RWE as Shipper Automated Transportation Planning with SAP-TM
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1 RWE as Shipper Automated Transportation Planning with SAP-TM RWE Power 13/10/2015 PAGE 1
2 Conventional Power Generation Supply / Distribution Networks Germany Supply Netherlands / Belgium Supply United Kingdom Central Eastern and South Eastern Europe Renewables Trading / Gas Midstream RWE Generation RWE Deutschland Essent RWE npower RWE East RWE Innogy RWE Supply & Trading RWE Power 100%* Upgrading 80.4mt Electricity by RWE Power generation Large-scale power plants Upgrading plants Group Upgrading Solid fuel production Rheinbraun Brennstoff GmbH Solid fuel sales RSB Logistik GmbH Solid fuel distribution 3.7mt Electricity by Upgrading 9.5mt Upgrading products 2.3mt Non-lignite products Production Sales (RBB) Distribution (RSB) Power plants of Upgrading operations 2.47TWh Solid fuel market Private customers 0.9mt Industrial customers 6.4mt Σ 7.3mt Fiscal year 2014 Employees: 1,654 * 100% RWE Power RWE Power 13/10/2015 PAGE 2
3 Upgrading products 2014 Raw lignite Processing Final product 13,2* raw lignite 5,05 dry lignite 2,47 electricity 3,248 pulverized 1,021 compact 0,247 grained 0,175 activated coke * incl. direct sales in mt / twh - fiscal year 2014 RWE Power PAGE 3
4 Why do we need SAP TM for our lignite trucks? disposition and logistics staff in FTE Total Disposition Freight Purchasing Freight Settlement deliveries per year in total road rail 5 deliveries per disponent in 1000 unplanned planned freight cost development Germany per to/pal Bulk goods Packed goods e 11,4 14,7 15,0 15,3 33,0 11,7 14,2 14,2 14,2 37, RWE Power 13/10/2015 PAGE 4
5 deliveries within Germany in deliveries cross-border Deliveries from Rhenisch area to customers Deliveries from RBB profit center to profit center Deliveries to foreign countries RWE Power 13/10/2015 PAGE 5
6 Inbound, outbound and in-between: Multiple scenarios add to complexity Supplier Customer RWE POWER 6 plant 1 RBB warehouse A 4 3 plant N warehouse B Unplanned customer order 4 Warehouse fitting 2 Planned customer order 5 Third-party order 3 Stock transfer 6 Inbound purchase order 13/10/2015 RWE Power PAGE 6
7 Implementing SAP-TM: The Challenge high-performance shipping Around deliveries per year Truck load every 7.5 minutes streamline the process but don t touch shipping transport disposition settlement RWE Power 13/10/2015 PAGE 7
8 Project Phase I: Freight Cost Management and Freight Settlement Transport Planning and Disposition Sales Order Delivery Note SAP ERP Freight Agreement SAP TM Logistic Service Provider Shipping Instructions Transport Execution and Settlement Goods Issue Billing Document Agency Billing Doc Transp. Service Purchase Order Service Entry Sh. ERS Invoice Delivery based Transp. Request Freight Order Freight Settlement Doc. Debit Note RWE Power 13/10/2015 PAGE 8
9 Project Phase II: Order Integration, Planning and Carrier Selection Transport Planning and Disposition Sales Order Delivery Note SAP ERP Order based Transp. Request Freight Agreement SAP TM Freight Unit Planning Consolidation Carrier Sel. Freight Order Logistic Service Provider Shipping Instructions Transport Execution and Settlement Goods Issue Billing Document Agency Billing Doc Transp. Service Purchase Order Service Entry Sh. ERS Invoice Delivery based Transp. Request Freight Order Freight Settlement Doc. Debit Note RWE Power 13/10/2015 PAGE 9
10 Disposition: From single-object planning to monitoring Gut & Günstig Gmbh Gut & Günstig Gmbh Alles auf Lager KG Handaufallee 17 / Lüneburg Handaufallee 17 / Lüneburg Eisenrampe 6 / Grimma Completely automated processes supported by work lists Exception alerts trigger planning validation by disposition RWE Power PAGE 10 13/10/2015
11 Transporting bulk goods > Freight agreements based on TO > Full truck loads > Delivered quantity < > ordered quantity as standard processing > Invoicing based on carried weight Handling of residual order quantities as success factor for qualified planning RWE Power 13/10/2015 PAGE 11
12 Transporting palletized goods > Freight agreements based on PAL featuring quantity dependent rebates > Combined freight units with several unloading points > Delivered quantity < > ordered quantity depending on gross weight > Invoicing based on carried number of palettes The less complex the freight agreements the easier the invoicing RWE Power 13/10/2015 PAGE 12
13 Cost distribution: Yes, we can! Essential for our business Outbound Freights: Freight costs per material are involved in the sales price calculation procedure. Inbound Freights: Legal requirement inbound freight costs per material need to be considered within stock valuation as incidental acquisition expenses. RWE Power13/10/2015 PAGE 13
14 Conquering the Agency Business Cost distribution by agency billing document > SAP ERP component to forward costs between partners > Price calculation scheme used as mapping tool: TM charge type price condition type G/L account > Profound knowledge required: price & account determination, BAdI implementation in FSD inbound and agency billing Weight / Palettes Operating Expense Current Assets RWE Power PAGE 14
15 Major project milestones: DINAS migration planned Decision LES vs. TM Phase 1 Analysis Phase 2 - freight settlement Phase 3 - planning (DE) Planning BE/FR Go live rail further integration Higher degree of automation for planning required Data integration outdated, manual interfaces block flexibility Process Mapping Decision LES vs. TM TM 8.0 gives new impulse towards TM Hardware sizing GOPA/ Novigo on board Migration and integration concept Scenario definition Focus on master data manageme nt and cost distribution Detailed planning of migration: When do we switch? Which orders in old/new system? Road only 6 planning scenarios Add foreign country processes Use synergies Freight settlement only No planning Strategic freight manageme nt Move to 9.3? RWE Power 13/10/2015 PAGE 15
16 Business functions and interfaces: Major pitfalls to avoid Overall project expenses in percent 20% TM customizing 80% Integration of existing processes in existing environment Standard processes are easily installed Major issues: - Third party order - Vendor consignment Both not part of TM 9.0 check your specialty processes in advance! Individual processes are expensive Major issues: - Individual transactions, e.g. shipping system - Correction tool - Required service pack & business functions in ERP system Both not part of TM 9.0 Be thorough in analysis of AS IS situation Plan (far!) ahead for required changes in the ERP system RWE Power 13/10/2015 PAGE 16
17 Best practices in a difficult project environment Automation works! 80% automated planning in disposition 95% automated freight settlement & corrections Project benefits gained (+) / lost (-) +...and needs powerful hardware! Keep freight agreements simple! - Automated planning Automated freight settlement Automated corrections Manual interfaces removed Freight agreements Server RWE Power 13/10/2015 PAGE 17
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