2013 OTM EU SIG: Integrating SAP with OTM Presentation
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The document discusses integrating SAP with OTM. It provides background on SAP and OTM history, highlights key design considerations, and common challenges. The real challenge is to fully understand the end-to-end supply chain business process and requirements to define necessary system support. Clarifying business ownership of supply chain segments and addressing pressures on the IT landscape are also important.
2013 OTM EU SIG: Integrating SAP with OTM Presentation
- 1. Integra(ng SAP with OTM 2013 European SIG Conference Neil Hatcher Rob van Haaster Monday 28 January 2013 © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 2. Agenda § SAP / OTM IntegraLon Background § Design Approach § High Level architecture § Lessons Learnt § ImplementaLon Details • SAP EnLLes • Sample use cases • Best PracLce elements § ParLng Thoughts § QuesLons © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 3. SAP / OTM History § OTM is designed and supported as a stand alone best pracLce enterprise TMS § Majority of OTM users in Europe are SAP clients § OTM allows common view of mulLple SAP instances § Single global model in co-‐ordinaLon with single SAP instance © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 4. SAP/OTM Integra(on Background § IntegraLng OTM with SAP • Can be done • Has been done successfully • Challenges are the same as will occur when integraLng SAP to any TMS soluLon that handles real world transportaLon. § In this presentaLon, we aim to • Highlight some design consideraLons and best pracLce • Present Real life use cases in ProducLon © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 5. Agenda § SAP / OTM IntegraLon Background § Design Approach § High Level architecture § Lessons Learnt § ImplementaLon Details • SAP EnLLes • Sample use cases • Best PracLce elements § ParLng Thoughts § QuesLons © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 6. Key Design Considera(ons § SAP ECC as with other ERP’s has no concept of Order / Shipment relaLonships in comparison with TMS • One to many / many to one Order:Shipment not standard § SAP LogisLcs concept is Orders:Deliveries but is limited • Deliveries cannot be split across shipments • Triggers funcLonality in SAP – assigns Stock • Typically based on stock / inventory available § Hence the need for an Enterprise TMS for true LogisLcs Management © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 7. Typical Perceived Challenges § Which SAP object should we use for the order release in OTM? § When should we send the order releases to OTM? § OTM likes to split orders across loads but the OTM order is an SAP delivery and SAP does not like that to be split. © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 8. Real Challenge § Get end to end clarity of the supply chain business process and business needs. § Then define the system support required to enable that. © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 9. Who owns each segment in the supply chain process? Challenge: Clarifica(on Achieved: Define which business area Which system in the IT (and therefore IT system) owns landscape owns the the overall business process for overall business process the supply chain segment. for the supply chain MulLple business process models segment can be handled in a single OTM Most o_en this is not the instance giving end to end Transport organisaLon. Examples of segments: visibility across the supply chain Instead it is sales or Demand planning driven. segments manufacturing or an external Customer order driven. customer Manufacturing driven Some companies will have mulLple supply chain segments © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 10. Business pressure on IT landscape Challenge: Clarifica(on Achieved: Is there a business desire for Other challenges need each end user to only work in to be addressed one system for the whole of depending on which their working day, or is there a approach the business drive to have business require funcLonality handled in (trade off between end user training on mulLple applicaLons and Single Sign On umbrella vs messaging backwards and forwards with duplicated visibility informaLon and funcLonality in mulLple places) © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 11. TMS load op(misa(on Challenge: Clarifica(on Achieved: Should the TMS be allowed to If the answer is yes then opLmise loads by splibng the message flow should orders and or changing pickup be SO / STO / PO from SAP and delivery days? to OTM and OTM to plan and integrate the deliveries back to SAP. If the answer is No. Then SAP should define the Inbound and Outbound deliveries and those should be integrated towards OTMs order release object. © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 12. Details of supply chain interac(ons Clarifica(on Achieved: Challenge: Understanding of : Have understanding What acLons should be across the business allowed or blocked at each funcLons what the stage impact of any acLon at What system support for any point in Lme would modificaLons is required be. Example: At what point do you allow the sales department to change add or remove items from an order. © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 13. Agenda § SAP / OTM IntegraLon Background § Design Approach § High Level architecture § Lessons Learnt § ImplementaLon Details • SAP EnLLes • Sample use cases • Best PracLce elements § ParLng Thoughts § QuesLons © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 14. SAP -‐> OTM Integra(on iDoc GLogXMLElement SAP PI TransmissionReport SYSTAT © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 15. OTM -‐> SAP Integra(on GLogXMLElement iDoc SAP PI ALEAUD TransactionAck © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 16. Agenda § SAP / OTM IntegraLon Background § Design Approach § High Level architecture § Lessons Learnt § ImplementaLon Details • SAP EnLLes • Sample use cases • Best PracLce elements § ParLng Thoughts § QuesLons © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 17. Relevant SAP modules Key modules within SAP ECC for Transportation Process Integration: LE LogisLcs ExecuLon MM SD Materials Sales & Management DistribuLon SAP ECC Enterprise PP Core FI ProducLon Component Financial Planning AccounLng QM CO Quality Management Controlling MavenWire (Europe) CavenWire (Europe) Proprietary Reserved © Copyright 2013 M opyright Company Ltd All Rights
- 18. SAP Documents & Flow § End to End Supply Chain Documents within SAP Modules independent of enterprise TMS © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 19. Master Data Best Practice Logistics Master Data Management Sample Mapping All other Logistics Data using MavenWire evolvTM Data Loader © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 20. Outbound Use Cases § We will walkthrough two different Outbound Use Cases, applicable depending on the perspecLves of Orders / ProducLon Scheduling and Inventory…. § These samples provide for: • Order / Delivery splibng • Delivery creaLon from OTM Shipment plan or SAP creaLon process • Shipment creaLon in OTM with/without SAP Shipments • Dynamic producLon plans § Scenario 1 • Discrete Manufacturing model § Scenario 2 • Process Manufacturing model © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 21. Sample Outbound Scenario I (Discrete Mfg) © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 22. Sample Outbound Scenario II (Process Mfg) © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 23. Inbound Use Case § OTM / SAP can equally be deployed for Inbound LogisLcs § SAP Purchase Order control § OTM inbound logisLcs management § Allows for Factory Gate pricing model § LogisLcs part of PO payment process control (ASN, ePOD) © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 24. Sample Inbound Scenario I © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 25. Agenda § SAP / OTM IntegraLon Background § Design Approach § High Level architecture § Lessons Learnt § ImplementaLon Details • SAP EnLLes • Sample use cases • Best PracLce elements § ParLng Thoughts § QuesLons © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 26. Par(ng Thoughts § OTM can be integrated to the SAP ordering modules in many ways. • The "right" way is not simply a case of which business verLcal your organisaLon belongs to. § Transport is not required unless another part of the organisaLon is requesLng it. • Take a partnership approach with the ordering business area (whether it be manufacturing or sales or something else) § Don't make decisions as to overall business process alone. § Don't get lost in theoreLcal nirvana. • In a real world supply chain things change on a daily basis, strive for supply chain stability but don't put blinkers on and ignore reality. § There is no such thing as a "handover point" at which one area completely ceases to touch the order and another area takes over. • have sessions with the relevant parLes round a table to drill into the details and to define real world applicable processes. § Buy in at a strategic level is a must © Copyright 2013 MavenWire (Europe) Ltd All Rights Reserved
- 27. Ques(ons? e: [email protected]
- 28. Thank-‐You! e: [email protected]