1

Bu s i n e s s Va l u e a n d SAP Ev e n t
Ma n a g e me n t 7 . 0 Po s i t i o n i n g
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SAP 2008 / Page 2
1. Busi ness Chal l enges
2. SAP Event Management solution Overview
3. Benefits
4. Successful Customers
5. Success Stories
Ag e n d a
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SAP 2008 / Page 3
Bu s i n e s s Pr o b l e m & Dr i v e r s
1 . Ri s k mi t i g a t i o n
I n c r e a s e d r e g u l a t o r y p r e s s u r e
EU General Food Law Regulation 178/2002;
Bioterrorism Act 2002 (US)
Re a l -t i me n o t i f i c a t i o n o f e x c e p t i o n s
Manage by exception
2 . Su p p l y c h a i n v i s i bi l i t y
Su s t ai n a n d i n c r e a s e c u s t o m e r s a t i s f a c t i o n
Significant challenges in an outsourced environment
Re d u c e c o s t s
Mini mize uncertainties (buffer inventory, buffer times, fire-fighting)
Re d u c e t i m e t o a c t i o n
Link unplanned events to their effect on plans & schedules
Tr a n s p a r e n c y
Managing across distributed processes
3 . Pr o c e s s i mp r o v e m e n t ( a n a l y t i c s )
Co n t r o l p e r f o r ma n c e
measure internal & partner performance
based on standards and actual processing data
What are the key business objectives our customers are challenged with today?
They have to comply with regulations such as the US Bioterrorism act or the European
food safety regulation
The still want to ensure customer satisfaction despite outsourcing some or even all of their
supply chain activities
They want to reduce their costs by reducing uncertainties that lead to buffer inventory and
buffer times and/or expensive fire-fighting
They want to reduce time to action by being able to recognize and react upon unplanned
events in the supply chain and their effect
They want to manage by exception rather than monitoring processes that are running
smoothly
They have to provide transparency for themselves or for their business partners
throughout the complete distributed process
And in the end, the want to control their and their business partners performance
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SAP 2008 / Page 4
Manuf act uri ng
Manuf act uri ng
Hi st ori cal Dat a
Short t er m
pl anni ng
Short t er m
pl anni ng
Mi d t er m
pl anni ng
Mi d t er m
pl anni ng
Long t er m
pl anni ng
Long t er m
pl anni ng
Short er
Pr oduct Li f e
Cycl es
Fast er Or der
t o Del i ver y
Cycl es
Hi gh
Avai l abi l i t y
as Needed
Hi gher
Ser vi ce
Level s
Fast er
Pr oduct
Devel opment
Cycl es
Suppl i er s
Di st ri but i on Cent er s St or es
Sense and Respond
t o Demand
Cust omer s
and
Consumer s
Li near Vi ew
War ehouse
Management
War ehouse
Management
Tr ansport at i on
Management
Tr ansport at i on
Management
Repl eni shment
Repl eni shment
Tr adi ng
Par t ner s
T h e Sc o p e o f Su p p l y Ch a i n Ha s I n c r e a s e d
Traditional supply chain planning only looks inside the company boundaries
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SAP 2008 / Page 5
T h e I m p o r t a n c e o f Re a l -Wo r l d A w a r e n e s s
Ti me Del ay
Dat a Accur acy
and Vol ume
Ab i l i t y t o Se n s e Ti m e t o Re s p o n d
Re a l -w o r l d a w a r e n e s s i s t h e c a p a b i l i t y t o s e n s e i nf o r ma t i o n i n r e a l -t i me
f r o m p e o p l e, I T s o u r c e s , a n d p h y s i c a l o bj e c t s u s i n g t e c h n o l o g i e s s u c h a s
RFI D, s e n s o r s , e t c . a n d r e s p o n d t o c e r t ai n b u s i n e s s s i t u a t i o n s a c c o r d i n gl y .
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SAP 2008 / Page 6
1. Business Challenges
2. SAP Event Management Sol ut i on Over vi ew
3. Benefits
4. Successful Customers
5. Success Stories
Ag e n d a
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SAP 2008 / Page 7
De f i n i t i o n
Supply Chain Event Management (SCEM)
An a p p l i c a t i o n t h a t s u p p o r t s c o n t r ol pr o c e s s e s f o r ma n a g i n g e v e n t s
w i t hi n a n d b e t w e e n c o mp a n i e s .
- AMR Research, January 2000
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Vi si bi l i t y and Col l abor at i on
Sense and Respond
Suppl y
Demand
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Manuf act uri ng
Int egr at i on of busi ness pr ocess, peopl e, i nf or mat i on, and
appl i cat i ons
Supply Chain Event Management was defined by AMR as an application supporting
control processes for managing events within and between companies.
As per this definition, this application supports the ability to monitor what is happening
within the supply chain, to notify the right person in case of a delay or critical event,
simulate activities, control your processes and eventually measure your supply chain
activities so that you can adapt your business process and make it more effective and
efficient.
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SAP 2008 / Page 8
Ev e n t Po s s i b i l i t i e s
Actual events refer to certain milestones in the process. Usually these milestones are
planned with the help of an application and are stored within the ERP system, but you also
may want to define additional milestones.
If an actual event occurs within a given tolerance, you call it a regular event.
Besides that an event that you expect to happen within a particular time frame can happen
outside of that time frame. This is an early/late event and could cause a subsequent event
to be rescheduled, or it could simply be recorded.
An unexpected event is one that you dont plan, because you dont want it to happen. Still,
it might have a big impact on your process
Fourth is an unreported event. Here, you expect an event to occur within a particular time
frame, it is not reported. Something still needs to happen following this event whether or
not it is reported, so you could set a time limit that sends a message or causes something
to happen when the event is unreported in a certain time period.
Supply Chain Event Management is dealing with all those different event types.
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SAP 2008 / Page 9
Ho w SAP Ev e n t Ma n a g e m e n t w o r k s
The Business process is represented by an event handler, including relevant
attributes (IDs, parameters) and status information
Milestones and expected measurements contain information about what is
planned to happen in the process
Actual events and measurements are posted manually or from systems (B2B
exchange, Web, handheld)
Attachments (for example, digital signature) can be posted with an event.
SAP EM allows responses, according to definable rules
Event
Handl er
Event
Handl er
Event
Handl er
Event
Handl er
Event
Handl er
Event
Handl er
Event
Handl er
Pack i t em
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SAP 2008 / Page 10
SAP EM: Un d e r s t a n d , Ad a p t , Re s p o n d
2 . n o t i f y
3 . a d j u s t
Lear n
Al er t s
1 . m o n i t o r
Par t ner Per f or mance
Col l abor at e
4 . a n a l y ze
A DA PTI VE A DA PTI VE
Cont r ol
Suppl y chai n obj ect
event 2 event 4
act ual event s
expect ed event s
event 3
event 1
event 2 event 1
Si mul at e
Pl an/Schedul e
These are the four corner stones of SCEM. They contribute to providing an adaptive
solution, and will be explained more detailed on the next slides
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SAP 2008 / Page 11
SAP Ev e n t Ma n a g e m e n t Fl e x i b i l i t y
Suppor t s company speci f i c scenari os/pr ocesses
Hi ghl y conf i gur abl e
Fl exi bl e r ul e pr ocessor and event cont r ol
Event s
Obj ect s
Al ert s
Responses
Perf or mance
Event Controller
Rule Processor
Loggi ng & Ar chi vi ng
Cor e Ser vi ces
Event Processor
SAP Event
Management
Expected Event Monitor
SAP Event Management manages events, receives updates to events, and provides
proactive alerts and responses to events throughout the supply chain. SAP Event
Management also collects data and sends it to SAP Business Information Warehouse
(SAP BW) for Performance Analysis.
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SAP 2008 / Page 12
SAP Ev e n t Ma n a g e m e n t
T r a d e Pa r t n e r I n t e g r a t i o n
End-to-end coverage Risk identification
Risk Management
Risk evaluation Risk sense & respond
SAP
Event
Management
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SAP 2008 / Page 13
Vi s i b i l i t y Pr o c e s s e s
SAP Busi ness Int el l i gence (CPIs, KPIs)
SAP Appl i cat i on Syst em /
3
r d
Par t y Syst ems
SAP Event Management
Conf i gur ed i nt er f aces t o
SAP and 3
r d
par t y syst ems
Dat a ext r act i on and KPIs/CPIs
f or anal yt i cs i n SAP NW BI and
Busi ness Obj ect
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Conf i gur ed Cust omi zi ng i n
SAP Event Management
Web
Fr ont End
Visibility Processes allow us to add business content to the SAP EM tool.
A Visibility Process is a template that makes SAP EM implementation easier for the
customer. SAP provides pre-configured templates that a customer can either implement as
is or adapt to his specific business process so that he does not need to start from scratch.
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SAP 2008 / Page 14
Vi s i b i l i t y Pr o c e s s e s i n SAP Ev e n t Ma n a g e me n t
Su p p l y Ne t w o r k Co l l a b o r a t i o n Su p p l y Ne t w o r k Co l l a b o r a t i o n Tr a n s p o r t a t i o n Ma n a g e m e n t Tr a n s p o r t a t i o n Ma n a g e m e n t
Or der Taki ng
Tr ansport at i on Execut i on Responsi ve Repl eni shment
Pur chase Or der
Resour ce
Tenderi ng
Au t o I D Au t o I D
RFID-Enabl ed Out bound / Inbound
Del i ver y
Pr oduct Tr acki ng & Aut hent i cat i on
RFID-Enabl ed Ret ur nabl e
Tr ansport It em
ERP ERP
Ocean Car ri er Booki ng (wi t h TM
Add-On)
Seasonal Pr ocur ement (Ret ai l ) Ful f i l l ment
Rai l car Management (Cust om Dev)
Pr ocur ement
Pr oduct i on Mal f unct i on
Out bound / Inbound Del i ver y
Tr ansport at i on
These are the standard visibility processes that are delivered with SAP EM 7.0.
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SAP 2008 / Page 15
SAP Ev e n t Ma n a g e m e n t Ov e r v i e w o f n e w
De v e l o p m e n t s i n SAP EM 7 . 0
New Web UI Enhancement s
Multiple event sending
Report all expected events
Send and display measurements & attachments
Document flow presentation in graphical and tabular formats
Capability to add logos and branding
Usabi l i t y Impr ovement s
Improved Screen flow & interaction
Speaking Browser window titles
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SAP 2008 / Page 16
SAP EM En t e r p r i s e SOA
SAP EM ESA Services allow:
Querying of SAP EM objects from
external applications
enhanced monitoring of collaborative
business processes in the supply
chain.
Custom user interfaces, building of
xApps, etc.
Query Tracked Process Event
Notification In
Query Tracked Process In
Tracked Process Event
Notification Processing In
Manage Tracked Process In
Tracked Process
approved
Tracked Process Event Notification
approved
Manage Tracked Process Event
Notification In
Tracked Process By ID Query Read Tracked Process
Tracked Process By ID Response approved
Tracked Process Simple by Elements Query
Find Tracked Process by
elements
Tracked Process Simple by Elements Response approved
Tracked Process Event Notification By ID Query
Read Tracked Process
Event Notification
Tracked Process Event Notification By ID Response approved
Tracked Process Event Notification Simple by Elements Query
Find Tracked Process Event
Notification by elements
Tracked Process Event Notification Simple by Elements Response approved
Tracked Process Event Notification Create Request
Create Tracked Process
Event Notification
approved
Related Tracked Process Simple by ID Query
Find Related Tracked
Process by ID
Related Tracked Process Simple by ID Response approved
Process Tracking
outside Company
Tracked Process
Processing In
Tracked Process Request Maintain Tracked Process
approved
Process Tracking
outside Company
Process Tracking
outside Company
Tracked Process Event Notification
Processing Out
Tracked Process Event Notification Create Confirmation
Confirm Creation Tracked
Process Event Notification
approved
Tracked Process Processing Out
Process Tracking
outside Company
Tracked Process Confirmation Confirm Tracked Process
approved
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SAP 2008 / Page 17
1. Business Challenges
2. SAP Event Management Overview
3. Benef i t s
4. Successful Customers
5. Success Stories
Ag e n d a
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SAP 2008 / Page 18
Tr ack pl anned vs. act ual
event s at vari ous l evel s
Aut omat ed except i on
r esol ut i on by not i f i cat i on
and wor kf l ow
Ext ended pr ocess met ri cs
and anal yt i cs f or
per f or mance anal ysi s and
compl i ance
Pr e-conf i gur ed busi ness
pr ocesses
Enabl es pr ocess vi si bi l i t y,
moni t ori ng and cont r ol by
managi ng event s wi t hi n
and bet ween compani es
SAP Ev e n t Ma n a g e m e n t -
I n Tr a n s i t Vi s i b i l i t y , T r a c k a n d Tr a c e
Track planned vs. actual events at various levels
Automated exception resolution by notification and workflow triggering
Extended process metrics and analytics for performance analysis and compliance
Pre-configured business scenarios
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SAP 2008 / Page 19
Be n e f i t s : Vi s i bi l i t y Ac t i o n a b i l i t y
Visibility: process
Track processes across multiple company/partner boundaries
Visibility: asset and planning
Distribute inventory, capacity, and schedule-sharing among supply chain partners,
SAP and non-SAP environments.
Visibility: performance
Manage goals such as service agreement, delivery ti mes
End-to-end process i mprovements, enhanced by RFID and other emerging
technologies, are delivering visibility across global networks to help organizations
manage risk and create value.
This requires visibility not only on a process level, which means to track a process from
one end to the other and across company boundaries, but also on an object level, if you for
example are a company that distributes its goods with the help of items that are more
expensive than the goods they carry. Last but not least, you need visibility on agreed
performance goals to be able to measure yourself and your business partners.
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SAP 2008 / Page 20
Quali ty cost
Tr ansport at i on
Tr ansport at i on
Invent or y
Invent or y
Handl i ng
Handl i ng
Ri sk Pr emi um
Ri sk Pr emi um
+
+
Fi r e-f i ght i ng
Lost oppor t uni t i es
Lat e payment s
Shr i nkage
Di ssat i sf i ed cust omer s
Obvi ous Cost
Tot al Cost of Li mi t ed Vi si bi l i t y
Tot al Cost of Li mi t ed Vi si bi l i t y
Exampl e: Ful f i l l ment Pr ocess
Fr ei ght
Expedi t es
Demur r age cost s
Invent or y car r yi ng cost s
Secur i t y st ock
Obsol escence
Manual t r acki ng of
shi pment s
Car ri er coor di nat i on
Hi dden Cost
+
m y SAP Su p p l y Ch a i n Vi s i b i l i t y : De l i v e r i n g
Va l u e
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SAP 2008 / Page 21
Ha r d Do l l a r Be n e f i t s I n c l u d e
Sour ce: Tr ansent r i c LLC & Compet i t i ve Logi si t cs LLC
Decr easi ng expedi t ed
t r anspor t at i on by 22%
78%
Decr easi ng pl anned
t r anspor t and
demur r age cost s
80%
Reduci ng on-hand
i nvent or y
90%
-22% -20% -10%
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SAP 2008 / Page 22
Val ue of SAP Event Management i n K$*
Exampl e CPG Company
(Model Company)*
Revenue (i n K$) $1.000.000
Pr of i t Mar gi n 5%
Val ue of Pr oduct $4
Aver age Or der Si ze 500 Pi eces
Annual # of Or der s t o Be Tr acked 500.000
# of Event s 10
Event Vol ume per Year 5.000.000
Reduced Oper at i ng Cost s $ 950
Reduced Expedi t i ng Cost s $ 449
Reduced Demurr age Cost s $ 245
FG Carr yi ng Cost s Reduct i on $ 459
Reduced Obsol et e Invent or y $ 216
Reduced Cash t o Cash Cycl e Ti me $ 658
Incr eased Pr of i t Due t o Revenue Upl i f t $ 125
Annual Savi ngs (i n K$) $3.101
* Si mpl i f i ed model , t axes, and ot her l ever s not i ncl uded i n t hi s exampl e
Sol ut i on: SAP Event Management wi t h Ful f i l l ment Vi si bi l i t y Pr ocess
Ex a m p l e: CPG Co m p a n y
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SAP 2008 / Page 23
0
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Val ue of SAP Sol ut i on t o Pr ospect 3D Val ue Pr oposi t i on
Val ue = $ 1,4 M* / $ 2,8 M**
ROI = 281%
= annual cost savings / one-off costs x 100
Payback = 4,2 mont hs
= one-off costs x 12 months
annual cost savings year
3,1
0,3
0,2
0,6
Company Model CPG
[ i n M$]
*
1,4
* **
*Onl y r ecurri ng savi ngs, no one-of f savi ngs
** Based on SAP Host i ng Ser vi ces
*Net val ue i n f i rst year af t er go-l i ve
** Annual net val ue i n f ol l owi ng year s
Sol ut i on: SAP Event Management wi t h Ful f i l l ment Vi si bi l i t y Pr ocess
3 D Va l u e Pr o p o s i t i o n Va l u e , ROI , a n d
Pa y b a c k
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SAP 2008 / Page 24
1. Business Challenges
2. SAP Event Management Overview
3. Benefits
4. Successf ul Cust omer s
5. Success Stories
Ag e n d a
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SAP 2008 / Page 25
Su c c e s s f u l Cu s t o m e r s
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SAP 2008 / Page 26
Re f e r e n c e Cu s t o m e r s
Monitors transportation tendering process
Tracks carrier response time and determines alternate carriers
when needed
Tracks and monitors delivery shipments and alerts customers of
changes/pending arrivals.
Tracks parcels from shipper to final delivery
Tracks the shipping process to payment
Tracks international OEM shipments and outbound shipments
Our Event Management solution is creating some highly satisfied customers.
For example, Colgate monitors the transportation tendering process with its carriers. In
addition they monitor delivery shipments and alert customers of changes or pending
arrivals.
Texas Instruments monitors the production process and materials moving between plants.
Similar to Colgate, they also monitor delivery shipments and alerts customers of changes
or pending arrivals.
Canada Post has their SAP Event Management solution completely connected to third-
party systems and tracks parcels as they move from the shipper to their final delivery
points.
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SAP 2008 / Page 27
1. Business Challenges
2. SAP Event Management Overview
3. Benefits
4. Successful Customers
5. Success St ori es
Ag e n d a
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SAP 2008 / Page 28
Co l g a t e Pa l m o l i v e Co m p a n y
Provides visibility for the transportation tendering and execution process
Monitors transportation tendering
Tracks carrier response time and determines alternate carriers when needed
Re d u c e d a d mi n i s t r a t i v e c o s t s f o r c o l l a b o r a t i o n ( c a r r i e r
p o s t s e v e n t s b y h i ms e l f i n s t e a d o f c a l l i n g, l e s s p a p e r -b a s e d
w o r k )
Be t t e r c u s t o m e r s e r v i c e
Mo r e a c c u r a t e d e l i v e r y i n f o r m a t i o n l e a d s t o a r e d u c t i o n o f
s h i p m e n t s t a t u s e r r o r c o d e s b y 1 0 %
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SAP 2008 / Page 29
T e x a s I n s t r u m e n t s
The need:
Better visibility for situations where a shipment is not
going to arrive at a customer on ti me
Better data for managing the carriers as suppliers
Shi pment l eaves
TI Dock
Shi pment ar ri ves
at ai r por t
Shi pment cl ear s cust oms
and i s l oaded ont o
an ai r cr af t Shi pment ar ri ves at
i nt er medi at e dest i nat i on
Shi pment i s l oaded ont o
anot her ai r cr af t
Shi pment ar ri ves at
dest i nat i on ai r por t
Shi pment cl ear s cust oms
and i s l oaded ont o a t r uck
Shi pment r eaches
f i nal dest i nat i on
Texas Inst r ument s Inc, 2005
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SAP 2008 / Page 30
T e x a s I n s t r u m e n t s
Provide door-to-door shipping visibility for an outbound transportation process,
including customs processing
Leverage B2B standards to receive the information from the carriers
RosettaNet: 3B3
ANSI X12: 214, 240
EDIFACT: IFTSTA
Be t t e r v i s i bi l i t y i n t o w h e r e a s h i p m e n t i s
Mo v e t o m a n a g i n g t h e e x c e p t i o n s r a t h e r t h a n t h e r ul e
Ab i l i t y t o me a s u r e s h i p pi n g p e r f o r ma n c e o f t h e c a r r i e r s
Be t t e r b u s i n e s s p r o c e s s c o n t r ol
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SAP 2008 / Page 31
Or der Recei pt
Pr ocessi ng
Tr anspor t at i on
Del i ver y t o Cust omer
When cust omer s and ser vi ce pr ovi der s can add i nf or mat i on t o t he suppl y
chai n syst em, t he over al l suppl y chai n per f or mance and val ue i mpr oves.
A New Vi si bi l i t y Par adi gm
Ca n a d a Po s t - So l u t i o n
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SAP 2008 / Page 32
Ca n a d a Po s t
Re s u l t s a c h i e v e d o v e r t h e p e r i o d J u n e
2 0 0 3 t o J u l y 2 0 0 4 i n c l u d e
Improved process compliance:
Improved delivery option recording compliance by
65.2% for Saturday delivery, and to 95.8% for Proof of
age option
Improved e-signature capture success by 5.2% for retail
customers and 3.2% for commercial customers
Reduced customer complaints associated with retail delivery by
16%
Reduced cycle time to capture and return a signature from a
range of 4-15 days to 1 day, and reduced costs from C$6 million
to C$2.5 million
Recovered C$8.5 million through the use of in-line package
measurement
[ SAP Event Management ] coul d
t r ack movement , moni t or
compl i ance t o [ vari ous] opt i ons,
and pr ovi de r eal -t i me al ert s i f of f
t r ack. The oppor t uni t i es t hat we
woul d have wi t h t he new
i nf or mat i on was st agger i ng.
Peter Duncan, Director of
Research and Development
The new SAP Event Management
capabi l i t y al l owed us t o dr eam i n
a way t hat we coul dn t have
dr eamt bef or e.
Louis OBrien, SVP of Business
Transformation and Sourcing
Management

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SAP 2008 / Page 33
SAP Event Management
Sc e n a r i o :
A cust omer or der s a mat eri al and Ar vat o per f or ms t he di st ri but i on.
Out sour cer Ar vat o
Cust omer
Or der
EH created
Cust omer Or der Pl an Shi pment
Car ri er Del i ver y and HUs
EHs created
POD
POD
Invoi ci ng
Tenderi ng
Shi p
Shi pment
Pi ck
Pal l et i ze
Load/GI
Ar v a t o Se r v i c e s
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SAP 2008 / Page 34
Ar v a t o Se r v i c e s
Online track and trace with real-ti me access to shipment information
Web-based online reporting functions for strategic and operational management
St r o n g a n d e f f e c t i v e c a r r i e r ma n a g e m e n t r e s u l t i n g i n hi g h e r
c u s t o m e r s a t i s f a c t i o n
By p r o v i d i n g f ul f i l l me n t s e r v i c e s w i t h hi g h q u a l i t y a n d hi g h
p e r f o r m a n c e y o u h a v e t h e p o s s i b i l i t y t o w i n n e w c u s t o m e r s
a n d e n l a r g e t h e b u s i n e s s m o d e l
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SAP 2008 / Page 35
Wh i r l p o o l
International OEM shipments
Tracking and tracing of container shipments (sea, including customs + rail) that are i mported
into the United States, events reported both via EDI (carrier/broker communication) and
through SAP R/3.
Outbound shipments
Monitor customer shipments and stock transfers from factory distribution centers
Re d u c e d i n-t r a n s i t i n v e n t o r y r e q u i r e m e n t s a n d i m p r o v e d a bi l i t y t o
g i v e/hi t a d a t e f o r i mp o r t e d f i ni s h e d g o o d s .
Au t o m a t e d p r o c e s s e n a b l e s l o g i s t i c s p e r s o n n e l t o f o c u s o n
m a n a g i n g t h e e x c e p t i o n s r a t h e r t h a n g a t h e r i n g d a t a t o t r a c k
c o n t a i n e r s .
En a b l e s r e d u c t i o n i n d a y s o f s u p p l y .
36
SAP 2008 / Page 36
Co p y r i g h t 2 0 0 8 SAP AG
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