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Business Trends

Increase Freight Visibility to Manage Supply Chain Disruptions

For many companies in the world, the COVID-19 pandemic tested the resiliency of their supply chain network and highlighted the struggle to gain transparency.

To manage what is in your control, a connected transparent supply chain ecosystem that collaborates with many, anywhere and anytime is required. Companies that lack visibility across their supply chains often have inefficiencies, supply chain disruptions, and excessive costs for everyone in the value chain.

This was the case for a large multinational consumer products company. This SAP customer often struggles with little transparency across their logistics ecosystem due to volatile market conditions and siloed operations. They found themselves mired in inefficiency with excessive manual administrative tasks that lead to errors and delays. A dependence on EDI data left them with outdated execution information limiting their ability to meet customer demands.

The customer was well aware of what was needed which are common in global supply chains:

  • Insight regarding freight orders in transit for full truck loads (FTL) and less than truck load (LTL) with 100% onboarding of their fleet
  • Process improvements such as increased efficiency of planners
  • Better predictive Estimated Time of Arrival (ETA)
  • A long-range plan to reduce detention times and demurrage costs

A Collaborative Approach

As part of the customer’s supply chain modernization project, a simplified IT landscape with out-of-the-box (OOTB) integration to the existing infrastructure and solutions was sought. Working with the customer, SAP MaxAttention partnered with the SAP sales team and identified a quick win opportunity with SAP Logistics Business Network and Project-44 based Freight Tracking solution. The customer was  already running SAP’s Transportation Management solution and hence could use OOTB integration to SAP Logistics Business Network (LBN) to provide them the much-needed freight visibility.

SAP’s business networks and collaboration with industry cloud solution providers like Project-44 are changing the game for businesses and consumers in the digital economy. SAP Logistics Business Network combined with Project-44 Freight Tracking provides shippers with access to real-time information that always pinpoints their shipments’ location and provides dynamic, predictive delivery ETAs. The solution has deep API capabilities which integrate hundreds of telematics/EDI devices and large network of carriers across globe. With built-in integration with Transportation Management, customers can very quickly realize data driven supply chain for advanced freight visibility as shown below.

Figure 2: Logistics Business Network & Project-44 – Carrier Visibility Dashboard

SAP MaxAttention Engagement & Value Drivers:

SAP MaxAttention led the engagement all the way from actively participating in sales cycle to executing the project and successful go-live in production. Experts from US Global CoE Supply Chain Execution team conducted a detailed discovery workshop to understand the business needs and provided a project plan for phased go live. The SAP MaxAttention team was able to complete the first phase in 6 weeks in close collaboration with SAP development. Here are some of the key deliverables:

  • Detailed discovery and mapping customer’s track and trace requirements with SAP LBN and P44
  • Assist in setting up Business Technology platform, users, roles security, connectivity, persistency, identity management
  • Supported the application integration requirements to eliminate data silos and make digital access simple, secure, and scalable
  • End to end process mapping from SAP Transportation Management to LBN to P44
  • Supporting the integration testing and Go live with production pilot

Onsite/Remote Share: 100 % Remote delivery

Value Drivers Projected KPI’s
Reduced TCO – with standard content and quick value realization within weeks with productive pilot
Increased savings with real-time data Shippers can eliminate inaccuracies in freight visibility due to delayed EDI data
Immediate visibility on delays and disruptions and ability to react on customer deliveries and overall supply chain
Reduction in billing Errors and better predictive Estimated Time of Arrival (ETA)
As the solution evolves, looking to reduce detention Times and demurrage Costs
Improved internal efficiencies due to fewer phone calls, e-mails and administrative tasks to track orders

Pressing Forward

The plan went into action quickly.  More than half of the planned carriers were live in a matter of weeks during phase 1 of the project.  Additional carriers will be on-boarding in the next phase with plans to expand the solution to other business units and regions globally.  The customer said it best:

 

Your commitment to customer success is unparalleled and we were lucky to have you on this project. Thank you for driving the initial strategic positioning which turned the opportunity into solid service agreement.  And for your continuous support throughout the engagement!

Authors/ MaxAttention IDG Contact: Rohit Dwivedi , Hari Panakkal: Balaji Gaddam, Thomas Walther

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