SAP Transportation Management 9.0

SAP Transportation Management 9.0 System Demonstration Less than Container Load Scenario Nikolai Lorenz

Document change history Date Changed by Chapters changed Reason for update 02.05.2013 Nikolai Lorenz All Initial version Document Control Author Author name Author email File Name ORTEC Logiplan GmbH (OSC) Nikolai Lorenz Nikolai.Lorenz@ortec.com LCL_Scenario_AF Path < > Initially Created 02.05.2013 Last Edited 02.05.2013 Number of Pages 52

Table of Contents 1 Preface... 1 2 Overview... 2 3 Background... 4 3.1 Operational... 4 3.2 Technical... 4 4 Process... 5 4.1 Flight Planning & Capacity Booking... 6 4.1.1 Create Air Booking... 7 4.1.2 Send Booking to Carrier... 10 4.2 Forwarding Order / House Air Way Bill Creation... 12 4.2.1 Create a Forwarding Order from Template... 12 4.2.2 Create HAWB... 15 4.3 Planing with the Transportation Proposal Function... 17 4.4 Capacity assignment (FB)... 19 4.5 Pick-up Planning... 21 4.6 Confirm Customer Booking... 23 4.7 Air Cargo Security Status... 25 4.8 Execution of Pickup... 26 4.9 Feeder Planning... 30 4.10 Cargo Dispatch to Gateway... 35 4.10.1 Execution of Pre-carriage... 35 4.10.2 Monitoring departure at BU... 37 4.11 Cargo Receipt & Exception Handling... 38

4.12 Load Planning... 40 4.12.1 Loading of Freight for Main Stage... 40 4.12.2 Sending Shipping Instructions for Main Stage... 41 4.13 Freight Booking and MAWB Close & Final Booking Confirmation... 42 4.14 Transfer to Carrier & Uplift Confirmation... 43 4.14.1 Plan Drayage to Airline, located at the Airport... 43 4.14.2 Execute Drayage to Airline... 47 4.14.3 Generate Shipping Documents for Main Stage and execute air departure... 48 4.14.4 Execution of Main Carriage... 51

1 Preface The latest Version of the SAP Transportation Management Module is 9.0. The first mature Version of a SAP based Transportation Management solution was 8.0. The target customers had been shippers. The functionality of the successor SAP TM 8.1 was able to meet the requirements of Forwarders. The functionality of the SAP TM 8.1, serves as basis for the SAP TM 9.0 in the Ocean Freight. SAP TM 9.0 has crucial enhancements in the Functionality. Therefore, the purpose of this document is, to demonstrate how does the latest Version of a SAP based Transportation Management Solution is able to cover an Transportation Process, from a Forwarding Company perspective.

2 Overview Scenario Overview from System perspective, including Master Data (only the red marked Master Data is used in this document, in order to reduce the complexity only one shipper and one consignee are involved in this process): In Chapter 4 the Process will start with the creation of Booking, in order to offer capacity for the Main Carriage. Then a Forwarding Order will be created, which is triggering a Transportation Requirement in SAP TM. The Forwarder will capture the data from the customer and start to plan the Main-Carriage and the Pickup. After the Execution of the Pick-up the Pre-Carriage will be planned and then executed. Until the loading of the cargo on the plane, the drayage between the Gateway Station and the Airport has to be planed. The cargo will be loaded on the plane and then executed. The last event in this scenario is the arrival of the cargo at the Los Angeles Airport. In this document the planning and execution of the On-Carriage and Delivery is not considered, as the other Sales Organization (USA) is responsible for this stages.

3 Background 3.1 Operational This demonstration is designed on a transportation network dedicated for a LCL Scenario used, by Forwarding Company. Demo Flow depicts a scenario where a Forwarding House collaborates with a Central Freight Station to plan and execute an international transportation order Highlights: Initial Freight Booking with Air Carriers Multi-Modal planning of forwarding order Execution of the respective Business Objects 3.2 Technical Scenario is based on SAP Transportation Management 9.0 Involved Architecture: SAP Transportation Management 9.0 SAP ERP ECC 6.0

4 Process The End to End Transportation Management Process can be divided in 5 categories: Capacity Management Order Management Planning & Subcontracting Execution & Tracking Freight Settlement As the SAP Event Management (EM) is not involved in the Architecture of this document, we assume that all the Events are executed and reported to the SAP TM System, as planed in the respective Business Objects (FWO, FO s). The Freight Settlement is not part of this document. The Planning and Execution will be done only for the first 3 stages (Export View), as for the last 2 Stages (Import View) another sales organization (Container Freight Station in Los Angeles) is responsible this.

4.1 Flight Planning & Capacity Booking A Gateway (AF-FWH-03) will create actual Freight Bookings (FB) from the planning data and automatically pull MAWB Numbers from a pre-defined stock. Based on the master flight schedule a Forwarder can create an operational flight plan. After booking confirmation with the carrier, the FB will be set to confirmed, and will be available to the Business Unit (BU) for routing selection. Login to SAP TM 9.0 System.

4.1.1 Create Air Booking Create Booking with the Document Type BAIR. Assing a schedule to the Air Booking.

Select a voyage, click on the line and choose OK ; Back on the FB document go to Booking tab. Now the Air Booking include all the data from the Air Flight Schedule.

Check in the Business Partner Tab that all necessary Business Partner are filled in and save the document. Check if the Comprehensive View is selected.

4.1.2 Send Booking to Carrier Select Follow Up -> Draw MAWB Number A Number should appear in Booking tab -> MAWB No. Please check.

Click on Subcontracting -> Send Booking. Booking is sent to Carrier. Assumption is that Carrier confirms this booking e.g. via fax or email. Click on Menu Subcontracting -> Set to confirmed by Carrier. Check on Booking Tab that Booking Confirmation Status is Confirmed by Carrier. Save the document.

4.2 Forwarding Order / House Air Way Bill Creation After finishing the customizing it is possible to organize shipments from each shipper to each consignee. In order to reduce the complexity, this document describes the shipment from shipper (AF-CU-03) to consignee (AF-CO-03). The first step involves the capture of customer data about a pending transport. This can be communicated by the customer via phone, e-mail. A customer service agent, at this business unit origin will create a Forwarding Order (FWO) based on defined mandatory data. At the creation of an FWO, a House Air Way Bill (HAWB) number can be generated and be communicated to the customer. Part of this advance notice process sequence is the ACS (Air Cargo Security) check, based on the available data. 4.2.1 Create a Forwarding Order from Template After the setup of templates, it s possible to create a FWO from template. Go to Forwarding Order Management -> Worklist -> Overview Forwarding Order. Select All Air Forwarding Templates. Select the respective Template. Click Button Create Forwarding Order from Template.

Enter following Data on tab Locations and Dates/Times:

Go to tab Stages. All 5 Stages (Pickup, Pre-Carriage, Main Carriage, On-Carriage, Delivery) should been available.

Press Save the FWO. A Transportation Requirement (TRQ) should been created. As the TRQ includes a Freight Unit Building Rule (FUBR), the Freight Unit (FU) is also created. The status of all stages at this moment is not planned. 4.2.2 Create HAWB Check in document flow that the status for the freight unit is green now. Open the Freight Unit (4100000249).

Go to Follow Up, Build HBL or HAWB. The field HBL or HAWB is empty yet. Check that a number appeared in the HBL or HAWB field.

Go back to the Forwarding Order and check in the tab HBL or HAWB the HAWB Number which was assigned to the Freight Unit. 4.3 Planing with the Transportation Proposal Function The Transportation Planner can use the Transportation Proposal Function of SAP TM. Go to tab stages in the Forwarding Order. Click on Actual Route -> Define Route.

The System creates some Transportation Proposals (Optimizer Settings). Choose one of them and select the respective checkbox. On the right side of the Transportation Proposal is the assignment to the documents for execution (FO s, FB). Click Accept Planning and then save the Forwarding Order.

4.4 Capacity assignment (FB) Notes: if within this step an Error Message occurs, related to the ACS check. Then go first to step 4.7 In Order to plan manually, select in the FWO the tab Stages and Highlight the Main Stage. Click Freight Document -> Select freight booking. Choose a FB and click done.

Stage Status for Stage 3 has changed to Planned and the FB document number as well as the carrier, the Airline Code, the AWB Prefix and the carrier s MAWB number is entered automatically in the main stage. Press check and save. Stages 1 and 2 have status not Planned, Stage 3 has status Planned and stages 4 and 5 should have status Not Relevant. The last 2 stages are not relevant for planning right now as these will be executed by a different organization.

4.5 Pick-up Planning Notes: if within this step an Error Message occurs, related to the ACS check. Then go first to step 4.7. Based on the customer s instructions as captured in the FWO, a pick-up is arranged by the LSP. Highlight Stage 1 (Pick-up) in the stages tab. Click menu Freight Document -> create. Press Save. The newly created FO should now be visible in the stages tab in column document. Click on the newly created FO.

The FO should be opened in a new window. Enter the purchasing & planning/execution organization corresponding to the source station (Nagoya OAF-FWH-01) on the General Data tab. The FO for the pick-up is now ready for execution.

4.6 Confirm Customer Booking Now that the main stage and the pick-up is planned, the confirmation for the ordering party is done through the FWO. Enter the number of your FWO. Change to edit mode. Select Function Confirm. Save your FWO.

Check under statuses tab that the confirmation status has changed to confirmed.

4.7 Air Cargo Security Status The Air Cargo Security (ACS) check must be done, prior to the step 4.4. Open the respective FU and go to General Data tab. Change the ACS (Air Cargo Security) Status to X-Rayed cargo, secure. Go to FWO tab Air Cargo Security and check that the Conutry-Specific Security Status was synchronised with the Status of the FU.

Repeat the same procedure for the FB. Go to the FB tab booking and change the ACS Status to Secure for Passenger Aircraft and the Country-Specific Security Status to X- Rayed cargo, secure. Now it should be possible to assign the FU to the FB without occurring of Error Messages. 4.8 Execution of Pickup The FWO (HAWB) was planned against a defined pre-carriage stage per origin BU (feeder) but physical assignment against a feeder is not be possible until certain status is reached. The BU (OAF-STA-JPNGO) has to receipt the cargo, examine the physical characteristics and potential discrepancies, resolve them and assign the FWO to a feeder based on status (chapter 4.7).

Select the FO for the pick-up and go to Set Status, choose Set to Ready for Transportation Execution. Save and change to edit mode. Go to tab Execution Information. Click on Insert Event. Enter the Event, the actual Event Date and the Location.

Then click on Report Event.

Now Insert the Event Arrival at Destination and Report the Event. The execution for the pick-up should be now finished. Go to tab Stages of the FW. The Stage Status for the Pick-up is Arrived.

4.9 Feeder Planning Now the (feeder) schedule that tie into the main stage transportation based on cut-off parameters and that was established previously by the Gateway, will be used to arrange the pre-carriage. Either go to Planning -> Transportation Cockpit or start the Transportation direct from the FWO. Choose the appropriate Selection and Planning Profiles.

Access to the Transportation Cockpit direct from the FWO. According to the steps before, the Pick-up (FO 300000645) and the Main-Carriage (FB 400000060) for the FU 4100000249 are already planned. In order to plan the Pre- Carriage, highlight this stage and then to to Schedules.

Select tab Schedules in Window Ressources and highlight the Schedule which fits to your pick-up. Consider time-related and geographical-related aspects. Press the button Plan Selected Items.

The planning Status is changed and a new FO (300000646) is created. In the last line of the Freight Orders/Freight Bookings Window is visible now.

When clicking on the FB, the Utilization of Volume and Weight is visible on the tab Capacity and Cargo. In the FWO on the tab Stages, the Status of the Pre-Carriage changed on Not Loaded.

4.10 Cargo Dispatch to Gateway Part of the procedure is the ability to enter irregularity/discrepancy codes again if required with corresponding if an FWO should be on hold or not. Once the truck manifest (FO) is completed and all cargo is loaded, the user will set the status departed. The FWO on the document will inherit the status departed and will be immediately available for the gateway as expected receipt via the FO. 4.10.1 Execution of Pre-carriage After the Pre-carriage is planned, the execution has to be done. Choose the FO for the Pre-Carriage by clicking on the document number in the freight order area. Choose Set Status -> Set to Ready for Execution. Save.

If not yet maintained (automatically) please maintain the Purchasing & Planning Organization for the corresponding Forwarding House: AF-FWH-03.

4.10.2 Monitoring departure at BU Insert the Departure of the FO as an Event on the Execution tab and Report this Event. The Departure of the FO 300000646 is reported. Save and Close the document.

4.11 Cargo Receipt & Exception Handling Upon physical arrival of the cargo at the GW warehouse, it is physically checked in; respective information is entered into the system and compared to the expected piece count/quantity. The gateway receiving process will set the status of all received FWO on received gateway warehouse. The procedure is: select the respective FO. Go to tab Execution Information. Click Insert Event and enter the data: Event, Actual Event Date and Location. Report the Event, save and close the document.

You can now check in your FWO that the status for the Pre-Carriage stage has changed to Arrived.

4.12 Load Planning Gateway Operations will now commence the load planning. As first item, they will set the FB as closed e. g. no new FWO can be assigned. For loose cargo, the load confirmation will consist of confirming that all shipments (FWO) have been staged and labeled. 4.12.1 Loading of Freight for Main Stage Once confirmed arrived at the gateway (AF-FWH-03), the cargo is received and assigned for loading as loose. Open the FB and choose Set Item Status -> Set to Loaded. Save the air booking. The result is: Air Booking is ready for execution, items have been loaded.

4.12.2 Sending Shipping Instructions for Main Stage Freight Order Management -> Air -> Edit Booking. Change to edit mode and choose Subcontracting -> Send Shipping Instruction. Save. The result is: Booking Confirmation Status is now Shipping Instruction sent to carrier. If Status Shipping Instruction sent to carrier doesn t exist, you first need to click on Subcontracting -> send Booking. Repeat the above mentioned process again.

4.13 Freight Booking and MAWB Close & Final Booking Confirmation When booked capacity for shipments is full or deadline of airline is reached, the FB have to be closed. Open the FB. Change to edit mode and go to tab Capacity and Cargo. Click on button Status and Set to MAWB Finalized. Now, no more FWOs can be assigned to FB. In Case that you want to assign a new FWO to existing FB, you first need to open the MAWB by selecting Status -> Set to MAWB not Finalized.

4.14 Transfer to Carrier & Uplift Confirmation Once a consolidation has been closed out the cargo will be transferred to the carrier (AF- JL-NRT). 4.14.1 Plan Drayage to Airline, located at the Airport Open the Booking which is assigned to your FWO. Change to edit mode and go to tab Capacity and Cargo. Tap on the Expand all button. Select all your FU s by holding Ctrl (Strg in Germany).

Select Create Freight Order for Pick-Up

Change to edit mode and scroll to the right in this table and find under column Freight Order for Pick Up your newly created Freight Order. Open the Freight Order. On the General Data tab check that the Purchasing Organization and Planning and Execution Organization are maintained, as well as the Carrier (OAF-CR-04).

Go to tab stages and enter on stage level in field stage type 02 pre carriage (as costs for Drayage defined in Calculation Sheet for pre-carriage). Save. Drayage FO for Pick-up of loose freight from Gateway to Airlines created and planned.

4.14.2 Execute Drayage to Airline Choose the Freight Order for the Drayage. Insert Event Arrival at Destination as well as the Event Date and the location (AF-JL-NRT). Click on Report Event.

4.14.3 Generate Shipping Documents for Main Stage and execute air departure Open the FB and choose function Print -> Print Preview -> Cargo Manifest Air Cargo Manifest is appearing.

Select Set Status -> Set to Uplift Confirmed. Choose OK in the date pop-up window. Booking Confirmation Status should now be Uplift confirmed.

Upon loading, the confirmed load count is put into the system and the cargo is transferred to the carrier (AF-JL-NRT). As last step of the export side from the execution perspective, the departure (uplift) is confirmed.

4.14.4 Execution of Main Carriage Open the FB created earlier. Select Insert Event Arrival at Destination on tab Execution. In field Event choose option Arrival at Destination, as well as the actual Event date and the location (AF-JL-LAX). Select Report Event. Save.

Return to edit mode. Choose Function Set Status -> Set to Completed. Now the Life Cycle Status is Completed. After reporting the event Arrival at Destination in Los Angeles and completing the booking. The document Export Air Booking is finished and not relevant for further actions. Main stage has been executed and final delivery is triggered.