SAP Global Trade Daikin Europe NV
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1 SAP Global Trade Daikin Europe NV Joffrey Decock Manager Customs Section Wim Du Ville Logistics & Global Trade Consultant SAPience.be User Day 15 1
2 Agenda Daikin & Expertum Challenges on the road to excellence GTS implementation Benefits and attention points GTS overview Next steps SAPience.be User Day 15 2
3 Daikin The brand under which Daikin is operating Other brands of Daikin: Corporate Profile (as of March 31, 2014) 3 Years Company Name: Daikin Industries, Ltd. Head Office: Osaka (Japan) Chairman & CEO: Mr. Inoue Incorporated: February 11, 1924 Cons.Turnover: 13,306.7 Mio FY2013 Cons.Operating profit: 1,157.5 Mio FY2013 # Employees: 56,240 SAPience.be User Day 15 3
4 Daikin global presence SAPience.be User Day 15 4
5 Daikin presence in EMEA SAPience.be User Day 15 5
6 Daikin WHO ARE WE? CORPORATE VALUES PRODUCTS ORGANISATION Fluoro chemicals Refrigerants Oil hydraulics Medical equipment Compressors Chemicals 7.9% (In)Direct expansion 89.3% Other 2.8 % Sales per business unit R13 Heating applications Residential applications Commercial applications Refrigeration Applied Systems SAPience.be User Day 15
7 Expertum +60 Functional SAP Experts 825 years of SAP experience Market Leader for GRC, PPM, PLM & ALM Market Maker for Big Data Analytics (HANA), Cloud for Customer Passionate about SAP and business processes Outstanding client satisfaction Committed to excellence consulting Nurturing personal development Trusted advisor for a long term journey SAPience.be User Day 15 7
8 Expertum Solution Portfolio SAPience.be User Day 15 8
9 Daikin Europe your service: Compliance & formalities for 3 business units: Distribution of finished units Distribution of spare parts Importation of production parts PROCEDURES COMPLIANCE Main activities in Belgium Increasing activities in other EU countries (UK-FR-ES-IT-HU-CZ-DE) REQUIRE- MENTS IMPORT BONDED WAREHOUSE FORMA EXPORT NCTS (IN/OUT) B2B MULTIPLE COUNTRIES PREFERENTIAL ORIGIN IPR STANDARD PACKAGE APPLICATION IN-HOUSE DEVELOPPED SAPience.be User Day 15 9
10 SAP GTS 2005: Strategic decision to implement SAP GTS Continuous legal compliance with changing customs requirements (MASP) Support Daikin Europe s business development & growth Gain control on outsourced customs activities Support a customs best practice environment Avoid dedicated / full-time IT staff Reduce support and maintenance effort Have a transparent platform and improve perception of Customs Authorities Expectations Customs = opportunities (versus a must do attitude) Legal changes are timely captured by partner SAPience.be User Day 15 10
11 GTS Overview SAPience.be User Day 15 11
12 GTS Overview Export / Import Classification Compliance Management Customs Procedures Bonded Warehouse Inward / Outward processing EMCS Intrastat Letter of Credit Trade Preference Vendor Declarations Preference Determ. Customer Declar. SAPience.be User Day 15 12
13 Compliance Management SPL Screening Bad Guys are people listed on one of the many government lists of people and organizations that companies can t do businesss with Embargo checks An embargo is a government prohibition against the shipment of particular products to a particular country for economic or political reasons. (Burma, Cuba, Iran, Libya, North Korea, Sudan, Syria, ) Import / export licences Are you sure your products don t need an import/export licence? SAPience.be User Day 15 13
14 Import ERP Process Master Data Purchase Order Inbound Delivery Goods Receipt (value!) GTS Import process Classification Import Compliance Import Compliance / NCTS Comm. Customs decl. / (PLDA comm) Compliance check SPL Screening Embargo check Import licence check SAPience.be User Day 15 14
15 Import ERP Process Master Data Purchase Order Inbound Delivery Goods Receipt (value!) GTS Import process Classification Import Compliance Import Compliance / NCTS Comm. Customs decl. / (PLDA comm) Compliance check Inbound delivery mandatory! NCTS Communication (IE07,IE43, IE44, IE25) SAPience.be User Day 15 15
16 Import ERP Process Master Data Purchase Order Inbound Delivery Goods Receipt GTS Import process Classification Import Compliance Import Compliance / NCTS Comm. Customs Declaration Customs Declaration Value! (PO/ Pro Forma invoice) Duty calculation PLDA Communication / Globalization SAPience.be User Day 15 16
17 Export ERP Process Master Data Sales Order Delivery (Pro-Forma) Invoice GTS Export process Classification Export Compliance Export Compliance PLDA Communication Export doc. Printing Compliance check SAPience.be User Day 15 17
18 Import / Export ERP Process Master Data Sales Order Delivery (Pro-Forma) Invoice GTS Export process Classification Export Compliance Export Compliance PLDA Communication Export doc. Printing Compliance check Packaging! SAPience.be User Day 15 18
19 Import / Export ERP Process Master Data Sales Order Delivery (Pro-Forma) Invoice GTS Export process Classification Export Compliance Export Compliance Export Document Export Document Based on (pro-forma) billing PLDA communication Print export documents SAPience.be User Day 15 19
20 GTS import / export Checks your import and export partners and materials on compliance Automates the creation of import and export documents Calculates your import duties Communicates with customs authorities Administrates the bonded warehouse SAPience.be User Day 15 20
21 Preference management Enables Daikin Europe s customers or affiliates to import goods with reduced tax and duties Optimizes the market price of it s products using the commercial benefits given by customs European Free Trade Agreement North-American Free Trade Agreement Allows Daikin Europe to manage it s LTVD, automatically calculates a minimum sales price based on the BOM and prints customer and vendor declarations SAPience.be User Day 15 21
22 GTS Benefits Compliance Management Ensures a company doesn't import or export products and/or services from/to a country or a person that is mentioned on a watch list Benefits Compliance Customs Management Creation & communication of import and export documents, bonded warehouse, IPR Reduced admin cost Reduced import duties Risk Management Prefer ence Processing: determine origin of produced goods and determine if they're eligible for preferential treatment, pricing guidelines, automated vendor communication More profitable pricing SAPience.be User Day 15 22
23 Implementation timeline 01/ /2006: Software selection and implementation (ramp-up) 07/2006: Go-Live GTS 7.0 Import / export / bonded warehouse / NCTS / Form A / B2B 06/2009: Go-Live GTS 8.0 (ramp-up) PLDA communication 03/2013: Go-Live GTS 10.0 Preference processing SAPience.be User Day 15 23
24 Benefits Managing the bonded warehouse and import/export administration Current staff: 5 FTE s (reduced by 2 FTE s) Managing preference origin administration Managing all LTVD s, calculations and issuing invoice declarations requires 0,5 FTE Achieved Authorised Economic Operator (AEO) status Integrated Customs Accounting ongoing SAPience.be User Day 15 24
25 Lessons learned GTS is fully integrated with SAP ERP Implementing GTS requires very good knowledge of logistics processes and the ERP set-up Masterdata importance: Vendor and customer master Material master / material value BOM s Packaging GTS requires continuous improvements OSS notes available for legal changes Supportpack- and release upgrades for legal compliance Belgium is not the biggest country Pro-active communication towards SAP GTS SAPience.be User Day 15 25
26 Future Customs projects Electronic Globalization Electronic monthly reporting Entry Into the Record (EIR) Reducing transit declarations & costs Single Authorization for Simplified Procedures (SASP) The first/intermediate step towards Centralized Clearance Goal: increase efficiency & gain compliance Inward Processing Relief (IPR) Reducing import duties SAPience.be User Day 15 26
27 Thank you! SAPience.be User Day 15 27
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