Industry Executive Overview
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The Pursuit of Profitable Services
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Information and the Path to Growth
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Best-Run Transportation and Logistics
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Business Transformation Through Technology
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Transportation and Logistics Value Map
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Asset Management
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People and Talent
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Procurement Excellence
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Procurement Excellence
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IT Management: Run IT Like a Business
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Mobile
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Solutions for the Next-Generation Cargo Company

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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.

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Solutions for the Next-Generation Cargo Company

  1. 1. Industry Executive Overview Cargo Transportation and Logistics Executive Summary SAP Solutions SAP Innovations References Contact Us Solutions for the Next-Generation Cargo Company © 2013 SAP AG
  2. 2. Executive Summary SAP Solutions SAP Innovations References Contact Us The Pursuit of Profitable Services Market Situation Information and the Path to Growth Business Priorities Transformation Through Technology Innovation SAP Innovations 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. 2 / 37 © 2013 SAP AG
  3. 3. Executive Summary SAP Solutions SAP Innovations References Contact Us Information and the Path to Growth Market Situation Information visibility is the key to sustainable growth. Information and the Path to 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. Business Priorities Transformation Through Technology Innovation SAP Innovations 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 throughout 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. 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. 3 / 37 © 2013 SAP AG
  4. 4. Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Transportation and Logistics Market Situation Information and the Path to Growth 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. Business Priorities Transformation Through Technology Innovation  Asset Management  Finance SAP Innovations  Operations  Procurement  Sales and Marketing, Customer Service  IT Management  People and Talent  Technology Solutions Understanding the value drivers for each of these priorities is key to executing as a best-run transportation company. 4 / 37 © 2013 SAP AG
  5. 5. Executive Summary SAP Solutions SAP Innovations References Contact Us Business Transformation Through Technology Innovation Market Situation Information and the Path to Growth Business Priorities Transformation Through Technology Innovation SAP Innovations 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. 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 marketleading mobile platform and device management technologies from SAP. 5 / 37 © 2013 SAP AG
  6. 6. Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Innovations Market Situation Information and the Path to Growth Business Priorities Transformation Through Technology Innovation 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. 6 / 37 © 2013 SAP AG
  7. 7. Executive Summary SAP Solutions SAP Innovations References Contact Us Transportation and Logistics Value Map SAP Solutions The path to profitable growth. Asset Management Asset Management Operations Sales and Marketing/Customer Service Rolling Stock and Linear Asset Management Warehouse Management Marketing Management Real Estate Lifecycle Management Transportation Management and Operations Key Account and Territory Management Fuel Management Quotes and Contract Management Operations Sales, Marketing and Service People and Talent Sales Force Support Finance Procurement Customer Service 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 Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Analytics Data Management Application Development and Integration Enterprise Mobility Consumer Experience IT Management Technology Solutions IT Management Technology Solutions Enterprise Risk and Compliance Management SAP HANA Platform 7 / 37 © 2013 SAP AG
  8. 8. Executive Summary SAP Solutions SAP Innovations References Contact Us Asset Management SAP Solutions Asset Management Priorities As a logistics service provider, you know the costs associated 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. SAP Solutions 10% Lower planned maintenance budget versus actual cost variance for firms where enterprise asset management is core component of strategy 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. Source: SAP Performance Benchmarking 8 / 37 © 2013 SAP AG
  9. 9. Executive Summary SAP Solutions SAP Innovations References Contact Us Asset Management SAP Solutions Streamline operational performance by maximizing asset utilization. Asset Management Run operations, reduce costs, and proactively manage the entire lifecycle of your assets, ensuring availability when and where needed they’re needed most. Priorities SAP Solutions 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% Higher asset productivity where maintenance is streamlined by automation of monitoring, notification, and problem resolution processes Source: SAP Performance Benchmarking Benefits  Improved asset performance  Lower spare parts costs  Better planning  Greater employee productivity  Fewer safety incidents  More accurate analysis insights 9 / 37 © 2013 SAP AG
  10. 10. Executive Summary SAP Solutions SAP Innovations References Contact Us Operations SAP Solutions Operations Priorities SAP Solutions 11% Lower transportation spend for organizations that collaborate with contractors and suppliers to get visibility into supply situation 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. Historically, most software vendors of manufacturing 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 acquisitions. 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 information 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. Source: SAP Performance Benchmarking 10 / 37 © 2013 SAP AG
  11. 11. Executive Summary SAP Solutions SAP Innovations References Contact Us Operations SAP Solutions Take your business to the next level with next-generation technology. Operations Increase operational efficiency and improve customer satisfaction by enhancing processes while expanding service offerings to drive higher margins. Priorities SAP Solutions Warehouse Management Transportation Management and Operations 46% Higher shipments delivered per load planner when graphic summary reports can be aggregated into role-based portals for business users Source: SAP Performance Benchmarking Improve warehouse processes with best-of-breed transportation and logistics solutions. 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, procurement, index tracking, invoice verification, inventory, reconciliation, and risk management. Benefits  Plan and orchestrate transportation processes  Ensure services sold are delivered as designed  Ensure timely payment for services 11 / 37  Understand profitability at the order level  Gain insight into orders, goods, and processes  Reduce costs © 2013 SAP AG
  12. 12. Executive Summary SAP Solutions SAP Innovations References Contact Us Sales and Marketing, Customer Service SAP Solutions Sales, Marketing and Service Priorities SAP Solutions 25% Higher rate reduction realized where there is ability to structure and codify freight charge agreement terms with customers 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. Source: SAP Performance Benchmarking 12 / 37 © 2013 SAP AG
  13. 13. Executive Summary SAP Solutions SAP Innovations References Contact Us Sales and Marketing, Customer Service SAP Solutions Sales, Marketing and Service Priorities 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. SAP Solutions Marketing Management Key Account and Territory Management Organizations have a 360degree view of customers to optimize interactions in marketing Source: SAP Performance Benchmarking Organize sales markets and map employee relationships to accounts. Quotes and Contract Management 16% Align business strategy and service products with carrier operations for targeted customer segments. 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. 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 13 / 37 © 2013 SAP AG
  14. 14. Executive Summary SAP Solutions SAP Innovations References Contact Us People and Talent SAP Solutions People and Talent Priorities 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. SAP Solutions 32% 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. Less employee turnover by using analysis of workforce data to design, implement, and monitor workforce optimization strategies Source: SAP Performance Benchmarking 14 / 37 © 2013 SAP AG
  15. 15. Executive Summary SAP Solutions SAP Innovations References Contact Us People and Talent SAP Solutions People and Talent Priorities SAP Solutions 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 Talent Management Lower costs for HR organizations with a high degree of internal integration compared to organizations with a fragmented HR environment Source: SAP Performance Benchmarking Improve alignment, increase productivity, and accelerate results by identifying, developing, motivating, and retaining talent. Time and Attendance Management 38% Consolidate HR and payroll processes on a global platform for better workforce data and legal compliance. 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. Benefits  Align people to business strategies  Reduce turnover  Streamline the hire and onboarding processes 15 / 37  Improve productivity and engagement  Provide real-time insight into business needs  Connect better to a distributed workforce © 2013 SAP AG
  16. 16. Executive Summary SAP Solutions SAP Innovations References Contact Us Finance SAP Solutions Finance Priorities 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. SAP Solutions 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. 37% Lower cycle time for forecasts when standardized planning models ensure consistency and comparability of submitted results 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. 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. Across all of these imperatives, winning performance requires actionable insight from financial systems and processes that are consistent, transparent, scalable, compliant, and cost-effective. Source: SAP Performance Benchmarking 16 / 37 © 2013 SAP AG
  17. 17. Executive Summary SAP Solutions SAP Innovations References Contact Us Finance SAP Solutions Strengthen operations through financial performance. Finance Enable a comprehensive, real-time view of enterprise performance – both operational and financial – while mitigating risk and managing compliance. Priorities SAP Solutions Financial Performance Management Define, execute, and measure the impact of financial decisions on business strategy. Accounting and Financial Close books and create financial statements at the entity and corporate level Close according to IFRS and local legal requirements. Treasury and Financial Risk Management 24% Lower overdue accounts receivable for organizations where A/R system automatically matches payments with A/R balances through electronic interfaces 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 Ensure regulatory compliance and effective risk management. Compliance Management Benefits  Real-time insight into business performance  Optimized cash and liquidity management Source: SAP Performance Benchmarking 17 / 37  Reduced bad debts and days sales outstanding  Shorter time to close and reduced process cost © 2013 SAP AG
  18. 18. Executive Summary SAP Solutions SAP Innovations References Contact Us Procurement Excellence SAP Solutions Procurement Priorities SAP Solutions 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 leaders set a baseline for success by implementing best practices, excelling in category expertise, and working with key stakeholders on cost control programs. 60% Higher average annual savings for organizations with high maturity and leadership in procurement strategy 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 procurement, 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.” Source: SAP Performance Benchmarking 18 / 37 © 2013 SAP AG
  19. 19. Executive Summary SAP Solutions SAP Innovations References Contact Us Procurement Excellence SAP Solutions Drive sustainable savings while supporting innovation. Procurement 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. Priorities SAP Solutions Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Lower FTE per billion in spending for companies conducting electronic supplier collaboration on a network Source: SAP Performance Benchmarking Identify and act on sourcing opportunities, and create favorable, low-risk supply contracts. Procurement and Order Collaboration 76% Find new suppliers through Ariba Network, and manage these relationships through supplier management solutions. 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. 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 19 / 37 © 2013 SAP AG
  20. 20. Executive Summary SAP Solutions SAP Innovations References Contact Us IT Management: Run IT Like a Business SAP Solutions IT Management Priorities SAP Solutions 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. Lines of business want to ascertain the value of their IT investment. IT organizations no longer decide alone which IT projects to fund. 2x More projects completed on or ahead of time by top IT management performers 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. To benefit from these new technologies, IT needs to manage them effectively. By leveraging 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. 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. Source: SAP Performance Benchmarking 20 / 37 © 2013 SAP AG
  21. 21. Executive Summary SAP Solutions SAP Innovations References Contact Us IT Management: Run IT Like a Business SAP Solutions IT Management Priorities SAP Solutions 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 responsiveness to business objectives – all with IT management solutions designed for businesses of any size. Application Lifecycle Management IT Infrastructure Management More projects delivered within or below budget by IT management top performers Source: SAP Performance Benchmarking Monitor all network assets to drive an integrated infrastructure and application lifecycle. IT Portfolio and Project Management 1.9x Use best practices, methods, and services based on IT Infrastructure Library (ITIL) to manage the application lifecycle. 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. Benefits  Better alignment of IT and business strategy  Shorter IT delivery and business cycles  Lower IT management costs 21 / 37  Reduced system upgrade and operation costs  Lower cost of risk mitigation  Less downtime for critical business systems © 2013 SAP AG
  22. 22. Executive Summary SAP Solutions SAP Innovations References Contact Us Technology Solutions SAP Solutions Technology Solutions Priorities SAP Solutions 4 “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.” 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 applications. 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. Source: Gartner, “SAP Is Driving Analytics, Cloud and Mobility in the Nexus of Forces,” Donald Feinberg, August 24, 2012 22 / 37 © 2013 SAP AG
  23. 23. Executive Summary SAP Solutions SAP Innovations References Contact Us Technology Solutions SAP Solutions Technologies to drive change and help your business thrive. Technology Solutions SAP enables the real-time enterprise, empowers new experiences, and unwires the business. Priorities 20% “Through 2015, organizations integrating high-value, diverse, 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 Analytics Increase the value of data with real-time, predictive analytics; business intelligence; and performance and risk management. Data Management SAP Solutions 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. 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 23 / 37 © 2013 SAP AG
  24. 24. Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Innovations SAP Innovations Applications SAP HANA 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. Mobile Analytics Cloud 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. 75% Of companies believe that the cloud will amplify other technology megatrends, such as enterprise mobility, Big Data, and analytics 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. Source: SAP Performance Benchmarking 24 / 37 © 2013 SAP AG
  25. 25. Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Business Suite Powered by SAP HANA SAP Innovations Applications 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 HANA Mobile Analytics Cloud 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. Sales and Marketing, Customer Service 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. 25 / 37 © 2013 SAP AG
  26. 26. Executive Summary SAP Solutions SAP Innovations References Contact Us SAP HANA SAP Innovations Applications SAP HANA 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. Mobile Analytics Cloud 48% Of organizations foresee a need for having predictive modeling and complex optimization techniques on Big Data analysis 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. Source: SAP Performance Benchmarking 26 / 37 © 2013 SAP AG
  27. 27. Executive Summary SAP Solutions SAP Innovations References Contact Us Mobile SAP Innovations Applications Connecting, interacting, and engaging with consumers anytime, anywhere, and empowering marketing, sales, and operations teams with convenient, real-time visibility into market dynamics. SAP HANA Mobile Analytics Cloud 24% Higher operating margins where enterprise mobility is embedded in all business processes 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. Source: SAP Performance Benchmarking 27 / 37 © 2013 SAP AG
  28. 28. Executive Summary SAP Solutions SAP Innovations References Contact Us Analytics SAP Innovations Applications 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. SAP HANA Mobile Cloud 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. 26% Operations Measure the key drivers of operational efficiency and effectiveness, and create accountability for services compliance. Analytics Higher inventory turns with warehouse analytics software from SAP Source: SAP Performance Benchmarking Sales and Marketing, Customer Service Equip sales and service teams with instant access to order status information, customer visits, contribution levels, order analysis, and incidents. 28 / 37 © 2013 SAP AG
  29. 29. Executive Summary SAP Solutions SAP Innovations References Contact Us Cloud SAP Innovations Applications 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. SAP HANA Mobile Cloud Asset Management Connect to your suppliers anywhere at any time from any application or device to source key materials and parts. 75% 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. Analytics Of companies believe that the cloud will amplify other technology megatrends, such as enterprise mobility, Big Data, and analytics Source: SAP Performance Benchmarking 29 / 37 © 2013 SAP AG
  30. 30. Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers Best-Run Customers Artoni 9 of the Top 10 railways companies run SAP. Our customers courier more than 50% of the world’s packages. Cargojet Why SAP? 30 / 37 © 2013 SAP AG
  31. 31. Executive Summary SAP Solutions SAP Innovations References Contact Us Customer Co-Innovation Best-Run Customers Artoni SAP co-innovates with leading transportation and logistics companies. Models range from direct one-on-one engagements to established SAP user groups. Cargojet Why SAP? 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. 31 / 37 © 2013 SAP AG
  32. 32. Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers Artoni Cargojet Why SAP? 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 subcontractors 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 “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.” 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 Norberto Delendati, Organization and IT Director, Artoni 32 / 37 © 2013 SAP AG
  33. 33. Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers Artoni Cargojet Why SAP? Cargojet: Soaring to New Heights with Greater Financial Visibility. -50% 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. Time to close books 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, and less, to create new financial reports -10% And less for audit costs “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 33 / 37 © 2013 SAP AG
  34. 34. Executive Summary SAP Solutions SAP Innovations References Contact Us Why SAP? Best-Run Customers Artoni SAP solutions for the cargo transportation and logistics industry enable profitable, differentiated services by leveraging the latest in technology innovations and industry best practices. Cargojet Why SAP? 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. 34 / 37 © 2013 SAP AG
  35. 35. Executive Summary SAP Solutions SAP Innovations References Contact Us Why SAP? Best-Run Customers The best-run logistics service providers organizations rely on SAP. Artoni 63% of the world’s transaction revenue touches an SAP software system. Cargojet SAP customers report 80% lower customer churn with mobile-enabled sales teams. Why SAP? 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, highperformance 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. 35 / 37 © 2013 SAP AG
  36. 36. Executive Summary SAP Solutions SAP Innovations References Contact Us Find Out More About How Your Organization Can Become Best-Run 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. Visit valuemanagement.sap.com >> 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. Visit sap.com/solutions/rds >> 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. Visit scn.sap.com >> 36 / 37 © 2013 SAP AG
  37. 37. Industry Executive Overview Cargo Transportation and Logistics Executive Summary SAP Solutions SAP Innovations References Contact Us CMP 23275 (13/02) Visit us: http://scn.sap.com/community/transportation-andlogistics http://logisticsviewpoints.com/ www.linkedin.com/groups?gid=4366195&mostPopula r=&trk=tyah www.linkedin.com/groups/SAP-MRO-AviationRailway-Professional2795461?gid=2795461&mostPopular=&trk=tyah © 2013 SAP AG
  38. 38. © 2013 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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