SAP TRANSPORTATION MANAGEMENT IMPLEMENTATION FOR A LARGE RETAILER
Zircoo experts automated transport processes for a retail company through SAP TM, improving their KPIs.
SAP Transportation Management Implementation For A Large Retailer
Customer:
The customer is a retail chain and a leading food retailer.
Challenge:
The project aimed to enhance logistics operations by implementing a digital solution for logistics and transportation management.
Solution:
We selected SAP S/4 HANA Embedded TM, a comprehensive solution designed to address all logistics tasks and automate manual operations. This solution was chosen as a tool to improve the customer’s Key Performance Indicators (KPIs) and optimize their logistics and transportation processes.
Products and Services
- SAP Transportation Management (SAP TM)
- SAP Implementation
High-Priority Tasks
The customer identified the following important tasks for improving logistics processes:
- Increase the level of transport services;
- Reduce transportation costs;
- Implement a unified transportation management system instead of fragmented reporting and operation services.
Business Goals:
To enhance operational efficiency and profitability, the customer sought a software solution to achieve the following business goals:
1. Reduce Transport Downtime:
– Eliminate manual operations and fully automate processes to minimize transport downtime and ensure timely delivery of goods to stores.
2. Optimize Staff Efficiency:
– Automate processes to optimize staff utilization, reducing the time required to perform daily operations and increasing productivity.
3. Eliminate Errors in Carrier and Route Selection:
– Implement a solution to eliminate errors associated with carrier and route selection, ensuring accurate and efficient transportation logistics.
4. Minimize Non-Production Activities:
– Integrate the solution with customer and partner systems to minimize non-production activities, streamlining workflows and enhancing overall operational efficiency.
Project Scope:
Over 70 Zircoo specialists were engaged in the project to implement SAP TM into the customer’s business processes. The team comprised SAP consultants, developers, functional and technical architects, as well as heads of functional groups.
Zircoo experts were tasked with the following project responsibilities:
1. Implementation of SAP TM:
– Configuration and enhancement of SAP TM system to align with the customer’s requirements and improve logistics processes.
2. Integration with Other Systems:
– Integration of SAP TM with other SAP solutions and third-party systems to ensure seamless data exchange and process alignment.
3. User Training:
– Providing comprehensive user training to ensure smooth adoption and effective utilization of the SAP TM system.
SAP Transportation Management (SAP TM) Implementation:
The implementation of SAP TM automates the core logistics processes of the company, including:
– Transportation Needs Planning: Determining the number of trips required for a specific period.
– Transportation Planning: Assigning responsible personnel, selecting routes, prioritizing deliveries, and considering factors such as shelf life of goods.
Integration with Collaboration Portal:
The integration facilitates:
– Interaction with Domestic Carriers: Streamlining communication and collaboration with domestic carriers.
– Interaction with External Carriers: Managing the full cycle of hired transport, including contracting and quick bidding for additional vehicles and unscheduled transportation, through external carriers.
Key Project Directions:
The SAP TM implementation project encompasses the following key directions:
1. SAP Collaboration Portal:
– Facilitating interaction between customers and carriers, including contracting and bidding processes, and providing quick bidding (SPOT) functionality for unscheduled shipments.
2. Planning and Optimization of Trunk Delivery:
– Optimizing the transportation of goods over long distances, such as to and between distribution centers, and providing transportation services for trunk delivery.
3. Transportation and Event Management:
– Utilizing the SAP Event Management solution to monitor process steps (events) within the transportation and logistics operations, ensuring effective transportation control and visibility.
4. Dropshipping Optimization and Planning:
– Streamlining direct delivery of goods from distribution centers to final destinations, a complex scenario in SAP TM. Integration with third-party services ensures consideration of road restrictions and optimized route planning for dropshipping scenarios.
Results:
The implementation of the SAP TM solution for automating transport processes has yielded significant improvements in the company’s key performance indicators, resulting in:
– 20% increase in productivity of trunk delivery vehicles.
– 3% increase in the cargo capacity of long-distance delivery vehicles.
– 3% increase in the productivity of direct delivery machines.
– 2% reduction of tariffs under contracts of hired carriers.
– 5% reduction of tariffs for spot freight of hired carriers.
– Reduction of dead mileage.
– Reduction of fuel consumption.
– Improved quality of goods delivery.
