Digital Supply Chain for Retail Logistics - Connect Digitally to Perfect Reality September 2020 - SAP
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Digital Supply Chain for Retail Logistics Connect Digitally to Perfect Reality September 2020 PUBLIC
Disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related document, or to develop or release any functionality mentioned therein. This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Challenges in Logistics for Retailers
By 2020, half of the large
manufacturers will have
begun shifting their
Ensure high service level Improve transparency
for each channel & visibility supply chain
(B2B, B2C)
applications from
enterprise centric to
Improve collaboration Reduce logistics costs network centric, driving
with involved parties
productivity gains of 2
percentage points
Be compliant regarding IDC FutureScape:
Improve process legal regulations and
Worldwide Supply Chain 2019 Predictions
standardization and sustainability
automation
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3
Omni-Channel Retail Supply Chain
Inbound Outbound
Retail Distribution Center
• Replenishment of
• Local DCs and Cross Dock hubs,
• Stores and @
• E-Commerce Fulfillment Centers
Retail Food Production • Direct E-Commerce Fulfillment
Warehouse Retail Store with
Pickup Station
Wholesaler Local DC /
Cross Dock Hub
Retail Store
Consumer Products
Vendor
Consumer
Regional E-Commerce Fulfillment Center /
Vendor Wholesale Customer Dark Store
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4
SAP Digital Supply Chain Solutions for Digital Logistics
Real-time Collaboration
SAP S/4 HANA SAP S/4 HANA SAP Logistics SAP
Extended Warehouse Transportation Business Warehouse
Management and Management Network Insights
Yard Logistics
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5
Warehouse Management
Accelerate fulfillment by optimizing inbound and
outbound processing
Deliver shipments on-time by coordinating picking,
packing, staging and loading operations
Automate warehouses by integrating material handling
equipment and data collection devices
Reduce shipping times by cross-docking and increase
service by value-added services and returns handling
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6
Yard Logistics
Streamline planning, execution and settlement of yard
tasks with full integration into backend processes
Increase visibility by capturing and monitoring of
location for transportation units in the yard
Reduce waiting times by supporting check-in and
check-out as well as yard movements
Access mobile work environment and the IoT to make
fast decisions
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7
Transportation Management
Reduce costs by increasing asset utilization, freight
consolidation, and routing optimization
Streamline the end-to-end process through holistic,
multi-mode transportation management
Create end-to-end transportation visibility and improve
service levels by creating full freight transparency
Support real-time, data-driven decision making for
quicker business decisions and faster insights
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
SAP Logistics Business Network vision
Increased business speed through an always on, secure network of networks
Multi-party Global • Onboard once –
collaborate with many,
Interoperable
anywhere and anytime
Shippers
Freight
Logistics • Allow different stake-
Forwarders
holders to consume
Carriers Business Network Other
Networks logistics services and
Suppliers
Freight Track andTrack
Global Material share insights
… Capability
Collaboration Trace
and Trace Traceability
Customers • Integrate with SAP
Connectivity & Platform digital core by design
Intelligent Suite Multi-modal
Robust, scalable Connect multiple business Standardized services
cloud service with partners for inter-company for logistics
global coverage collaboration and collaboration and
transparency insights
© 2020 SAP SE or an SAP affiliate company. All rights reserved. |ǀ PUBLIC
PUBLIC 9
SAP Warehouse Insights
Optimization of warehouse operations and
resource utilization
• Optimize assignments of warehouse orders
to resources in simulation and real-time
• Visualize warehouse layout and resource
travel paths (heatmap)
• Analyze KPIs of warehouse operations,
such as workload and travel distances of
resources
• Built and delivered on SAP Cloud Platform
• Complimentary solution to EWM
• EWM back-end integration by design
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10Thank you. Corinna Stein Digital Logistics for Retail Industry Business Unit Retail Corinna.stein@sap.com Join me: My Blogs | LinkedIn | Twitter Susanne-Kirsten Mueller Digital Logistics and SAP Innovations Industry Business Unit Retail Susanne-Kirsten.mueller@sap.com Join me: LinkedIn | Twitter | blogs.sap.com | video.sap.com
Appendix
Compelling Analyst Endorsement for SAP EWM and SAP TM
SAP in leader’s quadrant
Warehouse Management (2014-2020)*
Transportation Management (2015-2020)*
SAP is # 1
in WMS and TMS software revenues (2018)**
in EMEA, Asia and Latin America (2018)**
SAP is Best Logistics Brand in IT
for Transportation Management (2016, 2019)***
for Warehouse Management (2017, 2020)***
* Gartner’s Magic Quadrant for Warehouse Management Systems - May 2020 and Gartner’s Magic Quadrant for Transportation Management Systems – March 2020
** ARC Advisory Group’s Warehouse Management Systems Global Market Research Study, 2018 and Transportation Management Systems Global Market Research Study, 2018
*** Survey among readers and experts of German trade journal "LOGISTIK HEUTE" and German Logistics Association (BVL); German Video, SAP News 2019
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13Strong Market Momentum for SAP EWM
Food, Fashion, Non-Food
“Each digitalization initiative at our company must either generate
added value for our customers or reduce costs while increasing
Fast Growing Customer Base efficiency. SAP Extended Warehouse Management represents a
major milestone in digitalizing our supply chain and ultimately
Customers Industries creating a better shopping experience for our customers.”
1,800+ 24 Partners
Manuel Melliger, Head of Logistics Projects, Migros Aare
approx. 20% Countries 50+ “Our customers also realize that we have implemented and integrated
the SAP Extended Warehouse Management System. We are a lot
Retailers faster predicting delivery times […] and can handle and react to
65+ disruptions in the supply chain much faster”
Werner Hortig, Managing Director of Freier Logistics, s.Oliver Group
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 14PUBLIC
How Did a Leading Swiss Retailer
Improve Its Supply Chain Agility
Through Digitalization?
Ensuring product freshness and a better shopping
experience for supermarket customers
Migros has been the leading retailer in Switzerland for the past 20 years with its wide
portfolio of supermarkets, shopping centers, specialty stores, restaurants, and fitness
centers. To keep up with large order quantities and short throughput times within its retail
logistics ecosystem, Migros Aare – the largest of the 10 Migros cooperatives – needed an
effective solution to distribute fresh products to its stores. It also needed a new warehouse
management system and cutting-edge technologies to achieve greater transparency
into the flow of goods and information, setting the foundation for digitalizing its entire
logistics system in the future.
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15
Picture Credit | Migros Aare, Urtenen-Schönbühl, Switzerland. Used with permission.Migros Aare implemented comprehensive logistics solutions,
generating added value, reducing costs, and increasing efficiency.
By implementing the SAP® Extended Warehouse Management application on the SAP HANA® platform
with assistance from implementation partner IGZ, Swiss retail leader Migros Aare was able to:
• Achieve a timely, consistent, and transparent goods and information flow from the receipt of goods at the
perishables distribution center to the arrival of goods at the stores
• Improve the quality of store demand forecasting by accessing correctly timed store inventories with the
SAP Forecasting and Replenishment application
• Balance peak load, leading to the increased availability of goods both in the warehouse and in stores
• Align planning and control of the logistical processes to store needs
• Streamline warehouse distribution processes while significantly reducing time and errors
• Become independent from warehouse plant builders with direct control of an automatic warehouse system using
SAP Extended Warehouse Management, eliminating the need for an additional warehouse control unit
• Enable a transformation of the supply chain into more-iterative forecasting
• Lay the foundation for future digitalization initiatives
“Each digitalization initiative at our company must either generate added value for
our customers or reduce costs while increasing efficiency. SAP Extended Warehouse
Management represents a major milestone in digitalizing our supply chain and
ultimately creating a better shopping experience for our customers.”
Manuel Melliger, Head of Logistics Projects, Migros Aare
Migros Aare Industry Employees Revenue Featured Solutions and Services
Urtenen-Schönbühl, Switzerland Retail 12,000 CHF 3.4 billion SAP Extended Warehouse Management,
www.migros.ch (German) (US$3.3 billion) SAP HANA, and SAP Forecasting and
Replenishment
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16EWM Retail Customer Videos Gebr. Heinemann - Duty-Free Shops, Germany YouTube Video "SAP EWM helps duty-free retailer Heinemann deliver 99.9% on time“ Ernsting’s Family- Family Fashion, Germany YouTube Video "Ernsting's Family: How SAP EWM helps this fashion retailer grow" s.Oliver (Fashion) Customer Testimonial Video © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17
Strong Market Momentum for TM in Retail
Food, Fashion, Non-Food
Fast Growing Customer Base
Customers Industries “With outlets and customers across Argentina, we
depend on rigorous logistics and a positive user
1000+ 20 Partners experience at all touch points. We aim to improve our
logistic scenario by implementing SAP Transportation
approx. 15% Countries 50+ Management.”
Retailers Sergio José Del Castillo, SAP Basis Architect, Carsa S.A.
55+
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 18PUBLIC How Can Centralized Transportation Management and Logistics Speed Grocery Delivery and Lower Costs? Delivering 550 truckloads of groceries to stores across New Zealand’s South Island Whether shopping for the family, grabbing something on the go, or picking up the perfect bottle, Kiwis count on a convenient, quality shopping experience at all of Foodstuffs South Island Limited’s 236 member stores. As one of New Zealand’s largest and most thriving businesses, Foodstuffs knows that success depends on keeping stores stocked with exactly what shoppers are looking for. This means transporting goods from three distribution centers using more than 115 of its own trucks as well as working with third- party transport providers. To track stock, orders, deliveries, costs, and more, Foodstuffs needed central, integrated financials and transportation management. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19
Foodstuffs integrates and standardizes logistics processes to
streamline shipping execution and lower freight costs.
Since working with Novigo to implement the SAP® Transportation Management application, Foodstuffs
now has:
• One transportation system for all primary and secondary orders and returns
• Standardized, fully automated shipment execution process across all distribution centers
• Automated order creation based on transportation demand from SAP for Retail solutions, load building, resource
selection, carrier assignment, charge calculation, execution, invoice creation, and order closure
• Increase in resource capacity utilization through load optimization of inbound and outbound orders and by
loading return orders onto the same truck
• Single source of maintenance rate cards for all distribution centers, stores, and customers
• Better visibility and tracking of internal resources, both at the truck and trailer levels and including partner
solutions for distance and duration calculation and geofencing
• Cost transparency and reduced freight cost, thanks to better load consolidation and integrated freight cost and
revenue calculation
• Automated collaboration with external carriers and consolidation of external carrier orders by customer
• Automated freight settlement with carriers by combining logistics and billing through integration with the
SAP ERP Financials solution
“With SAP solutions, we have significantly improved the visibility and management
of our transport activity. They have enabled us to make more-informed decisions to
improve efficiencies and optimize our network.”
Kris Lancaster, Supply Chain Development Manager, Foodstuffs South Island Limited
Foodstuffs South Island Industry Employees Revenue Featured Solutions and Services
Limited Retail 17,000 NZ$3.1 billion SAP Transportation Management,
Christchurch, New Zealand (US$1.87 billion) SAP ERP Financials, and SAP for
www.foodstuffs-si.co.nz Retail solutions
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20You can also read
