SAP Leverages Deep Industry Experience

Feature Article | May 13, 2004 by admin

Solutions within the SAP for Logistics Service Providers set execute a company’s core business processes while providing functionality based on the individual vertical industries that the company serves. By leveraging the SAP NetWeaver integration and application platform to integrate IT systems across enterprise boundaries, the SAP solutions also enable logistics service providers to collaborate effectively with customers and partners. As a result, logistics service providers gain comprehensive visibility into logistics, financial and performance data across the entire supply chain and can disseminate important information to all stakeholders, including suppliers, carriers and overseas operators.
Once charged mainly with transportation services, today’s logistics service companies have expanded their service offerings to offer value-added services that reach more deeply into customers’ supply chain processes – requiring a solid understanding of a wide diversity of industries and IT system integration. With the growing global market for outsourced logistics, service providers must also be savvy to regional business and trade requirements while delivering a broader scope of services at prices lower than in-house logistics units.

Improving customer service on the basis of all major logistics scenarios

Companies such as international logistics provider Schenker leverage SAP industry-specific solutions to drive growth while providing faster and more efficient delivery of goods and services for customers. “We needed a solution that would connect our business processes end to end and create a clearer view into our numerous customers supply chains,” said Bernhard Oymann, head of IT Management Logistics, Schenker AG. “SAP possesses a deep knowledge of not only our industry, but the various industries we serve. Combined with its powerful and flexible applications, this expertise makes SAP the right choice for us and a key enabler for customer satisfaction and our continued growth.”
The solution set covers all major scenarios of the logistics service providers industry, spanning from operational support scenarios such as financials and human resources to warehouse management, value-added services, supply chain event management, commercial order management and customer relationship management. Warehouse management tools allow logistics service providers to operate multicustomer warehouses and all the processes that take place within those warehouses such as picking, packing, storage and value-added services. At the same time, increased visibility through RFID technology provides companies with greater efficiency and cost savings as shipments are closely monitored and accounted for during all stages of storage and shipment.

Supply chain visibility increases customer responsiveness

Logistics service providers feel increasing pressure to provide greater customer service to key accounts, quicker reaction to customer complaints and real-time customer reporting on individual shipments. SAP’s tight integration between CRM and supply chain event management solutions enables the logistics service provider to offer immediate updates on claims filing, shipping notices and delivery confirmations, while shipping order information to back-office applications for billing and financial purposes.
“Logistics service providers must maintain broad industry knowledge and deep vertical software functionality to remain competitive as their customers conduct their business across various regions and industries,” said Peter Kirschbauer, member of the extended management board, SAP AG. “SAP’s solution set draws upon our deep expertise and best practices to help companies collaborate with partners and deliver effectively to a diverse client base while keeping operating costs low and driving improved customer satisfaction.”

Source: SAP AG

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