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Author's profile photo Former Member

SAP Global Trade Management (GTM) – Business Cases

Hi there!

 

Very sorry for keeping my blog updated so late.

I was on vacation and have been busy after (you can imagine the life after vacation).

Anyway, in my last 4 blogs, I explained core GTM functionalities and hope I gave you some idea what they are.

In this blog, I am talking about business case.

Okay, once you figure out the functionality, your next question will be ‘how can we use this?’, ‘what business or industry require this?’, ‘who use this?’ etc.

I will answer them one by one from now on.

 

1. ‘how can we use this?’

Please take a look at the following picture.

This is a business case which is a direct shipment from multi-suppliers.

This can be applied to any industry.

 

Business Case1

 

If you follow the processes described in the above picture and need to map this processes into SAP, your mapping flow will be the following picture.

 

Mapping with SD/MM

 

There are three different stages, order, service confirmation and accounting posting.

And you will create a sales order and two different purchase orders in SAP first.

As soon as you received a shipping confirmation from shipping company or distributor via fax, email whatever, you will enter servise confirmation using SAP delivery document.

Of course you need to pay for suppliers using Logistics Invoice Verification (LIV) in SAP and invoice to customer using Billing document.

Right? It is 7 steps.

But if you map this business process with SAP GTM, the result is slightly different.

Please look at the follloiwng picture.

 

Mapping with SAP GTM

 

With GTM, everything starts from Trading Contract (T/C) (if you don’t know what T/C is, please read my previous blog).

When you create a T/C, enter two different item with two different suppliers information and release this T/C, system creates one sales order and two purchase orders automatically in background (no surprise).

After you create a T/C (S/O and P/Os), you go to Trading Execution Workbentch (TEW) and select a business step linked to real ‘Sevice Confirmation’ business.

In our standard scenario, we use an Outbound Delivery (O/D) document as well as SD/MM, but difference is the transaction result after user save the O/D.

In GTM, we create save not only an O/D but also create a Billing and two different LIVs automatically in background.

Yes, we completes scenario with one transaction.

It’s TWO steps!!

 

Now you understand the difference between SD/MM and GTM and what business case GTM can adopt, right?

This is just one easy example for you to understand.

Real business is much more complicated, I know, don’t tell me that.

 

but if you were a customer who run this business, system has to work in the way with GTM?

Accounting posting along with shipping is an additional work around and this could be something that system like SAP reduce operation cost and avoid user misoperation etc.

 

2. What business or industry require this? 

Again GTM is serving more than 12 different industries.

 

Industries GTM can be adopted

 

3.. Who use GTM?  

We have about 100 live GTM customers globally.

The following is one of the happiest GTM customers.

GTM customer success story - Black & Decker 

 

Any feedback much appreciated and thank you for folks who contacted me and asked me about info. I am still in back log, but will catch you up soon.

Thank you for your read.

 

Nob 

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      9 Comments
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      Author's profile photo Former Member
      Former Member
      Hello Nob,

      Could you give me some idea of typical / average implementation time for GTM and the license cost.

      Pradeep

      Author's profile photo Nobuhiro Kusumoto
      Nobuhiro Kusumoto
      Hi,

      Thank you for your question.

      My responses are as follows;
      1. Implementation time
      I would say any SAP module implementation is depends on project resources, the number of scenarios, its complication and the size of organization/region.
      Of course, the number of implemented GTM sub-modules are not a big element to decide the project time frame.

      There is no typical/average, but can give you the scale instead.
      The shortest is less than 6 months, the longest is close to 2 years to finish global implementation.

      To estimate project precisely, get an expert in the project before blueprint so that we can be prepared well.

      2. License Cost
      The license of GTM is free 😉

      Please don't get me wrong. Not completely free of charge, but requires a valid ERP license.
      Since Jan 1, 2007, GTM became part of ERP, there is no individual license required.

      So please contact SAP regional sales for more detail.

      Hope this answers your questions.

      Thanks, Nob

      Author's profile photo Former Member
      Former Member
      Hi Nubo,

      I was wondering which versions of SAP GTM is available for.

      If its 47x110 or 47x200 do we have to import / enable industry specific modules?

      Author's profile photo Nobuhiro Kusumoto
      Nobuhiro Kusumoto
      Hi,

      First off, SAP Global Trade Management(GTM) has been generally available since SAP Enterprise 4.7 ES1.10, so the answer for your first question is GTM is available for both releases.

      There, however, are some functional difference between ES1.10 and ES2.00.
      You can get detail release information from SAP Support Portal, Release & Upgrade Info - Release Notes - SAP Solutions - R/3 and expand relevant release.

      Both releases are way behind of the latest ERP, so I would recommend that you think about upgrade to ERP6.0 before you start implementation.

      One of the biggest difference is Position Management is not available in ES1.10.

      Next, I don't quite understand your second question, but let me try.

      GTM does not have any import/export specific functionalities in it. Many of our customers built import/export business scenarios on GTM with integrating foreign trade or transportation module/solution (it does not matter that is SAP or non SAP).

      GTM can co-exist with other industry spesific module/solution because GTM is an extention of SAP R/3 or ERP.

      I, however, would recommend you to check product availability in SAP Service Marketplace too.

      Hope this answers your questions.

      Thank you,

      Nob

      Author's profile photo Former Member
      Former Member
      Hi,
      Is there any settings required from SAP FT (foreign trade) for SAP GTM?
      Also, please tell me if these FT settings are required (from R/3 side) if i am implementing SAP GTS (global trade services)or GTS itself will take care of all FT settings

      Thanks in advance

      Author's profile photo Nobuhiro Kusumoto
      Nobuhiro Kusumoto
      Hi,

      Very sorry for my delayed res.

      Before talking about SAP GTM and FT, I need to underline that SAP no longer maintain FT module, so you need to understand this first.

      Second, yes, GTM integrated L/C (Letter of Credit) from FT in the T/C. There is no specific setting required in GTM side, but required on L/C side.

      Once you create a L/C and assign that L/C as payment method at T/C header level, the T/C chech all business fields to match with L/C master.

      Next, GTM and GTS integration today is very limited in sanction party and embergo. You are required to configure basic setting in GTM, i.e. T/C type, item category etc and also GTS side as well.
      RFC setting is also needed to establish in between.

      Hope this helps.

      Thanx, Nob

      Author's profile photo Former Member
      Former Member
      Hi,
      thanks a lot for your reply, still i would like to know, if SAP FT settings are required if i go for GTS to handle my trading business?

      Or as you told already, FT is nolonger maintained by SAP, GTS itself is taking care of all required FT settings?

      thanks in advance

      srinivas

      Author's profile photo Nobuhiro Kusumoto
      Nobuhiro Kusumoto
      There is no specific settings required in FT for GTM.

      Thanks, Nob

      Author's profile photo Former Member
      Former Member

      Hi Nob!

      Your GTM blogs have been amazingly helpful to me in understand SAP GTM so far, how ever is it possible for you give some more detailed reference docs on SAP GTM, as you know its very hard find any GTM related reference documents.

      You can mail me @     jahan.jahan@gmail.com

      Appreciate your help.

      Thanks,

      Jahan