipments
expedited when dynamically
replanned with real-time
integration to the sales order
system
Source: SAP Performance
Benchmarking
Manage Transportation Holistically
Solution Overview
Executive Summary Solution Overview Contact Us
Capabilities
Transportation
Management
Benefits
SAP Innovations
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SAP TM supports a cohesive requirements
management process that integrates order
processing with order-to-cash and order-to-
pay processes, providing early visibility into
requirements for planning purposes.
The ability to have early visibility and to plan
your transportation loads based on sales will
lead to significant cost savings, thanks to early
contracting of transportation services.
Centralization of transportation requirements
management reduces redundant tasks, enabling
consumer goods companies to focus on value-
added activities.
Knowing the status of orders all the time also
streamlines communication with business
partners.
SAP Transportation Management
provides a robust framework to manage
high-volume transportation requirements
holistically, start to stop, with best-in-
class user experience and dynamic
requirements integration with source
systems.
Streamline High-Volume Transportation Requirements
Management
22% Lower transportation FTEs
(per million of spend)
where shipment plans are
automatically optimized
Source: SAP Performance
Benchmarking
Solution Overview
Executive Summary Solution Overview Contact Us
Transportation
Management
Capabilities
Benefits
SAP Innovations
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Database and technology solutions from
SAP enable users to maintain and gain deep
visibility into large volumes of transportation
order data for state-of-the-art analysis. This
helps to maintain product, business partner,
document references, and relevant cost and
legal information, which is essential for the
order management process.
Innovations for Transportation Management
Analytics solutions from SAP help enable
transparency and provide transportation-order
volume, trade lane and execution-related key
performance indicators, and strategic freight
management data to cover every aspect of
the transportation process.
46% More shipments delivered
per load when user portals
display summary-level reports
Source: SAP Performance
Benchmarking
Solution Overview
State-of-the-art tools and standardized,
open interfaces for easy communication
with other applications, functions, and
users.
Executive Summary Solution Overview Contact Us
Transportation
Management
Capabilities
Benefits
SAP Innovations
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SAP EWM provides a best-in-class solution
by combining the functionality of a complete,
comprehensive solution with business process
and technical integration to support all
enterprise processes using out-of-the-box
connectivity.
SAP EWM offers functionality specifically
designed for the consumer products industry –
ready to meet the most demanding warehousing
needs – enhanced with state-of-the art analytics
and technologies, providing the ability to directly
control warehouse automation, as well as the
execution of business processes on mobile and
voice activated devices.
Improve warehouse efficiency, optimize
operations, and sharpen the organiza-
tion’s competitive edge – with end-to-
end automated processes and tighter
controls.
Warehouse Management
48% Lower customer-order cycle
time where picking, packing,
and shipping are automated
Source: SAP Performance
Benchmarking
Capabilities
Warehouse Management
Benefits
SAP Innovations
Solution Overview
Executive Summary Solution Overview Contact Us
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SAP EWM helps you optimize the entire
warehousing and distribution process. The
software makes information available as early
as preadvice from suppliers, and supports
automatic planning.
With SAP EWM, you can get visibility from
check-in to scheduling dock doors, optimized
storage combined with quality inspection tools,
value-added services, slotting, and various
cross-docking methods.
Wave management, advanced order bundling,
and “cartonization” provide an optimal picking
and outbound process, including options for
packaging, value-added services, staging,
and loading – complete to departure from yard
or dock and door management. Internal
processes, such as replenishment of pick areas
and physical inventory, are supported – with
numerous and flexible options.
Finally, extensive reporting, alerting, and
management tools, as well as a comprehensive
labor management component, help make all
processes transparent.
6% Higher number of orders
shipped on time when
warehouse operations are
integrated with extended
supply chain
Source: SAP Performance
Benchmarking
Orchestrate, from Inbound to Outbound
Solution Overview
Executive Summary Solution Overview Contact Us
Capabilities
Warehouse Management
Benefits
SAP Innovations
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SAP EWM brings the physical process of
warehousing and distribution into a software
system in real time. This provides the benefit
of incorporating best practices and company-
specific logistics rules into immediately opti-
mized instructions for warehouse personnel.
Furthermore, as part of an integrated business
suite, SAP EWM can provide information to
help consumer products enterprises make
decisions to optimize processes with information
not traditionally accessible in a stand-alone
warehousing system. This includes global
trade, track and trace, and transportation
information. Point solutions cannot provide
such diverse capabilities.
Additionally, SAP EWM shares the same
master data and data structures with other
solutions – creating “one version of the truth”
for logistics and other key areas for the
extended enterprise.
Model all warehousing processes in a
single system, automate optimization
processes, and provide visibility and
alerting for the complete warehousing
process with extended warehouse
management.
Optimization, Visibility, Control, and Management Tools
28% Fewer stock outs (as % of
sales order line items) with
real-time, enterprise-wide
inventory visibility
Source: SAP Performance
Benchmarking
Solution Overview
Executive Summary Solution Overview Contact Us
Capabilities
Warehouse Management
Benefits
SAP Innovations
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image #
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SAP EWM helps simplify a company’s tech-
nology landscape. Using the same underlying
technology used in the SAP ERP application,
maintenance, authorization, and the technical
landscape itself are simpler.
End users gain a unified experience, and tight
integration with SAP Business Suite applica-
SAP extends proven technology to
logistics processes, and cutting-edge
innovation creates even more
opportunities.
Innovations for Warehouse Management
tions means significantly less internal support.
Deployment options give optimum flexibility for
upgrade and high availability.
With cutting-edge technology incorporated
into applications powered by SAP HANA,
SAP EWM can provide extraordinary real-time
predictive and analytical capabilities in
warehousing.
5% Higher order fill rate when
warehouse data and reports
are shared with third-party
service providers
Source: SAP Performance
Benchmarking
Solution Overview
Executive Summary Solution Overview Contact Us
Capabilities
Warehouse Management
Benefits
SAP Innovations
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Traceability provides a core capability to
orchestrate consumer goods to market
effectively and efficiently. Only a few solution
offerings provide the integrated traceability
needed to cross company and system
boundaries in a global environment.
Complete supply chain traceability includes
visibility into all movement of consumer goods
and assets, with support at the appropriate
level of detail and without regard to system
or company boundaries.
Track and trace capabilities provide
transparency and traceability across
processes and systems – from raw
material to the point of consumption.
Track and Trace
67% Of companies do not have a
system to generate alerts
when stored or required
shipment milestones are not
met
Source: SAP Performance
Benchmarking
Capabilities
Track and Trace
Benefits
SAP Innovations
Solution Overview
Executive Summary Solution Overview Contact Us
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SAP software provides innovative tools that
allow a business to track consumer products –
from raw material to the point of consumption.
They allow visibility of consumer goods from
start to finish, and they track compliance with
process monitoring.
Effective tracking of supply and distribution
enables efficient and proactive compliance
with directives and regulations, avoiding costly
reactive fixes and excess inventory buffers,
improving operational efficiency, and ultimately
helping to improve consumer service and to
protect your consumers and brand.
Capabilities specific to the consumer products
industry provide process and product transpar-
ency and traceability that help protect consumers
and minimize risks.
Track and trace software from SAP keeps
the focus on the consumer while improving
operational efficiency. It supports batch,
serialized item, and product-and-part trace-
ability; visibility of consumer goods in transit;
and traceability for process monitoring and
compliance.
42% Lower time-to-shipment status
when system stores expected
lead times and generates an
alert if lead time is not met
Source: SAP Performance
Benchmarking
Enabling Traceability and Visibility
Solution Overview
Executive Summary Solution Overview Contact Us
Capabilities
Track and Trace
Benefits
SAP Innovations
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Improve consumer sentiment with better order
and product tracking.
Mitigate risk by orchestrating easier recalls
and management by exception.
Improve compliance with end-to-end
transparency.
Reduce revenue loss on stock-outs.
Improve on-time delivery with partner data.
Improve inventory accuracy with more data
granularity.
Improve operations by process automation.
Effective compliance, improved opera-
tional efficiency, and reduced safety
stocks all help improve customer ser-
vice and ultimately protect consumers
and brand in today’s globalized
economy.
Consumer-Focused Track and Trace
for Efficient Operations
38% Lower time to provide
shipment status when higher
maturity of transportation
execution and visibility exist
Source: SAP Performance
Benchmarking
Solution Overview
Executive Summary Solution Overview Contact Us
Capabilities
Track and Trace
Benefits
SAP Innovations
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Applications powered by SAP HANA enable
business professionals to monitor high volumes
of data in real time to enrich analytics and find
exceptions.
Intuitive Web user interfaces simplify user action.
Secure business-to-business com-munication
enables automation of large transaction volumes.
An advanced business-rules engine supports
management by exception.
SAP solutions leverage innovations to
enable fast response, real-time visibility,
and always-on access to information.
Innovations in Technology, Analytics, and Always-On
Mobility
Analytics solutions enable advanced trans-
parency and optimization throughout the
business partner network.
Mobile solutions give the mobile workforce
always-on access to status, reporting,
exceptions, and alerts.
Solution Overview
Executive Summary Solution Overview Contact Us
Capabilities
Track and Trace
Benefits
SAP Innovations
© 2013 SAP AG or an SAP affiliate company.
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Logistics and Fulfillment Excellence Value Map
Logistics and order fulfillment
includes management of
warehouse and transportation
systems as well as visibility to
the status of materials and
assets.
Executive Summary Solution Overview Contact Us
Solution Overview
Transportation
Management
Track and Trace
Warehouse
Management
Why SAP?
Supply Chain GPS
Sales and
Operations Planning
Supply Chain
Scenario Planning
Inventory and Service-
Level Optimization
Demand Management Manufacturing and
Supply Planning
Collaborative Response
Management
Transportation
Management Track and Trace
Warehouse
Management
Service Parts
Management
Supply Chain
Monitoring
Service
Supply Chain
Sales and
Operations
Business Planning
Demand-Driven
Supply Chain
Logistics and
Order Fulfillment
Logistics and
Order Excellence
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Why SAP?
SAP solutions help consumer products enterprises achieve superior consumer
satisfaction levels by delivering the perfect order – complete, accurate, on time –
reducing overall logistics costs and improving efficiency, readiness, and agility.
Predictably execute supply chain plans while embedding flexibility and agility to support
changes and take advantage of opportunities, for example:
Benefit from a global logistics and fulfillment solution that orchestrates processes from planning
and storage to order fulfillment and distribution.
Meet regulatory compliance with best-of-breed capabilities tightly integrated with financial,
international trade, and environmental, health, and safety processes.
Reduce logistics costs by using best-in-class logistics and fulfillment capabilities from SAP
integrated with the supporting financial processes.
Gain logistics efficiency, readiness, and agility by operating, orchestrating, monitoring, and
improving logistics processes continuously across an extended supply network.
Executive Summary Solution Overview Contact Us
Solution Overview
Transportation
Management
Track and Trace
Warehouse
Management
Why SAP?
Logistics and
Order Excellence
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All rights reserved. 22 / 23
Executive Summary Solution Overview Contact Us
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Solution in Detail
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Consumer Products Executive Summary Solution Overview Contact Us
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