Delivering Real-Time Business Value for Cargo Transportation and Logistics

July 2013
Delivering Real-Time Business Value
for Cargo Transportation and Logistics
SAP Business Suite Powered by SAP HANA
Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
The real-time opportunity
Transportation and logistics service providers live
in an incredibly dynamic world of evolving markets,
shifting customer demands, and rising competition.
Companies need to continuously innovate ways to
align business operations with customer needs.
 Differentiate through profitable services that excite customers
 Run flexible, efficient, and cost effective business processes
 Respond rapidly to evolving trends and demands

Drive profitable growth
through differentiated
offerings
 Predict trends and evolving customer needs
 Gain customer intimacy in marketing, sales,
and service
 Tailor services to the needs of target segments
Manage costs with
end-to-end process
support
 Realize cost savings through better
management of resources (assets, people,
fuel)
 Embed decision support throughout business
processes
 Transform from reactive into proactive
execution mode
Respond to market
dynamics in real time
 Conduct ad hoc, what-if, and root-cause
analysis based on reliable and real-time data
 Empower employees to make informed
decisions
 Provide flexible self-service reporting
functionalities
Becoming an innovation-driven enterprise
Align business operations with customer needs

SAP Business Suite powered by SAP HANA
The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
CloudSocial
Big DataMobile
One platform bringing it all together
Advanced
analytics

Industry value map for cargo transportation
and logistics
Cargo – information and the path to growth
Technology
Solutions
Analytics Data Management
Consumer
Experience
SAP HANA Platform
Asset Management
Transportation Assets Management
Infrastructure Assets /
Linear Asset Management
Operations
Warehouse Management
Transportation Management
and Operations
Fuel Management
People and
Talent
Core Human
Resources and
Payroll
Talent Management
Workforce Planning
and Analytics
Finance
Financial
Performance
Management
Accounting and
Financial Close
Collaborative
Finance Operations
Enterprise Risk
and Compliance
Management
Procurement
Supplier Discovery
and Lifecycle
Management
Strategic Sourcing
and Contracting
Collaborative
Invoice to Pay
IT Management
Application
Lifecycle
Management
IT Infrastructure
Management
IT Service
Management
IT Strategy and
Governance
Enterprise Mobility
Application Develop-
ment and Integration
Time and
Attendance
Management
Treasury and
Financial Risk
Management
Procurement and
Order Collaboration
IT Portfolio and
Project Management
Sales and Marketing/Customer Service
Marketing Management
Key Account and Territory
Management
Quotes and Contract Management
Sales Force Support
Customer Service
Real Estate Lifecycle Management

Industry value map for cargo transportation
and logistics
Cargo – information and the path to growth
Technology
Solutions
Analytics Data Management
Consumer
Experience
SAP HANA Platform
Asset Management
Transportation Assets Management
Infrastructure Assets /
Linear Asset Management
Operations
Warehouse Management
Transportation Management
and Operations
Fuel Management
People and
Talent
Core Human
Resources and
Payroll
Talent Management
Workforce Planning
and Analytics
Finance
Financial
Performance
Management
Accounting and
Financial Close
Collaborative
Finance Operations
Enterprise Risk
and Compliance
Management
Procurement
Supplier Discovery
and Lifecycle
Management
Strategic Sourcing
and Contracting
Collaborative
Invoice to Pay
IT Management
Application
Lifecycle
Management
IT Infrastructure
Management
IT Service
Management
IT Strategy and
Governance
Enterprise Mobility
Application Develop-
ment and Integration
Time and
Attendance
Management
Treasury and
Financial Risk
Management
Procurement and
Order Collaboration
IT Portfolio and
Project Management
Sales and Marketing/Customer Service
Marketing Management
Key Account and Territory
Management
Quotes and Contract Management
Sales Force Support
Customer Service
Real Estate Lifecycle Management
1
2
3 4 5
Highest real-time business
value for transportation
and logistics

Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Transportation management and operations
Business value for transportation management
 Huge order volumes with limited
ability to analyze and react to
changes and exceptions
 High manual effort to manage orders,
documents, and so on
 Suboptimal asset utilization driving
higher costs and lower service
 Hard to handle sheer volume of data
from assets (for example, containers)
 Limited ability to track status and
lifecycle of customer orders
 Limited visibility into total customer
engagement, own performance, and
economic impact
 Running a global no-latency order
platform enabling better-informed
decisions, exception monitoring, and
alerting to meet customer demands
with accurate information
 Up-to-date information on availability
and real-time tracking of assets,
leading to higher reliability
 Management, planning, and
optimization of huge volumes of
asset data
 Control over transportation in real
time to decrease costs while
maximizing available resources
 Real-time analysis of customers,
orders, value-added services, and
overall operational performance
Perfect
order taking and
fulfillment
Heighten
Understand
asset utilization
order flow, customer
preferences, and
financial impact
With SAP Business Suite
on SAP HANA

Today
Customer service
Business value for multichannel customer service
 High volume of customer records
and interactions resulting in
increased search times when
handling customer inquiries
 No single platform for monitoring,
notification, adjustments, and
analysis of all business events in
real time
 Limited ability to successfully resolve
customer issues as companies are
unable to quickly analyze and
resolve root causes of problems
 Quickly identify customers and get
a complete 360-degree view of
customer orders and related
documents in real time
 Provide self-service reporting
functionality to customers
 Proactive customer reporting on
order, billing, and performance
 Spotting of potential problems in real
time, allowing mitigating actions to
reduce late or incomplete orders
 Operational tracking and advanced
real-time analytics as a basis for
more effective collaboration with
business partners in order to
mitigate risks
Transform
from service desk
dependency to
provisioning self-
service
Improve
Gain insight
service quality
through end-to-end
view
into customer
preferences in order
to provide targeted
offers
on SAP HANA

Today
Financial performance management
Business value for financial performance management
 Inability to adapt (plan, replan,
monitor, and control) the business
model, operations, and services in
volatile market environments
 Need to quickly adapt finance and
business operations
 Long performance management
cycles with complex consolidation
landscapes
 Reporting, loading, and retraction
performance limits planning
iterations
 Inefficiencies due to disruptions
between planning and execution
 Drilldown limited to within OLAP
environment, no drill-through to
transactional data
 Leveraging of more granular data to
gain full transparency and as a basis
for planning
 Ad hoc analytics, iterative planning,
and real-time simulation supported
through real-time platform
 No latency in heterogeneous
consolidation landscapes through
quasi-instant response times
(even with large number of complex
calculations)
 Improved performance for drilldown
(expand) and consolidation (collapse)
 Fast drill-through to lowest level view
of transactional data in SAP Business
Suite
financial
transparency
and forecasting
cycle times and
manual effort
financial costs
on SAP HANA
Improve
Reduce
Minimize

Today
Accounting and financial close
Business value for accounting and financial close
 High number of systems and people
requiring many handovers and
reconciliations hinders a transparent
central financial close
 Inefficiencies due to manual
processes and low automation
 Missing financial excellence that
results in higher cost of equity
at the capital markets
 Lack of governance – issues in
ensuring a sound end-to-end closing
process and effectiveness of internal
controls
 Difficult to comply to parallel financial
reporting standards and simulate
scenarios
 More time for analysis, less overtime,
and earlier publishing of financial
results through faster period-end
processes and better reconciliations
 Single repository for company and
corporate data
 Increased efficiency through smarter
reconciliations and reporting,
reducing operating costs and
improving stakeholder satisfaction
 Deeper and faster insight down to the
lowest level of detail – delivering
quality at the source, transparency,
and process efficiencies
Improve
insights into financial
performance
Minimize
closing costs
on SAP HANA
Reduce
month-end closing
time

Today
Collaborative financial operations
Business value for receivables management
 Challenges to assign revenues and
allocate costs to service
products/cost drivers correctly due to
volume and complexity; inability to
process data on detailed/line-item
level
 Limitations in analysis capabilities
and dimensions because of reliance
on finance aggregates
 Large data volumes that lead to
batch processing and reporting
latency
 Difficulty in identifying exceptions in
thousands of pages of reports
 Empowered business users with
rapid access to trusted, detailed data
and new insight to optimize decision
making
 Ad hoc data queries and drill-downs
to isolate variances
 More accurate document-level
calculation of, for example, DSO that
allows you to identify root causes of
changes to DSO
 Real-time reporting on all accounts
receivable data including credit,
collections, and disputes
 Anywhere, anytime access to key
receivables status
Optimize
profit/loss distribution
across network
Improve
Increase
billing and revenue
management
cash collections and
accelerate dispute
resolution
on SAP HANA

Next step
Business scenario recommendation and value discovery workshop
 SAP offers a proven methodology and approach to
discover the customer-specific business
improvement areas and quantify value potential.
 We suggest such a workshop with your
line-of-business and IT experts.
 As starting point, we recommend a performance
and usage analysis of your current system.

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you
Contact information:
Franz Uhr
Solution Manager
Dietmar-Hopp Allee 16, 69190 Walldorf
Tel. +49 6227764438

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix
with detailed customer cases

Container transportation/transportation and logistics
Summary validated scenarios
Feasibility
BusinessvalueLowHigh
Low High
Order settlement
reporting
(US$2.6 million)
Incremental revenue
from higher
utilization of assets
(US$1.7 million)
Reduce costs of
budgeting and
forecasting
(US$2.4 million)
Reduce costs of
allocations
(US$0.3 million)
Reduce time spend
to create reports
(US$0.8 million)
Reduce preparation
time spend to close
the books
(US$1.0 million)
Legend
SAP Business
Suite on
SAP HANA
SAP HANA
applications
SAP HANA
Platform
Phase - deployment road map
Annual revenue: US$10 billion
SAP HANA Platform: customer-specific
SAP HANA products: SAP NetWeaver BW on
SAP HANA, high-performance applications (HPAs),
apps powered by SAP HANA
SAP Business Suite on SAP HANA
Scenario
(business value)
1 Short term
Reduce costs of budgeting and forecasting:
Higher planning and forecasting efficiency
Incremental revenue from higher utilization of
assets: Increased profitability
Reduce preparation time spend to close the
books: Accelerated financial closing
Increased margin per deal by analyzing service
income statements per deal: Increased
profitability
Reduce time spend to create reports: Reduced
manual reporting effort
Reduce costs of allocations: Reduced manual
effort
2 Medium term
Order settlement reporting
3 In evaluation
Other functions – To be discussed in future
discovery workshops
Increased margin per
deal by analyzing
service income
statements per deal
(€1.7 million)
SAP HANA use cases mapped to
industry value map end-to-end solutions

Container transportation/transportation and logistics
SAP HANA Platform
Results over five years – SAP Business
Suite on SAP HANA only
Surplus US$7.2 million
ROI 260%*
Pay back period <12 months*
-3.800
-400
8.400
11.000
-4.000
-2.000
0
2.000
4.000
6.000
8.000
10.000
12.000
2013 Phase 1 Phase 2
Costs SoH Applications Platform
US$’000
* to be validated
Based on actual SAP
customer engagements
SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models
SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to
inventory value map (IVM) end-to-end (E2E) solutions
Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality (all of the
E2E solutions on the IVM are in scope)
SAP HANA Platform
SAP HANA products
SAP Business Suite
on SAP HANA
Annual benefits, SAP HANA
Platform
Annual benefits, applications
powered by SAP HANA: US$11
million
Annual benefits, SAP Business
Suite on SAP HANA
Estimated deployment costs
Total transition cost: US$3.8 million
SoH = SAP Business Suite on SAP HANA

Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation
sessions and may not be completely validated.
Container transportation − close books more efficiently
Cargo transportation and logistics
Innovation scope
SAP HANA products (HPAs, apps)
End-to-end (E2E) solution
Cargo transportation and logistics –
financial performance management
Value potential 3
Feasibility 4
Low High
1 5
Low High
1 5
Business context and goals
 Accelerated financial closing
Business challenges
 Customer spends a lot of time preparing for the closing of 19,000 cost centers, 1,200 account
codes, 3 business units, 11 lines of business, and 7 regions. The 300 users of SAP Business
Planning and Consolidation extract data and make adjustments to data manually.
Process innovations
 Higher productivity of employees, less rework, and reduced cycle times
Contribution of SAP HANA
 With SAP HANA, data loading from SAP ERP can happen more frequently and adjustment
values are reflected for financial reconciliation and verification in shorter time frames
Value drivers/KPIs
 Productivity

Container transportation − improve asset utilization
Innovation scope
Value potential 4
Feasibility 2
Low High
1 5
Low High
1 5
 Increased profitability
Business challenges
 Finance users are largely reactive to business demands. Utilization of assets such as ports,
vessels, containers, and trucks can be improved.
Process innovations
 By enabling faster insight into the business financial performance, finance users become
strategic business partners of the organization
 SAP HANA will drastically reduce reporting times. That will allow users of SAP Business
Planning and Consolidation to run 2x to 3x more simulations then before. This will generate
better insight and higher forecast accuracy, and thus decision making about how to utilize assets
such as ports, vessels, containers, and trucks in a better way.
Value drivers/KPIs
 Asset utilization

Container transportation − improve budgeting and
forecasting productivity
Innovation scope
Value potential 5
Feasibility 4
Low High
1 5
Low High
1 5
 Improved planning and forecasting efficiency
Business challenges
 Customer currently conducts three to four outlooks a year for board meetings, and seven to eight
forecasts for senior management. Part of the planning and forecasting cycle based on 19,000
cost centers involves manual effort.
Process innovations
 Enhance productivity of 300 users of SAP Business Planning and Consolidation
 SAP HANA will speed up the cycles
Value drivers/KPIs
 Productivity

Container transportation − increase margin per deal
Innovation scope
Value potential 4
Feasibility 3
Low High
1 5
Low High
1 5
 Increased profitability
Business challenges
 90% of customer’s business is liner business, entailing trade routes with many services offered.
Customer is only able to produce P&L statements by trade lanes, and is not able to identify which
services within trade lanes are profitable.
Process innovations
 Finance users can flag if service line items in deals are not profitable
 Enables more granular insight into the business financial performance
Value drivers/KPIs
 Margin

European railway − order settlement reporting
Innovation scope
Cargo transportation and logistics - accounting
and financial close
Value potential 3
Feasibility 4
Low High
1 5
Low High
1 5
 Order settlement reporting allows the company to allocate internal costs of services, and to
monitor and control them
Business challenges
 Response times of data retrieval (for example, cost center reporting) do not meet end-user
requirements
Process innovations
 Fast response times of data requests provide the decision makers with real-time data insights
with drill-down capabilities on any granularity
 Single platform for order settlement data, synchronized with source systems in real time;
provision of line item reporting for settlement orders; user centric and flexible ad hoc analysis
Value drivers/KPIs
 Reduced TCO; process cost reduction through transparent cost analysis

Delivering Real-Time Business Value for Cargo Transportation and Logistics

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (6)

Similar to Delivering Real-Time Business Value for Cargo Transportation and Logistics

Similar to Delivering Real-Time Business Value for Cargo Transportation and Logistics (20)

More from SAP Technology

More from SAP Technology (20)

Recently uploaded

Recently uploaded (20)

Delivering Real-Time Business Value for Cargo Transportation and Logistics