Automating international trade through SAP GTS
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© 2011 Deloitte Belgium
Current Global Trade environment
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Current global trade environment
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• 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
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© 2011 Deloitte Belgium
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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© 2011 Deloitte Belgium
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
DocumentsSO, PO & Deliveries
Materials
Business
PartnersVendors & Customers
SAP R/3 system
DocumentsSO, PO & Deliveries
Materials
Business
PartnersVendors & Customers
SAP R/3 system
DocumentsSO, PO & DeliveriesMaterials
Business
PartnersVendors & Customers
Non SAP
system
MaterialsBusiness
PartnersVendors & Customers
DocumentsSO, PO & Deliveries
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
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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
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Customs Management 3
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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
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SAP GTS
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SAP GTS
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SAP GTS
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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
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