SAP Supply Chain Extended Functions: 1. Transportation Management (extension of SAP LE TRA, Logistics Execution Transportation Planning) 2.

2. Extended WM (extension of SAP MM WM, e.g. advance picking strategies, zoning, etc.) 3. Event Management (end-to-end business process tracker based on issues / triggers / milestones e.g. notification when truck breaks down)

Transportation Management Key Features:

1. Order Management a. High integration with Sales Order and Delivery Order b. Creation of Freight Order (similar to SO) for costing c. Air waybill creation d. Inbound / outbound (inc. export / import) handling 2. Freight Planning & Tendering a. Tendering of freight order to different suppliers for best pricing b. For tractor & trailer planning, choice of: i. Automated (system chooses freight method and route) ii. Manual (using drag & drop to group deliveries and then assign to a shipment) c. Carrier selection based on best offer d. Ability to do multi-modal planning including ocean and air freight 3. Freight Execution & Monitoring a. Transportation status monitoring updated to SO & DO b. Transportation cockpit (dashboard type) 4. Freight Settlement a. Master data cockpit (dashboard type) to maintain rates b. Flexible scales (e.g. weight, region, truck type, etc.) can be maintained c. Integration with ERP FI & CO-PA for profitability analysis per shipment

Remarks & Next Steps: 1. High interest from Transport Operations especially for the Freight Settlement part. 2. Licensing is based on the number of users & the volume of processed deliveries. 3. As TM is based on LE-TRA, a lot of the basic functionalities already exist in ECC 6.0. For example, the computation for shipment cost for an old delivery (from Diethelm) is already existing:

4. Some configuration for route planning and shipment cost is currently in the system but is incomplete and does not work perfectly or is used efficiently. 5. Already had a preliminary discussion with Operations to integrate further DPS & SAP to maximize its capabilities (DPS to update SAP of the grouping of deliveries). A more detailed discussion with Xenia is to be organized within the week. 6. Process mapping will continue to look at the gaps that we have and if it can be addressed using our current systems (SAP ECC 6.0 & DPS). Will serve as an input if there would be a strong case for pursuing SAP TM in the long run. 7. SAP team to continue investigating the efforts needed to enable again the shipment cost functionality. SAP TP:
The transportation component includes basic transportation processing functions: Transportation planning and shipment completion Shipment costs calculation Shipment costs settlement Shipment costs calculation for individual customers Billing of customer freight Service agent selection Management of means of transport and utilities Follow-up and supervision of shipments Management of shipment costs

1. SAP TM: Order Management a. High integration with Sales Order and Delivery Order b. Creation of Freight Order (similar to SO) for costing c. Air waybill creation d. Inbound / outbound (inc. export / import) handling 2. Freight Planning & Tendering a. Tendering of freight order to different suppliers for best pricing b. For tractor & trailer planning, choice of: i. Automated (system chooses freight method and route) ii. Manual (using drag & drop to group deliveries and then assign to a shipment) c. Carrier selection based on best offer d. Ability to do multi-modal planning including ocean and air freight 3. Freight Execution & Monitoring a. Transportation status monitoring

updated to SO & DO b. Transportation cockpit (dashboard type) 4. Freight Settlement a. Master data cockpit (dashboard type) to maintain rates b. Flexible scales (e.g. weight, region, truck type, etc.) can be maintained c. Integration with ERP FI & CO-PA for profitability analysis per shipment

SAP Transportation Planning is the planning component of SAP Supply Chain Management solution (SAP SCM). Transportation Planning is part of the Transportation Planning and Vehicle Scheduling (TP/VS) component. It enables the transportation planner to optimally use the available capacity of trucks, trains, ships, and airplanes with the goals of planning more efficient loading capacity and lowering costs, since most customers depend completely on external transportation companies nowadays for optimum transportation (which means deliveries that are on time and cost saving). The TP/VS component contains the following functions:

Transportation planning and transportation consolidation Vehicle scheduling and route determination in a dynamic environment Transportation mode and selection of carrier Multi-pick and multi-drop functions Management by exception

SAP Transportation Management (SAP TM) supports you in all activities connected with the physical transportation of goods from one location to another. You can use SAP TM to perform the following activities, for example:

Create forwarding orders for your ordering parties Transfer orders and deliveries from an ERP system Create freight bookings Plan the transportation and select carriers Tender transportation services Dispatch and monitor the transportation Calculate the transportation charges for both the ordering party and the supplier side Consider foreign trade and dangerous goods regulations

You can use SAP TM to create and monitor an efficient transportation plan that fulfills the relevant constraints (for example, service level, costs, and resource availability). You can determine options to save costs and to optimize the use of available resources. You can react to transportation events and find solutions to possible deviations from the original transportation plan.