Woodgrain Millwork “Builds” Their Success with SAP Transportation

Woodgrain Millwork “Builds” Their Success with
SAP Transportation Management (TM) 9.0
Connie Moylan - C.I.O., Woodgrain Millwork
Joyce Swanke - Sr. Industry Principal, SAP America
LEARNING POINTS
 Why SAP & TM 9.0 at Woodgrain?
 TM 9.0 Functionality Implemented
 Anticipated ROI
 Lessons Learned
 What’s Next? TM Roadmap Overview
ABOUT WOODGRAIN MILLWORK
• Privately-held, family-owned business founded in 1954
• Manufactures, sells and distributes a diverse line of
millwork products (doors, windows, mouldings, and
other specialty wood products)
• Integrated supply chain of both international and
domestic locations (20 locations worldwide)
• Rapid growth fueled by acquisitions over many years,
resulting in multiple, legacy systems to integrate and
maintain
WHY SAP & TM 9.0?
• Woodgrain’s “State of I.T.” before SAP
– Many strategic initiatives at Woodgrain Millwork could not be
effectively executed upon with current systems
– Large number of unique applications across multiple business
units, resulting in:
• High, On-Going Total Cost of Ownership
• Integration Complexity – inhibiting the ability of I.T. to
deliver the required business functionality in a timely
manner
• Multiple systems at end-of-life, forcing investment in costly
upgrades and integrations and introducing risk to business
continuity
WHY SAP & TM 9.0?
• Why decision to implement SAP ECC 6.0 & TM 9.0?
– Robust functionality to meet diverse set of requirements and
enable execution of business strategy
– Provide a platform for growth and reduce the risk to business
continuity—”the system” can become a catalyst rather than
hindrance
– Lower long-term TCO through elimination of many legacy
systems and multiple integrations
– ROI opportunities identified in every business unit and
functional area
WHY SAP & TM 9.0?
• Why SAP Transportation Management 9.0?
– Robust Integration to SAP ECC
• Advantage over other 3rd party Transportation Management products that
are difficult to seamlessly integrate to Order Management when frequent
order updates and changes occur to meet customer demands
– Significant opportunity to reduce supply chain costs in the area
of Transportation Management
• SAP TM 9.0 greatly exceeds capabilities of current systems and processes
WHY SAP & TM 9.0?
• Why SAP Transportation Management 9.0?
– Provides functionality required by Woodgrain to execute on
multiple methods of sourcing and delivery to customers
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•
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Out-of Warehouse
Cross-Dock
Direct Ship
Inter-company
Vendor consigned
Customer consigned
3rd-party Warehouse
3PL service
Customer and Vendor returns
International (next phase)
About our TM 9.0 Implementation
• Began TM 9.0 Ramp-up program in late November, 2012
• TM is one piece of a full-scale ERP implementation at 7
Distribution locations, which includes: SD, MM, WM, PP
• Scheduled go-live is May 6, 2013
• Implementation Partner is BestXperts
TM 9.0 Functionality Implemented
• Order Integration
– SAP ERP integration: Order-to-Cash, Procure-to-Pay
– Freight Orders
– TM Sales Order Scheduling
• Freight Planning
– Manual & Automated (Optimizer) Planning & Dispatching
– Routing, Resource & Carrier Selection
– GIS integration via NAVTEQ
TM 9.0 Functionality Implemented
• Freight Execution & Monitoring
– Logistics Execution
– Transportation Status Visibility & Monitoring
– Capacity Monitoring
• Document & Output Management
– VICS Bill of Lading
– Shipping Manifest
• Integration & Connectivity (via SAP PI)
– UPS Worldship
– Airclic Proof of Delivery
– XataNet GPS System
ANTICIPATED ROI
• Minimum of 15% reduction in freight spend
• Use of in-house optimizer versus external vendor
• Reduction in overall supply chain and inventory carrying
costs
• Better visibility and more timely decision-making to make
adjustments as product moves through the external and
internal supply chain
• Effectively manage increases in volume with the same or
smaller number of transportation planner resources – less
manual intervention
• Increased service level to customers
• Better integration between order entry and transportation
planning via TM Sales Order Scheduling
LESSONS LEARNED
• Implementing TM requires a wide range of skill sets
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–
–
–
–
–
–
ERP
SD
MM
LE
PI
ABAP OO Object oriented
SAP TM
• TM uses some of the newest technology that is tough
to learn quickly
– BRF Plus, Business objects framework
– Post Processing framework
– Floorplan Manager UI
LESSONS LEARNED
• Volume testing of the optimizer is key
• Advise using PI from the start
– It is possible to do a point-to-point but does not give you the
increase in message monitoring and visibility
• Check for new OSS notes (now called SAP Notes) and
optimizer updates frequently
"I have not failed 10,000 times. I have successfully
found 10,000 ways that will not work.“
-Thomas A. Edison
SAP TM ROADMAP
What’s Next?
Transportation Management
Roadmap Overview
Overview Transportation &
Logistics Investment Areas
2011
2012
2013
2014
…
Shippers
Freight
Forwarders
Rail
Carriers
Other
Carriers
…
Retail
Logistics
Service Prov.
Warehousing, Transportation & Event Management
HANA, Mobile
Analytics
Integration, Connectivity
Total Cost of Ownership (TCO)
HANA Strategy for
Transportation & Logistics
 Instant data analysis & decision support
HANA
 Accelerated supply chain execution
SAP HANA-Powered Analytics
• Dashboards
• Reports
• …
• HANA-optimization areas
 Supply chain tracking
 Transportation planning
 Warehouse workforce planning
…
SAP HANA
SAP inmemory
computing
SAP HANA-Powered SCE
Supply Chain Execution
SAP Business
Warehouse
Supply Chain Execution
SAP Transport.
Management
SAP Extended
Warehouse Mgmt.
SAP Event Management
SAP Transport.
Management
SAP Extended
Warehouse Mgmt.
SAP Event Management
SAP HANA
SAP inmemory
computing
Mobile Strategy for
Transportation & Logistics
Mobile
 Standard SAP mobile solutions
 Ecosystem enablement
SAP Mobile Architecture
 Sybase Unwired Platform
̶ For SAP & Partner mobile solutions
Ecosystem
Enablement
SAP Standard Mobile Solutions
 Intra-enterprise solutions for warehousing
̶ Iternet Transaction server (ITS) -based applications
including picking, packing, put-away (RF, RFID, pick-byvoice)
 T&L solution consumption
simplification
 Inter-enterprise solutions for transportation
̶ TM Tendering, TM Notifier ….
 SAP mobile analytics (SAP BW goes mobile)
 Mobile infrastructure enablement
Mobile Innovation
 New applications
̶ Door Appointment Scheduling
(Carrier appointment
re/scheduling)
̶ TM Notifier on iPhone
 New technology integration
̶ Voice control, HTML5
TCO Strategy for
Transportation & Logistics
Total Cost of Ownership
 Supply Chain Execution Platform Delivery
 Rapid Deployment Solutions
Supply Chain Execution Platform
 Synchronized TM/EWM/EM delivery
 SCE Suite implementation in single instance
 Out-of-the box SCE process integration
Rapid Deployment Solutions
 Predefined implementation service
 Enablement content (guides & sample data)
 Preconfigured processes
 Software
SAP Supply Chain Execution
SAP Transportation
SAP Warehouse
SAP
Supply Chain
Management
Management
Execution
Suite
SAP Event Management
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•
RDS for SAP Extended Warehouse Mgmt.
RDS for Domestic Freight Tendering
RDS for Domestic Transportation Planning
EWM Baseline for cross industries
SAP Event Management
TM for Ocean Carrier Booking (planned)
KEY LEARNINGS
 SAP selected to reduce Total Cost of Ownership (TCO)
. . . And to reduce integration complexity
 Why SAP Transportation Management 9.0?
. . . Reduce costs
 What’s Next?
. . . For SAP TM and Woodgrain Millwork!
QUESTION & ANSWER
Question & Answer
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