Callidus Software On-Premise To On-Demand Migration
SAPPHIRE - SAP WM and XSI with 3rd Party Logistics Providers
1. May 13, 2009 Migrating 3rd-Party Warehouse & Carrier Integration Systems to SAP Software Bruce Rishel, CSCP
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7. SAP Soft-ware Purchase Order Purchase Order Change Material Master Delivery Document Return Delivery PO Goods Receipt Goods Issue Material Moves – 3PL Generated Return Delivery Goods Issue Balance on Hand Production Order Production Order Goods Issue Material Move Material Move Update Schedule Agreement Sales Order Changes 3PL Schedule Agreement Receipt 3PL Architecture Sales Order Production Order Goods Receipt Carriers -FedEx -UPS -TNT Shipment Number Shipment Information
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9. SAP Soft-ware 3PL Architecture with SAP Software Carriers (FedEx UPS TNT) Shipment Number* Shipment (via XSI) * Tracking performed through web access on parcel tracking tab of the delivery header
20. Deployment Scope Miami Raleigh Mexico Switzerland Australia Singapore Tokyo Hong Kong Toronto Israel London Paris Nashville Shanghai Belfast New Zealand Beijing
21. 3PL Site Volumes Pilot Sites Based on # of outbound deliveries for 3PL sites May to July 2008 Post- Pilot Sites 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Belfast 1 London 1 Switzerland Israel Belfast 2 Raleigh Singapore Toronto Australia New Zealand Hong Kong Shanghai London 2 Paris Miami Tokyo Nashville Beijing Mexico (Greenfield)
CostAlong with Customer delivery accuracy and delivery quality, cost will always be a key driver. Benchmarking shows costs at a good % or revenue, but year on year double digit savings are the realistic target. Flexible footprint costThe drive is to increase the % of Logistics costs that are variable and a key element of this is the Warehouse footprint which is fixed and variable. New operating requirements in developing CountriesExtension of the supply chain to new countries (Asia, Eastern Europe, Africa and South America)New regulations, partners and conditions in developing countries (WEEE, EUED for example)Business transformation goalsSupplier partnership on value engineering projects underway with CM’s which will included the full delivered cost.Extension of a Global supply chain, with the drive to source global supply from low cost regions.More business moving on to SAP
One common platformSAP upgrades easier as have removed the interfaces that needed testingRemove a 30 of the SAP interfaces and costs to maintain themReduce the 14 plus applications used to support LogisticsReduce the points of failureNo system dependencies Remove 3rd party dependencies and associated costsSimplify the supply chainAll data is in one systems and consistentMore accessible to a larger number of peopleProvide a solution that can be quickly deployed any where in the globe for any type of warehouseFor project warehouse 4 months down to 4 weeksFor LOCs 6 months down to 6 to 8 weeksCost avoidanceFuture solutionmonitoring SAP and 3PL WMS to insure 2 systems are in sync Reduction in number of SOX monitoring places (27 reports daily for 4800 – SAP, Dispatcher) – produced and looked at dailyCurrently certain products can only be handled be certain 3PL tools – thus dictates location -> this will allow us to flexibility as this one tool will handle all productsStronger negotiating position with 3PL’s – cost reduction if they can reduce their IT support
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