Integra(ng

SAP with OTM

2013 European SIG Conference

Neil Hatcher Rob van Haaster Monday 28 January 2013

Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved

Agenda

SAP / OTM IntegraLon Background Design Approach High Level architecture

Lessons Learnt ImplementaLon Details SAP EnLLes Sample use cases Best PracLce elements ParLng Thoughts QuesLons
Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved

SAP / OTM History

OTM is designed and supported as a stand alone best pracLce

enterprise TMS Majority of OTM users in Europe are SAP clients OTM allows common view of mulLple SAP instances Single global model in co-ordinaLon with single SAP instance
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SAP/OTM Integra(on Background

IntegraLng OTM with SAP Can be done Has been done successfully Challenges are the same as will occur when integraLng

SAP to any TMS soluLon that handles real world transportaLon. In this presentaLon, we aim to Highlight some design consideraLons and best pracLce Present Real life use cases in ProducLon

Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved

Agenda

SAP / OTM IntegraLon Background Design Approach High Level architecture

Lessons Learnt ImplementaLon Details SAP EnLLes Sample use cases Best PracLce elements ParLng Thoughts QuesLons
Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved

Key Design Considera(ons

SAP ECC as with other ERPs has no concept of Order /

Shipment relaLonships in comparison with TMS One to many / many to one Order:Shipment not standard SAP LogisLcs concept is Orders:Deliveries but is limited Deliveries cannot be split across shipments Triggers funcLonality in SAP assigns Stock Typically based on stock / inventory available

Hence the need for an Enterprise TMS for true LogisLcs

Management

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Typical Perceived Challenges

Which SAP object should we use for the order release in

OTM? When should we send the order releases to OTM? OTM likes to split orders across loads but the OTM order is an SAP delivery and SAP does not like that to be split.

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Real Challenge

Get end to end clarity of the supply chain business process

and business needs. Then dene the system support required to enable that.

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Who owns each segment in the supply chain process?

Clarica(on Achieved: Challenge: Which system in the IT Dene which business area landscape owns the (and therefore IT system) owns overall business process the overall business process for for the supply chain the supply chain segment. MulLple business process models segment can be handled in a single OTM Most o_en this is not the instance giving end to end Transport organisaLon. Examples of segments: visibility across the supply chain Instead it is sales or Demand planning driven. segments manufacturing or an external Customer order driven. Manufacturing driven customer Some companies will have mulLple supply chain segments

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Business pressure on IT landscape

Challenge: Is there a business desire for each end user to only work in one system for the whole of their working day, or is there a drive to have business funcLonality handled in Clarica(on Achieved: Other challenges need to be addressed depending on which approach the business require (trade o between end user training on mulLple applicaLons and Single Sign On umbrella vs messaging backwards and forwards with duplicated visibility informaLon and funcLonality in mulLple places)

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TMS load op(misa(on

Challenge: Should the TMS be allowed to opLmise loads by splibng orders and or changing pickup and delivery days? Clarica(on Achieved: If the answer is yes then the message ow should be SO / STO / PO from SAP to OTM and OTM to plan and integrate the deliveries back to SAP. If the answer is No. Then SAP should dene the Inbound and Outbound deliveries and those should be integrated towards OTMs order release object.

Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved

Details of supply chain interac(ons

Challenge: Have understanding across the business funcLons what the impact of any acLon at any point in Lme would be. Clarica(on Achieved: Understanding of : What acLons should be allowed or blocked at each stage What system support for modicaLons is required Example: At what point do you allow the sales department to change add or remove items from an order.
Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved

Agenda

SAP / OTM IntegraLon Background Design Approach High Level architecture

Lessons Learnt ImplementaLon Details SAP EnLLes Sample use cases Best PracLce elements ParLng Thoughts QuesLons
Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved

SAP -> OTM Integra(on

iDoc GLogXMLElement
SAP PI

SYSTAT

TransmissionReport

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OTM -> SAP Integra(on

GLogXMLElement
SAP PI

iDoc

TransactionAck

ALEAUD

Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved

Agenda

SAP / OTM IntegraLon Background Design Approach High Level architecture

Lessons Learnt ImplementaLon Details SAP EnLLes Sample use cases Best PracLce elements ParLng Thoughts QuesLons
Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved

Relevant SAP modules

Key modules within SAP ECC for Transportation Process Integration:
LE LogisLcs ExecuLon MM Materials Management SD Sales & DistribuLon

PP ProducLon Planning

SAP ECC Enterprise Core Component

FI Financial AccounLng

QM Quality Management

CO Controlling

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SAP Documents & Flow

End to End Supply Chain Documents within SAP Modules

independent of enterprise TMS

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Master Data
Best Practice Logistics Master Data Management Sample Mapping

All other Logistics Data using MavenWire evolvTM Data Loader

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Outbound Use Cases

We will walkthrough two dierent Outbound Use Cases, applicable depending on the perspecLves of Orders / ProducLon Scheduling and Inventory. These samples provide for: Order / Delivery splibng Delivery creaLon from OTM Shipment plan or SAP creaLon process Shipment creaLon in OTM with/without SAP Shipments Dynamic producLon plans Scenario 1 Discrete Manufacturing model Scenario 2 Process Manufacturing model

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Sample Outbound Scenario I (Discrete Mfg)

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Sample Outbound Scenario II (Process Mfg)

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Inbound Use Case

OTM / SAP can equally be deployed for Inbound LogisLcs SAP Purchase Order control OTM inbound logisLcs management Allows for Factory Gate pricing model LogisLcs part of PO payment process control (ASN, ePOD)

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Sample Inbound Scenario I

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Agenda

SAP / OTM IntegraLon Background Design Approach High Level architecture

Lessons Learnt ImplementaLon Details SAP EnLLes Sample use cases Best PracLce elements ParLng Thoughts QuesLons
Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved

Par(ng Thoughts

OTM can be integrated to the SAP ordering modules in many ways.

The "right" way is not simply a case of which business verLcal your organisaLon belongs to.

Transport is not required unless another part of the organisaLon is requesLng it.

Take a partnership approach with the ordering business area (whether it be manufacturing or sales or something else)

Don't make decisions as to overall business process alone. Don't get lost in theoreLcal nirvana.

In a real world supply chain things change on a daily basis, strive for supply chain stability but don't put blinkers on and ignore reality.

There is no such thing as a "handover point" at which one area completely ceases to touch the order and another area takes over.
have sessions with the relevant parLes round a table to drill into the details and to dene real world applicable processes.

Buy in at a strategic level is a must

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